Yes, you can pay federal income taxes with a credit card, but a processor fee makes it more expensive than paying by check or bank transfer
The IRS accepts credit card payments for federal income taxes through third-party payment processors. You can pay your bill online in minutes, but the processor charges a fee — usually between 1.87% and 2.35% of your payment — that you pay on top of your tax bill. If you owe $5,000 and pay by credit card, you might add $94 to $118 in fees. That fee is not tax-deductible.
The only reason to use a credit card is if you're earning rewards points that outweigh the fee, or if you genuinely have no other way to pay right now. For most people, paying by bank transfer (called an electronic federal tax payment system, or EFTPS) or mailing a check costs nothing and is faster than you might think.
Key Takeaways
- The IRS does not process credit card payments directly — you pay through one of three approved processors (Worldpay, Paymetrics, or Global Payments), each charging a different fee.
- Processor fees range from roughly 1.87% to 2.35% of your payment and are added to your bill, not covered by the IRS.
- EFTPS (electronic bank transfer) is free and can be set up in minutes at eftps.gov, making it the cheapest option for most people.
- Paying by credit card only makes financial sense if your card's rewards rate is higher than the processor fee you'll pay.
- If you're filing late or owe money you weren't expecting, credit card payment lets you pay immediately without waiting for a bank transfer to clear.
Which processors the IRS works with and what each charges
The IRS contracts with three payment processors to handle credit card tax payments. You choose which one to use when you go to pay, and each processor sets its own fee. The three are Worldpay, Paymetrics, and Global Payments. As of now, fees range from about 1.87% to 2.35%, but processors can change their rates, so check the current fee before you commit to paying.
You reach all three through the same place: the IRS payment page at irs.gov/payments. When you enter your tax amount, the site shows you each processor's current fee in dollars and cents before you confirm the payment. Do not pay until you see the exact fee. If the fee seems high, you can step back and choose a different payment method instead.
The fee is not negotiable and does not change based on how much you owe. A $1,000 payment and a $10,000 payment are charged the same percentage, so the larger your bill, the larger your fee in actual dollars.
When paying by credit card makes sense financially
Credit card rewards are the only reason the fee might be worth it. If your card earns 2% cash back on all purchases, and the processor fee is 1.87%, you come out ahead by 0.13% — not much, but positive. If your card earns 3% back on certain categories and you can charge your taxes to that category, you might come out further ahead. The math only works if your rewards rate is genuinely higher than the fee you'll pay.
Before you pay, calculate it: multiply your tax bill by the processor fee percentage, then multiply your tax bill by your card's rewards rate. If the rewards amount is larger than the fee amount, the credit card wins. If not, you're paying extra for nothing.
This strategy also only works if you pay off the credit card bill immediately. If you carry a balance and pay interest, the interest will erase any rewards gain. Credit card interest rates are usually 15% to 25% per year — far higher than any rewards rate.
How to pay taxes by credit card step by step
Go to irs.gov/payments and select "Pay with a credit or debit card." You'll need your Social Security number or employer identification number, your tax filing status, and the amount you owe. Have your most recent tax return nearby so you can answer questions about your filing.
The site will show you the three processors and their current fees. Click the one you want to use. You'll be taken to that processor's secure payment page, where you enter your card number, expiration date, and billing address. The processor will show you the final amount due (your tax bill plus the fee) before you submit.
After you pay, you'll receive a confirmation number immediately. Write it down or save the email. The IRS will receive your payment within one business day. If you're paying close to the tax deadline, pay at least one business day before the deadline — do not wait until the last day.
Free alternatives that are faster than you think
EFTPS (Electronic Federal Tax Payment System) is the IRS's own free payment system. You set it up at eftps.gov with your Social Security number, and you can schedule a payment to go out the same day or up to 120 days in advance. There is no fee. The payment clears in one business day. If you know you'll owe taxes next year, setting up EFTPS now takes 10 minutes and saves you money every time you pay.
You can also pay by check or money order through the mail. Write your Social Security number, tax year, and form number on the check, include a payment voucher (form 1040-ES for individuals), and mail it to the IRS address for your state. The IRS publishes these addresses on irs.gov. A mailed check takes longer to process — usually 2 to 3 weeks — but costs nothing and works if you don't have online access.
If you're filing a tax return and owe money, you can authorize the IRS to withdraw the payment directly from your bank account when you file. This is free and happens automatically on the date you choose. You don't have to think about it again.
What happens if you can't pay the full amount right now
If you owe taxes but don't have the money, the IRS offers payment plans. You can set up a short-term plan (120 days or less) for free, or a long-term installment agreement that charges a setup fee (usually $31 to $225, depending on how you set it up). These plans let you pay over time without using a credit card.
Some people use a credit card to pay their taxes now, then pay off the credit card over time. This works only if your credit card's interest rate is lower than the IRS penalty and interest on unpaid taxes — which is rare. The IRS charges about 8% per year in interest plus penalties. Most credit cards charge 15% to 25%. You're usually better off setting up an IRS payment plan.
If you're in genuine hardship, the IRS has hardship programs that can pause collection or lower your payment. These are not the same as a payment plan. Contact the IRS directly at 1-800-829-1040 to discuss your situation.
State and local taxes: different rules, different processors
This article covers federal income taxes only. State and local taxes have their own payment systems and rules. Some states accept credit card payments through their own processors; others do not. Some charge a fee; others don't. You need to check your state's tax authority website directly.
If you owe both federal and state taxes, do not assume the federal processor will handle state taxes. Pay each separately through the correct system. Your state tax website will have a "pay taxes" or "make a payment" link that takes you to the right place.
Frequently Asked Questions
Can I use a debit card instead of a credit card?
Yes. The IRS processors accept both credit and debit cards. The fee is the same either way. Using a debit card avoids interest charges if you can't pay off a credit card balance, but you still pay the processor fee.
What if I pay by credit card but then file an amended return and owe more?
You'll need to make a second payment for the additional amount owed. Each payment is processed separately and charged its own fee. If you think you might owe more, consider waiting to file until you're certain of the amount, or pay the estimated amount and file an amended return later if needed.
Does the credit card company report this as a purchase or a cash advance?
Tax payments are reported as regular purchases, not cash advances. You won't be charged a cash advance fee. However, some cards don't earn rewards on government payments — check your card's terms to confirm you'll actually earn the points you're counting on.
Can I use someone else's credit card to pay my taxes?
Technically yes, but the IRS will send all notices and correspondence to the address on your tax return, not to the cardholder. If you use someone else's card, make sure you're the one receiving all IRS mail so you don't miss payment deadlines or notices.
What if the payment processor's website is down on the deadline?
If you can't reach the processor's site, pay by check or EFTPS instead. Mail a check postmarked by the deadline, or set up EFTPS and schedule the payment to go out before the deadline. The IRS considers a payment timely if it's postmarked by midnight on the deadline date.