Locksmith Estimated Taxes: Quarterly Payments and Emergency Call Planning
Locksmiths have more stable revenue throughout the year than most trades. People get locked out in every season, locks break year-round, and commercial clients need service regardless of weather. There’s a mild uptick in residential calls during moving season (May-September) and a bump around the holidays (people lock themselves out of their homes while traveling), but the monthly variance is typically under 15-20%. This makes equal quarterly estimated tax payments a straightforward approach. The main complicating factor is Year 1 equipment depreciation, which can eliminate the tax liability entirely, followed by a jump in Year 2 when the depreciation is gone.
Locksmith estimated tax planning:
- Revenue stability: among the most consistent of the trades. Monthly variance typically 10-20%.
- Year 1 (startup with equipment): bonus depreciation on van, key machine, and transponder programmer likely creates an NOL. No estimated payments needed.
- Year 2+: prior-year safe harbor works well. Equal quarterly payments match the stable revenue.
- Set-aside rate: 25-30% of net income (after vehicle expenses and materials)
- Emergency/after-hours premium: calls after hours at $200-$400+ have 80%+ margins. Set aside 30%+ of these since they’re nearly all profit.
- Automotive vs. residential mix: automotive work (transponder keys, lockouts) is higher margin and less seasonal than residential. A shift toward automotive increases profitability and tax liability.
Per-job set-aside approach:
- Standard residential call ($120): set aside $35
- Automotive lockout ($150): set aside $45
- Transponder key ($200): set aside $60
- After-hours emergency ($300): set aside $100
- This automatically scales with revenue
How should a locksmith plan quarterly payments?
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Yarik Yarosh, CPA. "Locksmith Estimated Taxes: Quarterly Payments and Emergency Call Planning." Blue Cloud CPA, September 5, 2026. https://bluecloudcpa.com/guides/locksmith-service-estimated-taxes
This guide is general information, not tax advice for your specific situation. Which points apply, and how, depends on your facts.