The IRS gives you several ways to pay what you owe: a free bank transfer through Direct Pay or EFTPS, a debit card, credit card, or digital wallet payment through an authorized processor, a mailed check or money order, cash at a participating retailer, or a same-day wire from your bank. If you can’t cover the full balance, you can apply for a short-term extension, a monthly installment agreement, or in narrow hardship cases an Offer in Compromise. The one thing that costs you most is doing nothing, because penalties and interest start the day after the deadline.
What You Need Before You Pay
Every payment has to carry your taxpayer identification number so it lands in the right account. Individuals use a Social Security Number, businesses use an Employer Identification Number, and taxpayers who aren’t eligible for an SSN use an Individual Taxpayer Identification Number.1Internal Revenue Service. Taxpayer Identification Numbers (TIN)
You also need the tax year and form number the payment applies to, such as Form 1040 for an annual return or Form 1040-ES for estimated taxes. Getting these wrong delays processing or credits the payment to the wrong period. If you’re mailing a check, Form 1040-V is the voucher that goes with it; it asks for your identification number, the amount, and the tax year.2Internal Revenue Service. Form 1040-V – Payment Voucher for Individuals
Deadlines for 2026
For the 2025 tax year, filing and payment are both due April 15, 2026.3Internal Revenue Service. IRS Opens 2026 Filing Season One point trips up a lot of people: a filing extension does not extend the time to pay. Your balance is still due April 15, and penalties begin accruing the next day if it isn’t paid.4Internal Revenue Service. If You Need More Time to File, Request an Extension
If you owe estimated tax on 2026 income, the quarterly due dates are April 15, 2026, June 15, 2026, September 15, 2026, and January 15, 2027. You can skip the January payment if you file your 2026 return and pay in full by February 1, 2027.5Internal Revenue Service. 2026 Form 1040-ES – Estimated Tax for Individuals
Paying From a Bank Account (Free)
IRS Direct Pay
Direct Pay is the simplest electronic option for individuals. It pulls money straight from a checking or savings account, costs nothing, and doesn’t require an account or a login. You enter your bank routing and account numbers, the tax form and year, and a payment date. You can change or cancel within two business days of the scheduled date. The per-transaction cap is $10 million.6Internal Revenue Service. Direct Pay With Bank Account
EFTPS
The Electronic Federal Tax Payment System is the fuller-featured platform and the standard for businesses or anyone who pays frequently. It requires a one-time enrollment to verify your identity and bank credentials. In exchange, you can schedule payments up to 365 days in advance, which is useful for quarterly estimates and recurring employment tax deposits.7Internal Revenue Service. EFTPS – The Electronic Federal Tax Payment System Both Direct Pay and EFTPS are free.
Paying by Debit Card, Credit Card, or Digital Wallet
Card payments run through one of two authorized third-party processors. The IRS charges nothing, but the processors do. As of 2026:
- Pay1040: $2.15 flat fee for personal debit cards; 1.75% for credit cards (minimum $2.50)
- ACI Payments, Inc.: $2.10 flat fee for personal debit cards; 1.85% for credit cards (minimum $2.50)
Commercial and corporate cards carry higher percentage fees at both processors.8Internal Revenue Service. Pay Your Taxes by Debit or Credit Card On a $5,000 balance, a credit card fee runs between $87.50 and $92.50 depending on the processor. That can be worth it for card rewards or instant processing near a deadline, but a free bank transfer is usually the better move.
The IRS also caps how often you can use a card for the same tax type. For Form 1040 payments, you’re limited to two card transactions per tax year. Estimated payments on Form 1040-ES are limited to two per quarter. On an installment agreement, you can make up to two card payments per month.9Internal Revenue Service. Frequency Limit Table by Type of Tax Payment
Mailing a Check or Money Order
You can mail a personal check, money order, or cashier’s check made payable to “U.S. Treasury.” Write your name and address, a daytime phone number, your Social Security Number (or EIN or ITIN), and the tax year and form number (for example, “2025 Form 1040”) on the payment itself.10Internal Revenue Service. Pay by Check or Money Order The correct mailing address depends on your state and the form; it’s listed in the Form 1040-V instructions.
