You can pay the IRS with a credit card, but only through two authorized payment processors

The IRS does not accept credit cards directly. Instead, you must use one of two third-party payment processors: PayUSAtax or 2nd Story Software. Both charge a convenience fee on top of your tax payment — typically between 1.87% and 2.35% of the amount you pay, depending on which processor you use and which card type you submit.

The payment goes to the IRS, but the processor keeps the fee. This means paying a $5,000 tax bill with a credit card will cost you roughly $94 to $118 in fees alone. You should only choose this route if the rewards you earn on the purchase outweigh the convenience fee, or if you genuinely cannot pay by other means and need to spread the cost across a billing cycle.

Both processors are legitimate and authorized by the IRS. You can find links to them on the official IRS website under "Payment Options" or by searching for "IRS credit card payment" on irs.gov. The payment posts to your IRS account within one business day.

Key Takeaways

  • The IRS works with PayUSAtax and 2nd Story Software as the only two credit card payment processors, and both charge a convenience fee between 1.87% and 2.35% of your payment amount.
  • A $5,000 tax payment will cost you $94 to $118 in processor fees on top of the tax itself, so the math only works if your card's rewards rate covers that cost.
  • You can pay your full tax bill or set up a payment plan through either processor, and the payment reaches the IRS within one business day.
  • Using a credit card for taxes does not change your payment deadline or add interest — the IRS treats a credit card payment the same as a check or bank transfer once it arrives.

When paying with a credit card actually makes financial sense

The convenience fee is the deciding factor. If you use a card that earns 2% cash back on all purchases, a $5,000 payment nets you $100 in rewards but costs $94 in fees — a net gain of $6. If your card earns 1.5% cash back, you earn $75 but pay $94, leaving you $19 in the red. The math only works if your rewards rate is higher than the processor fee.

Some people pay with a credit card to buy time. If you owe $10,000 but only have $3,000 in the bank, you can charge the full amount to a card with a 0% introductory APR period, then pay down the card balance over the promotional window without interest. You still pay the convenience fee upfront, but you avoid the IRS's failure-to-pay penalty (currently 0.5% per month) while you gather funds. This only works if you can pay off the card before the promotional rate ends.

Do not use a credit card payment simply because you cannot afford to pay. If you owe more than you can handle, contact the IRS directly about a payment plan or offer in compromise. The IRS charges interest and penalties on unpaid balances, and adding credit card interest on top of that creates a much larger debt.

How to submit a payment through PayUSAtax or 2nd Story Software

Both processors work the same way. Go to the IRS website, find the payment processor link under "Payment Options," and click through to the processor's site. You will need your Social Security Number or Employer Identification Number, your tax year, and the amount you want to pay. You can pay a balance due from a past return or make an estimated payment for the current year.

Enter your credit card information on the processor's secure form. The processor will show you the exact convenience fee before you confirm the payment. Review it carefully — this is your last chance to back out. Once you submit, the charge posts to your credit card immediately, and the payment itself reaches the IRS within one business day.

You will receive a confirmation number from the processor. Save this number. It is not your IRS receipt — the IRS will send you a separate notice showing the payment posted to your account. The processor's confirmation proves you paid and when, which matters if there is ever a dispute about whether the payment arrived on time.

Convenience fees and how they compare between processors

PayUSAtax charges 1.87% for Visa, Mastercard, and Discover, and 2.35% for American Express. 2nd Story Software charges 1.87% across all card types. The difference is small but real: on a $10,000 payment, PayUSAtax costs $187 for Visa but $235 for Amex, while 2nd Story costs $187 regardless of card type.

Neither processor offers a discount for paying a larger amount. The fee is always a percentage of what you pay, so there is no advantage to bundling multiple years' taxes into one payment. If you owe for 2022 and 2023, you can pay each year separately or together — the fee structure stays the same.

The processor fee is not tax-deductible. The IRS treats it as a personal expense, not a business expense, even if you are self-employed. Some tax software will ask if you paid a convenience fee and offer to add it to your deduction, but the IRS does not allow this. Only the actual tax payment reduces your tax liability.

Payment plans as an alternative to credit card payments

If you cannot pay your full tax bill, the IRS offers short-term and long-term payment plans. A short-term plan lets you pay in full within 180 days with no setup fee. A long-term installment agreement lets you pay over months or years and costs $31 to $225 to set up, depending on how you set it up (online is cheaper than by phone or mail).

A payment plan does not eliminate interest and penalties, but it stops the failure-to-pay penalty from growing while you pay. The interest rate is set by the IRS quarterly and is currently around 8% per year, charged daily on your unpaid balance. A payment plan is almost always cheaper than putting the tax on a credit card at a typical card APR of 18% to 24%.

You can set up a payment plan directly on the IRS website, by phone at 1-800-829-1040, or through a tax professional. The online route is fastest and requires no phone call. The IRS will tell you the monthly payment amount based on how long you want to pay.

How credit card payments affect your tax record and payment deadline

The IRS records a credit card payment the same way it records any other payment. It does not matter to the IRS whether you paid by check, bank transfer, or credit card — the payment posts to your account and reduces what you owe. Your payment deadline does not change, and paying with a credit card does not give you extra time.

If your tax return is due April 15 and you charge the payment to a credit card on April 14, the IRS considers it paid on time as long as the processor submits it by the end of April 15. The processor handles the timing, not you. Both PayUSAtax and 2nd Story process payments the same day you submit them, so there is no delay on their end.

If you miss the deadline and the IRS assesses a failure-to-pay penalty, paying with a credit card afterward does not erase the penalty. The penalty is based on how late you were, not how you eventually paid. The only way to remove a penalty is to request penalty relief from the IRS, which requires showing reasonable cause for the late payment.

Disputing a charge or fixing a payment error

If the processor charged your card but the IRS never received the payment, contact the processor first, not the IRS. The processor has a record of what happened and can trace the payment. PayUSAtax and 2nd Story both have customer service lines on their websites. Have your confirmation number ready.

If you paid the wrong amount or paid for the wrong tax year, you can contact the IRS to request a refund or credit. The IRS will not reverse a credit card charge — that is between you and the processor — but the IRS can move the payment to the correct year or refund the overpayment. Call 1-800-829-1040 or use the IRS website to check your account and see where the payment posted.

If you dispute the charge with your credit card company, the processor and IRS will both be notified. This can delay the payment posting to your IRS account. It is faster to resolve the issue directly with the processor or IRS first.

Frequently Asked Questions

Can I pay estimated taxes with a credit card?

Yes. Both PayUSAtax and 2nd Story accept estimated tax payments. You will need your Social Security Number or EIN and the tax year. The convenience fee applies to estimated payments the same way it applies to payments on a balance due.

What if I want to pay my state taxes with a credit card too?

State tax agencies have their own payment processors and rules. Some states accept credit cards, others do not. Check your state's tax website or contact your state tax department directly. The IRS payment processors only handle federal taxes.

Does paying with a credit card count as a payment plan?

No. A credit card payment is a single payment, even if you later pay off the card balance over time. The IRS sees the full amount as paid on the day you submit it. If you need to spread payments over months, you must set up an official IRS payment plan, not use a credit card.

Can I use a debit card instead of a credit card?

Both processors accept debit cards, and the convenience fee is the same. However, using a debit card defeats the main advantage of paying with a credit card — the rewards. A debit card payment costs the fee but earns no rewards, making it more expensive than paying by bank transfer or check.

What happens if my credit card is declined?

The processor will tell you immediately that the charge failed. Your card issuer may have declined it for fraud protection or insufficient credit. Contact your card issuer to find out why, then try again. The processor will not charge you a fee for a failed attempt.