How do I calculate and pay California estimated taxes for my freelance or self-employment income?

To pay California estimated taxes, you must calculate your expected annual income, determine the tax owed using Form 540-ES, and submit payments to the Franchise Tax Board (FTB) in four quarterly installments. Here's how to calculate and pay your estimated taxes: Step 1: Estimate Your Total Annual Income Project your gross income from all freelance and self-employment work for the year. Subtract your anticipated business expenses (such as supplies, software, and home office costs) to find your estimated net self-employment income. Add this to any other taxable income you expect to receive. Step 2: Calculate Your Estimated Tax Use the worksheet included with California Form 540-ES, "Estimated Tax for Individuals." This form will guide you in calculating your total projected California income tax liability for the year based on your estimated income and any available deductions or credits. You can find this form on the California Franchise Tax Board (FTB) website. Step 3: Determine Your Required Annual Payment To avoid an underpayment penalty, you must pay the lesser of: 90% of your current year's tax liability, or 100% of the tax shown on your prior year's California tax return. However, if your prior year's adjusted gross income was over $150,000 ($75,000 if married/RDP filing separately), you must pay at least 110% of your prior year's tax to use this "safe harbor" method. Step 4: Pay Your Quarterly Installments Divide your required annual payment by four and pay it in quarterly installments. The payment due dates are April 15, June 15, September 15, and January 15 of the following year. You can make payments online via FTB Web Pay, by credit card, or by mailing a check with the appropriate Form 540-ES payment voucher. Important considerations: If your income fluctuates, you should re-evaluate your estimate each quarter and adjust your payments accordingly to avoid a penalty. These payments are for California state taxes only and are separate from your federal estimated tax obligations, which are paid to the IRS. Note: Failure to pay enough tax by the quarterly due dates can result in penalties for underpayment, as specified in California Revenue and Taxation Code Section 19136. Keep accurate and organized records of all your income and expenses. This is general information and does not constitute legal advice. For complex situations or personalized tax planning, consult with a qualified California tax professional or attorney.