The main ways to pay the IRS

You can pay the IRS by direct debit from your bank account, by credit or debit card through an approved payment processor, by electronic federal tax payment system (EFTPS), by mail with a check or money order, or in person at a local IRS office. The fastest and cheapest method is direct debit — it costs nothing and the IRS processes it immediately. Paying by card costs a processing fee (usually 1.87 to 2.35 percent of the amount) that the payment processor charges, not the IRS. Mail takes 7 to 10 business days to reach the IRS, and paying in person is rare because most IRS offices no longer accept walk-in payments.

The method you choose depends on how much you owe, how soon you need to pay, and whether you want to set up a payment plan. If you owe less than $25,000 and can pay in full within 120 days, direct debit or card payment works. If you owe more or need time to pay, you will set up an installment agreement first, then make monthly payments through whichever method you choose.

Key Takeaways

  • Direct debit from your bank account is free and the fastest way to pay; the IRS processes it the same day you authorize it.
  • Credit and debit card payments cost a processing fee of roughly 2 percent but let you pay immediately if you do not have bank account access.
  • EFTPS is a free system for businesses and individuals who make frequent tax payments, but it requires advance enrollment.
  • Mailing a check or money order takes 7 to 10 business days and should include your tax ID and the tax year on the payment coupon.
  • If you cannot pay in full, you can set up an installment agreement through IRS.gov or by calling 1-800-829-1040 before you pay anything.

Paying by direct debit from your bank account

Direct debit is the IRS's preferred payment method because it is free and reliable. You authorize the IRS to withdraw money from your checking or savings account on a date you choose. Go to IRS.gov, select "Pay Now," then choose "Direct Debit" and enter your routing number and account number. The IRS will process the payment the same day if you authorize it before 8 p.m. Eastern time; after that, it processes the next business day.

You can set up direct debit as a one-time payment or as part of a monthly installment agreement. If you are on an installment plan, you can authorize the IRS to deduct your monthly payment automatically, which lowers your setup fee from $225 to $31 (or $31 to $31 if your income is below certain thresholds). Direct debit works whether you owe federal income tax, self-employment tax, or payroll tax.

Paying by credit or debit card

You can pay by Visa, Mastercard, American Express, or Discover through an approved payment processor. The IRS does not charge a fee, but the processor does — usually between 1.87 and 2.35 percent of the amount you pay. For example, if you owe $5,000 and pay by card, the processor fee is roughly $94 to $118, which you pay in addition to the $5,000. The fee is not tax-deductible.

To pay by card, go to IRS.gov, select "Pay Now," then choose the card payment option. You will be directed to one of the approved processors: Paypal Credit, Worldpay, or ACI Payments. Each processor has its own fee structure, so compare them before you choose. Card payments process within one business day. You cannot use a card to set up an installment agreement, but you can use a card for a one-time payment and then set up an installment plan separately.

Using EFTPS for regular or large payments

The Electronic Federal Tax Payment System (EFTPS) is a free service for people and businesses that make frequent tax payments. It is most common among self-employed people, small business owners, and employers. You enroll in advance at EFTPS.gov, then log in to schedule payments up to 120 days ahead. EFTPS is free and does not charge processing fees.

Enrollment takes about 10 business days because the IRS mails you a PIN to confirm your identity. Once enrolled, you can schedule payments for any date you choose, and the money is withdrawn from your bank account. EFTPS is useful if you make quarterly estimated tax payments or if you run payroll and need to pay employment taxes on a set schedule. If you only owe taxes once a year, direct debit through IRS.gov is simpler because it does not require advance enrollment.

Paying by mail with a check or money order

You can mail a check or money order to the IRS, but it takes 7 to 10 business days to arrive and be processed. Write your Social Security number, tax year, and tax form type (1040, 1120, 941, etc.) on the front of the check or money order. Include the payment coupon from your tax notice or download one from IRS.gov. Mail it to the address listed on your notice or on the IRS website — the address depends on your state.

Do not mail cash. If you are paying an amount owed from a prior year, write the tax year on the check so the IRS applies the payment to the correct year. Keep a copy of the front and back of the check or a photo of the money order receipt for your records. The IRS will send you a receipt by mail, which can take several weeks.

Setting up a payment plan if you cannot pay in full

If you owe more than you can pay right now, you can set up an installment agreement to pay over time. The IRS offers short-term agreements (120 days or less) and long-term agreements (more than 120 days). Short-term agreements have no setup fee. Long-term agreements have a setup fee of $31 to $225 depending on your income and how you enroll.

To set up a plan, go to IRS.gov and use the Online Payment Agreement tool, or call 1-800-829-1040. You will need to provide your income, expenses, and how much you can pay each month. The IRS will calculate a monthly payment amount and tell you how long the agreement will last. Once approved, you make monthly payments by direct debit, card, check, or EFTPS. Interest and penalties continue to accrue on the unpaid balance, so paying faster saves you money.

What happens if you miss a payment or pay late

If you miss a payment on an installment agreement, the IRS will send you a notice. If you miss three payments in a row, the agreement is terminated and the full remaining balance becomes due. If you pay late but not on an agreement, the IRS charges a failure-to-pay penalty of 0.5 percent per month on the unpaid balance, plus interest. Interest is currently 8 percent per year but changes quarterly.

If you know you will miss a payment, contact the IRS before the due date. You can request a short-term extension or modify your agreement to lower the monthly payment. Call 1-800-829-1040 or go to IRS.gov to request a change. Modifying an agreement may extend the repayment period and increase the total interest you pay.

Frequently Asked Questions

Can I pay the IRS with a payment app like Venmo or PayPal?

No. The IRS does not accept payments through consumer payment apps. You must use one of the official methods: direct debit, card payment through an approved processor, EFTPS, check by mail, or in person at an IRS office. Scammers sometimes pose as the IRS and ask people to pay through apps, so if someone tells you to use Venmo or PayPal to pay taxes, it is a fraud attempt.

Do I have to pay the full amount I owe right away?

No. If you cannot pay in full, you can set up an installment agreement for as long as you need (up to several years for large amounts). The IRS will work with you to set a monthly payment you can afford. You will pay interest and penalties on the unpaid balance, so paying faster saves money, but you are not required to pay everything at once.

What if I pay more than I owe?

The IRS will either refund the overpayment or apply it to next year's estimated taxes if you request that. When you make your payment, you can choose which option you want. If you do not specify, the IRS will refund it, which can take several weeks by mail or a few days if you set up direct deposit.

Is there a penalty for paying by credit card instead of direct debit?

No penalty from the IRS, but the payment processor charges a fee of roughly 2 percent. Direct debit is free, so it saves you money if you have a bank account. If you do not have bank account access, paying by card is your best option even with the fee.

Can I pay the IRS in person at a local office?

Most IRS offices no longer accept in-person payments. Your best options are online (direct debit or card), by phone (1-800-829-1040 to set up a plan), or by mail. Some tax preparation offices and payment centers may accept payments on behalf of the IRS, but call ahead to confirm.