Yes, you can pay federal income taxes with a credit card, but it will cost you a fee
The IRS accepts credit card payments for federal income taxes through third-party payment processors. You cannot pay directly to the IRS with a card — instead, you use one of three approved processors: ACI Payments, Paymetrics, or Official Payments. Each processor charges a convenience fee that ranges based on your payment amount and the processor you choose. The fee is separate from your tax bill and is not deductible.
The real question is whether paying by credit card makes financial sense for you. If you're carrying a balance on your card at 18% or higher interest, the convenience fee plus interest charges will cost you more than just paying from your bank account. But if you're paying the card off immediately and earning rewards, or if you have no other way to pay right now, a credit card can work.
You can pay federal income taxes, estimated taxes, and certain penalties and interest this way. You cannot use a credit card to pay state taxes through the IRS system — each state runs its own payment system, and most do not accept credit cards at all.
Key Takeaways
- The IRS uses three approved payment processors — ACI Payments, Paymetrics, and Official Payments — and each charges a separate convenience fee on top of your tax bill.
- Convenience fees typically range from about 1.87% to 2.35% of your payment, depending on which processor you use and your payment method.
- You pay the fee to the processor, not to the IRS, and it cannot be deducted from your taxes or added to your bill.
- Paying by credit card only makes sense if you are paying off the balance immediately or earning enough rewards to cover the fee.
- You must pay federal taxes through one of the three approved processors — you cannot charge your taxes directly to a credit card at an IRS office or online.
How the three payment processors work and what they charge
ACI Payments charges a convenience fee of 1.87% for credit card payments. Paymetrics charges 1.99%. Official Payments charges 2.35%. These percentages are current but can change, so confirm the exact fee when you are about to pay.
On a $5,000 tax payment, the difference between the lowest and highest fee is about $24. On a $10,000 payment, it is about $48. You can see all three processors' current fees on the IRS payment page before you commit to any of them. Each processor also accepts debit cards, and some accept digital wallets like Apple Pay or Google Pay — the fee structure is the same regardless of which card type you use.
The fee is charged by the processor and added to your total charge. You pay the processor directly, not the IRS. The processor then sends your tax payment to the IRS and keeps the fee. This means if you dispute the charge with your credit card company, you are disputing a charge to the processor, not to the IRS.
When paying by credit card actually saves you money
If your credit card earns cash back or points, you might offset the convenience fee. A card that earns 2% cash back on all purchases would cover the fee at ACI Payments (1.87%) and come out slightly ahead. A card earning 1.5% cash back would lose money against the highest-fee processor.
The math only works if you pay off the card immediately. If you carry a balance, the interest you pay will almost certainly exceed any rewards you earn. At a 20% annual interest rate, carrying a $5,000 balance for even one month costs you about $83 in interest — far more than the convenience fee. In that case, you are better off using a payment plan with the IRS or borrowing from someone else.
Some people use a credit card to buy time: they charge the tax to the card, then pay the card off when a paycheck arrives or a loan comes through. This works only if you can pay the card off within the card's grace period (usually 21 to 25 days). If you cannot, you are paying interest on top of the convenience fee, which defeats the purpose.
How to actually make the payment
Go to IRS.gov/payments and select "Pay Now." You will see the three processors listed with their current fees displayed. Click the processor you want to use. You will be taken to that processor's website, where you enter your tax information, card details, and the amount you want to pay.
The processor will show you the total amount you will be charged (your tax bill plus the convenience fee) before you confirm. Review this carefully — this is your last chance to change your mind. Once you confirm, the charge goes through immediately, and you will receive a confirmation number from the processor.
Save your confirmation number. This is your proof of payment. The IRS can take several days to post the payment to your account, so do not assume it has been received just because the processor confirmed it. If you are filing a return, you can reference the confirmation number on your return if needed.
What happens if you cannot afford to pay in full
If you owe taxes but do not have the money right now, a credit card is not your only option — and it may be the most expensive one. The IRS offers a short-term extension (up to 180 days) with no setup fee, and a long-term payment plan (installment agreement) with a setup fee that is usually lower than a credit card convenience fee.
An installment agreement lets you pay your tax bill in monthly chunks. The setup fee ranges from about $31 to $225 depending on how you set it up and your income level. Once approved, you make monthly payments directly to the IRS. This costs less than the convenience fee on a large balance and does not require you to carry a credit card balance.
You can request an installment agreement on IRS.gov, by phone at 1-800-829-1040, or by mailing Form 9465 with your tax return. The IRS will tell you within 30 days whether you are approved.
Debit cards, prepaid cards, and digital wallets
The three processors accept debit cards at the same convenience fee as credit cards. Using a debit card does not save you money — you still pay the fee. The advantage of a debit card is that you cannot accidentally carry a balance, since the money comes directly from your bank account.
Prepaid cards and digital wallets (Apple Pay, Google Pay, Samsung Pay) are also accepted by all three processors. The fee structure is identical. Some people use a prepaid card specifically to keep their tax payment separate from their regular spending, but this is a choice of convenience, not cost.
Frequently Asked Questions
Can I pay my state taxes with a credit card through the IRS?
No. The IRS system only handles federal taxes. State taxes are processed separately by each state's tax agency. Some states accept credit cards, but most do not. You will need to check your state's tax website or contact your state revenue department to find out what payment methods are available.
What if I pay by credit card and then get a refund?
The refund goes back to the IRS, not to your credit card processor. The IRS will refund your tax payment, but the convenience fee you paid to the processor is not refunded — that fee is kept by the processor. You will need to contact the processor separately if you believe the fee was charged in error.
Can I use a business credit card to pay my personal federal taxes?
Yes, you can use any credit card to pay federal taxes through the approved processors. The card does not have to be in your name or be a personal card. However, you are responsible for the convenience fee regardless of which card you use, and the payment is still tied to your Social Security number or tax ID.
How long does it take for the IRS to receive my payment?
The processor sends your payment to the IRS immediately, but it can take several business days for the IRS to post it to your account. You should see it reflected in your IRS account within 5 to 7 business days. Your confirmation number from the processor is proof of payment if there is a delay.
What if I need to pay taxes but do not have a credit card?
You can pay by bank transfer, check, money order, or electronic federal tax payment system (EFTPS). Bank transfer is free and immediate. Check or money order takes longer but has no fee. EFTPS is also free and is designed for regular tax payments. Visit IRS.gov/payments to see all available methods.