Yes, you can pay federal income taxes by credit card, but the IRS does not accept them directly
The Internal Revenue Service does not take credit card payments itself. Instead, you pay through a third-party payment processor — a private company authorized by the IRS to handle credit card transactions. The two main processors are Worldpay and Paymetrics (formerly ACI Payments). You go to their websites, enter your tax information and card details, and they charge a convenience fee on top of your tax bill.
This fee is not optional and is not deductible. It typically ranges from 1.87% to 2.35% of the amount you pay, depending on which processor you use and which card type you submit. On a $5,000 tax payment, that fee could be $95 to $120. You pay the fee to the processor, not to the IRS, and it goes on top of what you owe.
State income taxes work differently. Some states accept credit cards directly through their tax agencies; others use processors; some do not accept cards at all. You need to check your specific state's tax website to see what payment methods are available.
Key Takeaways
- Federal tax payments by credit card go through Worldpay or Paymetrics, not directly to the IRS, and both charge a convenience fee of roughly 1.87% to 2.35%.
- The convenience fee is added to your tax bill and is not deductible, so paying by credit card costs more than paying by bank transfer or check.
- You can pay estimated quarterly taxes, prior-year taxes, and amended returns by credit card through the same processors.
- State tax payment methods vary widely — some accept credit cards, some do not, and some use different processors than the federal system.
- Paying by credit card does not change your tax important date or extend the time you have to pay without penalty.
How to pay federal taxes by credit card
Go to the IRS website and look for the payment processor links under "Pay Your Tax Bill." You will see links to both Worldpay and Paymetrics. Click the one you prefer — they charge slightly different fees, so you can compare before you start.
You will need your Social Security number or employer identification number, your tax year, the amount you owe, and your credit card details. The processor will ask you to confirm the fee amount before you submit payment. Once you complete the transaction, you get a confirmation number. Save this number — it is your proof of payment.
The payment reaches the IRS within one business day, though the processor may take longer to charge your credit card. Check your credit card statement to confirm the charge went through. If you are paying an estimated quarterly tax, you will use the same processors but enter the amount you are paying rather than waiting for a bill.
When the convenience fee makes sense
The fee is worth paying only in specific situations. If you are short on cash and need to charge the tax to avoid a late-payment penalty, the fee might be smaller than the penalty itself. The IRS charges a failure-to-pay penalty of 0.5% per month on unpaid taxes, so if you are more than a month late, the convenience fee could cost less.
If you are earning credit card rewards and your card offers cash back or points on all purchases, you might recoup part of the fee. A card that gives 2% cash back would offset a 1.87% fee almost entirely, though you would still pay the difference out of pocket. This only works if you were going to pay the tax anyway and have the cash to pay off the card quickly — carrying a balance at credit card interest rates will cost far more than any reward.
For most people, paying by bank transfer (electronic federal tax payment system, or EFTPS) or by check costs nothing and is the better choice.
Paying state taxes by credit card
State rules are not uniform. Some states, including California, New York, and Texas, accept credit cards through their own tax agencies or through third-party processors. Others, including Florida and Nevada, do not have state income tax. Still others accept credit cards only for certain types of payments — for example, some states accept cards for sales tax but not income tax.
Start by visiting your state's department of revenue website and looking for payment methods. If your state uses a processor, it will usually be listed on that page. Some states charge a convenience fee similar to the federal system; others do not. A few states that do accept credit cards charge no fee at all, so it is worth checking before you assume you will pay extra.
What happens if you pay late by credit card
Paying by credit card does not extend your tax important date. If your taxes are due on April 15 and you charge them to a credit card on April 20, the IRS considers the payment late as of April 20. You will owe failure-to-pay penalties and interest on the unpaid balance from April 15 onward, even though the processor is handling the transaction.
The only way to avoid late penalties is to file for an extension (Form 4868) before the important date, which gives you until October 15 to pay. Charging your taxes to a credit card after the important date does not count as an extension and does not stop penalties from accruing.
Alternatives to paying by credit card
The IRS offers several payment methods that cost nothing. EFTPS (Electronic Federal Tax Payment System) lets you transfer money directly from your bank account to the IRS at no charge. You can set it up online or by phone, and payments post within one business day. Direct debit through the IRS website also costs nothing and works the same way.
You can also pay by check, money order, or cash. Mail a check to the address listed on your tax return, or pay in cash at a participating retail location (the IRS website lists which stores accept cash payments). These methods are free and give you a paper trail if you need proof of payment later.
If you owe a large amount and cannot pay in full, the IRS offers payment plans. A short-term plan (120 days or less) costs nothing. A long-term installment agreement costs between $31 and $225 depending on how you set it up, but that is a one-time fee, not a percentage of what you owe.
Frequently Asked Questions
Can I pay my taxes with a debit card?
Yes. Debit cards are processed the same way as credit cards through Worldpay or Paymetrics, and you pay the same convenience fee. The main difference is that the money comes directly from your bank account rather than creating a balance you have to pay off later.
Does paying by credit card give me more time to pay my taxes?
No. Your tax important date is the same whether you pay by card, check, or bank transfer. If you charge your taxes after the important date, penalties and interest start accruing when ready. Filing Form 4868 before the important date is the only way to extend your payment date.
What if the credit card payment fails?
If your card is declined or the transaction does not go through, the processor will tell you when ready. The IRS will not have received a payment, so you will still owe the full amount plus any penalties for late payment. Try a different card or use a different payment method right away.
Can I deduct the convenience fee on my taxes?
No. The convenience fee is a cost of paying your tax bill, not a deductible tax expense. You cannot reduce your taxable income by the amount you paid in fees.
Which processor should I use, Worldpay or Paymetrics?
Both are authorized by the IRS and equally safe. Compare their current fees on the IRS website before you pay — the rates change occasionally and may differ slightly between processors or by card type. Choose whichever charges less for your specific situation.