Yes, you can pay the IRS with a credit card, but a processor fee will be added to your payment
The IRS accepts credit card payments directly through third-party payment processors. You cannot pay the IRS by handing them a credit card or calling them with your card number. Instead, you use one of three approved processors — ACI Payments, Paymetrics, or Global Payments — each of which charges a fee for the transaction. The fee ranges from roughly 1.87% to 2.35% of the amount you pay, depending on which processor you use and the payment method you choose within their system.
The processor fee is not waived, reduced, or reimbursed by the IRS. You pay it on top of your tax bill. For example, if you owe $5,000 and use a processor charging 2%, you will pay $100 in fees plus the $5,000 tax, for a total of $5,100. The fee itself is not tax-deductible.
Key Takeaways
- Credit card payments to the IRS go through one of three approved processors, each charging a fee of roughly 1.87% to 2.35% of your payment amount.
- The processor fee is added to what you owe and is not refundable, even if you later dispute the tax or receive a refund.
- You access the processors through IRS.gov or by searching for the processor name directly; the IRS does not process the payment itself.
- Paying with a credit card makes sense only if the card's rewards or cash back exceed the processor fee, or if you need the time to gather funds.
- If you cannot pay in full, setting up a payment plan through the IRS avoids the processor fee entirely.
How to find and use an IRS-approved processor
Go to IRS.gov and search for "pay by credit card" or "payment processors." The IRS website lists all three approved processors with links to each one. You can also search for the processor name directly in your browser. Each processor has its own website and its own fee structure, so comparing the three before you pay is worth the five minutes it takes.
When you reach a processor's site, you will enter your tax information (the type of return you filed, the tax year, and your Social Security number or employer identification number), the amount you want to pay, and your credit card details. The processor will show you the exact fee before you confirm the payment. After you pay, the processor sends the payment to the IRS and gives you a confirmation number. Keep that number for your records.
When the processor fee makes sense
A credit card payment costs money, so it only makes financial sense if you gain something that outweighs the fee. The most common reason is a rewards card. If your card earns 2% cash back on all purchases, and the processor fee is 1.87%, you come out slightly ahead. If your card earns 3% or more on certain categories (such as payments or purchases), the math works even better.
The second reason is timing. If you do not have the cash right now but will have it in a few weeks, charging the payment buys you time without triggering a failure-to-pay penalty. The IRS charges a penalty of 0.5% per month on unpaid taxes, so if you can pay within a month or two, the credit card fee might be cheaper than the penalty. However, interest on unpaid taxes also accrues daily at the federal rate plus 3%, so this math only works for short delays.
A third reason is cash flow management. If paying by credit card lets you keep cash in your business or emergency fund for a few weeks longer, that may be worth the fee. But this is a cash flow decision, not a tax savings decision.
Why paying with a debit card or bank account costs less
All three processors also accept debit cards and direct bank transfers (ACH payments). Debit card fees are usually the same as credit card fees, roughly 1.87% to 2.35%. However, ACH payments — paying directly from your bank account — often cost less, sometimes as low as $2.50 flat or 0.5% of the payment, whichever is lower. If you have the funds in your account and can wait three to five business days for the payment to clear, ACH is almost always the cheapest option.
Before you choose a payment method, check the fee structure on each processor's site. The difference between a 2.35% credit card fee and a 0.5% ACH fee on a $10,000 payment is $185, so the method you choose matters.
What happens if you cannot pay in full
If you owe taxes but cannot pay the full amount right now, the IRS offers a payment plan (called an installment agreement) that lets you pay over time without using a credit card processor. You set up the plan directly with the IRS through IRS.gov, by phone at 1-800-829-1040, or through a tax professional. There is a setup fee for the plan, usually between $31 and $225 depending on the plan type, but there is no processor fee on each monthly payment.
A payment plan is almost always cheaper than charging the full amount to a credit card and paying interest on the card balance. If you are considering a credit card payment mainly because you cannot pay in full, explore the payment plan first. The IRS also offers short-term plans (120 days or less) with lower setup fees than longer-term agreements.
The processor fee is not refundable
If you pay by credit card and later receive a refund (because you overpaid, filed an amended return, or the IRS made an error), the processor fee is not refunded to you. The IRS refunds only the tax portion of your payment. The fee goes to the processor and stays there. This is another reason to avoid the credit card route unless the rewards or timing benefit clearly outweighs the cost.
This non-refundable fee applies even if you dispute the tax bill later or if the IRS adjusts your return. Once the processor has taken the fee, it is gone.
Frequently Asked Questions
Can I pay estimated taxes with a credit card?
Yes. Estimated tax payments go through the same three processors and carry the same fees. The process is identical: you enter your information on the processor's site, confirm the fee, and pay. The IRS treats estimated payments the same as regular tax payments.
What if I pay by credit card and then set up a payment plan?
You can do both. If you pay part of your tax bill by credit card and set up a plan for the rest, the plan covers only the unpaid balance. The processor fee applies only to the credit card portion. This might make sense if you have a rewards card and want to use it for part of the bill, then spread the remainder over time.
Do I need to report the processor fee on my tax return?
The processor fee is not tax-deductible for individuals filing personal returns. If you are self-employed or own a business, you may be able to deduct it as a business expense, but you should confirm this with a tax professional or the IRS, as the rules depend on your situation.
What if the processor's website is down or I cannot complete the payment?
If you cannot pay by credit card by the important date, you can pay by other methods: check, money order, electronic federal tax payment system (EFTPS), or a payment plan. Missing the important date because the processor's site was unavailable is not an excuse the IRS recognizes, so if you are close to the important date, use a different payment method to be safe.