The IRS accepts credit card payments directly, but you pay a processing fee that the card company charges — not the IRS
You can pay your federal income tax bill, estimated tax payments, or other IRS debts using a credit card. The IRS itself does not collect the payment; instead, you use a third-party payment processor that the IRS has authorized. The processor charges a fee (usually between 1.87% and 2.35% of your payment, though this varies by processor) that you pay on top of your tax bill. This fee is not tax-deductible.
The payment goes through when ready, and the IRS receives it within one business day. You get a confirmation number right away, which you should keep for your records. The payment counts toward your tax debt on the date the processor receives it, not the date you make the payment.
Key Takeaways
- The IRS has authorized three payment processors — Official Payments, PayUSATax, and Worldpay — and each charges a different fee for credit card payments.
- You must have your IRS notice or tax return information ready, including your Social Security number or employer identification number and the amount you owe.
- The payment fee is added to your bill and is not deductible, so paying by credit card costs more than paying by bank transfer or check.
- Your credit card issuer may treat the payment as a cash advance rather than a purchase, which could trigger higher interest rates and additional fees.
- If you cannot pay in full, you can set up a payment plan with the IRS instead, which may cost less overall than paying by credit card.
Which payment processors the IRS accepts and what they charge
The three authorized processors are Official Payments, PayUSATax, and Worldpay. Each one charges a different fee, and the fee changes periodically. You can visit each processor's website directly or go through IRS.gov to find the current rates. The fees typically range from 1.87% to 2.35%, meaning a $5,000 payment could cost you $94 to $118 in processing fees alone.
All three processors accept Visa, Mastercard, American Express, and Discover. The payment is processed in real time, and you receive a confirmation number when ready. You do not need to create an account with the processor beforehand, though some people choose to for record-keeping.
What information you need before you pay
Have your IRS notice or your most recent tax return in front of you. You will need your Social Security number or employer identification number, the tax year the payment is for, and the exact amount you owe. If you are paying a balance from a notice, use the amount shown on that notice rather than guessing.
You will also need your credit card number, expiration date, and the billing zip code. The processor will ask for your name, address, and phone number. Some processors ask for your email address so they can send you a receipt. Keep the confirmation number and receipt for your records — you may need them if you have questions about the payment later.
How credit card companies may treat IRS payments differently
Some credit card issuers classify IRS payments as cash advances rather than regular purchases. If yours does, you will pay a cash advance fee (usually 3% to 5% of the amount) in addition to the processor's fee. You may also start accruing interest on the cash advance when ready, even if you normally have a grace period on purchases. This can make the total cost significantly higher.
Before you pay, call your credit card issuer and ask how they classify IRS payments. If they treat it as a cash advance, you may want to consider a different payment method. Paying by bank transfer (electronic federal tax payment system, or EFTPS) or by check costs nothing and avoids this problem entirely.
When paying by credit card makes sense and when it does not
Paying by credit card makes sense if you are earning rewards points or cash back that exceed the processor fee. For example, if your card gives you 2% cash back and the processor charges 2%, the two roughly cancel out. It also makes sense if you need to spread the payment over time using a 0% introductory rate, though you should calculate whether the processor fee plus any interest after the promotional period ends is worth it.
Paying by credit card does not make sense if your card issuer treats it as a cash advance, because the combined fees will be steep. It also does not make sense if you are carrying a balance on the card at a high interest rate — you will pay more in interest charges than you save in rewards. In those cases, paying by bank transfer, check, or setting up a payment plan with the IRS is cheaper.
How to set up a payment plan if you cannot pay in full
If you owe more than you can pay right now, the IRS offers short-term and long-term payment plans. A short-term plan lets you pay within 180 days with no setup fee. A long-term plan (called an installment agreement) lets you pay over months or years and costs a setup fee that ranges from $31 to $225 depending on how you set it up and your income level.
You can set up a payment plan through IRS.gov, by phone at 1-800-829-1040, or by mail. The IRS will calculate a monthly payment amount based on what you owe and how long you want to take to pay it. Interest and penalties continue to accrue while you are on a payment plan, so paying faster costs less overall — but a payment plan costs far less than paying by credit card if the card issuer charges a cash advance fee.
What happens after you make the payment
The processor sends the payment to the IRS within one business day. The IRS applies it to your account based on the tax year and type of tax you specified. You will receive a confirmation number from the processor when ready; the IRS does not send a separate confirmation. Keep your confirmation number and receipt in case you need to prove you paid.
Check your IRS account online (through IRS.gov) a few days after you pay to confirm the payment was received and applied correctly. If you do not see it within a week, contact the processor using your confirmation number. Do not contact the IRS directly about a credit card payment — the processor handles those inquiries.
Frequently Asked Questions
Can I pay a payment plan installment by credit card?
Yes. You can pay any IRS debt by credit card through the authorized processors, including monthly installment agreement payments. The processor fee still applies, so you will pay the same percentage on top of each monthly payment. Many people use bank transfer (EFTPS) for installment payments instead to avoid the fee.
What if the processor's website is down or I get an error?
Try a different processor — all three are authorized by the IRS and accept the same payment methods. If all three are down, wait a few hours and try again. If you get an error message, write down the exact error and the confirmation number (if one was issued) and contact the processor's customer service line. Do not assume the payment failed just because you saw an error.
Can I pay estimated taxes by credit card?
Yes. Use the same three processors and follow the same steps. You will need your Social Security number or EIN, the tax year, and the amount of estimated tax you are paying. The processor fee applies to estimated tax payments just as it does to income tax payments.
Will paying by credit card hurt my credit score?
It depends on how your card issuer reports it. If they treat it as a purchase, it counts as a regular charge and may increase your credit utilization ratio slightly. If they treat it as a cash advance, it may be reported separately and could have a larger impact. Call your issuer beforehand to understand how they will report it.
Is there a limit to how much I can pay by credit card?
Each processor sets its own limits, which vary. Most allow payments of $100,000 or more, but some have lower caps. Check the processor's website for their current maximum before you attempt a large payment. If your bill exceeds the limit, you can make multiple payments or use a different payment method for part of the bill.