You can pay the IRS directly with a credit card, but it costs money and may not save you anything
The IRS does not accept credit cards directly. Instead, you pay through a third-party payment processor — a company the IRS has authorized to handle credit card payments on your behalf. The processor charges a convenience fee (usually 1.87% to 2.35% of your tax bill) that you pay in addition to your taxes. So if you owe $5,000 and pay with a credit card at 2% convenience fee, you pay $100 extra just to use the card.
The only reason to do this is if you earn rewards points or cash back on credit card spending that exceeds the convenience fee. If your card gives you 2% cash back and the convenience fee is 1.87%, you come out $65 ahead on a $5,000 payment. If your card gives you 1% cash back, you lose money.
You can also pay your state taxes with a credit card through your state's tax authority, though the fee structure and processors vary by state. Some states charge lower fees than the IRS does.
Key Takeaways
- The IRS uses third-party processors (not direct credit card payment), and each processor charges a convenience fee between 1.87% and 2.35% of your payment.
- You only come out ahead if your credit card's rewards rate exceeds the convenience fee — for example, 2% cash back beats a 1.87% fee.
- The three authorized IRS processors are Official Payments, PayUSATax, and Worldpay, and you can compare their fees before you choose.
- State tax payments often have different processors and lower fees than federal payments, so check your state's tax website first.
- If you cannot pay in full by the tax important date, paying with a credit card does not stop penalties and interest from accruing on the unpaid balance.
The three IRS-authorized payment processors and their fees
The IRS contracts with three companies to process credit card payments. Each one charges a different convenience fee, and you choose which processor to use when you make your payment. The fees are not negotiable — they are set by the processor, not by the IRS.
Official Payments charges 1.87% for credit card payments. PayUSATax charges 1.96%. Worldpay charges 2.35%. On a $10,000 payment, that is a difference of $48 between the cheapest and most expensive option. All three processors let you pay online, and all three charge the same fee whether you use a Visa, Mastercard, American Express, or Discover card.
You can find links to all three processors on the IRS website (irs.gov), under the "Pay Now" section. Each processor's website shows you the exact fee before you confirm payment, so you can see the total amount you will owe before you commit.
When paying with a credit card actually makes financial sense
Credit card rewards only beat the convenience fee if your card's cash back or points rate is higher than the fee you pay. Here are the real math scenarios:
Scenario 1: You have a 2% cash back card and use Official Payments (1.87% fee). On a $5,000 payment, you earn $100 in cash back and pay $93.50 in fees. You net $6.50. This works, but the margin is thin.
Scenario 2: You have a 1.5% cash back card and use Worldpay (2.35% fee). On a $5,000 payment, you earn $75 in cash back and pay $117.50 in fees. You lose $42.50. This does not work.
Scenario 3: You have a premium card that gives 3% cash back on all purchases and use Official Payments (1.87% fee). On a $5,000 payment, you earn $150 in cash back and pay $93.50 in fees. You net $56.50. This works well.
The key is knowing your card's actual rewards rate. If you are unsure, check your cardholder agreement or call the card issuer. Do not assume a card gives you rewards on tax payments — some cards exclude government payments from their rewards program.
How to pay through each processor
All three processors work similarly, but the exact steps differ slightly. Here is what to expect:
Official Payments: Go to officialpayments.com, select "IRS" as the agency, enter your Social Security number or EIN, and your tax year. You will see the payment amount and the 1.87% fee. Enter your credit card details and confirm. You get a confirmation number when ready, and the IRS receives the payment within one business day.
PayUSATax: Go to payusatax.com, select "IRS Individual" or "IRS Business," and enter your tax ID and payment amount. The site shows you the 1.96% fee before you enter card details. After you pay, you receive a confirmation number and receipt.
Worldpay: Go to pay1040.com (for individual taxes) or payboe.com (for business taxes), enter your tax ID, and your payment amount. The 2.35% fee displays before checkout. You pay with your credit card and receive a confirmation number.
Save your confirmation number. The IRS uses it to track your payment, and you will need it if you have questions about whether the payment posted.
What happens if you pay late or cannot pay in full
Paying with a credit card does not change the IRS important date or stop penalties. If your tax return is due April 15 and you pay with a credit card on April 20, you owe a failure-to-pay penalty (0.5% per month of the unpaid balance) and interest (currently around 8% per year, though it changes quarterly). The convenience fee does not cover these penalties.
If you cannot pay your full tax bill by the important date, you have other options that may cost less than credit card fees plus penalties. You can request a payment plan (installment agreement) from the IRS, which lets you pay over time with a smaller setup fee. You can also request Currently Not Collectible status if you are in severe financial hardship, which temporarily pauses collection while interest and penalties still accrue.
If you are using a credit card to borrow money to pay taxes (because you do not have the cash), the credit card interest rate (often 18% to 25% APR) will cost you far more than the convenience fee. In that case, an IRS payment plan is almost always cheaper.
State tax payments and their processors
Most states allow credit card payments for state income tax, but the processors and fees vary. Some states use the same three processors as the IRS; others use different companies. Some states charge lower fees than the IRS does — a few charge no convenience fee at all.
To find your state's payment processor and fee, go to your state's tax authority website (usually called the Department of Revenue or Department of Taxation). Search for "pay taxes by credit card" or "payment methods." The site will list the processor and the exact fee before you pay.
If you owe both federal and state taxes, do not assume the fee is the same for both. Check each one separately, and decide whether the rewards math works for each payment.
Frequently Asked Questions
Can I use a debit card instead of a credit card?
Yes. All three IRS processors accept debit cards, and the convenience fee is the same. However, you do not earn rewards on debit card purchases, so there is no financial benefit to using a debit card instead of paying by bank transfer or check. If you have the cash in your account, a bank transfer (ACH) or check costs nothing.
What if I pay with a credit card but then file an amended return?
The payment you made stays with the IRS. If your amended return shows you owe more, you pay the additional amount separately. If your amended return shows you overpaid, the IRS refunds the overage to you (not back to your credit card). The convenience fee you paid on the original payment does not come back.
Does paying with a credit card help my credit score?
It can, but only in a limited way. The payment itself does not report to credit bureaus — the IRS does not share payment information with credit reporting agencies. However, if you put the payment on a credit card and then pay off that card balance, it shows you are using credit responsibly, which can help your score over time.
Can I use a rewards card from a foreign bank or a prepaid card?
The IRS processors accept most major credit cards issued by U.S. banks. Prepaid cards and foreign-issued cards may not work — the processor will reject them during checkout. If you are unsure whether your card will work, call the processor's customer service line before you attempt payment.
What if the payment processor's website goes down on tax day?
The IRS considers a payment made when the processor receives it, not when you submit it. If you submit payment before midnight on the important date and the processor confirms your payment number, you are on time even if the IRS does not receive it until the next day. However, if the processor's site is down and you cannot submit at all, the IRS may grant a filing extension if you can show you tried to pay on time.