Yes, you can pay federal income taxes with a credit card, but you will pay a processing fee that often makes it more expensive than other methods
The IRS accepts credit card payments for federal income tax bills through two payment processors: Worldpay and Official Payments. You can pay online, by phone, or by mail using either processor. The catch is real: both charge a convenience fee — a percentage of your payment that goes to the processor, not the IRS. That fee typically ranges from 1.87% to 2.35% depending on which processor you use and which payment method you choose. On a $5,000 tax bill, that means paying $94 to $118 extra just to use your card.
State income taxes vary widely. Some states accept credit card payments through their own systems with fees, some allow it through third-party processors, and some do not accept credit cards at all. You will need to check your state's tax department website to see what is available where you live.
Property taxes, sales taxes, and other local taxes almost never accept credit card payments directly. Some counties or municipalities may allow it through a third-party processor, but this is uncommon and fees explore.
Key Takeaways
- Federal income tax payments by credit card incur a convenience fee of roughly 1.87% to 2.35%, which you pay on top of your tax bill.
- You can pay through Worldpay or Official Payments by visiting the IRS website, calling, or mailing a payment coupon.
- State income tax acceptance varies by state — some charge fees, some do not accept cards, and some have no income tax at all.
- Paying taxes with a credit card makes financial sense only if you earn rewards that exceed the convenience fee or if you are buying time before a payment important date.
- Debit cards, bank transfers, and direct debit from your checking account have no fees and are faster than credit card payments.
How the IRS payment processors work
When you go to IRS.gov and select "Pay Now," you are directed to choose between Worldpay and Official Payments. Both processors handle the transaction the same way: they collect your payment, charge you a fee, and send the tax payment to the IRS on your behalf. The fee is not deductible as a tax expense — the IRS does not allow you to deduct the cost of paying your taxes.
You can pay by credit card, debit card, or electronic bank transfer through either processor. If you use a credit card, the processor charges the fee to your card along with the tax amount. If you use a debit card or bank transfer, the fee is the same percentage but comes out of your bank account instead. The payment typically reaches the IRS within one business day.
Both processors are legitimate and authorized by the IRS. There is no difference in safety or speed between them — the choice is yours. Some people prefer one over the other based on website layout or phone support, but the outcome is identical.
When paying with a credit card actually saves you money
The convenience fee is a real cost, but it can be worth paying if your credit card rewards are generous enough. If your card earns 2% cash back on all purchases, and the convenience fee is 1.87%, you come out ahead by 0.13% — a small gain, but a gain. On a $5,000 payment, that is about $6.50 in your pocket.
The math works better if your card earns higher rewards. A card that pays 3% cash back on all transactions would net you roughly $65 on that same $5,000 payment after the fee. Some cards offer bonus categories (5% on certain purchases, for example), but tax payments do not usually fall into those categories — the processor codes the transaction as a tax payment, not a purchase.
The other reason to pay with a credit card is timing. If you owe taxes but do not have the cash yet, putting the payment on a card buys you 20 to 30 days before the credit card bill is due. This only makes sense if you are certain the money will arrive before then. If you miss the credit card payment, you will owe interest on top of the convenience fee, which erases any benefit.
How to pay federal taxes through each processor
Worldpay operates under the name "IRS e-Services" on the IRS website. You can pay online at their portal, by phone at 1-844-PAY-1040 (1-844-729-1040), or by mail using a payment coupon. The online portal shows you the exact fee before you confirm the payment. Phone payments take a few minutes and the fee is quoted to you before you are charged.
Official Payments operates a separate portal also linked from IRS.gov. The process is the same: online, phone, or mail. Their phone number is 1-877-PAY-1040 (1-877-729-1040). Both processors ask for your Social Security number or tax ID, the tax year, and the amount you are paying. You will also need your card number, expiration date, and CVV.
The payment is posted to your IRS account within one business day. You will receive a confirmation number when ready, which you should save for your records. The IRS will send you a receipt by mail if you request one.
