Yes, you can pay the IRS with a credit card, but it costs money and comes with real limits
The IRS accepts credit card payments for federal income taxes, estimated tax payments, and penalties or interest you owe. You cannot pay through the IRS directly — instead, you use a third-party payment processor that the IRS has authorized. The processor charges a convenience fee (usually 1.87% to 2.35% of what you pay), which you pay on top of your tax bill. This fee is not tax-deductible.
Whether paying by credit card makes sense depends on your situation. If you're carrying high-interest debt or need to spread the payment over time, the credit card fee plus interest charges will likely cost more than paying by check or bank transfer. But if you're paying in full and earning rewards on the charge, or if you need the float time before the payment clears, a credit card can work.
Key Takeaways
- The IRS accepts Visa, Mastercard, American Express, and Discover through authorized payment processors, not directly from the IRS website.
- You pay a convenience fee of roughly 1.87% to 2.35% of your payment amount on top of your tax bill, and this fee is not deductible.
- The three authorized processors are Official Payments, PayUSAtax, and Worldpay, and each charges a different fee rate.
- Credit card payments are processed when ready, so the IRS receives your payment the same day you submit it, even though your credit card company may take longer to charge your account.
- If you cannot pay your full bill now, a payment plan or offer in compromise may cost less than paying by credit card with interest charges.
The three authorized payment processors and their fees
The IRS publishes a list of approved payment processors on IRS.gov. The three currently authorized are Official Payments, PayUSAtax, and Worldpay. Each one charges a different convenience fee, so comparing them before you pay saves money.
Official Payments charges 1.87% for online payments. PayUSAtax charges 1.96%. Worldpay charges 2.35%. On a $5,000 tax bill, that difference adds up: Official Payments would cost $93.50, PayUSAtax $98, and Worldpay $117.50. All three accept the major credit cards. You can search "IRS approved payment processors" on IRS.gov to find the current list and links to each one.
When you use any of these processors, you enter your tax information and card details on their website, not on an IRS page. The processor handles the transaction and sends confirmation to both you and the IRS. Keep your confirmation number — it proves the IRS received your payment.
When credit card payment makes financial sense
Paying by credit card costs money, so you need a reason beyond convenience. The most common reason is earning cash back or rewards points. If your card gives you 2% cash back and the processor fee is 1.87%, you net 0.13% — a small gain, but a gain. This only works if you pay the full balance when the bill arrives. If you carry a balance, the interest charges will erase any rewards.
Another reason is timing. When you pay by credit card, the IRS receives the payment when ready, but your credit card company may not charge your account for a few days. This gives you a short float — a few extra days before the money leaves your bank. This matters only if you have the money in your account but need a few days for other reasons. It does not reduce what you owe the IRS.
A third reason is that you need to split the payment across multiple cards to stay under credit limits. This is rare and usually a sign that a payment plan would be cheaper.
What happens after you submit a credit card payment
Once you submit your payment through a processor, the IRS receives it the same day. The processor sends you a confirmation number by email. The IRS will send you a receipt showing the payment applied to your account, usually within a few days.
Your credit card company charges your account separately from the IRS payment. The processor fee appears as a separate charge from the tax payment itself. Both charges go on your credit card bill. If you dispute the charge later, you will need your confirmation number to prove you authorized it.
The payment reduces what you owe when ready. If you owed penalties or interest, the IRS applies the payment to the oldest debt first (usually the original tax bill), then to penalties, then to interest. You can call the IRS at 800-829-1040 to confirm the payment posted to your account.
Why a payment plan might cost less than a credit card
If you cannot pay your full bill now, the IRS offers payment plans that let you pay over time. A short-term plan (120 days or less) has no setup fee. A long-term plan costs $31 to $225 depending on how you set it up. The IRS charges interest and penalties on the unpaid balance, but the rate is fixed and lower than most credit card interest rates.
If you put a tax bill on a credit card and carry a balance, you pay the processor fee (1.87% to 2.35%) plus credit card interest (often 18% to 25% or higher). Over a year, this costs far more than an IRS payment plan. For example, a $5,000 bill with a 1.87% processor fee and 20% credit card interest costs $1,093.50 in fees and interest in the first year. An IRS payment plan on the same $5,000 costs roughly $200 to $300 in interest and penalties, depending on how long you take to pay.
To set up an IRS payment plan, you can use the Online Payment Agreement tool on IRS.gov, call 800-829-1040, or mail Form 9465 (Installment Agreement Request) with your tax return or bill. The IRS will tell you the exact cost for your situation.
Credit card payments you cannot make through processors
The authorized processors handle most tax payments, but not all. You cannot pay certain types of IRS bills by credit card, including payments for business taxes filed on Forms 941, 940, or 1065 (though some states allow credit card payments for state business taxes). You also cannot pay employment taxes, excise taxes, or certain other specialized taxes by credit card through these processors.
If you owe one of these types of taxes, contact the IRS directly at 800-829-1040 to ask about payment options. You may be able to pay by bank transfer, check, or money order instead. Some businesses set up Electronic Federal Tax Payment System (EFTPS) accounts, which allow recurring payments but do not accept credit cards.
How to avoid the credit card fee if you have time
If you have a few weeks before your payment is due, paying by check or direct bank transfer costs nothing. Mail a check to the IRS address shown on your bill or notice. Include your name, address, Social Security number or EIN, tax year, and form number on the check. Mail it to the address on your bill — different IRS locations handle different types of taxes.
Direct bank transfer through EFTPS or IRS Direct Pay (available on IRS.gov) is free and faster than mail. IRS Direct Pay lets you schedule a payment up to 120 days in advance, so you can set it and forget it. EFTPS requires registration but works for most types of taxes. Both methods deduct the money directly from your bank account with no fee.
Frequently Asked Questions
Does the IRS charge interest on credit card payments?
No. The IRS does not charge interest on the payment itself. You pay interest only on any unpaid balance that remains after your payment is applied. The convenience fee from the processor is separate from any interest the IRS charges.
Can I use a business credit card to pay my personal tax bill?
Yes, you can use any credit card in your name or that you are authorized to use. The card type does not matter to the IRS or the processor. However, check with your card issuer about whether they allow tax payments, as some business cards have restrictions.
What if I pay by credit card and then get a refund?
The IRS will refund the payment amount, but not the convenience fee. The processor fee is non-refundable. If you overpaid your taxes and are due a refund, the IRS will send the refund to your bank account or issue a check, depending on how you filed. The convenience fee you paid is gone.
Is there a limit to how much I can pay by credit card?
The processors do not publish a single limit, but most have transaction limits ranging from $25,000 to $100,000 per payment. If your bill exceeds the limit, you can make multiple payments on different days. Contact the processor directly to confirm their limit before you attempt a large payment.
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. You can deduct the actual tax you paid, but not the fee charged by the processor.