Ohio Estimated Tax Payments
Content provided for general information. Talk to your advisor to learn about recent updates or other rules that may apply to your situation.
Ohio has similar estimated tax payment rules to the IRS except there is a lower amount of tax owed where you need to make quarterly payments.
Who has to make estimated tax payments in Ohio?
You generally need to make estimated tax payments in Ohio if:
- You have income with no taxes withheld, and
- You’ll owe more than $500 when you file your state tax return
If you live in a city with an income tax, you’ll generally need to pay estimated taxes to your city if you’ll owe more than $200 when you file your city tax return.
One of the most common situations where you’ll need to pay estimated taxes is if you’re an independent contractor in a job like Instacart or Uber.
You may also need to make estimated tax payments for investment income if your broker doesn’t withhold taxes.
When are Ohio estimated tax payments due?
Ohio uses the same due dates as IRS estimated tax payments.
- Quarter 1: April 15th
- Quarter 2: June 15th
- Quarter 3: September 15th
- Quarter 4: January 15th
If the due date falls on a weekend or holiday, that payment is usually due on the next business day.
What happens if you don’t pay estimated taxes?
If you don’t pay estimated taxes or don’t pay enough, you’ll have to pay a penalty. The penalty starts when the estimated tax payment was due not the due date to file your tax return.
How do I calculate my estimated taxes?
To calculate your estimated taxes, subtract your tax withholding from your total tax liability. Divide the amount of tax not covered by withholding by four.
If your income is consistent each year, you can usually use your previous year tax return to get a good estimate.
If your income varies, you may need to figure out your marginal tax rate and set aside that percentage from your income with no tax withholding.
Can I pay my estimated taxes all at once?
If you’ll only owe a small amount of estimated taxes, you may find it easier to pay all at once. That’s OK as long as you pay on or before the due date.
For example, if you need to pay $1,000 for the year, you can pay $1,000 in Quarter 1 instead of paying $250 per quarter. If you try to pay at once in Quarter 2 or later, you’ll probably owe a penalty for the missed quarters.
Note: For income taxes, you usually don’t get a discount or receive interest for paying early. The main benefit is to make things easier for you.
What happens if you pay too much in estimated taxes?
If you pay too much in estimated taxes, you can get a refund when you file your tax return.
You usually can’t request a refund before you file your tax return even if you believe you overpaid by a lot.