BestCreditCard Home
BestCreditCard Home
BBB
Only BestCreditCard Finds the Best Card
Based on How You Spend.

Can I pay IRS with a credit card?

Explaining the process, pros and cons of using a credit card to pay taxes
Saranya
Saranya Das Sharma

June 12, 2020

Credit Cards
See Best Credit Cards by Category:
All content is written by editorial staff or writers engaged by the site, not by marketers/sales staff. Editors responsible for producing the content are not in contact or affiliated with any advertiser and are not compensated based on success of the affiliate links. All decisions regarding recommendations are determined separately from advertising relationships. Any opinions, analyses, reviews or recommendations expressed are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

This Offer Is Not Available

This offer is not currently available on BestCreditCard. Please take a look at similar offers!

Tax season is approaching and you’re a little short on funds. You’re wondering whether you can pay the IRS with a credit card. The short answer is yes, credit cards can be used for paying taxes. The long answer is, you should consider a variety of factors before making a decision. Here’s what you need to know. 

 

How do I pay the IRS with a credit card?

The process itself is actually quite simple. You can pay the IRS through phone, mobile, or online. If you choose online, just log onto the IRS payment page, click on ‘pay your taxes now’ and select credit/debit card as your payment method. For the phone, call the IRS number and tell them you want to use a credit card. 

 

How much does the IRS charge to pay with a credit card?

If you use a payment processor: 

  • PayUSATax: 1.96% fee, with a minimum fee of $2.69 
  • Pay1040: 1.87% fee, with a minimum fee of $2.59 
  • OfficialPayments: 1.99% fee, with a minimum fee of $2.50

These processors accept all major card providers, although there are some variations.

 

If you use an IRS integrated e-file system: 

  • Pay1040.com/SpecialOffers/TurboTax: 2.49% with a minimum convenience fee of $3.95 
  • 1040paytax.com: 2.35% with a minimum convenience fee of $3.95 
  • FileYourTaxes.com: 3.93% with a minimum convenience fee of $2.00

 

If you use a third-party tax filing service like H&R Block, you will have a similarly high rate. H&R block charges a 2.49% fee. 

 

Should I pay my taxes with a credit card? 

Paying with a credit card definitely has its fair share of pros and cons. 

 

Pros

  1. It buys you time to pay off your taxes
  2. You can get rewards if you have a rewards credit card 
  3. You could meet a spending bonus limit for a rewards credit card, earning you lucrative benefits 

 

Cons

  1. There are high fees associated with credit card payments, making your tax bill even heftier 
  2. The fees levied could exceed the rewards you earn as most rewards points on taxes will range from 1-2%
  3. Your credit score can be negatively affected, as your credit utilization will greatly increase and could be pushed too high
  4. If you don’t pay your credit card balance in full when you get the statement, you could be charged interest on your tax payments, leading to debt 

 

Conclusion 

 

Therefore, it is generally not advisable to pay taxes on your credit card. However, if you are really strapped and intend to pay off your balance, it is advisable to pay your taxes on a credit card with a long introductory 0% APR period. This way, you will buy time to pay off your taxes but will not be charged interest in the long term. Credit cards like the Chase Freedom Unlimited and Citi Double Cash Card are good options for this. Alternatively, you could also balance transfer money from one card to another with a lower interest rate, but you will generally be charged balance transfer fees for this. 



featured stars
Featured Offers:

Chase Freedom Unlimited®

Chase Freedom Unlimited®

Serious Security

We encrypt data you share with us to ensure your experience is both easy and safe.

100% Free

BestCreditCard is completely free. Making the right financial decision shouldn’t cost you.
General Disclaimer
The card offers that appear on this site are from companies from which BestCreditCard receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). BestCreditCard does not include all card companies or all card offers available in the marketplace.
Editorial Disclaimer
All content is written by editorial staff or writers engaged by the site, not by marketers/sales staff. Editors responsible for producing the content are not in contact or affiliated with any advertiser and are not compensated based on success of the affiliate links. All decisions regarding recommendations are determined separately from advertising relationships. Any opinions, analyses, reviews or recommendations expressed are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.
Approval Odds
BestCreditCard calculates your approval odds by comparing your credit profile to other BestCreditCard members who were approved for this product. These approval odds are estimates only and do not guarantee approval. Credit card issuers use a variety of different types of credit scores and criteria to make credit decisions. The TransUnion credit score we provide is based on the VantageScore 3.0 model and may not be the credit scoring model used by financial institutions presenting offers on our website.