Yes, you can pay federal income taxes with a credit card, but it costs money and comes with limits
The IRS allows you to pay federal income taxes using a credit card, but you cannot do it directly. You must go through a third-party payment processor — a private company authorized by the IRS to handle credit card payments. These processors charge a convenience fee that ranges from roughly 1.87% to 2.35% of your payment amount, depending on which processor you use. That fee is added to your bill; if you owe $5,000, you might pay $5,094 to $5,118 in total.
The main reason people use a credit card for taxes is to earn rewards points or cash back, which can offset the convenience fee if your card offers a high enough return. However, you should do the math before you commit: a 2% convenience fee on a $10,000 payment costs $200, so your credit card would need to earn at least that much in rewards to break even.
Key Takeaways
- The IRS does not accept credit cards directly; you must use an authorized third-party processor, which charges a convenience fee of 1.87% to 2.35%.
- You can pay federal income taxes, estimated taxes, and certain other federal taxes through these processors, but state and local taxes have separate systems.
- The three IRS-authorized processors are Official Payments, PayUSATax, and ACI Payments, each with slightly different fee structures.
- Paying with a credit card does not change your tax important date or filing requirements, and the IRS does not care how you pay.
- If the convenience fee is higher than the rewards your card will earn, paying by check, bank transfer, or direct debit costs nothing and may be the better choice.
The three IRS-authorized payment processors and their fees
The IRS maintains a list of three approved processors. Each one charges a slightly different fee, so comparing them before you pay can save you money.
Official Payments charges 1.87% for credit and debit card payments. PayUSATax charges 1.96% for credit cards and 1.87% for debit cards. ACI Payments charges 2.35% for credit cards and 1.87% for debit cards. All three process payments the same day you submit them, and all three are find — they are PCI-compliant, meaning they meet federal standards for handling payment card information.
If you are paying with a debit card instead of a credit card, Official Payments and PayUSATax both charge 1.87%, which is lower than their credit card rates. ACI Payments charges the same 1.87% for debit. So if you have a choice, debit cards cost slightly less across the board, though the difference is small on most payments.
How to pay your federal taxes with a credit card
Go to the IRS website and look for the "Pay Your Tax Bill" section under the "Payments" tab. The IRS provides direct links to all three processors. You do not need to create an account beforehand, though some processors let you set one up if you want to track past payments.
When you click through to a processor, you will enter your Social Security number or employer identification number, your tax year, and the amount you want to pay. Then you enter your credit card details and billing address. The processor will show you the exact convenience fee before you confirm the payment. Once you submit, you receive a confirmation number when ready — save this, because it is your proof of payment.
The payment reaches the IRS within one business day. You do not need to file anything else or contact the IRS to confirm; the processor handles all of that. If you are paying an estimated tax payment or a balance due on your return, the payment will be credited to the right account automatically.
What taxes you can and cannot pay with a credit card
You can use a credit card to pay federal income tax, estimated quarterly taxes, self-employment tax, and certain other federal taxes through the IRS processors. However, you cannot pay state income taxes or local taxes through these same processors — each state and locality has its own payment system, and most do not accept credit cards at all.
If you owe state taxes, check your state's tax authority website directly. Some states accept credit cards through their own processors (and charge their own fees), while others only accept checks, bank transfers, or electronic funds withdrawal. A few states do not accept credit card payments under any circumstances. Local property taxes and city income taxes also vary by jurisdiction; contact your local tax assessor or city finance office to learn what payment methods they accept.
When paying with a credit card makes financial sense
The convenience fee is the deciding factor. If your credit card earns 2% cash back or higher, and you are paying a large amount, the rewards might cover the fee. For example, a $10,000 payment with a 2% convenience fee costs $200. If your card earns 2% cash back, you earn $200 in rewards, breaking even. Any card earning more than 2% cash back would put you ahead.
However, most credit cards earn 1% to 1.5% cash back on regular purchases, which is less than the convenience fee. In those cases, paying with a credit card costs you money compared to other methods. A $5,000 payment with a 1.87% fee costs $93.50, but your 1% cash back card only earns $50 in rewards — a net loss of $43.50.
If you do not have a high-rewards card, or if you are paying a small amount, paying by check, bank transfer, or direct debit from your bank account costs nothing and is the better choice financially.
How credit card tax payments affect your credit and payment timeline
Paying taxes with a credit card counts as a regular purchase on your credit card statement. It will show up on your bill and you will owe it to your credit card company, just like any other charge. If you carry a balance, you will pay interest on the tax payment amount at your card's regular interest rate. This is another reason to think carefully before using a credit card: if you cannot pay off the full balance when ready, the interest you owe could be much higher than the convenience fee you saved.
The payment reaches the IRS within one business day, so the IRS considers your taxes paid on the day you submit through the processor, not the day your credit card company processes the charge. This means you will not be late even if your credit card company takes a few days to post the payment. Your tax important date does not change, and the IRS does not care which payment method you use.
Alternatives to paying with a credit card
If the convenience fee is too high or you do not want to carry a credit card balance, you have other options. Direct debit from your bank account is free and takes one business day. You can set it up through the same IRS payment page, and you will need your bank account number and routing number. Check or money order sent by mail is also free, though it takes longer — mail it to the IRS address listed on your tax return or the IRS website, and allow at least two weeks for processing.
Electronic Federal Tax Payment System (EFTPS) is a free service run by the U.S. Department of the Treasury that lets you schedule tax payments in advance. You enroll once, then you can pay whenever you want without entering your information each time. EFTPS is especially useful if you make quarterly estimated payments, because you can schedule all four at once.
If you owe a large amount and cannot pay in full, the IRS offers payment plans that let you pay over time. You can set up a short-term plan (120 days or less) for free, or a long-term installment agreement for a setup fee. Payment plans do not require a credit card; you can pay through bank transfer or direct debit.
Frequently Asked Questions
Does the IRS charge a fee if I pay with a credit card?
No, the IRS itself does not charge a fee. The third-party processor charges the convenience fee, which ranges from 1.87% to 2.35% depending on which processor you use. This fee is separate from your tax bill and is added on top of what you owe.
Can I pay my state taxes with a credit card through the same processor?
No. The IRS processors only handle federal taxes. State and local taxes have separate payment systems run by each state or locality. Some states accept credit cards through their own processors, but many do not. Check your state's tax authority website to see what payment methods are available.
What if I cannot pay my full tax bill right now?
You can set up a payment plan with the IRS that lets you pay over time. Short-term plans (120 days or less) are free to set up. Long-term installment agreements charge a setup fee but let you spread payments over months or years. You do not need a credit card for a payment plan; you can pay by bank transfer or direct debit.
Does paying taxes with a credit card hurt my credit score?
Paying taxes with a credit card itself does not hurt your score. However, if you carry a balance on the card afterward, you will pay interest and your credit utilization will increase, which can lower your score. Pay off the full balance when ready to avoid this.
Can I use a rewards credit card to earn points on my tax payment?
Yes, the tax payment counts as a regular purchase and will earn rewards at your card's normal rate. However, subtract the convenience fee from the rewards you earn to see if it is worth it. If your card earns 1% cash back but the fee is 1.87%, you lose money overall.