Yes, you can pay federal taxes by credit card, but it costs money and only works through a payment processor
The IRS does not accept credit cards directly. Instead, you pay through one of two authorized payment processors: Worldpay or Official Payments. Both charge a convenience fee — a percentage of the amount you pay — that goes to the processor, not the IRS. The fee typically ranges from 1.87% to 2.35%, though the exact rate depends on which processor you use and the payment method you choose within their system.
This means paying $5,000 in taxes by credit card will cost you roughly $94 to $118 extra. That fee is not tax-deductible. You should only use this route if you are earning credit card rewards that exceed the convenience fee, or if you need the float time that a credit card provides before the money leaves your account.
The IRS accepts payment for income tax, estimated tax, payroll tax, and other federal tax obligations through these processors. You will need your Social Security Number or Employer Identification Number, the tax year you are paying for, and the exact amount owed.
Key Takeaways
- Credit card payments go through Worldpay or Official Payments, not directly to the IRS, and both charge a convenience fee of roughly 1.87% to 2.35%.
- The convenience fee is not tax-deductible and typically costs $94 to $118 per $5,000 paid, so the math only works if your credit card rewards exceed that cost.
- You can pay income tax, estimated tax, payroll tax, and other federal obligations by credit card, but you will need your tax ID and the exact amount owed.
- Payment by credit card does not change your tax important date — the IRS considers the payment made on the date the processor receives it, not when you submit the form.
How the two payment processors work
Worldpay and Official Payments are the only two processors authorized by the IRS. You choose which one to use when you go to pay. Both let you pay by credit card, debit card, or electronic bank transfer, though only credit and debit cards trigger the convenience fee. The fee is calculated as a percentage of your payment amount and is added to what you owe at checkout.
Worldpay's website is pay1040.com. Official Payments' website is officialpayments.com. Both sites walk you through entering your tax information, selecting the payment amount, and choosing your card. The processor then sends the payment to the IRS on your behalf. You will receive a confirmation number when ready, and the IRS will post the payment to your account within one to three business days.
Neither processor is "better" — they charge similar fees and both are equally recognized by the IRS. The choice is yours. Some people find one interface clearer than the other, so if you have used one before and felt comfortable with it, you can return to the same processor.
When paying by credit card makes financial sense
The convenience fee is the real cost you need to weigh. If your credit card earns 2% cash back, and the convenience fee is 1.87%, you come out roughly even — the rewards cover the fee. If your card earns 3% or more in a category that applies (such as 3% on government payments, if your card offers that), you come out ahead.
The other reason to pay by credit card is timing. When you charge a tax payment to your card, the money does not leave your bank account when ready. Depending on your card's billing cycle, you may have 20 to 50 days before the charge posts and you have to pay your credit card bill. If you are waiting for income to arrive or need to manage cash flow, that float can be worth the fee. However, this only works if you are certain you can pay the credit card bill when it comes due — carrying a balance on a credit card costs far more than the tax convenience fee.
If your card earns 1% or less, or if you have no rewards, paying by credit card costs you money with no offset. In that case, pay by electronic bank transfer (ACH) instead — the IRS offers this option free through both processors.
The payment important date and how it is recorded
The IRS considers your tax payment made on the date the processor receives it, not the date you submit the form on your computer. Both Worldpay and Official Payments process payments the same business day you submit them, so if you pay on a Monday morning, the IRS receives it Monday. If you pay on a Friday evening or over a weekend, the payment processes Monday morning.
This matters if you are close to a tax important date. If your return is due April 15 and you pay by credit card on April 14, the payment will post on April 15 (assuming it is a business day), which is still on time. However, if April 15 falls on a weekend, the important date moves to the following Monday, and you have until then to pay. Check the IRS website for the exact important date in your tax year.
You will receive a confirmation number from the processor when ready after you submit payment. Keep this number. The IRS will send you a separate notice once the payment posts to your account, usually within a few days. If you are paying a balance owed or making an estimated tax payment, the payment will reduce what you owe or credit your account for the next quarter.
What to do if you cannot pay the full amount
If you owe taxes but cannot pay in full by the important date, you still have options beyond putting it on a credit card. The IRS offers a short-term extension (up to 180 days) and a long-term payment plan (installment agreement). Both are free to set up if you file your return on time, even if you cannot pay the full balance.
A payment plan lets you pay what you owe in monthly installments. The IRS charges a setup fee (currently $31 to $225 depending on the plan type and how you set it up) and interest on the unpaid balance. The interest rate is set quarterly and is currently around 8% per year, though it changes. Over time, this is usually cheaper than paying by credit card and then carrying a credit card balance.
You can set up a payment plan through the IRS website (irs.gov), by phone at 1-800-829-1040, or through a tax professional. If you set it up online, the setup fee is lower than if you call or use a professional.
Paying estimated taxes by credit card
If you are self-employed or have income not subject to withholding, you make estimated tax payments four times a year. These payments go through the same processors as regular income tax payments. The convenience fee applies the same way.
Estimated taxes are due April 15, June 15, September 15, and January 15 of the following year. If any of these dates fall on a weekend or holiday, the important date moves to the next business day. You can pay each quarter separately or pay multiple quarters at once — the processor lets you choose the tax year and quarter when you submit payment.
If you miss an estimated tax payment important date, you can still pay, but the IRS will charge a penalty and interest on the late amount. Paying late by credit card does not waive the penalty, so do not delay if you realize you missed a important date.
Other payment methods the IRS accepts
Credit card is not your only option. The IRS also accepts electronic bank transfer (ACH) through both processors at no cost. This is the cheapest way to pay if your bank account has the funds available. The payment processes the same day you submit it, and there is no convenience fee.
You can also pay by check or money order by mail, though this is slower and gives you less control over the exact date the IRS receives the payment. Mail payments typically take 7 to 10 days to reach the IRS. If you are paying close to a important date, mail is risky.
Some employers and payroll services let you pay payroll taxes directly through their systems. If you use a payroll processor, ask whether they offer direct IRS payment — this is often free and is the fastest route for payroll obligations.
Frequently Asked Questions
Does paying taxes by credit card hurt my credit score?
Paying by credit card does not hurt your credit score in itself. However, if the payment increases your credit card balance and pushes your utilization ratio higher, that can temporarily lower your score. The impact is usually small and reverses once you pay down the balance. If you plan to explore for a loan soon, it is better to pay taxes by bank transfer or check to avoid any utilization spike.
Can I use someone else's credit card to pay my taxes?
Yes, you can use someone else's card as long as you have permission and the card is in their name. The processor will ask for the cardholder's name and billing address. The payment will still be recorded under your tax ID, not the cardholder's. Make sure the cardholder understands they are responsible for paying the credit card bill.
What if the payment processor website is down on the day I need to pay?
If the processor site is down, you can pay by check or money order by mail, or call the IRS at 1-800-829-1040 to discuss other options. If you are very close to the important date and cannot reach the processor, filing your return on time with a note explaining the payment delay can protect you from failure-to-file penalties. The IRS will work with you on the payment once the technical issue is resolved.
Does the convenience fee count as a deductible business expense?
No. The convenience fee is part of your tax payment, not a separate business expense. You cannot deduct it on your return. This is one reason to avoid paying by credit card unless the rewards or float time justify the cost.
Can I pay state taxes by credit card through the same processors?
No. Worldpay and Official Payments only process federal tax payments. Each state has its own payment system. You will need to visit your state's tax agency website to find out how to pay state taxes. Some states accept credit cards; others do not.