Yes, you can pay federal income taxes with a credit card, but it will cost you money and may not be worth it
The IRS accepts credit card payments for federal income taxes through two payment processors: Worldpay and Official Payments. You can pay your balance due when you file, or make a payment on an existing tax debt at any time. The catch is that the processor charges a convenience fee — typically 1.87% to 2.35% of the amount you pay — which you must cover on top of your tax bill.
State taxes are handled separately. Some states accept credit card payments directly; others do not. You will need to check your state's tax authority website to see what payment methods are available where you live.
The real question is not whether you can, but whether you should. Paying a 2% fee on a $5,000 tax bill costs you $100 extra. That only makes sense if you are earning credit card rewards that exceed the fee, or if you need the time that a credit card payment buys you.
Key Takeaways
- Federal tax payments by credit card go through Worldpay or Official Payments, both of which charge a convenience fee between 1.87% and 2.35%.
- You pay the convenience fee yourself — the IRS does not cover it, and it is not deductible as a tax expense.
- Credit card rewards can offset the fee only if your card earns more than 2.35% back on the purchase, which most cards do not.
- State tax payment options vary by state, so you must check your state's tax website to see whether credit cards are accepted.
- If you cannot pay your full balance, the IRS offers payment plans that do not require a credit card and may cost less in fees.
How to pay federal taxes with a 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 calculate and display the convenience fee before you confirm the payment.
You do not need to file your tax return first. You can make a payment on an existing balance due, or you can pay when you file. If you are filing electronically and paying by credit card at the same time, the payment and the return go through separate systems — the payment processes when ready, but the return may take a few days to be received and processed.
Keep your confirmation number. The processor will send you a receipt by email, and you should save it for your records. The payment will show on your credit card statement within one to two business days.
When the convenience fee actually makes sense
The fee is worth paying only in specific situations. If your credit card earns 2.5% cash back or higher on all purchases, and you were going to pay your taxes anyway, then the rewards roughly offset the fee. A few cards do offer this — some business cards and premium travel cards earn 2% or more on all spending.
The fee also makes sense if you need to delay payment. If you cannot pay your full tax bill right now but you can pay it in a month or two, putting it on a credit card buys you time while you gather the money. The convenience fee is then a cost of that delay, similar to what you would pay for a short-term loan. Just be aware that credit card interest will accrue on the unpaid balance, so this only works if you can pay off the card quickly.
The fee does not make sense if your card earns 1% or less, or if you are paying taxes you owe but do not have the cash for. In that case, the IRS payment plan is usually cheaper. A payment plan charges a setup fee (currently $31 to $225 depending on the plan type) plus interest, but the interest rate is lower than a credit card's, and you avoid the upfront convenience fee.
State tax payments and credit card options
State income tax rules vary widely. Some states accept credit card payments directly through their tax authority website. Others accept them only through a third-party processor, which also charges a convenience fee. Still others do not accept credit cards at all.
The fastest way to find out is to visit your state's department of revenue website and search for "pay taxes by credit card" or look at the payment methods listed on the tax payment page. If your state does accept credit cards, the processor and fee will be listed there. If you cannot find the information online, call your state's tax helpline — the number is on your state tax return.
Some states that do not accept credit cards for income tax may accept them for other taxes, such as sales tax or property tax. Check the specific tax type you are paying.
What happens if you cannot pay your full tax bill
If you owe taxes but do not have the money, a credit card payment is not your only option — and it may not be your best one. The IRS offers a short-term extension (up to 120 days with no fee) and payment plans that let you pay over time.
A payment plan costs less than a credit card convenience fee if you are paying a large amount. The setup fee is $31 to $225 depending on the plan type, and you pay interest on the unpaid balance. But the interest rate is the federal short-term rate plus 3%, which is usually lower than a credit card rate. If you owe $5,000 and pay it off over six months, a payment plan will likely cost you less than the credit card convenience fee alone.
You can set up a payment plan online through the IRS website, by phone, or by mail. The online option is fastest and has no setup fee if you enroll in automatic payments from your bank account.
Debit cards and other payment methods
You can also pay federal taxes with a debit card through the same processors (Worldpay and Official Payments). The convenience fee is the same. A debit card payment comes directly from your bank account, so there is no interest or balance to carry over — you pay the fee and the tax amount, and that is it.
If you do not have a credit or debit card, you can pay by electronic bank transfer (ACH), by check, or by money order. Bank transfer has no fee and is faster than mailing a check. You can set it up through the IRS website or through your bank's bill pay system.
Frequently Asked Questions
Can I deduct the credit card convenience fee on my taxes?
No. The IRS does not allow you to deduct the convenience fee as a tax expense. It is a cost of paying your taxes, not a deductible business or investment expense. If you are self-employed and pay estimated taxes, the fee still cannot be deducted.
What if I pay my taxes with a credit card and then get a refund?
The refund goes to the bank account or address you specified on your tax return — not back to your credit card. If you paid $5,000 in taxes by credit card and the IRS owes you a $1,000 refund, you still owe the credit card company the full $5,000 plus the convenience fee. The refund will arrive separately, usually within 21 days of filing electronically.
Does paying taxes with a credit card hurt my credit score?
It can, but only if it raises your credit utilization ratio significantly. If you charge a large tax payment on a card with a low credit limit, your utilization goes up, which can temporarily lower your score. The effect is temporary — your score will recover once you pay down the balance. If you have a high credit limit, the impact is usually minimal.
Can I pay estimated taxes with a credit card?
Yes. Self-employed people and others who owe estimated taxes can pay through Worldpay or Official Payments using the same process as regular tax payments. The convenience fee applies. You will need your Social Security number or EIN and the amount of the estimated payment.
What if the payment processor website is down or I get an error?
If you cannot complete the payment online, call the processor directly. Worldpay's number is on the IRS website, as is Official Payments' number. You can also mail a check or set up a bank transfer instead. If your tax important date is approaching, a bank transfer is usually the fastest backup option.