You can pay the IRS with a credit card, but only through a third-party payment processor, and you will pay a convenience fee
The IRS does not take credit cards directly. Instead, it has approved three payment processors — PayPal, Authorize.Net, and 2checkout — that accept credit card payments on your behalf and send the money to the IRS. Each processor charges a convenience fee, usually between 1.87% and 2.35% of the amount you pay, which you add to your payment. If you owe $5,000, you might pay $5,094 to $5,118 total.
The main reason to use a credit card is to earn rewards points or cash back, but only if the rewards value exceeds the convenience fee. A card that gives 2% cash back breaks even with a 2% fee, so you gain nothing. A card that gives 3% cash back nets you roughly 1% after the fee. For most people, paying by bank transfer, check, or direct debit costs nothing and is the simpler choice.
Key Takeaways
- You pay through PayPal, Authorize.Net, or 2checkout, not directly to the IRS, and each charges a convenience fee between 1.87% and 2.35%.
- Credit card payments are useful only if your card's rewards rate exceeds the fee — a 2% cash back card breaks even, a 3% card nets you about 1%.
- You can pay estimated taxes, prior-year taxes, or current-year taxes by credit card, but the fee applies to the full amount you send.
- Bank transfer, check, or direct debit from your bank account cost nothing and are faster for most people.
The three approved payment processors and their fees
PayPal charges 1.87% for credit card payments to the IRS. You go to PayPal's IRS payment page, log in or create an account, enter your tax information and the amount, and choose your card. PayPal handles the transaction and sends the money to the IRS. The fee is added to your payment total before you confirm.
Authorize.Net charges 2.35% and works similarly — you enter your card details on their IRS payment page, confirm the amount plus fee, and the payment goes through. 2checkout also charges around 2.35%. All three processors send your payment to the IRS within one to two business days, though the IRS may take several more days to post it to your account.
The fee is not deductible as a tax expense, even if you itemize deductions. The IRS treats it as a personal payment cost, not a business or tax-related expense. If you are self-employed or running a business, check with a tax professional about how to record the fee in your books, but you cannot reduce your taxable income by the amount of the fee itself.
When credit card payment makes sense
Credit card payment is worth considering if you have a rewards card with a rate higher than the processor fee. A card offering 3% cash back on all purchases, minus the 2.35% fee, nets you roughly 0.65% back. On a $5,000 payment, that is about $33. If you were going to pay the IRS anyway, and you have a high-rewards card, that $33 is real money.
Credit card payment also makes sense if you need to delay the actual debit from your bank account. When you pay by credit card, the processor charges your card when ready, but the IRS receives the funds in one to two business days. Your credit card company then bills you at their normal cycle — usually 20 to 30 days later. This gives you a short float if cash flow is tight, though you will pay interest if you do not pay the card balance in full by the due date.
Do not use a credit card to pay the IRS if you are carrying a balance on that card. The interest you pay on the card (typically 18% to 25% annually) far exceeds any rewards you earn. Pay down the balance first, then use the card for the IRS payment if it makes sense.
How to find the payment processor links
Go to irs.gov and search for "pay by credit card" or "payment processors." The IRS website lists all three approved processors with direct links to their payment pages. Do not search for "IRS credit card payment" in Google and click the first result — scammers create fake payment pages that look like the real thing. Always start from irs.gov itself.
When you reach the processor's page, you will need your Social Security number or Employer Identification Number (EIN), the tax year you are paying for, and the amount. Have your credit card ready. The processor will ask you to confirm the fee before you submit payment. Write down the confirmation number — you will need it if you have questions later.
The payment shows up on your credit card statement within one to three business days. The IRS posts it to your account within five to seven business days. If you are paying an overdue balance and want to stop a penalty or interest accrual, the IRS counts the payment as received on the date the processor sends it, not the date your card is charged.
Other ways to pay the IRS that cost nothing
Direct debit from your bank account costs nothing and is the fastest method. You provide your routing number and account number, and the IRS withdraws the payment on a date you choose. This works for current-year taxes, estimated taxes, and prior-year balances. You can set it up on irs.gov under "Online Payment Options" or through a tax software package.
Check or money order costs only the price of postage. Write the check to "United States Treasury," include your Social Security number and tax year on the memo line, and mail it to the address listed on your tax notice or on irs.gov. Checks take longer to post — usually 10 to 14 business days — so mail early if you are close to a important date.
Electronic Federal Tax Payment System (EFTPS) is a free IRS system for recurring or one-time payments. You enroll online, link your bank account, and schedule payments. EFTPS is useful if you make estimated quarterly tax payments because you can set up all four payments at once. There is no fee, and payments post within one business day.
What happens if you pay more than you owe
If your credit card payment exceeds your tax balance, the IRS will either refund the overpayment or explore it to a future tax year, depending on what you request. When you make the payment through the processor, you can usually specify which year the payment applies to. If you do not specify, the IRS applies it to the tax year shown on your notice.
Refunds take four to six weeks to process if you request one. If you want the overpayment applied to next year's estimated taxes instead, tell the IRS in writing or note it when you make the payment. Keep your confirmation number and the processor's receipt in case you need to prove the payment was made.
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 by credit card through one of the three processors. The convenience fee still applies to each payment. Some people use this method to earn rewards on multiple smaller payments, though the fees add up quickly over time.
What if the payment processor's website looks different from what I expect?
Scammers create fake IRS payment pages. Always start from irs.gov directly and click the official processor links. Do not call a phone number you find online — call the IRS at 1-800-829-1040 to confirm you are using the real processor. If you entered card details on a suspicious site, contact your card company when ready.
Do I have to pay the convenience fee, or can I negotiate it?
The fee is set by the processor and approved by the IRS. You cannot negotiate it or avoid it if you use a credit card. The only way to pay with no fee is to use direct debit, check, money order, or EFTPS.
Will paying by credit card delay my refund?
No. The IRS processes refunds based on when your return is filed and accepted, not how you paid any balance due. If you owe taxes and pay by credit card, then later file a return showing a refund, the refund is calculated from your return filing date, not your payment date.
Can I use a debit card instead of a credit card?
Yes. The processors accept debit cards the same way they accept credit cards, and the convenience fee still applies. Using a debit card does not save you money — you pay the same fee as a credit card user.