You can pay federal income taxes with a credit card, but only through two IRS-approved payment processors, and you will pay a convenience fee that usually makes it more expensive than other methods
The IRS does not accept credit cards directly. Instead, you use one of two companies the IRS has authorized to handle credit card payments: Pay1040 or Official Payments. Both charge a fee — typically between 1.87% and 2.35% of the amount you pay, depending on which processor you use and which card type you're using. On a $5,000 tax payment, that fee could be $94 to $118. You will owe this fee on top of your tax bill.
The main reason people pay taxes with a credit card is to earn rewards points or cash back on a large payment. If your card offers 2% cash back, for example, you would earn $100 on a $5,000 payment — but then lose $94 to the convenience fee, netting only $6. The math only works if your card's rewards rate is higher than the fee, or if you are using a 0% introductory period and plan to pay off the balance before interest kicks in.
Key Takeaways
- You can pay federal taxes with a credit card through Pay1040 or Official Payments, the only two IRS-approved processors.
- Both processors charge a convenience fee of roughly 1.87% to 2.35%, which you pay in addition to your tax bill.
- Credit card payments make financial sense only if your card's rewards rate exceeds the convenience fee, or if you are using a 0% promotional period.
- You can pay estimated quarterly taxes, prior-year returns, and tax extensions with a credit card through the same processors.
The two IRS-approved payment processors and their fees
Pay1040 charges between 1.87% and 2.35% depending on your card type. Visa and Mastercard are typically 1.87%, while American Express and Discover cards run 2.35%. You can pay through their website at pay1040.com or by phone at 1-888-PAY-1040.
Official Payments charges a flat 1.87% for all card types. You can pay through their website at officialpayments.com or by phone. Both processors allow you to pay when ready or schedule a payment for a future date, which is useful if you are filing an extension and want to pay closer to the extended important date.
Neither processor charges a fee to set up an account or to check your payment status. The fee is only charged when you actually submit a payment. Both will email you a confirmation number when ready and send a receipt by mail within a few days.
When paying by credit card actually saves you money
The convenience fee makes credit card payments expensive for most people. However, there are two situations where it can make sense. The first is if you have a rewards card with a rate higher than the fee. A card offering 3% cash back on all purchases would earn you $150 on a $5,000 payment, which more than covers a $94 fee. Cards with rotating 5% categories sometimes include government payments, though you should verify this with your card issuer before paying.
The second situation is if you are using a 0% introductory APR offer and you have a plan to pay off the balance before the promotional period ends. For example, if you have a card with 0% APR for 12 months and you know you will receive a bonus or tax refund within that window, you could charge your tax bill to the card, pay the convenience fee, and then pay off the balance interest-free. This only works if you are disciplined about paying before the rate jumps — if you miss the important date, the interest charges will quickly erase any benefit.
How to actually submit a credit card payment to the IRS
You do not pay the IRS directly. Instead, you go to either pay1040.com or officialpayments.com, enter your tax information, and select your card. You will need your Social Security number or employer identification number, your filing status, and the amount you want to pay. The processor will ask for your card details and billing address.
You can pay for the current tax year, prior-year taxes, estimated quarterly payments, or an extension. If you are paying an extension, you will still owe the full tax amount by the extended important date — the extension only gives you more time to file your return, not to pay. The processor will confirm your payment when ready and provide a confirmation number. Write this number down or save the email, because you will need it if you have questions about the payment later.
Payments typically post to your IRS account within one business day, though it can take up to three days during peak filing season. You can check the status of your payment on the IRS website using your confirmation number.
Why most people should use a different payment method
For the vast majority of taxpayers, paying by credit card is more expensive than the alternatives. The IRS allows you to pay by direct debit from a bank account for free through the same processors — pay1040.com and officialpayments.com both offer this option. If you have a bank account, this is almost always the cheapest choice.
You can also pay by check, money order, or electronic federal tax payment system (EFTPS), all of which are free. EFTPS is the IRS's own payment system and requires you to enroll in advance, but once you are set up, you can schedule payments online with no fee. If you are paying a large amount and do not have a rewards card that exceeds the convenience fee rate, one of these free methods will save you money.
What happens if you cannot pay your full tax bill
If you owe taxes but cannot pay the full amount, paying part of it by credit card is usually not a good strategy because you are paying a fee on top of a debt you already cannot afford. Instead, contact the IRS about a payment plan. The IRS offers short-term plans (120 days or less) with no setup fee, and long-term installment agreements with a one-time setup fee of $31 to $225 depending on how you set it up. These plans let you pay over time without the credit card convenience fee.
If you cannot pay at all, you can request a delay through an IRS process called an offer in compromise or currently not collectible status. These options do not eliminate the debt, but they pause collection action while you get your finances in order. A tax professional or the IRS's own free tax clinics can walk you through these options.
Frequently Asked Questions
Can I pay state taxes with a credit card through the same processors?
No. Pay1040 and Official Payments only handle federal tax payments. Most states have their own payment processors for state income taxes, and many charge their own convenience fees. Check your state's tax agency website to find the official payment portal.
What if I pay by credit card and then get a refund?
The IRS will refund your payment, but the convenience fee is not refunded — that goes to the processor. If you overpay by $500 and the convenience fee was $94, you will receive a $500 refund, not $594. The fee is non-refundable.
Does paying by credit card affect when my payment is credited to my account?
No. Whether you pay by credit card, debit, or check, the IRS credits the payment on the date the processor receives it, not the date your credit card company processes the charge. This matters for the tax important date — a payment submitted by the important date counts as on-time even if your credit card charges you a few days later.
Can I use a prepaid card or gift card to pay taxes?
Technically yes, as long as the card has a Visa, Mastercard, American Express, or Discover logo and you can enter the billing address. However, prepaid cards often have their own fees, and you would still owe the IRS processor fee on top of that. It is usually more expensive than using a regular credit or debit card.
What if the payment processor website is down on tax day?
Both Pay1040 and Official Payments are designed to handle high volume on tax day, but if the site is down, you can call their phone lines instead. Pay1040's phone number is 1-888-PAY-1040. Having a backup method — like a check or EFTPS — is a good idea if you are cutting it close to the important date.