What the comparison shows
Enter what you owe and the date the return was filed, or will be. Leave the payment date at today and hit Calculate. The "Compare ways to pay this balance" panel opens under your result. Add a monthly payment you can manage, plus your card and loan rates. You'll see:
- Paying in full today. Always the cheapest.
- What waiting costs. The extra you'd owe if you paid in full 1, 3, 6, or 12 months from now.
- An IRS payment plan at your monthly payment.
- A credit card at your APR and monthly payment.
- A personal loan at your APR and term.
The card total includes the processing fee, with interest added monthly. The loan assumes no origination fee. The plan includes the $29 online direct-debit setup fee and starts today, or once the return is filed.
Why waiting costs money
Every month you wait adds penalties and interest. The late-payment penalty is 0.5% of the unpaid tax for each month or part of a month. Interest compounds daily at the IRS rate, which is 7% for October through December 2026. The rate history lists every quarter. Both are figured on what you still owe, so paying part now helps.
An IRS payment plan
A plan doesn't stop interest. But if you're an individual who filed on time, including extensions, the late-payment penalty drops to 0.25% a month while the plan is in effect. Setup fees for a long-term plan:
- $29 online, paying by direct debit
- $69 online, paying another way
- $107 by phone, mail, or in person with direct debit, or $178 without it
Short-term plans of 180 days or less have no setup fee. Is your adjusted gross income at or below 250% of the federal poverty level? Then the fee is waived with direct debit, or it's $43 and may be reimbursed. You can apply online for a long-term plan if you owe $50,000 or less in tax, penalties, and interest and have filed all required returns. The online limit for a short-term plan is less than $100,000. Businesses should call the number on their notice.
A credit card or a loan
Either one pays the IRS today, and you owe the lender instead. The IRS's card processors charge 1.75% (Pay1040) or 1.85% (ACI Payments) on credit cards, each with a $2.50 minimum. Debit cards cost a flat $2.15 or $2.10. Business deposits, like payroll tax deposits, can't be paid by card.
Card and loan rates are usually higher than the IRS rate, but it depends on your own rates. That's why the panel lets you enter them.
Check for penalty relief
Filed the same kind of return on time for the three years before, with no penalties? First-time relief can remove the late-filing and late-payment penalties. The penalty removal letter builder checks if you qualify. Interest on the tax itself stays either way.
Questions people ask
Should I pay my tax bill with a credit card?
It depends on your card's rate. Card interest is usually higher than the IRS rate, and the card processor adds a fee of 1.75% or 1.85%. Enter your APR in the comparison to see the total next to an IRS payment plan.
How much does an IRS payment plan cost to set up?
A long-term plan costs $29 online with direct debit, $69 online with another payment method, and $107 or $178 by phone, mail, or in person. Short-term plans of 180 days or less have no setup fee.
How much does waiting a month cost?
The late-payment penalty adds 0.5% of the unpaid tax for each month or part of a month, and interest adds up every day. The "What waiting costs" table shows the dollar amounts for your balance.
Can I pay payroll taxes with a credit card?
No. Business deposits, like payroll tax deposits, can't be paid by card.