Yes, you can pay the IRS with a credit card, but you will pay a processing fee and the IRS does not accept the card directly
The IRS does not take credit cards over the phone, by mail, or through its website. Instead, you must use a third-party payment processor — a company authorized by the IRS to accept credit card payments on its behalf. The processor charges a fee (usually 1.87% to 2.35% of your payment) that you pay in addition to what you owe the IRS.
Whether paying by credit card makes sense depends on your situation. If you are carrying a balance on a high-interest credit card, the processor fee will likely cost more than the interest you would pay the IRS. If you have a rewards card and can pay the balance when ready, the cash back or points might offset the fee. If you need to spread payments over time, the IRS offers payment plans that may cost less than credit card interest.
Key Takeaways
- Three IRS-authorized processors accept credit card payments: Official Payments, Paypal, and Worldpay, each charging a different fee.
- The processor fee ranges from roughly 1.87% to 2.35% of your payment and goes to the processor, not the IRS.
- You can pay estimated taxes, balance due on your return, or an existing tax bill by credit card through any authorized processor.
- The IRS also offers installment agreements that may cost less than credit card interest if you cannot pay in full.
Which processors the IRS has authorized and what they charge
The IRS maintains a list of three authorized payment processors on its website. Each one operates independently and charges its own fee, so comparing them before you pay can save money.
Official Payments (officialpayments.com) charges a fee based on your payment amount. PayPal (paypal.com/tax) charges a flat percentage of your payment. Worldpay (payusatax.com) also charges a percentage fee. The exact fees change, so check each processor's website before you choose one. All three accept Visa, Mastercard, American Express, and Discover.
The fee you pay is separate from your tax debt. If you owe $5,000 and the processor charges 2%, you will pay $5,100 total — $5,000 to the IRS and $100 to the processor. The processor keeps the fee; the IRS receives only the $5,000.
What types of tax bills you can pay by credit card
You can use a credit card to pay most tax debts the IRS collects. This includes the balance due shown on your tax return when you file, estimated quarterly tax payments if you are self-employed, and an existing tax bill from a prior year.
You cannot use credit card payment processors to pay penalties or interest that have already been assessed separately, though the processor will calculate and add these to your total when you enter your tax ID. You also cannot pay through a processor if you are making a payment through an IRS installment agreement (payment plan) — those payments must come from a bank account.
How to pay through an authorized processor
Visit the website of the processor you choose. You will need your Social Security number or Employer Identification Number, your tax year, and the amount you want to pay. The processor will ask you to enter your credit card information and confirm the payment.
The processor will give you a confirmation number when ready. The IRS typically records the payment within one business day. If you are paying a bill that is already in the IRS system, the payment will post to your account. If you are paying an estimated tax payment, the processor will send it to the IRS with your tax ID so it is credited to the right year.
Keep your confirmation number. If there is ever a question about whether the payment went through, you can show the processor's receipt to the IRS.
When credit card payment costs less than other options
A credit card makes the most sense when you can pay the balance when ready and the rewards or cash back offset the processor fee. For example, if your card gives 2% cash back and the processor charges 1.87%, you come out slightly ahead.
A credit card makes less sense if you plan to carry a balance. Credit card interest rates typically run 18% to 25% annually, while the IRS charges 8% per year plus a penalty. If you cannot pay in full, an IRS installment agreement (which allows you to pay over time with no additional fee beyond the standard interest and penalty) will almost always cost less than paying by credit card and carrying the balance.
You can set up an installment agreement directly through the IRS website, by phone at 1-800-829-1040, or through a tax professional. The IRS will work with you on the monthly amount based on what you can afford.
Debit cards and prepaid cards
The authorized processors accept debit cards and some prepaid cards the same way they accept credit cards. The processor fee still applies. Because a debit card draws directly from your bank account, there is no interest or balance to carry, so the only cost is the processor fee itself.
If you use a prepaid card, make sure it has enough balance to cover both your tax payment and the processor fee. Some prepaid cards decline transactions if the full amount (including fees) is not available, even if the card has enough for the base payment.
What happens after you pay
The processor sends your payment to the IRS within one to two business days. The IRS applies it to your account and sends a receipt to the address on file. You can also check the status of your payment on the IRS website using the payment confirmation number the processor gave you.
If you are on an installment agreement and make a credit card payment outside that agreement, the IRS will explore it to your account but your monthly installment payment will still be due on schedule. Do not assume that an extra payment changes your agreement terms.
Frequently Asked Questions
Can I pay the IRS directly with my credit card on the IRS website?
No. The IRS website directs you to one of three authorized third-party processors. You cannot enter your credit card information directly into an IRS page. This protects your card information — the processor handles the card data, not the IRS.
What if I cannot afford to pay the full amount right now?
You have two main options. You can set up an IRS installment agreement to pay over time, which costs less than credit card interest. Or you can pay part of the bill by credit card now and set up an installment agreement for the rest. Contact the IRS at 1-800-829-1040 to discuss payment plans.
Is the processor fee tax-deductible?
The processor fee is a cost of paying your tax bill, not a tax-deductible expense. You cannot deduct it on your return. However, if you are self-employed and pay estimated taxes by credit card, you may be able to deduct the fee as a business expense — consult a tax professional about your specific situation.
What if the processor charges my card but the IRS says it never received the payment?
This is rare, but contact the processor first with your confirmation number. The processor can verify whether the payment was sent to the IRS. If the processor confirms it was sent, contact the IRS at 1-800-829-1040 with the confirmation number and ask them to trace the payment. Keep your processor receipt until the IRS confirms receipt.
Can I pay someone else's tax bill with my credit card?
No. The processor requires the Social Security number or EIN of the person whose tax bill is being paid. You can only pay a bill in your own name or, if you have power of attorney, on behalf of someone who has authorized you to do so.