Yes, you can pay federal income taxes with a credit card, but you will pay a processing fee that makes it more expensive than other methods

The IRS accepts credit card payments for federal income taxes through two payment processors: Worldpay and Official Payments. When you pay this way, the processor charges you 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 choose. That means paying $5,000 in taxes costs you an extra $94 to $118 just to use your card.

You can only pay federal taxes by credit card through these two official processors. Paying directly to the IRS or through a bank is not an option for credit cards. State taxes have their own rules, and some states do not accept credit cards at all.

Key Takeaways

  • Federal tax payments by credit card go through Worldpay or Official Payments, and both charge a fee of roughly 1.87% to 2.35% of your payment amount.
  • You can pay federal income taxes, estimated taxes, and certain other federal taxes by credit card, but not payroll taxes or business taxes in most cases.
  • State income tax rules vary widely — some states accept credit cards with a fee, some accept them without a fee, and some do not accept them at all.
  • A credit card payment is processed when ready, but the IRS may take several days to post it to your account, so pay before the important date, not on it.

Which taxes you can and cannot pay by credit card

You can pay federal income tax, estimated quarterly taxes, and certain other federal taxes by credit card through the IRS processors. This includes taxes owed on your 1040 form when you file, or estimated tax payments you make throughout the year.

You cannot pay payroll taxes (Social Security and Medicare withholding), employment taxes, or excise taxes by credit card through the IRS. If you are self-employed or a business owner, you will need to use a different payment method for those. The IRS website lists which tax types each processor accepts, so check there before you attempt to pay.

How to pay federal taxes by credit card

Go to the IRS website and look for the link to pay by credit or debit card. This will direct you to either Worldpay or Official Payments. You will enter your tax information, the amount you want to pay, and your card details. The processor will show you the exact fee before you confirm the payment.

Once you complete the transaction, you will receive a confirmation number. Write this down or save the email — you will need it if you have questions about the payment later. The processor sends the payment to the IRS, but it may take several business days for the IRS to post it to your account. This does not affect the payment important date; the IRS counts the payment as made on the day you submit it to the processor, not the day they receive it.

The fee structure and when it makes sense to pay this way

Worldpay and Official Payments both charge fees, but the exact amount depends on your card type and the processor. Visa and Mastercard typically cost around 1.87%, while American Express and Discover run closer to 2.35%. For a $10,000 payment, you are looking at $187 to $235 in fees.

Paying by credit card makes sense only if you are earning rewards points or cash back that exceed the fee. If your card gives you 2% cash back and the fee is 1.87%, you come out slightly ahead. If your card gives you 1% cash back and the fee is 2.35%, you lose money. Most people are better off paying by bank transfer, check, or electronic federal tax payment system (EFTPS), all of which are free.

State income tax payments by credit card

State rules vary significantly. Some states, like California and New York, accept credit card payments through their own processors and charge a fee similar to the federal fee. Other states accept credit cards with no fee at all. Still others do not accept credit cards for income tax payments.

Check your state's tax department website to see what payment methods they offer. If your state does accept credit cards, they will direct you to their processor, which may be different from the federal processors. Do not assume that because the IRS accepts credit cards, your state does too.

What happens if you miss the important date

If you submit a credit card payment after the tax important date, the IRS considers it late, even if the processor received it on time. The important date is the day you submit the payment to the processor, not the day the processor sends it to the IRS. This is why you should pay several days before the important date, not on the important date itself.

If you owe taxes and cannot pay by the important date, you can still file your return on time to avoid the failure-to-file penalty. You will owe a failure-to-pay penalty and interest on the unpaid balance, but filing on time keeps the penalty smaller. The IRS also offers payment plans if you cannot pay the full amount at once.

Frequently Asked Questions

Can I use a debit card to pay taxes?

Yes. Debit cards are treated the same way as credit cards by both processors and are subject to the same fees. The fee structure depends on the card type (Visa debit, Mastercard debit, etc.), not whether it is a credit or debit card.

What if the payment processor website is down on tax day?

The IRS considers a payment timely if you submit it before midnight on the important date, even if the processor is slow. However, if the processor's website is down and you cannot submit at all, contact the processor when ready and document the outage. The IRS has procedures for late payments caused by processor failures, though you may need to provide proof.

Do I get a receipt for a credit card tax payment?

Yes. The processor gives you a confirmation number when ready after you complete the payment. Save this number and the confirmation email. If the IRS cannot find your payment later, this confirmation is your proof that you paid.

Can I pay someone else's taxes with my credit card?

You can pay taxes owed by another person if you have their tax identification number and know the amount owed, but the payment will be credited to their account, not yours. You cannot claim it as a deduction on your own return. The processor will ask whose taxes you are paying before you submit.

What if I want to pay more than one tax year at once?

You can make separate payments for different tax years in the same session, but each payment is processed separately and charged a separate fee. The processor will ask you to specify which year each payment covers before you confirm.