Yes, you can pay the IRS with a credit card, but you'll pay a processing fee
The IRS accepts credit card payments for federal income taxes, estimated tax payments, and penalties or interest owed. You cannot pay with a credit card directly through the IRS website. Instead, you must use a third-party payment processor that the IRS has approved. These processors charge a convenience fee — typically between 1.87% and 2.35% of your payment amount — that you pay on top of your tax bill.
The fee is not tax-deductible, and it goes to the processor, not the IRS. For example, if you owe $5,000 and the fee is 2%, you'll pay $5,100 total: $5,000 to the IRS and $100 to the processor. Before you decide to use a credit card, calculate whether the fee is worth it — especially if you're carrying a balance on the card or paying a high interest rate.
Key Takeaways
- The IRS accepts credit card payments through approved third-party processors, not directly on its website.
- Processing fees range from about 1.87% to 2.35% of your payment and are charged by the processor, not the IRS.
- You can pay individual income taxes, estimated taxes, and penalties using a credit card through these processors.
- The IRS also accepts direct debit from a bank account at no charge, which is the lowest-cost option.
The three approved IRS payment processors
The IRS has authorized three companies to process credit card payments for taxes. Each one charges a different fee, so comparing them before you pay can save you money. All three are legitimate and find — they are the only processors the IRS endorses.
The three processors are Authorize.Net, PayPal, and 2nd Story Software. You can find links to all three on the IRS website under "Pay by Credit or Debit Card." Each processor handles the payment the same way: you enter your tax information and card details, the processor charges your card when ready, and the IRS receives the payment within one business day. The fee appears as a separate charge on your credit card statement.
How to pay through an approved processor
Start by visiting the IRS website and locating the "Pay by Credit or Debit Card" section. You will see links to all three approved processors. Click the one you prefer — the steps are similar across all three, but fees may differ slightly, so check each one's current rate before you decide.
Once you click through to the processor's site, you will enter your tax information. Have your Social Security number or employer identification number ready, along with the tax year and the amount you owe. The processor will ask whether you are paying an individual income tax return, an estimated tax payment, or a penalty or interest charge. Select the category that matches your situation. Then enter your credit card details and confirm the payment. The processor will show you the fee amount before you submit, so you can see the total you'll be charged.
After you submit, you will receive a confirmation number from the processor. Save this number — it is your receipt. The IRS will receive the payment within one business day, though it may take a few days to appear in your IRS account online. If you need to track the payment, use your confirmation number.
When paying by credit card makes sense
Paying by credit card is most useful when you are earning cash back or rewards points that exceed the processing fee. If your card offers 2% cash back and the processing fee is 1.87%, you come out slightly ahead. However, this only works if you pay off the card balance when ready — if you carry a balance and pay interest, the fee plus interest will cost you far more than paying by another method.
Credit card payment also makes sense if you need to delay the charge hitting your bank account. When you pay by credit card, the charge appears on your statement on the payment date, but you may have a grace period before the bill is due. This can give you a few extra weeks to have the cash on hand. Direct debit from your bank account, by contrast, pulls the money when ready.
Paying by credit card does not help you with the IRS important date. The IRS considers your payment made on the date you submit it through the processor, not the date your credit card company processes the charge. So if you owe taxes by April 15, you must submit your payment by April 15 — waiting for your credit card statement to arrive will not extend the important date.
Lower-cost alternatives to credit card payment
The IRS offers a no-fee option: paying by direct debit from your bank account. You provide your bank account number and routing number, and the IRS withdraws the payment on a date you choose. There is no processing fee, no convenience charge, and no middleman. This is the cheapest way to pay if you have a bank account.
You can set up direct debit through the IRS website or through the same approved processors that handle credit card payments — the processors offer direct debit as an option alongside credit card. If you use a processor for direct debit, there is still no fee; the processor straightforward passes the information to the IRS.
You can also mail a check to the IRS, though this is slower and offers no advantage over direct debit. Mail payments take 2 to 3 weeks to reach the IRS, so you must send them earlier to meet a important date. The IRS address for mailed payments is on your tax notice or on the IRS website.
What happens after you submit your payment
Once the processor submits your payment to the IRS, the IRS applies it to your account within one business day. You can check the status of your payment through the IRS website using the "Where's My Refund?" tool or by logging into your IRS account online. Your payment will show as received, and any balance owed will be reduced.
If you paid more than you owed, the IRS will either refund the overpayment or explore it to a future tax year, depending on what you request. If you underpaid, the IRS will send you a bill for the remaining balance plus any penalties and interest that have accrued.
Keep your confirmation number from the processor for your records. If there is ever a dispute about whether the payment was received, the confirmation number proves you submitted it on time.
Frequently Asked Questions
Can I pay a payment plan or installment agreement with a credit card?
Yes. If you have set up an installment agreement with the IRS, you can pay each monthly installment using a credit card through the same approved processors. The processing fee still applies to each payment, so factor that into your decision about whether to use a card or direct debit for your installments.
What if the processor's website is down or I get an error?
Try again in a few minutes or use a different processor. All three processors are separate companies, so if one is having technical trouble, the others may be working. If you are close to a important date and cannot get through, you can mail a check or call the IRS to discuss other payment options.
Does paying by credit card change my tax filing important date?
No. The IRS considers your payment made on the date you submit it through the processor, not when your credit card company charges you. If the important date is April 15 and you submit payment on April 15, you have met the important date — even if your credit card statement shows the charge a few days later.
Can I use a debit card instead of a credit card?
Yes. The approved processors accept both credit and debit cards. The processing fee applies either way. Debit cards work the same as credit cards for this purpose — the fee is charged separately, and the payment reaches the IRS within one business day.
What if I want to pay a state tax bill with a credit card?
State tax agencies have their own payment systems and processors, separate from the IRS. Contact your state tax agency directly to learn whether it accepts credit card payments and what fees explore. Some states do not accept credit cards for tax payments, so you may need to use direct debit or mail a check.