The IRS accepts six main payment methods: direct debit from your bank account, credit or debit card, electronic Federal Tax Payment System (EFTPS), same-day wire transfer, check or money order by mail, and payment through a third-party payment processor.

Each method has different costs, speed, and security features. Direct debit is free and the fastest for most people. Credit cards and debit cards charge a processing fee but let you pay immediately online. EFTPS is free but requires advance setup. Wire transfers cost money but clear the same day. Checks take 7 to 10 business days to reach the IRS and carry no fee. Third-party processors charge fees but offer flexibility if you don't have a bank account.

The method you choose depends on when you need to pay, whether you want to avoid fees, and what account access you have. The IRS does not accept cash, cryptocurrency, or payment apps like Venmo or PayPal.

Key Takeaways

  • Direct debit from your bank account is free and the fastest way to pay the IRS, usually posting within one business day.
  • Credit and debit card payments go through immediately but cost 1.87% to 2% in processing fees, which you pay on top of your tax bill.
  • EFTPS is a free federal system that requires you to enroll at least one business day before you want to pay.
  • Checks and money orders take 7 to 10 business days to process and must include your tax ID and the tax year on the memo line.
  • Same-day wire transfers work if you need to pay by a deadline but cost $15 to $30 depending on your bank.

Direct Debit: Free and Fastest for Most Taxpayers

Direct debit pulls money straight from your checking or savings account and is the IRS's preferred method. It costs nothing, and the payment posts within one business day. You can set it up on IRS.gov or through tax software like TurboTax or H&R Block, which will route you to the IRS payment portal.

To use direct debit, you need your bank routing number and account number. These appear on the bottom left of your checks. The IRS will ask you to confirm the amount and the date you want the money withdrawn. You can schedule a payment up to 120 days in advance, which is useful if you want to pay on a specific date after you file.

Direct debit works for federal income tax, self-employment tax, estimated tax payments, and back taxes. The only limitation is that you must have an active U.S. bank account in your name.

Credit and Debit Cards: Immediate but with a Fee

You can pay the IRS with a credit card or debit card through an approved payment processor. The payment goes through immediately, and you receive a confirmation number right away. However, the processor charges a fee of 1.87% to 2% of your payment amount, which you pay in addition to your tax bill.

For example, if you owe $5,000 and pay by credit card, you will pay between $93.50 and $100 in processing fees. The IRS does not refund this fee even if you later dispute the tax bill or receive a refund.

The approved processors are Worldpay, Paymetric, Official Payments, and ACI Payments. You can access them through IRS.gov or through your tax software. Each processor may have slightly different fees and user interfaces, so compare before you choose. Credit card payments count toward your credit limit and may affect your credit score if they push your balance higher.

EFTPS: Free Electronic Payments Requiring Advance Setup

The Electronic Federal Tax Payment System (EFTPS) is a free service run by the U.S. Department of the Treasury. It lets you schedule tax payments online or by phone without paying a processing fee. Payments typically post within one business day.

To use EFTPS, you must enroll first. Enrollment takes about 10 business days, and you need your Social Security Number or Employer Identification Number, bank account information, and a valid mailing address. You can enroll at EFTPS.gov. Once enrolled, you can make payments anytime, 24 hours a day, 7 days a week.

EFTPS requires you to schedule payments at least one business day in advance. You cannot make same-day payments through EFTPS. If you need to pay today, use direct debit through IRS.gov or a credit card processor instead. EFTPS works for all types of federal tax payments: income tax, self-employment tax, estimated tax, and back taxes.

Checks and Money Orders: Slow but Free

You can mail a check or money order to the IRS. There is no fee, but the payment takes 7 to 10 business days to reach the IRS and post to your account. Mail your payment to the address listed on your tax notice or on IRS.gov for your state.

Write your name, address, and phone number on the check or money order. On the memo line, write your Social Security Number, the tax year, and the form type (for example, "1040 2023"). Do not send cash through the mail.

Include a payment voucher if you are paying a tax bill without filing a return. You can download Form 1040-ES (for estimated tax), Form 1120-ES (for corporate estimated tax), or the payment voucher from your tax notice. The voucher tells the IRS which tax account to credit.

Use certified mail or a tracked service if you need proof of delivery. The IRS processes mail payments more slowly than electronic payments, so if you have a deadline, choose a faster method.

Same-Day Wire Transfers: For Last-Minute Payments

If you need to pay the IRS the same day, you can wire money directly from your bank. Wire transfers clear within hours, but your bank will charge a fee of $15 to $30 depending on the institution.

Contact your bank and ask for the wire instructions to pay the IRS. Your bank will provide the routing number, account number, and any reference information you need to include. You must include your tax ID (Social Security Number or Employer Identification Number) and the tax year in the wire instructions so the IRS can match the payment to your account.

Wire transfers are irrevocable once sent, so confirm all details with your bank before authorizing the transfer. This method is most useful if you missed a payment deadline and need to show the IRS that you paid on a specific date.

Third-Party Payment Processors: When You Don't Have a Bank Account

If you do not have a bank account, you can pay through a third-party processor using a debit card, prepaid card, or money order. The approved processors are Worldpay, Paymetric, Official Payments, and ACI Payments. Each charges a fee, typically 1.87% to 2% for card payments.

Some processors also accept money orders or other forms of payment. Check the processor's website to see what options are available. Payments go through immediately for card payments and take 7 to 10 business days for money orders.

You can access these processors through IRS.gov or through tax software. If you are using a prepaid card, make sure it has enough balance to cover your tax bill plus the processing fee.

What the IRS Does Not Accept

The IRS does not accept cash, cryptocurrency, payment apps (Venmo, PayPal, Square Cash), or in-person payments at IRS offices. You cannot pay by phone with a credit card directly to the IRS; you must use an approved processor.

If someone tells you that you can pay the IRS in cash or through an app, they are either mistaken or attempting to scam you. Scammers often impersonate the IRS and demand immediate payment through unusual methods. The real IRS will send you a bill by mail first and will not threaten you with arrest or legal action before giving you a chance to pay.

Frequently Asked Questions

Can I pay the IRS with a gift card or prepaid card?

You can pay with a prepaid card (like a Visa or Mastercard prepaid card) through an approved processor, but not with a gift card. Gift cards are not linked to the payment networks that the IRS processors use. Make sure your prepaid card has enough balance to cover your tax bill plus any processing fees.

What happens if I pay by check and the check bounces?

If your check bounces, the IRS will charge you a penalty of $25 to $100 depending on the amount of the check. You will also owe interest on the unpaid tax. The IRS will send you a notice asking you to pay the original amount, the penalty, and the interest. Pay by a more reliable method the second time, such as direct debit or a credit card processor.

Can I set up a payment plan instead of paying the full amount now?

Yes. If you cannot pay your full tax bill, you can request an installment agreement. The IRS offers short-term plans (120 days or less) at no setup fee and long-term plans (more than 120 days) with a setup fee of $31 to $225. You still need to choose a payment method for each installment, and the same methods apply.

Do I get a receipt when I pay the IRS?

Yes. For electronic payments (direct debit, credit card, EFTPS, wire transfer), you receive a confirmation number immediately. For checks, the IRS will send you a receipt by mail once the check clears. Keep your confirmation number or receipt until you verify the payment posted to your account on IRS.gov.

How do I know if my payment reached the IRS?

Log into your IRS account at IRS.gov and check your payment history. Electronic payments typically post within one business day. Checks take 7 to 10 business days. If your payment does not appear after that time, contact the IRS at 1-800-829-1040 with your confirmation number or check details.