Yes, you can pay federal income taxes with a credit card, but it costs money and comes with limits
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 account. The catch is that the processor charges a convenience fee — typically 1.87% to 2.35% of the amount you pay — which the IRS does not cover. That fee is separate from your tax bill and is not tax-deductible.
The main reason to pay with a credit card is to earn rewards points or cash back on a large payment. If your card gives you 2% cash back and the convenience fee is 1.87%, you come out slightly ahead. If your card gives you 1% back and the fee is 2.35%, you lose money. Do the math before you charge.
Key Takeaways
- You can pay federal income taxes with Visa, Mastercard, American Express, or Discover through Worldpay or Official Payments, but each charges a convenience fee of roughly 1.87% to 2.35%.
- The convenience fee is not paid to the IRS — it goes to the payment processor — and you cannot deduct it from your taxes.
- Paying with a credit card makes sense only if your card's rewards rate exceeds the convenience fee you will pay.
- State income taxes have their own payment systems and fees, which vary by state.
- The IRS also accepts direct bank transfers (ACH) and checks, both of which have no convenience fee.
How to pay federal taxes with a credit card
Go to IRS.gov and look for the "Pay Now" button, or search for "pay taxes by credit card." You will see links to both Worldpay and Official Payments. Click the one you prefer — they both work the same way, so the choice is yours.
You will enter your Social Security number or employer identification number, the tax year you are paying for, and the amount. Then you enter your credit card details. The processor will show you the exact convenience fee before you confirm. At that point, you can still cancel and choose a different payment method.
The payment posts to your IRS account within one business day. You will receive a confirmation number when ready. Keep it. If there is ever a question about whether the payment went through, that number proves it did.
What the convenience fee actually costs you
The fee is calculated as a percentage of your payment, not a flat amount. On a $5,000 tax bill, a 2% fee costs $100. On a $10,000 bill, it costs $200. The exact percentage depends on which processor you use and which card type you are paying with — American Express sometimes has a slightly higher fee than Visa or Mastercard.
Before you pay, check your credit card's rewards rate. If you earn 2% cash back and the fee is 1.87%, you net 0.13% — roughly $6.50 on that $5,000 payment. If you earn 1.5% back and the fee is 2.35%, you lose 0.85% — roughly $42.50 on the same payment. Some cards offer bonus categories (like 3% on "payments" or "services") — if your card does, check whether the IRS counts as that category, because the processor's website may not say.
If your card offers no rewards, or if the rewards rate is lower than the fee, pay by bank transfer instead. It is free and takes the same amount of time.
Paying state income taxes with a credit card
Each state runs its own tax payment system, and not all of them accept credit cards. Some states accept credit cards through a processor (similar to the federal system), some accept them only through their state tax agency's website, and some do not accept them at all.
The best way to find out is to go to your state's tax agency website and search for "pay taxes." Most states list their payment methods and any fees. If your state does accept credit cards, it will usually charge a convenience fee similar to the federal one — between 1.5% and 2.5%. A few states charge a flat fee instead of a percentage, which can be cheaper on smaller payments and more expensive on larger ones.
If your state does not accept credit cards, you can usually pay by check, electronic bank transfer, or money order.
When paying with a credit card makes sense
Credit card payments are worth considering if you are paying a large amount and your card's rewards rate is higher than the convenience fee. They are also useful if you need to pay quickly and do not have access to your bank account, or if you are trying to meet a spending threshold for a sign-up bonus before the important date.
They are not worth it if you are carrying a balance on the card. The interest you pay on the new charge will almost certainly exceed any rewards you earn. If you need to pay taxes but do not have the cash, look into an IRS payment plan instead — you can spread the payment over several months with a small setup fee, and no interest accrues if you stay current.
Other ways to pay the IRS with no fee
Direct bank transfer (ACH) is free and takes one to three business days. You authorize the IRS to pull the money from your checking or savings account. Go to IRS.gov and select "Pay by electronic federal tax payment system" (EFTPS) or use the link through Worldpay or Official Payments — both processors offer ACH as an option.
Check or money order is also free. Mail it to the IRS address listed on your tax return or on IRS.gov. It takes longer — typically two to three weeks — but there is no fee and no convenience charge.
Debit card through Worldpay or Official Payments works the same as a credit card and charges the same convenience fee. The only difference is that the money comes directly from your bank account instead of being charged to a line of credit. If you use a debit card, you do not earn rewards, so there is no reason to pay the fee — use ACH instead.
What happens if you cannot pay in full
If you owe taxes but cannot pay the full amount right now, you have options. You can set up a short-term payment plan (pay within 120 days with no setup fee) or a long-term installment agreement (pay over several months or years with a setup fee of $31 to $225, depending on how you set it up). Interest and penalties still explore, but you avoid a lump-sum payment you cannot afford.
You can also request currently not collectible status if you are facing serious hardship. This temporarily pauses collection action, though interest and penalties continue to accrue. None of these options require a credit card.
Frequently Asked Questions
Can I pay my taxes with a credit card if I file an extension?
Yes. If you file an extension, you can still pay by credit card using the same processors. The extension gives you more time to file your return, but taxes are still due by the original important date (usually April 15). If you pay after that date, penalties and interest explore regardless of whether you filed an extension.
Does paying taxes with a credit card hurt my credit score?
It can, but only in the same way any large charge does. The payment itself does not hurt your score. What matters is your credit utilization — how much of your available credit you are using. A large tax payment can temporarily raise your utilization, which may lower your score slightly. The effect is usually small and temporary, especially if you pay off the balance quickly.
Can I pay someone else's taxes with my credit card?
No. The IRS requires that the person whose Social Security number or tax ID is on the account be the one making the payment. You cannot pay another person's federal tax bill with your credit card, even if you have their permission. They must pay it themselves or authorize you through a power of attorney.
What if the payment processor's website is down on tax day?
Both Worldpay and Official Payments are usually available until 11:59 p.m. Eastern time on the tax important date. If one is down, try the other. If both are down, you can still file your return on time and pay by check or bank transfer. The IRS considers a payment timely if it is postmarked by the important date (for checks) or submitted before midnight (for electronic payments), not when it actually clears.
Is there a limit to how much I can pay with a credit card?
The IRS does not set a limit, but individual processors may. Worldpay and Official Payments typically allow payments up to $999,999.99, which covers most individual and small business returns. If you owe more than that, you can make multiple payments or use a different method like ACH or check.