Yes, you can pay federal taxes with a credit card, but it costs money and requires using a third-party processor
The IRS does not accept credit cards directly. Instead, you must use one of two authorized payment processors: ACI Payments or PayUSA. Both charge a convenience fee — typically 1.87% to 2.35% of your payment — that you pay on top of your tax bill. You cannot deduct this fee from your taxes.
The main reason to pay with a credit card is to earn rewards points or cash back on a large payment. If your card offers 2% cash back and the processor charges 1.87%, you come out slightly ahead. If your card offers 1% cash back, you lose money. Do the math before you commit.
You can pay estimated taxes, balance due from your return, or prior-year taxes this way. You cannot pay using a debit card through these processors, though you can pay directly from your bank account through IRS Direct Pay at no cost.
Key Takeaways
- You pay through ACI Payments or PayUSA, not the IRS website, and both charge a convenience fee of roughly 1.87% to 2.35%.
- The fee is not tax-deductible and is added to what you owe, so only use this method if your card's rewards offset the cost.
- You need your Social Security Number or Employer Identification Number, your tax year, and the amount you are paying.
- Payment posts to the IRS within one business day, but the processors may charge the fee when ready while the tax payment processes separately.
How to pay through ACI Payments
Go to tax.1stglobal.com. Select "Individual" or "Business" depending on what you are paying. Enter your Social Security Number or EIN, your tax year, and the amount. You will see the exact convenience fee before you confirm.
Enter your credit card details and billing address. ACI will show you a confirmation number when ready. The IRS receives the payment within one business day, though the processor may charge your card right away. You can check the status of your payment on the IRS website using your confirmation number.
ACI's fee is typically 1.87% for most credit cards. Some cards or payment types may trigger a higher rate — the site will tell you before you submit payment.
How to pay through PayUSA
Go to pay1040.com. Select whether you are paying an individual or business tax. Enter your Social Security Number or EIN, your tax year, and the payment amount. The site will calculate and display the convenience fee.
Enter your credit card information and billing address. You will receive a confirmation number on screen and by email. PayUSA's fee is typically 2.35% but may vary by card type. Like ACI, the processor may charge your card when ready even though the IRS receives the payment within one business day.
When paying with a credit card makes financial sense
Calculate your net benefit before you pay. If your credit card offers 2% cash back and the processor charges 1.87%, you gain 0.13% on the payment. On a $10,000 tax bill, that is $13. On a $1,000 bill, it is $1.30.
If your card offers 1.5% cash back and the processor charges 1.87%, you lose 0.37%. On a $10,000 bill, that is a $37 loss. Many people pay with a credit card to hit a sign-up bonus or annual spending threshold, which can be worth far more than the convenience fee — but that is a separate decision from the rewards rate.
Never pay with a credit card just to delay payment. The fee is when ready, and the IRS still receives the payment within one business day. You gain no float.
Alternatives that cost nothing
IRS Direct Pay lets you pay directly from your checking or savings account at no cost. Go to irs.gov and select "Pay Now" or "Pay by Due Date." You can schedule a payment up to 120 days in advance. The payment posts within one business day.
Electronic Federal Tax Payment System (EFTPS) is another free option for individuals and businesses. You enroll once, then schedule payments online or by phone. Both Direct Pay and EFTPS are run by the IRS and involve no third-party fees.
If you are paying a balance due from your tax return and cannot pay in full, the IRS offers payment plans. You can set up a short-term plan (120 days or less) at no cost, or a long-term installment agreement that includes a setup fee and monthly interest.
What happens if you miss the tax important date
If you owe taxes and miss the April important date, the IRS charges failure-to-pay penalties and interest starting the day after the important date. Paying with a credit card does not change this — the IRS dates the payment based on when the processor submits it, not when you authorize it on the credit card site.
If you are close to the important date and worried about mail delays, paying through ACI or PayUSA guarantees the IRS receives your payment within one business day. Mailing a check is riskier because the IRS must receive it by midnight on the important date date.
Frequently Asked Questions
Can I pay my state taxes with a credit card too?
Most states do not accept credit card payments for state income taxes, or they charge fees even higher than the federal processors. Check your state's tax website for payment options. Some states offer free direct bank transfers, while others accept credit cards only through third-party processors with steep fees.
What if the processor charges my card but the IRS says it never received the payment?
Contact the processor when ready with your confirmation number. ACI and PayUSA are responsible for delivering the payment to the IRS. If there is a delay or error, the processor must resolve it. Keep your confirmation number and any receipts until the IRS confirms receipt on your account.
Can I use a business credit card to pay business taxes?
Yes, both ACI and PayUSA accept business credit cards for business tax payments. The process is the same — enter your EIN instead of your Social Security Number, select the business tax type, and pay the convenience fee. The fee applies regardless of whether the card is personal or business.
Does paying with a credit card give me more time to pay?
No. The IRS receives the payment within one business day, so the payment date is nearly the same as if you paid by bank transfer. The only advantage is if you are paying close to the important date and want to avoid mail delays. You still owe penalties and interest if the payment is late, regardless of how you send it.
What if I want to dispute the charge with my credit card company?
The charge is legitimate — you authorized the payment to the processor, and the processor delivered it to the IRS. Your credit card company will not reverse a tax payment you authorized. If you believe the processor charged you the wrong fee, contact them directly before disputing the charge.