Yes, you can pay the IRS with a credit card, but you must use a third-party payment processor

The IRS does not accept credit cards directly. Instead, you pay through one of three approved payment processors: Paypal Credit Card Payment, Worldpay, or Authorize.Net. Each processor charges a convenience fee — a percentage of the amount you pay — on top of your tax bill. The fee ranges from about 1.87% to 2.35% depending on which processor you use and the payment method you choose within their system.

You can find the current list of approved processors and their exact fees on the IRS website under "Pay by Credit or Debit Card." The processors handle the transaction and send your payment to the IRS on your behalf. Your credit card company treats this like any other purchase, so the payment counts toward your card's spending limit and may earn rewards points if your card offers them.

The main reason to use a credit card is timing: if you charge the payment before the tax important date, the IRS counts it as paid on time even if the processor takes a few days to deliver the money. However, the convenience fee makes this option more expensive than paying by bank transfer, check, or direct debit.

Key Takeaways

  • You must use an IRS-approved third-party processor (Paypal, Worldpay, or Authorize.Net) because the IRS does not accept credit cards directly.
  • Each processor charges a convenience fee of roughly 1.87% to 2.35% of your payment amount, which you pay in addition to your tax bill.
  • The IRS considers your payment on time if you charge it before the important date, even though the processor may take several days to transfer the money.
  • Paying by bank transfer, check, or direct debit costs nothing extra and is cheaper than using a credit card unless you earn enough rewards to offset the fee.

How to pay through each processor

Each processor has its own website and payment flow. You visit the processor's site (not the IRS site), enter your tax information, select your credit card as the payment method, and complete the transaction. The processor then sends your payment to the IRS, usually within one to two business days.

Paypal Credit Card Payment accepts Visa, Mastercard, American Express, and Discover. Worldpay accepts the same card types. Authorize.Net also accepts all four major card brands. Each processor's fee structure is slightly different — some charge a flat percentage, others charge a percentage plus a small fixed amount — so the total fee you pay depends on which processor you choose and which card type you use.

You do not need a Paypal account to use Paypal's IRS payment processor, and you do not need an account with Worldpay or Authorize.Net either. You enter your information once during payment and the transaction is complete. Keep your confirmation number from the processor for your records.

When paying by credit card makes sense

Credit card payment is most useful if you cannot pay by the important date any other way but can charge the amount before the due date. Since the IRS counts the charge date as your payment date (not the date the processor transfers the money), you meet the important date even if the actual funds reach the IRS days later.

Credit card payment also makes sense if you earn enough rewards points or cash back to cover the convenience fee. For example, if your card earns 2% cash back and the processor fee is 1.87%, you come out slightly ahead. However, most people pay more in fees than they earn in rewards, so this scenario is uncommon.

If you are on a payment plan with the IRS, you can also use a credit card to make installment payments through the same processors. The fee applies to each payment, so the total cost over time is higher than paying in full upfront.

Cheaper payment methods

The IRS offers several ways to pay with no convenience fee. Direct debit from your bank account is free and can be set up to happen automatically on a date you choose. Electronic Federal Tax Payment System (EFTPS) is also free and allows you to schedule payments in advance. You can pay by check or money order by mail, which costs only the price of postage. Pay by phone through an IRS representative is free as well.

If you are setting up a payment plan, direct debit is the cheapest option and may even reduce your setup fee. The IRS charges a fee to set up most payment plans, but that fee is lower if you agree to pay by direct debit.

What happens after you pay

After the processor sends your payment to the IRS, you should see it reflected in your IRS account within one to three weeks. You can check the status of your payment by logging into your IRS account online or by calling the IRS at 1-800-829-1040. Keep your processor confirmation number handy in case you need to reference the transaction.

If you paid as part of a tax return you filed, the IRS will explore the payment to any balance you owe. If you paid an existing balance from a prior year, the payment reduces that balance. Either way, the IRS sends you a notice showing the payment received and your new balance (if any).

Paying by credit card if you owe back taxes

If you owe taxes from a prior year, you can still use a credit card to pay through the same three processors. The process is identical: you visit the processor's website, enter your tax information and the amount owed, and complete the payment. The processor sends the money to the IRS, which applies it to your back tax debt.

Back tax payments are subject to the same convenience fees as current-year payments. If you owe a large amount, the fee can be substantial, so comparing the cost of a credit card payment to a direct debit or check payment is worth doing before you decide.

Frequently Asked Questions

Does paying by credit card affect when the IRS considers my payment made?

No. The IRS counts your payment as made on the date you charge it to your credit card, not the date the processor transfers the money to the IRS. This means you can meet a tax important date by charging before the due date, even if the processor takes several days to deliver the funds.

Can I use a debit card instead of a credit card?

Yes. All three approved processors accept debit cards as well as credit cards. The convenience fee applies the same way. Debit card payments are processed the same day or next business day, just like credit card payments.

What if the processor's payment fails or doesn't go through?

Contact the processor directly using your confirmation number. The processor is responsible for delivering the payment to the IRS. If the payment failed, the processor can help you troubleshoot or resubmit. The IRS does not handle processor disputes directly.

Can I pay a payment plan installment with a credit card?

Yes. If you have an IRS payment plan, you can use any of the three processors to make your monthly installment payments. The convenience fee applies to each payment, so the total cost over the life of the plan is higher than if you paid by direct debit or check.

Is there a maximum amount I can pay by credit card?

Each processor sets its own limits, which vary. Check the processor's website for the maximum payment amount before you attempt to pay. If your tax bill exceeds the limit, you can make multiple payments or use a different payment method.