You can pay federal income taxes with a credit card, but the processor charges a fee that often makes it more expensive than other payment methods
The IRS does not accept credit cards directly. Instead, you pay through a third-party processor — currently either PayUSATax, Official Payments, or 2nd Story Software — and each one charges a convenience fee on top of your tax bill. The fee ranges from roughly 1.87% to 2.49% of the amount you pay, depending on which processor you use and which card brand you're using. On a $5,000 tax payment, that's $94 to $125 added to what you owe.
You might still choose to pay this way if you're earning credit card rewards that exceed the fee cost, or if you need the float time before the money leaves your account. But for most people, paying by bank transfer, check, or direct debit costs nothing and is faster.
Key Takeaways
- The IRS requires you to use a third-party processor to pay taxes by credit card; you cannot pay the IRS directly with plastic.
- Convenience fees range from about 1.87% to 2.49% depending on the processor and card type, which can add $100+ to a large payment.
- You earn rewards on the full amount you pay, including the fee, so a 2% cash-back card might offset a 1.87% fee but usually not a 2.49% one.
- The payment posts to your IRS account when ready, but the charge to your card may take a day or two to appear.
- State income taxes have their own processors and fee structures, which vary by state.
Which processor to use and how to find the current fee
Visit IRS.gov/payments to see the three approved processors and their current fees. The IRS updates this page when fees change, so do not rely on a fee you saw last year. Each processor's fee is slightly different, and the fee also depends on your card type — American Express, Visa, Mastercard, and Discover may each have their own rate with the same processor.
Once you choose a processor, you'll enter your tax information, the payment amount, and your card details on their website. The processor then sends the payment to the IRS on your behalf. You'll receive a confirmation number from the processor, not from the IRS, so keep that receipt.
The payment is recorded in your IRS account within one business day. The charge to your credit card may take one to three business days to post, depending on your card issuer.
When paying by credit card makes financial sense
If your credit card offers cash back or points, you earn the reward on the full payment amount — including the convenience fee. A card with 2% cash back on all purchases would earn you $100 on a $5,000 payment. If the fee is 1.87%, you pay $93.50, so you net $6.50 in your favor. A card with 1% cash back would lose money at any fee above 1%.
You might also choose this method if you're short on cash right now but expect money to arrive before your card bill is due. Paying by credit card gives you the float time — the IRS gets paid when ready, but you don't pay your card until your statement due date, which could be 20 to 50 days away depending on your card's billing cycle.
However, if you're carrying a balance on the card, the interest you'll pay on that $5,000 will almost certainly exceed any rewards you earn. Only use this method if you can pay off the full charge when your bill arrives.
Cheaper payment methods the IRS offers
Direct debit from your bank account costs nothing and is the fastest way to pay. You provide your routing number and account number, and the IRS withdraws the payment on the date you choose. The payment posts to your IRS account within one business day.
Paying by check or money order also costs nothing, though it takes longer — the IRS must receive and process the check, which can take two to three weeks. Write your Social Security number, tax year, and form number on the check itself so the IRS can match it to your account.
Electronic Federal Tax Payment System (EFTPS) is a free service run by the Treasury Department that lets you schedule payments in advance. You can set up recurring payments if you owe quarterly estimated taxes. There is no fee and no card involved.
State income tax payments and their own processors
Most states that have an income tax allow credit card payments, but each state contracts with its own processor or processors. The fees and accepted card types vary by state. Some states charge a flat fee (for example, $2.50 per payment), while others charge a percentage like the federal system.
Search "[your state] income tax payment" to find your state's official tax payment page. That page will list the processor or processors available and their current fees. Do not use a third-party tax payment site that claims to process state payments — use only the official state tax authority's website.
A few states, including Delaware and Montana, do not have a state income tax, so there is nothing to pay. Some states offer direct debit at no cost, which is usually cheaper than credit card payment.
What happens if you can't pay the full amount right now
If you owe taxes but cannot pay in full, the IRS allows you to set up a payment plan. You can request a short-term extension (up to 180 days) at no cost, or a long-term installment agreement where you pay monthly. Long-term plans charge a setup fee (usually $31 to $225 depending on how you set it up) plus interest and a failure-to-pay penalty on the unpaid balance.
You can request a payment plan on IRS.gov, by phone at 1-800-829-1040, or by mail. The IRS will tell you the monthly amount and the total interest and penalties you'll owe. This is usually cheaper than putting the tax bill on a credit card and paying interest on a revolving balance.
Frequently Asked Questions
Does paying taxes by credit card hurt my credit score?
Paying by credit card itself does not hurt your score — you're making a purchase like any other. However, if the payment causes you to carry a balance or exceed your credit limit, that can lower your score. Pay off the charge in full when your bill arrives to avoid interest and score damage.
Can I pay estimated quarterly taxes by credit card?
Yes. Use the same IRS.gov/payments page and the same processors. Estimated taxes are treated the same way as regular income tax payments. The fee still applies, so calculate whether the rewards you'll earn justify the cost.
What if the processor's website is down when I need to pay?
The IRS important date is based on when the payment is received by the IRS, not when you submit it to the processor. If a processor's site is down, use one of the other two approved processors instead. All three are listed on IRS.gov/payments.
Can I dispute a credit card charge if the IRS says they didn't receive my payment?
The processor sends you a confirmation number when the payment is submitted. Keep that number and your receipt. If there's a problem, contact the processor first — they can verify whether the payment was sent. Do not dispute the charge with your card issuer until you've confirmed with the processor that the payment actually failed.
Is there a limit to how much I can pay by credit card?
The IRS does not set a limit, but individual processors may. Check the processor's website for any maximum payment amount. If you owe more than the limit, you can split the payment across multiple transactions or use a different payment method for the remainder.