Yes, you can pay federal taxes with a credit card, but it costs money and comes with limits
The IRS accepts credit card payments for federal income taxes, but you cannot pay directly to the IRS itself. Instead, you must use a third-party payment processor — either the IRS-approved processors or your credit card company's bill pay feature. The processors charge a convenience fee (usually 1.87% to 2.35% of the amount you pay), which the credit card company bills to you separately. This fee is not tax-deductible.
The main reason to pay with a credit card is if you do not have the cash on hand but can pay off the balance quickly. The downside is that the fee often outweighs any rewards you might earn, and you could end up paying more in interest if you carry a balance. For most people, paying by bank transfer, check, or electronic federal tax payment system (EFTPS) is cheaper.
Key Takeaways
- You pay through an IRS-approved third-party processor, not directly to the IRS, and you will be charged a convenience fee of roughly 2% of your payment amount.
- The three IRS-approved processors are Authorize.Net, Paymetrics, and Global Payments, and you can find links to all three on IRS.gov.
- Credit card payments are subject to daily limits that vary by processor, typically between $5,000 and $25,000 per transaction.
- Paying with a credit card does not change your tax deadline or give you extra time to file; you still owe taxes by April 15 (or the next business day if that falls on a weekend).
- If you cannot pay in full by the deadline, you can request a payment plan through the IRS, which may cost less than a credit card convenience fee.
How to pay taxes with a credit card through an IRS processor
Go to IRS.gov and search for "pay by credit card" or navigate to the payment options page. You will see links to the three IRS-approved processors: Authorize.Net, Paymetrics, and Global Payments. Each processor handles the transaction the same way from the IRS's perspective, but their websites and fee structures are slightly different, so compare them before you choose.
Click the link to the processor you want to use. You will enter your tax information (filing status, Social Security number or employer identification number, and the amount you owe), your credit card details, and your contact information. The processor will confirm the fee amount before you submit. Once you approve, the processor sends the payment to the IRS and charges your credit card for both the tax amount and the convenience fee. You will receive a confirmation number immediately.
The payment typically reaches the IRS within one business day, and the IRS will treat it as received on the date you submitted it (not the date it clears your credit card). Keep your confirmation number for your records.
Understanding the convenience fee and daily payment limits
Each processor charges a convenience fee, and the fee varies slightly depending on which one you use and the payment method. Fees typically range from 1.87% to 2.35% of the amount you pay. For a $5,000 tax payment, that means you will pay between $94 and $118 just for the privilege of using a credit card. This fee is separate from your tax bill and is not deductible.
Each processor also sets a daily transaction limit — the maximum you can pay in a single transaction. These limits vary: Authorize.Net caps payments at $5,000 per day, while Paymetrics and Global Payments allow up to $25,000 per day. If you owe more than the daily limit, you can make multiple payments on different days, but you will pay the convenience fee on each transaction.
Check the processor's website for the exact fee percentage and limit before you start, because these can change. The IRS website lists all three processors and links to their current terms.
When paying by credit card makes sense versus other payment methods
Paying by credit card makes sense only in specific situations. If you have a rewards credit card that earns 2% or more cash back, and you can pay off the balance immediately, the rewards might offset the convenience fee. If you are short on cash but expect money soon and can pay the credit card bill within a month, the fee might be worth the timing flexibility.
In most other cases, other payment methods are cheaper. EFTPS (the Electronic Federal Tax Payment System) is free and lets you schedule payments in advance. Paying by check or money order costs nothing. Paying directly from your bank account through IRS.gov also costs nothing. Even if you have to borrow money to pay by one of these methods, the interest on a short-term loan is often less than the credit card convenience fee.
If you cannot pay the full amount by the deadline, do not use a credit card to cover the gap. Instead, request an installment agreement (a payment plan) directly from the IRS. The setup fee for a payment plan is usually $31 to $225 depending on the plan type, which is often less than the convenience fee on a large credit card payment.
What happens if you miss the tax deadline but want to pay by credit card
Paying by credit card does not extend your tax deadline. You still owe taxes by April 15 (or the next business day if that falls on a weekend or holiday). If you miss the deadline, the IRS charges a failure-to-pay penalty (usually 0.5% of the unpaid tax per month) and interest on the unpaid amount, starting from the due date.
You can still pay by credit card after the deadline, but you will owe the penalty and interest in addition to the tax and the convenience fee. If you know you will miss the deadline, file your return on time anyway (even without payment) to reduce the failure-to-file penalty, then pay as soon as you can. Requesting a payment plan is usually cheaper than paying late with a credit card.
Payment plans as an alternative to credit card payments
If you cannot pay your full tax bill by the deadline, the IRS offers short-term and long-term payment plans. A short-term plan lets you pay within 180 days with no setup fee. A long-term installment agreement lets you pay over months or years and costs $31 to $225 to set up, depending on whether you pay online or by phone and whether you set up automatic payments.
You can request a payment plan through IRS.gov, by phone at 1-800-829-1040, or through a tax professional. The IRS will calculate a monthly payment amount based on what you owe and how long you want to take to pay. Interest and penalties continue to accrue on the unpaid balance, but a payment plan stops the failure-to-pay penalty from growing as long as you make your payments on time.
For most people, a payment plan costs less than paying the full amount by credit card, especially if the convenience fee plus interest on a credit card balance would exceed the payment plan setup fee.
Frequently Asked Questions
Can I pay estimated quarterly taxes with a credit card?
Yes. Estimated tax payments go through the same IRS-approved processors and cost the same convenience fee. You can make estimated payments using EFTPS for free instead, which is why most people with quarterly tax obligations use that system.
Does paying by credit card give me more time to file my return?
No. The tax deadline is the same whether you pay by credit card, check, bank transfer, or any other method. Paying by credit card does not extend the filing deadline or the payment deadline.
What if the processor's website is down on tax day?
If you cannot reach the processor on the deadline day, file your return on time anyway and pay as soon as the website is back up. The IRS will consider your payment on time if you can show you attempted to pay by the deadline. Keep your confirmation number or a screenshot of your attempt.
Can I dispute a credit card payment to the IRS if I change my mind?
You can request a refund from the IRS if you overpaid or made a mistake, but disputing the charge with your credit card company will create problems with the IRS. Contact the IRS directly through the processor's confirmation number or call 1-800-829-1040 to request a refund instead.
Do I have to use one of the three IRS processors, or can I use my bank's bill pay?
Your bank's bill pay system can send a check to the IRS address, but it does not count as a credit card payment — it is a check payment that takes longer to process. To pay with a credit card, you must use one of the three IRS-approved processors.