State income tax payments and fees
State rules differ significantly. California, New York, Texas, and Florida all have different systems. Some states run their own payment portals with credit card options and fees. Others contract with third-party processors similar to the IRS. A few states do not accept credit cards for income tax at all.
The best way to find out what your state allows is to visit your state's Department of Revenue or Department of Taxation website and search for "pay taxes by credit card" or "payment methods." The site will tell you whether credit cards are accepted, what the fee is, and which processor handles it. Some states charge lower fees than the IRS — a few charge no fee at all — but this varies year to year.
States with no income tax (like Texas, Florida, Wyoming, and South Dakota) have no state income tax to pay, though they may accept credit card payments for other taxes like sales tax or property tax through local systems.
Alternatives that cost less or nothing
If you want to avoid the convenience fee entirely, you have several options. Direct debit from your checking account through the IRS website costs nothing and is the fastest method — the payment is deducted on the date you choose and reaches the IRS when ready. You will need your bank account number and routing number, which you can find on a blank check or by logging into your bank's website.
Electronic Federal Tax Payment System (EFTPS) is a free service run by the U.S. Department of the Treasury. You enroll once, then schedule payments online or by phone with no fees. EFTPS is designed for people who make quarterly estimated tax payments, but you can use it for any federal tax payment. Enrollment takes about a week, so this does not help if you need to pay today, but it is worth setting up if you know you will owe taxes regularly.
Mailing a check costs only the price of a stamp and takes 7 to 10 business days. If you are not in a rush, this is the cheapest option. You will need to read or request a payment voucher from the IRS, fill it out with your payment information, and mail it to the address listed on the voucher.
What happens if you cannot pay in full
If you owe taxes but cannot pay the full amount by the important date, putting part of it on a credit card is not a solution — you will still owe the rest, plus penalties and interest on the unpaid balance. The IRS charges interest at a rate that changes quarterly (currently around 8% per year) plus a failure-to-pay penalty of 0.5% per month on any unpaid balance.
Instead, contact the IRS about a payment plan. You can set up an installment agreement that lets you pay over time with a one-time setup fee (usually $31 to $225 depending on the method). This is cheaper than credit card interest and penalties combined. You can request a payment plan online through IRS.gov, by phone at 1-800-829-1040, or by mail.
If you are facing a serious hardship, the IRS also has a Currently Not Collectible status that temporarily pauses collection while you get back on your feet. Interest and penalties still accrue, but you are not required to make payments during that period.
Frequently Asked Questions
Does paying taxes with a credit card hurt my credit score?
Paying taxes with a credit card is treated like any other purchase — it increases your credit utilization (the percentage of your credit limit you are using) for that billing cycle. If you max out your card to pay taxes, your score may dip temporarily. Once you pay off the balance, the utilization drops and your score recovers. The payment itself does not hurt your score; high utilization does.
Can I deduct the convenience fee from my taxes?
No. The IRS does not allow you to deduct the cost of paying your taxes as a tax expense. The convenience fee is a cost of the payment method, not a deductible business or investment expense. You pay it with after-tax dollars.
What if I pay by credit card and then get a refund?
If you overpay your taxes and request a refund, the IRS refunds only the tax amount, not the convenience fee. The fee is kept by the payment processor. This is another reason to be careful about the amount you pay — if you are unsure, pay less and file an amended return rather than overpaying and losing the fee.
Can I use a business credit card to pay personal income taxes?
Yes, you can use any credit card you own to pay personal income taxes. The IRS does not restrict which card you use. However, check with your card issuer first — some business cards have restrictions on personal use, and some may code the transaction differently for rewards purposes. Personal income tax payments typically do not earn bonus rewards even on business cards.
How long does it take for the payment to show up on my IRS account?
Credit card payments through Worldpay or Official Payments are posted to your IRS account within one business day. You will receive a confirmation number when ready after payment, but the IRS transcript may take a few days to update. If you need proof of payment right away, save your confirmation number — that is your proof.