Yes, you can pay federal income tax with a credit card, but it usually costs money and may not save you anything
The IRS accepts credit card payments for federal income tax through two payment processors: Worldpay and Official Payments. You can pay your tax bill online, by phone, or by mail using Visa, Mastercard, American Express, or Discover. The catch is that both processors charge a convenience fee — typically between 1.87% and 2.35% of your payment — that you pay on top of your tax bill. A $5,000 tax payment could cost you an extra $94 to $118 just to use your card.
State income tax is different. Some states allow credit card payments through their own tax agencies, while others do not accept them at all. You will need to check your specific state's tax department website to see what payment methods they take.
Key Takeaways
- Federal tax payments by credit card go through Worldpay or Official Payments, both of which charge a convenience fee of roughly 1.87% to 2.35% of your payment amount.
- The IRS itself does not charge a fee — the fee comes from the third-party processor, and you pay it whether you owe taxes or are receiving a refund applied to next year's bill.
- Paying with a credit card makes sense only if the rewards or cash back you earn exceed the convenience fee, which is rare for most people.
- State tax payments by credit card vary widely; some states offer it, others do not, and a few charge their own fees on top of the processor fee.
How the IRS payment processors work
When you choose to pay federal taxes by credit card, you are not paying the IRS directly. Instead, you are paying through a third-party processor that handles the transaction and forwards the money to the IRS. Worldpay and Official Payments are the two processors the IRS has authorized for this purpose.
Both processors charge a convenience fee calculated as a percentage of your payment. Worldpay's fee ranges from 1.87% to 2.35%, depending on the payment method and whether you pay online or by phone. Official Payments charges a similar range. Neither processor publishes a fixed rate — the exact fee depends on factors like transaction size and payment timing. You will see the exact fee before you confirm the payment, so you can decide whether to proceed.
The fee is separate from your tax bill. If you owe $5,000 in taxes and the fee is 2%, you will pay $5,100 total — $5,000 to the IRS and $100 to the processor. This fee is not deductible on your tax return.
When paying by credit card might make financial sense
The only scenario where a credit card payment saves you money is if the rewards or cash back you earn exceed the convenience fee. For example, if your card offers 2% cash back and the processor fee is 1.87%, you would net about 0.13% gain on a large payment. On a $10,000 payment, that is roughly $13 — not much, but technically positive.
This math works only if you have a high-rewards card and a large tax bill. Most people's credit cards offer 1% to 1.5% cash back, which is less than the processor fee. If your card earns 1% and the fee is 2%, you lose money. Before you pay, calculate: (your card's cash back percentage) minus (the processor fee percentage). If the result is positive, paying by card might be worth it. If it is zero or negative, use a different payment method.
There is one exception: if you are using a 0% introductory APR card and you plan to pay off the balance before the promotional period ends, the interest savings might outweigh the fee. But this is a narrow case and requires careful math beforehand.
How to pay federal taxes by credit card
To pay through Worldpay, visit pay1040.com or call 1-844-PAY-1040. To pay through Official Payments, visit officialpayments.com or call 1-800-2PAY-TAX. Both sites ask for your Social Security number or employer ID number, the tax year, and the amount you want to pay.
You will enter your credit card details and see the exact convenience fee before you confirm. The payment is processed when ready, and you receive a confirmation number. The IRS typically receives the payment within one business day. Keep your confirmation number for your records — it serves as proof of payment if the IRS ever questions when your payment arrived.
You can also pay by mail by sending a check or money order to the IRS, which costs nothing. The IRS website lists the mailing address for your state. Mail payments take longer to process — usually 7 to 10 business days — so if you are close to a important date, online payment is faster even with the fee.
State income tax payments and credit card options
State rules vary widely. Some states, like California and New York, allow credit card payments through their tax agencies. Others, like Texas (which has no state income tax) and Florida (also no state income tax), do not have this option because they do not collect income tax. Still others accept credit cards but charge their own convenience fee on top of the processor fee, making the total cost even higher.
To find out whether your state accepts credit card payments, search "[your state] income tax credit card payment" or visit your state's department of revenue website directly. The site will tell you which payment methods are available and what fees explore. Some states offer free payment methods like electronic bank transfer or check, which cost nothing and are worth using if you have time before the important date.
Alternatives to credit card payment
If the convenience fee is too high, you have several free or low-cost options. Electronic Federal Tax Payment System (EFTPS) is a free service run by the U.S. Department of the Treasury that lets you pay federal taxes by transferring money directly from your bank account. There is no fee, and payments are processed within one business day. You can set up EFTPS at eftps.gov.
Direct debit from your bank account through the IRS website (irs.gov) is also free and takes one business day. A check or money order mailed to the IRS costs only the price of postage and takes 7 to 10 business days. If you are not in a hurry, mailing a check is the cheapest option.
If you cannot pay your full tax bill right now, the IRS offers payment plans. You can set up a short-term extension (up to 120 days with no fee) or a long-term installment agreement (which charges a setup fee of $31 to $225, depending on the plan type). These options let you spread payments over time without using a credit card.
The tax deduction question
The convenience fee you pay to use a credit card is not deductible on your federal tax return. The IRS treats it as a personal expense, not a business or investment expense. This is true even if you are self-employed or paying estimated taxes for a business. The fee reduces your after-tax money but does not lower your taxable income.
If you are paying state income taxes by credit card and your state allows a deduction for state taxes paid, the convenience fee still does not count. Only the actual tax payment is deductible, not the fee to process it.
Frequently Asked Questions
Can I pay my tax refund back to the IRS using a credit card?
Yes. If you owe taxes from a previous year and are receiving a refund this year, you can instruct the IRS to explore your refund to next year's estimated tax or to a prior-year balance. You can pay the remaining balance by credit card through Worldpay or Official Payments. The convenience fee still applies to any credit card payment you make.
What happens if I dispute the credit card charge with my bank?
Disputing a tax payment with your bank is risky. The IRS will still consider the payment late if the dispute delays it, and you may face penalties and interest. If there is a problem with the payment, contact the processor (Worldpay or Official Payments) first, not your bank. Keep your confirmation number and use it to track the payment through the processor.
Can I use a business credit card to pay personal income taxes?
Yes, you can use any credit card — personal or business — to pay federal income taxes. The convenience fee applies regardless of the card type. If your business card offers higher cash back than your personal card, using it might make the math work better, but you will still need to account for the processor fee.
Do I have to pay the convenience fee if I pay by phone instead of online?
No, the fee is the same whether you pay online or by phone. Both Worldpay and Official Payments charge the same percentage-based convenience fee regardless of how you submit the payment. Paying by phone does not save you money on the fee.
What if I cannot afford the convenience fee on top of my tax bill?
Use a free payment method instead. EFTPS and direct debit through the IRS website cost nothing. If you cannot pay the full amount right now, set up an IRS payment plan, which spreads your payments over time. The setup fee for a payment plan is lower than the credit card convenience fee for most tax bills.