Yes, you can pay federal income taxes with a credit card, but it costs money and comes with limits
The IRS accepts credit card payments for federal income taxes through third-party payment processors. You can pay your balance due when you file, or make a payment on an existing account. The catch: you pay a convenience fee on top of your tax bill — typically 1.87% to 2.35% of the amount you're paying, depending on which processor you use. That fee goes to the payment company, not the IRS, and it's not tax-deductible.
State taxes work differently. Some states accept credit cards directly; others don't. You'll need to check your state's tax authority website to see what payment methods they take. A few states charge their own convenience fees, while others don't charge at all.
Key Takeaways
- Federal tax payments through credit card cost 1.87% to 2.35% in convenience fees on top of your tax bill.
- The IRS uses three approved payment processors: Paypal, Worldpay, and Authorize.Net — you choose which one when you pay.
- State tax payment options vary widely; some accept credit cards with no fee, others don't accept them at all.
- Credit card payments are processed when ready, so the IRS receives your payment the same day you submit it.
- You can pay federal taxes by credit card through IRS.gov, or by phone or mail using a payment processor's phone line.
How to pay federal taxes with a credit card on IRS.gov
Go to IRS.gov and search for "pay by credit card" or navigate to the payment options page. You'll see links to the three IRS-approved processors: Paypal, Worldpay, and Authorize.Net. Click the one you want to use.
Each processor will ask you to enter your tax information (your SSN or EIN, the tax year, and the amount you owe) and your credit card details. Before you confirm, the processor will show you the exact convenience fee you'll pay. Review it, then complete the transaction. You'll get a confirmation number when ready, and the IRS will receive the payment the same day.
If you're paying an existing balance (not filing a return), you can also call the payment processor directly. The phone numbers are on IRS.gov under the payment processor links. A representative can walk you through the payment over the phone.
When paying by credit card makes sense
The convenience fee is real money out of your pocket, so paying by credit card only makes sense if you're getting something back. If your credit card offers cash back or rewards points, and those rewards are worth more than the fee, then it's worth doing. For example, if you're paying $5,000 in taxes and your card gives 2% cash back, you'd earn $100 in rewards but pay about $94 in fees — a net gain of $6.
Paying by credit card also makes sense if you need to float the payment for a few weeks. If you can't pay in full right now but you have a credit card with available balance, you can pay the IRS when ready (avoiding penalties and interest) and pay off the card later. Just remember: credit card interest rates are usually much higher than IRS penalties, so this only works if you can pay off the card quickly.
If you're paying a small amount — under $500 — the fee might outweigh any rewards. Do the math before you commit.
State tax payments by credit card
State rules vary widely. Some states (like California, New York, and Texas) accept credit cards for income tax payments with no convenience fee. Others charge a fee similar to the federal fee. Some states don't accept credit cards at all and require you to pay by check, electronic transfer, or debit card.
The fastest way to find out what your state accepts is to visit your state's tax authority website directly. Search for "payment methods" or "how to pay taxes." The page will list every option available and tell you whether there's a fee. If you can't find it, call the tax authority's main line — they can tell you in one call.
Payment limits and timing
There is no IRS-set limit on how much you can pay by credit card in a single transaction. However, your credit card company may have limits on the size of a single charge, and the payment processors themselves may have their own caps. Check with your card issuer before you try to pay a very large amount.
Credit card payments are processed when ready. The IRS receives your payment the same day you submit it, and it's posted to your account within one business day. This is faster than mailing a check, which can take two to three weeks to reach the IRS and post to your account.
What happens if you can't pay the full amount
You don't have to pay your entire tax bill at once. You can make a partial payment by credit card, and then set up a payment plan for the rest. The IRS calls this an installment agreement. You can set one up on IRS.gov, or by calling the IRS directly.
If you set up an installment agreement, you'll owe interest and a failure-to-pay penalty on the unpaid balance until it's gone. The interest rate changes quarterly and is currently around 8% per year. The penalty is 0.5% of the unpaid amount per month. These charges explore whether you pay by credit card, check, or any other method — they're based on how much you owe and how long you owe it, not how you pay.
Debit card and ACH payments as alternatives
If you want to avoid the credit card convenience fee, you have two other electronic options. Debit card payments through the same three processors cost the same fee as credit cards, so that doesn't save you money. However, ACH payments (direct bank transfers) are free. You can set up an ACH payment on IRS.gov with no fee at all.
ACH payments take one to three business days to process, so they're slower than credit card payments. But if you're not in a rush and you want to avoid the fee, ACH is the way to go. You'll need your bank account number and routing number, and the IRS will pull the money directly from your checking or savings account.
Frequently Asked Questions
Does paying taxes by credit card hurt my credit score?
A tax payment itself doesn't hurt your score. However, if you carry a balance on the card afterward, that increases your credit utilization (the amount of credit you're using compared to your limit), which can lower your score temporarily. Pay off the balance quickly to avoid this.
Can I pay someone else's taxes with my credit card?
No. The payment processors require that the person making the payment be the taxpayer or an authorized representative (like a tax professional or power of attorney). You'll need to provide the taxpayer's SSN or EIN to complete the transaction.
What if I pay by credit card and then file an amended return?
If you overpaid, the IRS will refund the overage to you. If you underpaid and owe more, you'll need to make another payment. The credit card payment you already made stays on your account and is credited toward your total tax liability.
Can I pay estimated taxes by credit card?
Yes. Estimated tax payments (quarterly payments made by self-employed people and others) can be made by credit card through the same three processors on IRS.gov. The convenience fee applies to estimated payments just as it does to regular tax payments.
Is the convenience fee the same for all three processors?
No. The three processors (Paypal, Worldpay, and Authorize.Net) charge slightly different fees. Before you complete your payment, the processor will show you the exact fee you'll pay. Compare the fees if you have accounts with more than one processor, though the difference is usually less than a dollar on most payments.