Yes, you can pay federal income taxes with a credit card, but it costs money and comes with trade-offs you should understand before you do it.
The IRS accepts credit card payments through third-party payment processors. You cannot pay directly to the IRS with a card — instead, you use one of three approved processors: Worldpay, Paymetrics, or Global Payments. Each charges a convenience fee (usually 1.87% to 2.35% of your payment) that the processor keeps, not the IRS. That fee is separate from any interest your credit card company charges.
State income taxes vary. Some states accept credit card payments through their own systems; others do not. You will need to check your state's tax agency website to see what payment methods they allow.
Key Takeaways
- Federal tax payments by credit card go through Worldpay, Paymetrics, or Global Payments, each charging a convenience fee of roughly 1.87% to 2.35% of the amount you pay.
- The convenience fee is not tax-deductible and is charged on top of any interest your credit card company charges you.
- Paying taxes with a credit card makes sense only if you earn cash back or rewards that exceed the convenience fee, or if you need the time that a payment plan provides.
- State tax payments by credit card depend on your state; check your state tax agency's website for accepted payment methods.
- If you cannot pay in full, the IRS offers payment plans (installment agreements) that may cost less than the credit card convenience fee.
When the convenience fee actually costs you money
A convenience fee of 1.87% to 2.35% sounds small until you do the math. On a $5,000 tax bill, that fee is $94 to $118. On a $10,000 bill, it is $187 to $235. The fee is charged immediately when you make the payment, regardless of whether your credit card company later gives you cash back or rewards points.
The fee makes sense only if your credit card rewards exceed it. A card that gives 2% cash back on all purchases would earn you $100 on a $5,000 payment — which covers most of the fee but not all of it. A card that gives 1% cash back would earn $50, leaving you $44 to $68 in the hole. Most cards do not offer rewards on tax payments at all, or they exclude government payments from their rewards categories.
If your card does offer rewards on tax payments and those rewards exceed the convenience fee, paying by credit card can work in your favor. But you have to check your card's terms first, and you have to be disciplined about paying off the balance quickly. Carrying a credit card balance at 18% to 25% interest will erase any rewards benefit in weeks.
Using a credit card payment to buy time
Some people pay taxes by credit card not for rewards, but because they need a few weeks to gather the money. A credit card payment posts immediately to the IRS, which stops penalties and interest from accruing on that amount. Then you have time to pay off the credit card balance before interest kicks in.
This strategy works only if your credit card offers a 0% introductory APR period or if you can pay off the balance within a month or two. If you carry the balance for several months, credit card interest (typically 18% to 25%) will cost far more than the IRS penalties and interest you were trying to avoid. The IRS failure-to-pay penalty is 0.5% per month, and interest is currently around 8% annually — both lower than most credit card rates.
If you genuinely cannot pay your full tax bill, the IRS offers payment plans (called installment agreements) that let you pay over time without the convenience fee. Those plans do charge interest and a setup fee, but the total cost is usually lower than paying by credit card and then carrying a balance.
How to pay federal taxes by credit card
Go to the IRS payment page at irs.gov and select "Pay by Credit or Debit Card." You will be directed to one of the three approved processors. Each processor's website walks you through entering your tax information, card details, and the amount you want to pay. You will see the convenience fee amount before you confirm the payment.
The payment posts to the IRS within one business day. You will receive a confirmation number from the processor and a separate confirmation from the IRS. Keep both for your records. The IRS will not send you a bill or notice for the amount you paid by credit card — the payment is recorded in their system immediately.
You can pay as much or as little as you want, and you can make multiple payments if needed. Some people pay part of their bill by credit card and part by another method (bank transfer, check, or payment plan). There is no limit on how many credit card payments you can make toward the same tax year.
State tax payments by credit card
State rules vary widely. Some states accept credit card payments through their own tax agency websites; others accept them only through third-party processors; still others do not accept credit cards at all. A few states charge their own convenience fees on top of the processor fee, while others absorb the cost.
The best way to find out is to visit your state's tax agency website and look for "payment methods" or "how to pay." If your state does not accept credit cards, you can usually pay by electronic bank transfer (ACH), check, or money order. Some states also offer payment plans similar to the IRS installment agreement.
Credit card payments and your tax refund
Paying taxes by credit card does not affect your refund. If you overpaid your taxes during the year and are owed a refund, the IRS will send it to you on the same schedule whether you paid by card, check, or bank transfer. The refund goes to the bank account or address you provided on your tax return, not to your credit card company.
If you owe taxes and also have a refund coming (for example, you made estimated payments but still owe a balance), the IRS will apply your refund to the amount you owe first, then send you any remaining refund. A credit card payment does not change this process.
Alternatives to paying by credit card
If the convenience fee seems too high, you have other options. Direct debit from your bank account (ACH) is free and posts within one business day. Paying by check or money order is also free, though it takes longer to process. If you cannot pay in full, an IRS installment agreement lets you pay over time with interest and a setup fee, usually costing less than a credit card convenience fee plus interest.
For state taxes, check whether your state offers free payment methods before you use a credit card. Many states offer free electronic transfer or payment plans that cost less than a credit card fee.
Frequently Asked Questions
Can I deduct the credit card convenience fee on my taxes?
No. The IRS does not allow you to deduct credit card convenience fees as a tax expense. The fee is a cost of paying your taxes, not a deductible business or investment expense. This is true even if you paid the taxes for a business or investment property.
What if I pay my taxes by credit card and then get audited?
Paying by credit card does not trigger an audit or change how the IRS treats your return. The payment method is separate from the content of your tax return. Keep your payment confirmation for your records, but it will not affect an audit if one occurs.
Can I use someone else's credit card to pay my taxes?
Yes, you can use another person's card, but you will need their permission and their card details. The person whose card you use will see the charge on their statement. The IRS does not care whose card is used — the payment is recorded under your tax ID number, not the cardholder's.
Do I have to pay the convenience fee if I use a debit card?
Yes. The processors charge a convenience fee on debit card payments the same way they do on credit cards. The fee is typically the same percentage (1.87% to 2.35%). Debit cards offer no advantage over credit cards in terms of fees.
What happens if my credit card payment fails?
If the payment fails, the processor will notify you immediately, and no charge will be posted to your card or the IRS. You can try again with the same card or a different one. If you cannot resolve the issue, use a different payment method (bank transfer, check, or payment plan) to avoid missing the tax deadline.