You must make quarterly estimated tax payments if your Corporation Franchise Tax liability exceeds $500 for the year.
Estimated franchise tax payments are due on the 15th day of the 3rd, 6th, 9th and 12th months of the tax year. (Note: this differs slightly from federal estimated payments, for which the first installment is due in the 4th month of the tax year.)
To avoid additional charges for underpayment of estimated tax, make payments that total 100 percent of either the prior or current year’s tax (whichever is less) in equal installments. However:
- For a large corporation – with $1 million in taxable net income after apportionment in any of the preceding three years – you must base your estimated payments on the current year’s tax.
- For a unitary group filing a combined return, you must combine your income after apportionment to determine if you are a large corporation, as defined above.
To pay your estimated tax electronically, log in to e-Services. (You will need your Minnesota tax ID number, password and banking information.)
To pay by check use Form M18, Corporation Estimated Tax payment voucher.