Can You Pay Taxes With a Credit Card?

Can You Pay Taxes With a Credit Card?

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It's possible to pay the IRS with a credit card, but you have to pay a fee. Depending on which payment processor you choose, you may end up paying between 1.87% and 1.99%. Those who file their taxes electronically, through a service like TurboTax, will face higher fees, usually over 2.3%. You also have the option to pay your taxes using a debit card instead of a credit card, for a much lower fee. Debit payments are usually a flat fee between $2.00 and $3.95.

While paying with debit may cost less, paying taxes with a credit card can be worth it if you earn credit card rewards that are worth more than 2% of your payment.

Paying taxes with a credit card

If you are filing your taxes on your own and want to pay your taxes using a credit card, you will have to use one of the IRS's approved processors. Currently, the IRS relies on, and These companies all charge different rates for the service, so you should choose one that makes the most sense for you.

Payment Processor
Credit Card Fee
Debit Card Fee
PayUSAtax.com1.96% or $2.69, whichever is greater$2.55Not recommended
Pay1040.com1.87% or $2.59, whichever is greater$2.58Best for credit card payments or $2.50, whichever is greater$2.00, and $3.95 for payments over $1,000Best for debit card payments below $1,000

When you file your taxes electronically, you will often have the option to make a payment through your tax preparation software. These can impose different fees, depending on the service you use. For example, TurboTax charges a 2.49% fee, with a minimum convenience fee of $3.95. Note that these fees can vary and change year to year.

There are more ways to cover your taxes with a credit card, but they should be avoided. For example, your card company may mail you a check called a convenience check, which you could in theory use to pay. However, the fees associated with this type of transaction are extremely high. We don't advise anyone to ever pay with a convenience check.

Should you pay your taxes with a credit card?

Despite the fees, it can be beneficial to pay the IRS using a credit card. Whether the pros outweigh the cons depends on the individual and what kind of credit card they're using.

The chief reason to pay with a credit card is to earn rewards. If you have a cash back credit card, you can get as much as 2.5% back on the payment you make. However, be aware that most credit cards provide cashback rates at around 1.5% or less. That means the payment processing fees would greatly outweigh these rewards. However, if you have a 2% cash back card, you can still pay using either or, and still come out slightly ahead.

If you use a travel rewards credit card, there are instances where you can come out ahead. For example, if you were to pay your business taxes with The Blue Business® Plus Credit Card from American Express, you would Earn 2X Membership Rewards® points on everyday business purchases such as office supplies or client dinners. 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter. If you value American Express Membership Rewards points at 1.5 cents per point, that would a 3% rebate versus the 2% fee the processor would charge.

Another advantage of paying your taxes with a credit card is that it can automatically serve as an extension. If you pay part, or least $1, of your tax estimate, you will no longer need to file Form 4868. Keep in mind that this on its own is probably not worth the processing fee. You should avoid paying taxes with a credit card with the intention to carry a balance. Interest charges on a credit card can get very high — much higher than other types of loans. The average APR on a credit card is currently around 14%. If you can't afford to pay your taxes in full, consider using an IRS payment plan.

Credit cards for paying your taxes

If you are considering paying your taxes with a credit card, there are plenty of options to choose from. Here are a few options that will likely outearn the processing fees.

Rewards rate
Intro APR
The Blue Business® Plus Credit Card from American ExpressEarn 2X Membership Rewards® points on everyday business purchases such as office supplies or client dinners. 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter. (See terms)Intro APR 0% on purchases for 12 months from date of account opening and on balance transfers (then 13.24% - 19.24% Variable) (See rates & fees)Since many travel rewards experts value Membership Rewards at 2 cents per point, you can potentially earn 4 cents per dollar in points value on your tax payment, as long as you’re under the $50,000 threshold. Also, there's a No annual fee annual fee.
Chase Freedom Unlimited®Earn 5% cash back on travel purchased through Chase, 3% on dining and drugstores, and 1.5% on all other purchases.0% Intro APR for 15 months and from account opening on purchases and balance transfers (then 14.99 - 23.74% Variable)You can transfer points to a premium Chase card, such as the Chase Sapphire Reserve®.

Chase Sapphire Reserve® points are valued at 1.5 cents per point. This nets you 2.25 cents per dollar in points.

Capital One Venture Rewards Credit CardUnlimited 2 Miles per dollar on every purchase, every dayN/ACapital One miles are transferable to a list of travel partners. If you can redeem them from there for more than 1 cent per mile, it may be worth it to pay your taxes with this credit card.
Alliant Credit Card2.5% cash back on every purchaseNoneThe Alliant Credit Card will help you beat the fees for filing your taxes and your day-to-day purchases thanks to its 2.5% cash back rate.

Paying taxes with a credit card vs. an IRS installment agreement

In many cases, setting up an installment agreement with the IRS is much less costly than carrying a balance on a credit card. If you owe $50,000 or less in combined individual income tax, penalties and interest, and you have filed all your required returns, you may be eligible to set up an installment agreement. You will owe interest to the IRS until your balance is paid, but usually at a much lower rate than a credit card. One thing to keep in mind: You may have to fork over a hefty setup fee, depending on the type of payment plan and your income. You can get this fee reduced if you set up a direct debit plan or if your income is sufficiently low (at or below 250% of the Department of Health and Human Services poverty guidelines).

If you want to compare your installment agreement fee against the interest you'd pay for carrying a balance on a credit card, we suggest using our interest calculator. Remember to add the 2% processing fee to your starting balance.



interest (APR)

payoff time

You will pay a total of $0 in interest over this time.

Visualizing Your Debt Burden

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How We Calculate Rewards: ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. These estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.

Example of how we calculate the rewards rates: When redeemed for travel through Ultimate Rewards, Chase Sapphire Preferred points are worth $0.0125 each. The card awards 2 points on travel and dining and 1 point on everything else. Therefore, we say the card has a 2.5% rewards rate on dining and travel (2 x $0.0125) and a 1.25% rewards rate on everything else (1 x $0.0125).