If you owe federal income tax, you can typically pay using a credit or debit card, either directly or through approved third-party payment processors. However, there are some important limitations and costs to be aware of.
Limits on Card Payments
The IRS restricts how often you can pay with cards for certain tax forms:
- Individuals are limited to:
- Two credit/debit card payments per year for some tax types, or
- Two payments per month for others.
📌 For full details, see the IRS Frequency Limit Table.
Processing Fees
Third-party processors charge fees based on the type of card used:
- Personal debit card: Flat fee of $2.15
- Personal credit card: 1.75% of the payment amount (minimum $2.50)
- Commercial debit/credit card: 2.89% of the payment amount (minimum $2.50)
⚠️ Note: If you carry a balance on your credit card, you’ll likely incur interest charges in addition to the processing fee.
Employer Restrictions
Employers cannot use credit or debit cards to make federal tax deposits (such as payroll tax deposits). These must be paid using the Electronic Federal Tax Payment System (EFTPS).
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