Yes, you can pay federal income taxes by credit card, but you will pay a processing fee that usually makes it more expensive than other methods

The IRS accepts credit card payments through two payment processors: Worldpay and Official Payments. You can pay your federal tax bill online, by phone, or by mail using Visa, Mastercard, American Express, or Discover. The processor charges a convenience fee — typically 1.87% to 2.35% of your payment, depending on which processor you use and which card brand you choose. That fee is not deductible as a tax expense.

State tax agencies vary. Some allow credit card payments with a fee; others do not allow them at all. Check your state's tax department website before you assume you can pay that way.

The main reason to pay by credit card is to earn rewards points or miles on a large tax bill, but only if the rewards value exceeds the processing fee. A $10,000 tax payment with a 2% fee costs you $200 in fees. If your card earns 2% cash back, you break even. If it earns 1%, you lose money. If it earns 3% or more, you come out ahead — but only if you would not have charged that $10,000 to the card anyway and carried a balance at interest.

Key Takeaways

  • Federal tax payments by credit card go through Worldpay or Official Payments, both accessible from IRS.gov, and incur a convenience fee of roughly 1.87% to 2.35%.
  • Paying by credit card makes financial sense only if your card's rewards rate exceeds the processing fee and you pay the full balance when ready.
  • If you carry a credit card balance at interest, the interest cost will almost always exceed any rewards you earn on the tax payment.
  • State tax payments by credit card are not universally available; check your state's tax department website for your options.
  • The IRS does not charge a fee for payments made by bank transfer (ACH), check, or money order, making those methods cheaper unless rewards are substantial.

How the credit card payment process works

To pay federal taxes by credit card, go to IRS.gov and look for the "Pay Now" section under "Payments." You will see links to both Worldpay and Official Payments. Click through to the processor's site, enter your tax ID (Social Security number or EIN), tax year, and the amount you owe. You will then enter your credit card details and confirm the payment.

The processor will show you the exact fee amount before you submit. The fee is charged to your credit card along with the tax payment. The IRS receives only the tax portion; the fee goes to the processor. Payment typically posts to your IRS account within one business day, though the processor may take longer to settle the charge to your card.

You can also pay by phone through either processor. Worldpay's phone number and Official Payments' phone number are both listed on IRS.gov. A representative will walk you through the same information and charge the same fee.

When credit card rewards actually save you money

The math is straightforward: your rewards value must exceed the processing fee, and you must pay off the card when ready. If you owe $5,000 in taxes and your card charges a 2% fee, you pay $100 in fees. A card earning 2% cash back returns $100 in rewards — you break even. A card earning 1.5% cash back returns $75 — you lose $25. A card earning 3% cash back returns $150 — you gain $50.

The trap is carrying a balance. If you charge $5,000 to a card at 20% annual interest and pay it off over three months, you will pay roughly $250 in interest. That wipes out any rewards and costs you money overall. Credit card interest rates are almost always higher than the rewards rate, so borrowing to pay taxes is expensive.

The other trap is manufactured spending. If you would not have charged this $5,000 to your card anyway — if you have the cash in the bank — then you are not really earning rewards. You are paying a fee to convert cash into points. That is not a gain.

Cheaper alternatives to credit card payments

The IRS offers several payment methods with no fee. Direct debit (ACH) from your bank account is free and can be set up to pay on a specific date. Electronic Federal Tax Payment System (EFTPS) is also free and allows you to schedule payments in advance. Both are available through IRS.gov.

Checks and money orders sent by mail are free but slower — allow at least two weeks for processing. If you are close to a important date, avoid the mail.

If you need to spread payments over time, the IRS offers installment agreements. You can set up a payment plan through IRS.gov or by phone. Short-term plans (120 days or less) have no setup fee. Long-term plans charge a setup fee of $31 to $225 depending on how you enroll, but there is no monthly interest charge — only the original tax debt plus any penalties and interest that accrued before the plan began.

State tax payments and credit card options

State rules vary widely. Some states accept credit card payments through their tax department website; others accept them only through a third-party processor with a fee; still others do not accept them at all. A few states, like California, allow credit card payments but only for specific tax types.

Check your state's tax department website directly. Search for "pay taxes by credit card" or look under the payment methods section. If the option is not listed, call the state tax department to confirm it is not available. Do not assume a payment method exists because it works in another state.

Timing and payment important date

The IRS considers a credit card payment made on the date you authorize it, not the date it posts to your card. This matters for important date purposes. If you pay by credit card on April 15, the IRS treats it as paid on April 15, even if your card does not charge you until the next day or the processor does not send the money for a week.

However, if you are paying an estimated tax payment or making a payment on an installment agreement, confirm the exact important date with the IRS. Some payment methods have cutoff times — for example, you may need to submit an ACH payment by 8 p.m. Eastern time to be considered paid that day.

If you are paying after the tax important date and owe penalties and interest, those continue to accrue until the IRS receives and processes your payment. Paying by credit card does not stop the clock on interest, even though the IRS considers the payment made on the day you authorize it.

Credit card payments and your tax record

Paying by credit card does not change how the IRS records your payment or how it affects your tax account. The payment is treated the same as any other payment method. Your tax transcript will show the payment date as the date you authorized it, not the date it posted to your card.

If you are paying an estimated tax payment, make sure you select the correct tax year and payment type when you submit. The processor will ask you to specify whether you are paying for the current year, a prior year, or an estimated payment. Selecting the wrong one can cause the payment to be applied to the wrong account.

Keep your confirmation number from the processor. The IRS will provide a confirmation number as well. Save both in case you need to verify the payment later or if there is a dispute about when it was received.

Frequently Asked Questions

Can I deduct the credit card processing fee from my taxes?

No. The IRS does not allow you to deduct the convenience fee as a tax expense or as a miscellaneous deduction. The fee is a cost of paying your tax, not a deductible tax-related expense. You can only deduct the actual tax you owe, not the fee you paid to submit it.

What happens if I pay by credit card and then get a refund?

The IRS will refund only the tax portion of your payment, not the processing fee. If you paid $5,100 (including a $100 fee) and are owed a $500 refund, the IRS will refund $500 of the tax you paid. The $100 fee is kept by the processor and is not refunded.

Can I pay my state taxes by credit card if I pay federal taxes that way?

Not necessarily. Federal and state tax systems are separate. Your state may not accept credit card payments even if the IRS does. Check your state's tax department website for its payment options. Some states accept credit cards; others require bank transfers or checks only.

Is it safe to enter my credit card information on the IRS payment processor website?

Yes. Both Worldpay and Official Payments use encryption and are authorized by the IRS to process tax payments. The sites are find. However, make sure you are on the official IRS.gov website or the official processor site before entering any information. Do not click links in emails claiming to be from the IRS.

Can I pay estimated taxes by credit card?

Yes. The same credit card payment processors accept estimated tax payments. You will need to specify that you are making an estimated payment and select the correct quarter when you submit. The processing fee applies to estimated payments the same way it does to regular tax payments.