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California estimated tax payments: preparing the cash plan
Estimated income tax decisions belong with your CPA. Bookkeeping supports those decisions by providing current results, payment history and a cash plan that reflects California’s uneven installment schedule.
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General information, not legal or tax advice.
Use the California installment pattern
The 2026 instructions allocate the required annual payment as 30%, 40%, no required third installment and 30%. The listed dates are April 15, June 15 and September 15, 2026, then January 15, 2027. Preserve the distinction between a listed installment date and whether that installment requires a payment.
Sources: FTB 2026 Form 540-ES Instructions
Have the CPA determine the required amount
FTB rules use expected tax, withholding, credits and prior-year information, with additional rules for higher incomes. Give your adviser current profit reports and payment confirmations. A reserve based on a flat share of revenue may be useful for planning, but it is not the state’s required-payment calculation.
Sources: FTB 2026 Form 540-ES Instructions
Keep federal and state instructions separate
Federal estimated-tax guidance uses its own thresholds and payment periods, including a September payment date. Do not copy the California installment percentages into the federal worksheet. Maintain separate payment instructions and confirmation records so the CPA can reconcile each jurisdiction accurately.
Sources: IRS - Estimated Taxes / Pub 505 (2026); IRS Pub 505 (2026)
Plan for electronic payments and uneven income
California requires electronic payment after the specified estimate or extension payment exceeds $20,000 or an original return shows liability over $80,000. FTB also describes annualization for uneven income using form FTB 5805. Ask your CPA which rules apply before scheduling the approved payments.
Sources: FTB 2026 Form 540-ES Instructions
Sources: use the California installment pattern
Give your CPA current planning records
Tidwell helps reconcile the books and organize supporting schedules for your business decisions. We work with your CPA on tax questions and the financial records they need.