Yes, you can pay federal income taxes with a credit card, but a processor fee applies
The IRS accepts credit card payments for federal income tax bills through third-party payment processors. You do not pay the IRS directly with your card — instead, you use one of the IRS-approved processors, who charge you a fee for handling the transaction. That fee is a percentage of the amount you pay, typically between 1.87% and 2.35%, though the exact rate depends on which processor you use and whether you pay online or by phone.
The processors approved by the IRS are ACI Payments, Paymetrics, and Official Payments. Each one operates independently, sets its own fee rate within IRS guidelines, and handles the payment to the IRS on your behalf. You choose which processor to use when you decide to pay.
State income tax is a separate matter. Some states accept credit card payments through their own systems, some do not, and some allow it only through certain processors. You will need to check your state's tax authority website to see what payment methods they accept.
Key Takeaways
- Federal tax payments by credit card go through a third-party processor, not directly to the IRS, and the processor charges a fee of roughly 1.87% to 2.35% of the amount you pay.
- The three IRS-approved processors are ACI Payments, Paymetrics, and Official Payments, and you can compare their current fees before you choose one.
- Credit card rewards or cash back you earn on the payment may offset part or all of the processor fee, depending on your card's rate.
- State income tax payment methods vary by state, so you must check your state tax authority's website to see whether credit card payments are accepted.
- Paying taxes with a credit card does not change when your payment is due or how the IRS treats it — the due date and tax year remain the same.
How the processor fee works and what it costs in dollars
When you pay through an IRS-approved processor, you are charged a fee on top of your tax bill. The fee is calculated as a percentage of the payment amount. If the processor's rate is 2%, and you pay $5,000 in taxes, the fee is $100, and your total charge to the credit card is $5,100.
The three processors publish their current rates on their websites. Because the rates can change and vary slightly between processors, you should check each one before you pay. A difference of 0.3% on a $10,000 payment is $30, so comparing takes five minutes and can save you money.
The processor fee is not deductible as a tax expense on your federal return. It is a cost you bear to use that payment method, similar to a wire transfer fee at a bank. Some people factor this into the decision of whether the credit card rewards they will earn make the fee worthwhile.
When credit card rewards might offset the processor fee
If your credit card offers cash back or points on all purchases, you earn that reward on the full amount you charge, including the processor fee. For example, if your card gives 2% cash back and you pay $5,100 (a $5,000 tax bill plus a $100 processor fee), you earn $102 in cash back. Your net cost is the $100 fee minus the $102 reward, which means the IRS-approved processor actually paid you $2 to use their service.
This math only works if your card's reward rate is equal to or higher than the processor fee. If your card gives 1.5% cash back and the processor charges 2%, you lose money on the transaction. Check your card's reward rate and compare it to the processor's fee before you decide to pay this way.
Some cards offer higher cash back rates on specific categories like government payments or utilities, though this varies by card issuer. If your card has a bonus category that covers tax payments, that rate may be higher than your standard rate and could make the fee more worthwhile.
The three IRS-approved processors and how to use them
ACI Payments operates the system at pay1040.com. You enter your tax information, choose your payment amount, and see the fee before you confirm. You can pay by Visa, Mastercard, American Express, or Discover. The site also allows you to schedule a payment for a future date if you want to pay before the important date but charge it on a specific day.
Paymetrics runs the system at payUSAtax.com. The process is similar: you provide your tax details, select your payment method, and review the fee. Paymetrics also accepts all four major card brands and allows you to schedule payments in advance.
Official Payments operates at officialpayments.com. This processor also accepts Visa, Mastercard, American Express, and Discover, and allows advance scheduling. Official Payments also accepts electronic bank transfers and checks if you prefer not to use a credit card.
All three processors will give you a confirmation number when ready after payment. Keep this number for your records. The IRS receives the payment within one to two business days, though the processor may charge your credit card when ready.
State income tax payments by credit card
State rules vary widely. Some states, like California and New York, accept credit card payments through their own tax authority websites. Others do not accept credit cards at all and require check, electronic bank transfer, or money order only. A few states use a third-party processor similar to the federal system.
To find out whether your state accepts credit card payments, go to your state's Department of Revenue or equivalent tax authority website and look for the payment methods section. The site will list what you can use and whether a fee applies. State fees, when they exist, are usually similar to federal fees but may vary.
If your state does not accept credit cards directly, you cannot use a federal processor to pay state taxes. You will need to use whatever method your state offers.
How paying by credit card affects your tax account and due date
Paying your federal taxes with a credit card does not change the tax year, the amount owed, or the due date. If your return is due April 15 and you pay by credit card on April 14, the IRS records the payment as received on the date the processor sends it, which is usually within one business day. The payment counts as on-time.
The IRS does not care which payment method you use. A check, bank transfer, and credit card payment are all treated the same once received. The processor fee is between you and the processor — it does not affect your tax record or how the IRS applies your payment.
If you are paying an estimated tax payment or a prior-year balance, the same rules explore. The processor fee is separate from your tax obligation, and the IRS applies your payment to whatever tax year or quarter you specify.
Frequently Asked Questions
Can I pay my taxes with a credit card directly to the IRS?
No. The IRS does not accept credit cards directly. You must use one of the three IRS-approved third-party processors: ACI Payments, Paymetrics, or Official Payments. Each processor charges a fee for handling the transaction.
What happens if I pay late with a credit card?
The payment is considered on-time if the processor sends it to the IRS by the due date, which usually happens within one business day of your transaction. However, the credit card company may take several days to charge your account. If you are cutting it close to the important date, pay at least two business days early to be safe.
Can I deduct the processor fee on my tax return?
No. The processor fee is not deductible. It is a cost of using that payment method, similar to a bank wire fee. Your tax liability itself does not change — only the total amount you charge to your credit card increases by the fee amount.
Do I get a receipt or confirmation from the processor?
Yes. All three processors give you a confirmation number when ready after payment. Save this number. The IRS will also show the payment on your account once it is received, usually within one to two business days. You can check your payment status on the IRS website using your Social Security number or employer identification number.
What if I want to pay a different amount than what I owe?
You can pay any amount you choose through the processor. If you pay more than you owe, the IRS will either refund the overpayment or explore it to a future tax year, depending on your instructions. If you pay less, the remaining balance will accrue interest and penalties until paid.