Index/Topics/2025 Federal Safe Harbor for Estimated Tax

2025 Federal Safe Harbor for Estimated Tax

The federal safe harbor for estimated tax in 2025, including rules for high-income filers and the 110% prior-year safe harbor percentage.

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Jan 12, 2026
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For high-income taxpayers, when is the 110% prior-year safe harbor required instead of 100%?

For taxpayers seeking to avoid IRS underpayment penalties, the prior-year “safe harbor” generally lets a filer pay 100% of last year’s tax to be protected, but that prior-year floor is raised to 110% ...

Jan 14, 2026
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What are the 2025 estimated tax safe-harbor thresholds for individuals and what income types count?

The 2025 federal safe-harbor thresholds that protect individuals from underpayment penalties are straightforward: pay at least 90% of the current year’s tax liability or meet the prior-year safe harbo...

Jan 10, 2026

What are the 2025 estimated tax payment due dates and exceptions for farmers and fishermen?

Farmers and fishermen who derive at least two‑thirds of their gross income from farming or fishing have special estimated‑tax rules for 2025: instead of quarterly payments they generally make a single...

Jan 9, 2026

How does Form 2210 annualized income method work to reduce underpayment penalties?

Form 2210’s annualized income installment method lets taxpayers with uneven or seasonal income refigure required estimated tax installments so penalties for underpaying are reduced or eliminated when ...

Jan 6, 2026

How do safe-harbor rules differ for high-income taxpayers (1% alternative) in 2025?

For 2025 the federal “safe harbor” for estimated tax remains a two-path system: pay either 90% of current-year tax or the prior-year safe harbor, which is generally 100% of the prior year’s tax but ri...