Who should make estimated payments for personal income tax?

Effective 2024: The income threshold was increased from $8,000 to $9,500. This amount will continue to increase as shown on the table below over the next five years:

For tax years 2023 and prior: If you expect more than $8,000 of PA taxable income in the tax year, which will not be subject to employer withholding (interest, dividends, gains, self-employment income), you must make PA Estimated Tax installment payments. This provision is part of the law governing the personal income tax. [61 Pa. Code subsection 115.9(a)].

If no estimated payments are made, you must pay the full amount due with your PA income tax return and you are subject to an underestimated payment penalty.

To avoid this penalty, you can make estimated payments equal to the safe harbor amount by:
* making four equal timely estimated payments or a payment in the first quarter which is equal to 100 percent of last year's total taxable income multiplied by the current year's rate. To use this safe harbor method, the taxpayer must have filed a full year return in the prior year.

For example: If last year's total income was $20,000 and this year's tax rate is 3.07 percent, your safe harbor amount is $614.00 ($20,000 times .0307) Therefore, you should make four equal payments of $153.50.
* making estimated payments equal to at least 90% of your tax due for each quarterly period of the tax year.

If you received your income unevenly and you did not make equal payments throughout the year, you may have to claim your safe harbor by completing a REV-1630.

Payments made after December 31, 2021 for personal income tax payments equal to or greater than $15,000 must be made electronically. Payments not made electronically will be subject to a penalty equaling 3 percent of the payment amount not to exceed $500.

You can make your payment electronically using our online portal at myPATH.pa.gov or use Form PA-40ESR to make your initial estimated payment. The mailing address for estimated payments is:

PA Department of Revenue
Bureau of Imaging & Document Management
P.O. Box 280403
Harrisburg, PA 17128-0403

Beginning tax year 2020, the department no longer mails certain forms and instructions related to estimated tax and nonresident withholding. You may download forms from our website. Also your PA-40 tax return can now also be safely, securely, and quickly electronically filed via the PA tax portal myPATH.