Yes, you can pay federal income taxes with a credit card, but the IRS does not accept them directly — you must use a third-party payment processor, and each one charges a fee that can offset any rewards you earn.
The IRS allows credit card payments only through approved payment processors: Authorize.Net, Paymetrics, and WorldPay. You cannot walk into an IRS office or mail a credit card number. You go to the processor's website, enter your card details and tax information, and the processor sends the money to the IRS on your behalf. The processor then charges you a convenience fee — typically 1.87% to 2.35% of the amount you pay — which you pay in addition to your tax bill.
State income taxes have their own rules. Some states accept credit cards through their own payment systems (often with similar fees), while others do not accept them at all. A few states allow credit card payments only for certain types of taxes. You need to check your state's tax authority website directly, because the rules vary widely and change.
Key Takeaways
- Federal tax payments by credit card go through Authorize.Net, Paymetrics, or WorldPay, not directly to the IRS, and each processor charges a fee between 1.87% and 2.35%.
- The convenience fee is separate from your tax bill and is not tax-deductible, so paying $10,000 in taxes costs you an extra $187 to $235.
- State tax payment rules vary by state — some accept credit cards, some do not, and some accept them only for certain tax types.
- A credit card reward of 1% to 2% cash back may cover the convenience fee but rarely exceeds it, so the financial benefit is usually small or negative.
How the payment process works
To pay federal taxes by credit card, visit IRS.gov and look for the "Pay Your Tax Bill" section. The page lists the three approved payment processors and links to each one. You click through to the processor's website, not the IRS site itself. Enter your Social Security number or employer identification number, the tax year, the amount you owe, and your credit card details. The processor then charges your card when ready and sends the payment to the IRS, usually within one business day.
You will receive a confirmation number from the processor, not from the IRS. Keep this number for your records. The IRS will credit your account once the processor's payment arrives, which typically takes a few days. If you are paying a balance due on a return you already filed, the payment will be applied to that account. If you are making an estimated tax payment, you need to specify the tax year and quarter when you enter the payment information.
The convenience fee and whether it makes financial sense
Each of the three processors charges a different fee, and the fee is a percentage of the amount you pay. Authorize.Net charges around 1.87%, Paymetrics around 1.99%, and WorldPay around 2.35%, though these rates can change. On a $5,000 tax bill, the fee ranges from about $94 to $118. On a $20,000 bill, it ranges from $374 to $470. The fee is charged to your credit card in addition to the tax payment itself.
The IRS does not allow you to deduct the convenience fee as a tax expense, so it comes out of your after-tax money. A credit card that offers 2% cash back would earn you $100 on a $5,000 payment, but the fee is $94 to $118, leaving you with little or no net gain — and that is only if your card offers 2% cash back on tax payments, which most do not. Most cards offer 1% or less on general purchases, which would earn you $50 on a $5,000 payment while costing you $94 to $118 in fees. In that case, you lose money.
State tax payments by credit card
State rules vary significantly. Some states, including California, New York, and Texas, accept credit card payments for income tax through their own payment processors, each with their own fee structure. Other states, including Florida and Texas (for certain taxes), do not accept credit cards at all. A few states accept credit cards only for specific tax types — for example, some accept them for sales tax but not income tax.
To find out whether your state accepts credit card payments, go to your state's department of revenue or taxation website and search for "payment methods" or "how to pay." The site will tell you which payment methods are available and what fees explore. Do not assume that because the federal government accepts credit cards, your state does. Each state sets its own policy independently.
When paying by credit card might make sense
Paying taxes by credit card makes financial sense in a narrow set of circumstances. If you have a card that offers 2% or higher cash back on all purchases with no annual fee, and you are paying a large tax bill, the cash back might offset most or all of the convenience fee. For example, on a $10,000 payment, 2% cash back earns you $200, while a 1.87% fee costs you $187, leaving you $13 ahead.
Another reason to use a credit card is timing. If you are short on cash but expect money to arrive before your credit card bill is due, you can use the card to pay the IRS now and pay the card later. This works only if you can pay the card in full before interest accrues, because credit card interest (typically 15% to 25% annually) will quickly erase any benefit. Do not carry a balance on a credit card to pay taxes.
A third reason is to meet a spending threshold for a credit card bonus. Some cards offer a large cash-back bonus if you spend a certain amount in the first few months. If you are already planning to meet that threshold, adding a tax payment might push you over the line and earn you the bonus. But again, this only makes sense if the bonus exceeds the convenience fee.
Alternatives to credit card payments
The IRS accepts payments by bank transfer (ACH debit), check, money order, and electronic federal tax payment system (EFTPS). Bank transfer is free and takes one to three business days. Check and money order are free but take longer. EFTPS is a free system run by the Treasury Department that allows you to schedule payments in advance. If you do not have a credit card with high cash back, or if the math does not work in your favor, one of these free methods is usually the better choice.
For state taxes, check what your state offers. Many states accept bank transfers or checks for free. Some offer their own electronic payment systems. Using a free method saves you the convenience fee entirely, which is almost always better than the small cash-back reward you might earn from a credit card.
Frequently Asked Questions
Can I pay my tax bill in installments using a credit card?
No. The credit card processor charges a fee on the full amount you pay at that moment. If you set up an IRS payment plan to pay your taxes over time, you can make each installment payment by credit card, but you will pay the convenience fee on each payment. This makes credit card payments even more expensive over the life of the plan. A payment plan with free bank transfers is usually cheaper.
Do I have to use the same payment processor every time?
No. You can use any of the three approved processors for any payment. Each one has a slightly different fee and user interface, so you can compare them before you pay. Some people choose based on which processor's website they find easiest to use, or which one offers the lowest fee for their particular payment amount.
What if I pay by credit card and then realize I overpaid?
The IRS will issue you a refund, just as it would for any overpayment. The refund goes back to the IRS account, not to your credit card. You can request the refund as a direct deposit to your bank account, or you can explore it to next year's estimated taxes. The convenience fee you paid is not refunded.
Can I deduct the convenience fee on my taxes?
No. The IRS does not allow you to deduct the convenience fee as a tax expense or as a miscellaneous deduction. It is a cost of paying your taxes, but it does not reduce your taxable income. The fee comes out of your after-tax money.
Does paying by credit card delay when the IRS receives my payment?
No. The processor sends the payment to the IRS within one business day, and the IRS credits your account shortly after. The timing is the same as a bank transfer. Your credit card company may take a few days to post the charge, but that does not affect when the IRS receives the money.