The IRS itself charges nothing — a payment processor charges a fee instead

The Internal Revenue Service does not charge you a fee to pay your tax bill by credit card. Instead, a third-party payment processor charges a fee, and that fee comes out of your pocket. The IRS has contracts with a small number of processors to handle credit card payments, and each one sets its own fee.

The fee is a percentage of the amount you pay, not a flat dollar amount. This means the larger your payment, the larger the fee in dollars. The percentage varies by processor — it is not the same across all of them.

You see the fee before you complete the payment, so you can decide whether to go ahead or choose a different payment method. The fee is added to your total charge; it does not reduce the amount credited toward your tax bill.

Key Takeaways

  • The IRS charges no fee, but the payment processor it contracts with does charge a percentage-based fee that you pay.
  • The fee percentage varies by processor and is shown to you before you confirm the payment.
  • The fee is added to your charge and does not reduce the amount applied to your tax debt.
  • You can avoid the fee by paying through the IRS Free File program, direct debit from a bank account, or by mailing a check.

How much the fee typically is

The fee charged by IRS payment processors ranges from roughly 1.87% to 2.35% of your payment amount, though the exact percentage depends on which processor handles your transaction. A $5,000 payment might cost you $94 to $118 in fees, depending on the processor.

The IRS approves which processors can accept credit card payments, but each processor sets its own fee within IRS guidelines. When you start a payment on the IRS website or through an authorized processor, the system shows you the exact fee for your specific amount before you enter your card details.

The fee applies whether you pay in full or in installments. If you set up a payment plan and make monthly payments by credit card, each payment will have its own fee calculated on that month's amount.

Which payment methods have no fee

You can avoid processor fees entirely by using these methods: paying directly from a bank account through the IRS website (no fee), paying by check or money order mailed to the IRS (no fee), or using the IRS Free File program if your income is below the threshold (no fee). The IRS also accepts payments through Electronic Federal Tax Payment System (EFTPS), which is free if you set it up in advance.

Direct debit from your bank account is the cheapest option if you want to pay electronically. You provide your bank routing number and account number, and the IRS withdraws the payment on the date you choose. This method has no fee and takes a few business days to process.

If you do not have a bank account, a check or money order is your fee-free option, though it takes longer to reach the IRS and longer to process.

When the fee might be worth paying

The credit card fee makes sense if you are earning rewards points or cash back on the card and the rewards exceed the fee amount. For example, if your card gives you 2% cash back and the processor fee is 1.87%, you come out slightly ahead. This only works if you pay off the card balance when ready — carrying a balance and paying interest will cost far more than any rewards.

The fee also makes sense if you need to make the payment when ready for timing reasons and direct debit is not an option. Some people use credit card payments to meet a important date when their bank account does not have the funds yet, though this is expensive and creates debt you then have to repay.

For most people, the fee is straightforward a cost with no benefit. If you do not earn rewards on the card or if you cannot pay the balance off right away, direct debit from your bank account is the better choice.

How to see the exact fee before you pay

Go to the IRS payment page at irs.gov and select "Pay Now" or "Payment Plans." Choose "Credit Card" as your payment method. Enter the amount you want to pay and your card type. The system will show you which processor will handle your payment and the exact fee amount in dollars before you enter any card information.

You can see the fee for different amounts before you decide. If the fee seems too high, you can stop and choose a different payment method instead. The IRS website does not charge you anything for looking — you only pay the fee if you complete the transaction.

The three processors currently authorized by the IRS are PayUSA, Official Payments, and WorldPay. Each one may appear as an option depending on your location and the payment amount, though you typically see only one or two choices on the IRS website.

What happens after you pay by credit card

The processor sends your payment to the IRS within one to two business days. The IRS credits the full amount you paid (minus the fee you already paid to the processor) toward your tax bill. The fee does not reduce what the IRS receives — you paid it separately to the processor.

You receive a confirmation number when ready after the payment goes through. Keep this number for your records. The IRS will send you a receipt by mail within a few weeks, or you can check the payment status on the IRS website using your confirmation number.

If you are on a payment plan, each credit card payment is treated as a separate transaction with its own fee. The IRS applies each payment to your balance in the order received.

Frequently Asked Questions

Can I pay my IRS payment plan by credit card without a fee?

No. If you choose credit card as your payment method for a payment plan, you will pay the processor fee on each monthly payment. Direct debit from a bank account has no fee and is the cheapest way to pay a monthly plan.

Does the fee get deducted from my payment to the IRS?

No. You pay the fee to the processor, and the full amount you entered goes to the IRS. The fee is separate and additional to your tax payment.

What if I use a rewards credit card — do I come out ahead?

Only if your card's rewards rate exceeds the processor fee and you pay off the balance when ready. A 2% cash back card with a 1.87% fee leaves you slightly ahead, but carrying a balance and paying interest will cost far more than any rewards earned.

Is there a way to pay by credit card with no fee?

No. Any credit card payment to the IRS includes a processor fee. To avoid fees, use direct debit from a bank account, mail a check, or use the IRS Free File program if you may have access to.