California Estimated Tax: The 30/40/0/30 Schedule Trap You Need to Avoid
Q2 Deadline: June 16, 2026
If you are self-employed or earn income through an LLC or S-Corp, California's second quarter estimated tax payment is due June 16, 2026 (moved from June 15, which falls on a Sunday). This installment requires 40% of your annual estimated tax — not the 25% you might expect.
Federal vs. California: Completely Different Schedules
Many taxpayers assume California follows the same quarterly 25/25/25/25 split as the IRS. This mistake leads to underpayment penalties. Here is how the two schedules compare:
| Quarter | Federal (IRS) | California (FTB) |
|---------|--------------|------------------|
| Q1 (Apr 15) | 25% | 30% |
| Q2 (Jun 16) | 25% | 40% |
| Q3 (Sep 15) | 25% | 0% |
| Q4 (Jan 15) | 25% | 30% |
California requires no payment in Q3, but demands 70% of the annual total by the end of Q2. If you follow the federal schedule and only pay 50% by Q2, the FTB will assess penalties and interest on the shortfall.
Who Gets Caught?
- First-time self-employed business owners who follow the federal rhythm
- Taxpayers using national tax software that does not flag California's unique schedule
- Business owners who recently moved to California from another state
- Those whose accountant handles federal returns but leaves state payments to the client
How to Calculate Your Payment
The simplest safe harbor method: take your total California tax liability from last year and split it 30/40/0/30 across four installments. As long as each payment is made on time and in full, you will avoid penalties.
If your income is expected to be significantly higher this year, recalculate based on projected earnings.
Do Not Forget the LLC Minimums
California-registered LLCs owe a minimum $800 annual franchise tax, separate from estimated tax payments. LLCs with gross income exceeding $250,000 also owe an additional LLC fee, which is also due in mid-June.
Action Items
- Calculate your full-year estimated state tax liability
- Confirm that your Q1 payment covered at least 30%
- Pay 40% (Q2) by June 16
- Use FTB's website or Web Pay for the fastest online payment
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*This article is for general informational purposes only and does not constitute personalized tax advice. Verify all amounts and deadlines with the California Franchise Tax Board and consult a qualified tax professional.*
FAQ
Is California's estimated tax schedule really different from the federal one?
Yes. The IRS uses an even 25/25/25/25 split each quarter, while California requires 30% in Q1, 40% in Q2, 0% in Q3, and 30% in Q4.
How much is due for Q2, and when?
Q2 requires 40% of your annual estimated tax, due June 16, 2026 (moved from June 15, which falls on a Sunday).
What happens if I follow the federal 25% pace for California payments?
By the end of Q2 you'd have only paid 50%, but California requires 70% cumulative by that point. The FTB will assess penalties and interest on the shortfall.
How do I calculate my safe harbor payment?
Take your total California tax liability from last year and split it 30/40/0/30 across the four installments; paying each on time and in full avoids penalties. If this year's income is expected to be much higher, you can recalculate based on projected earnings instead.
Does my LLC owe anything besides estimated tax?
Yes. California-registered LLCs owe a minimum $800 annual franchise tax separate from estimated tax payments, and LLCs with gross income over $250,000 also owe an additional LLC fee, also due in mid-June.