Yes, you can pay federal taxes by credit card, but the IRS does not accept cards directly
The Internal Revenue Service does not run its own credit card payment system. Instead, it contracts with third-party payment processors who charge a convenience fee on top of your tax bill. You pay the processor, not the IRS, and the processor sends your payment to the IRS on your behalf. The convenience fee is a percentage of the amount you are paying — typically between 1.87% and 2.35% depending on which processor you use — and it is added to your total cost.
This means paying taxes by credit card will cost you more than paying by check, bank transfer, or direct debit. A $10,000 tax payment could cost you $187 to $235 extra. You should only use a credit card if the rewards or cash back you earn exceed the convenience fee, or if you have no other way to pay by the deadline.
The IRS approves three payment processors: Paypal Credit Card Payments, Worldpay, and Authorize.Net. Each one charges a different fee and may offer different card types. You choose which processor to use when you start your payment.
Key Takeaways
- The IRS does not accept credit cards directly; you must use an approved third-party processor, which charges a convenience fee of 1.87% to 2.35% on top of your tax payment.
- You can pay federal income tax, estimated tax, and certain other tax types by credit card through the IRS payment portal at IRS.gov.
- The convenience fee is not tax-deductible, so paying by credit card costs more than paying by check, bank transfer, or direct debit.
- Credit card payments are processed immediately, but the IRS may take several days to post the payment to your account.
- You should only use a credit card if the rewards or cash back you earn will cover or exceed the convenience fee.
How to pay taxes by credit card through the IRS
Go to IRS.gov and look for the payment section. The IRS calls this the "Online Payment Agreement" or "Pay Now" option. You will see a list of approved payment processors. Click the one you want to use.
Each processor will ask you for your tax information, the amount you owe, and your credit card details. You will also enter the tax year the payment applies to and the type of tax (income tax, estimated tax, self-employment tax, or other). The processor will calculate and display the convenience fee before you confirm the payment.
After you submit, the processor gives you a confirmation number. Save this number. The processor sends the payment to the IRS, usually within one business day. The IRS then posts it to your account, which can take several more days. During this time, the payment is in transit and may not show on your IRS account yet.
Which credit cards work and what fees you will pay
All three processors accept Visa, Mastercard, American Express, and Discover. Some processors also accept Diners Club. You cannot use a debit card, prepaid card, or business card through the IRS payment system — only personal credit cards.
The convenience fee varies by processor and is not negotiable. As of the most recent update, fees range from 1.87% to 2.35%. The exact fee depends on which processor you choose and the payment method (online, phone, or mobile app). Check the fee before you confirm the payment, because it will be shown on the processor's website.
The fee is charged by the processor, not the IRS. The IRS does not receive any part of it. You cannot deduct the convenience fee as a tax expense on your next return.
When credit card payments post to your IRS account
The processor sends your payment to the IRS within one business day of your submission. However, the IRS takes additional time to post it to your account. Posting typically takes 5 to 7 business days after the processor sends it, which means 6 to 8 business days from the date you made the payment.
During this time, your payment is recorded with the IRS but may not appear in your online account yet. If you need proof that you paid, use the confirmation number from the processor. The IRS recognizes the payment date as the date the processor received it, not the date it posts to your account.
If you are paying to meet a deadline — such as the tax return due date or an extension deadline — the payment date is what matters for penalty purposes, not the posting date. The processor's confirmation number proves when the IRS received your payment.
Why the convenience fee exists and when it makes sense to pay by card
The IRS does not charge the convenience fee. The third-party processors charge it to cover their costs of processing credit card transactions, fraud prevention, and customer service. The IRS allows these fees but does not set them or receive any revenue from them.
Paying by credit card makes financial sense only if you earn rewards or cash back that exceed the fee. For example, if your card earns 2% cash back and the convenience fee is 1.87%, you come out slightly ahead. If your card earns 1.5% cash back and the fee is 2.35%, you lose money.
Calculate the total cost before you pay. Multiply your tax payment by the convenience fee percentage, then compare that to the rewards you would earn. If the rewards are smaller, use a different payment method.
Other ways to pay federal taxes without a convenience fee
The IRS offers several payment methods that do not charge a convenience fee. Direct debit from your bank account is free and is the fastest way to pay. You authorize the IRS to withdraw the amount directly from your checking or savings account on a date you choose. The payment posts within one business day.
Check or money order is also free. Mail it to the IRS address for your state, which you can find on IRS.gov. Processing takes longer — typically 2 to 3 weeks — but there is no fee.
Electronic Federal Tax Payment System (EFTPS) is a free service for businesses and individuals who pay estimated taxes or owe large amounts. You enroll once, then schedule payments online with no fee. EFTPS is the most common method for self-employed people and business owners.
IRS Direct Pay is another free option that lets you pay directly from your bank account through IRS.gov. It works similarly to direct debit but is a one-time transaction rather than a recurring arrangement.
What happens if you cannot pay the full amount by the deadline
If you owe taxes but cannot pay by the deadline, you can still file your return on time and pay later. The IRS charges failure-to-pay penalties and interest on the unpaid balance, but filing on time reduces the penalty. The failure-to-pay penalty is 0.5% of the unpaid tax per month, up to 25%.
You can set up a payment plan with the IRS to pay over time. Short-term plans (120 days or less) have no setup fee. Long-term installment agreements have a setup fee that varies based on how you enroll — typically $31 to $225. These fees are separate from any convenience fee if you pay by credit card.
If you use a credit card to make installment payments, you will pay the convenience fee on each payment, not just once. This makes credit cards even more expensive for payment plans. Direct debit or EFTPS is much cheaper for multiple payments.
Frequently Asked Questions
Can I pay state taxes by credit card through the IRS?
No. The IRS payment system is for federal taxes only. State tax agencies have their own payment systems, and some allow credit cards while others do not. Contact your state tax agency directly to learn what payment methods they accept.
Does the convenience fee count as a deductible business expense?
No. The IRS does not allow you to deduct the convenience fee as a tax expense. If you are self-employed and pay taxes by credit card, you cannot write off the fee on your Schedule C or business return.
What if my credit card payment is rejected?
The processor will notify you immediately. Common reasons include insufficient funds, incorrect card information, or fraud blocks from your card issuer. Contact your card issuer to resolve the issue, then try the payment again. If the deadline has passed, contact the IRS about setting up a payment plan to avoid additional penalties.
Can I pay estimated taxes by credit card?
Yes. The IRS payment system accepts estimated tax payments by credit card through the same processors. The convenience fee still applies. Self-employed people and business owners typically use EFTPS instead because it is free and allows you to schedule multiple payments in advance.
Is there a limit to how much I can pay by credit card?
The IRS does not set a maximum payment amount for credit card transactions. However, your credit card issuer may have limits on single transactions or daily spending. Contact your card issuer if you are paying a large amount and want to confirm the transaction will go through.