If you’re mailing close to the deadline, the postmark date is treated as the payment date under federal law.11Office of the Law Revision Counsel. 26 U.S. Code 7502 – Timely Mailing Treated as Timely Filing and Paying Certified or registered mail gives you the strongest proof. If you use a private carrier, only IRS-designated services from DHL Express, FedEx, and UPS qualify, and not their ground or basic tiers.12Internal Revenue Service. Private Delivery Services (PDS) An undesignated service means the IRS uses the date it received the payment, not the date you shipped it.
Paying With Cash at a Retail Partner
If you don’t have a bank account, the IRS partners with retailers including pharmacies and convenience stores. You verify your identity online, receive a payment barcode, then bring it to a participating store to pay. Each transaction is capped at $500, the barcode expires 20 days after it’s issued, and the processing fee is $1.50 per payment.13Internal Revenue Service. Pay With Cash at a Retail Partner There’s no daily limit on the number of payments, so you can exceed $500 by making multiple transactions.
Same-Day Wire Transfer
For large balances or a last-minute deadline, many banks can send a same-day wire to the IRS. You download the same-day payment worksheet from the EFTPS site, complete it, and bring it to your bank, which initiates the wire. Ask your bank about availability, cutoff times, and its wire fee.14Internal Revenue Service. Same-Day Wire Federal Tax Payments Individuals rarely need this route; it’s mainly used by businesses settling large balances when the EFTPS scheduling window is too tight.
If You Can’t Pay the Full Balance
Short-Term Payment Plan
A short-term plan gives you up to 180 days to pay in full. There’s no setup fee whether you apply online, by phone, or by mail.15Internal Revenue Service. Payment Plans Installment Agreements Interest and the failure-to-pay penalty still accrue during that window, but you avoid the administrative costs of a formal installment agreement. This works when you just need a few months to pull the money together.
Long-Term Installment Agreement
If you need more than 180 days, a long-term installment agreement lets you make monthly payments for up to 72 months, or until the collection statute expires, whichever comes first.16Internal Revenue Service. Instructions for Form 9465 Setup fees vary by how you apply and how you pay:
- Direct debit, online application: $22
- Direct debit, phone, mail, or in-person: $107
- Other payment methods, online application: $69
- Other payment methods, phone, mail, or in-person: $178
Applying online with automatic bank withdrawals is by far the cheapest route. Taxpayers with adjusted gross income at or below 250% of the federal poverty level may qualify for a fee waiver or reimbursement of the setup cost after completing the agreement.15Internal Revenue Service. Payment Plans Installment Agreements
An installment agreement doesn’t freeze your balance. Interest compounds daily at a rate the IRS resets quarterly; for the first half of 2026, the rate for individual underpayments runs between 6% and 7% annually.17Internal Revenue Service. Quarterly Interest Rates The failure-to-pay penalty also continues, but there’s a break most people miss: if you filed your return on time and have an approved installment agreement, the penalty rate drops from 0.5% per month to 0.25% per month.18Internal Revenue Service. Failure to Pay Penalty Either way, the penalty caps at 25% of the unpaid tax. Missing a payment can terminate the agreement and trigger collection actions like wage garnishment.
Offer in Compromise
An Offer in Compromise lets you settle for less than the full amount if paying everything would create a genuine financial hardship. The IRS looks at your income, expenses, asset equity, and overall ability to pay.19Internal Revenue Service. Offer in Compromise The IRS rejects a large share of applications because the applicant can actually afford an installment plan.
To be eligible, you must have filed all required returns, made all required estimated payments, and not be in an active bankruptcy proceeding. The application requires a $205 non-refundable fee plus an initial payment. Under the lump-sum option, you pay 20% of your offer upfront with the rest due within five months of acceptance. The periodic option requires your first monthly payment with the application and continued payments while the IRS reviews the case.20Internal Revenue Service. Form 656-B, Offer in Compromise Booklet Low-income taxpayers who meet the certification guidelines are exempt from both the application fee and the initial payment.
Currently Not Collectible Status
If your finances are truly dire and you can’t cover basic living expenses after paying the tax bill, the IRS can mark your account Currently Not Collectible. That suspends collection activity but doesn’t erase the debt; interest and penalties keep accruing, and the IRS reviews your finances periodically. CNC is most often granted when a taxpayer’s only income is Social Security or unemployment benefits, when they’re incarcerated, or when they face overwhelming medical costs. The IRS generally requires a Collection Information Statement (Form 433-A for individuals), though for balances under $10,000 with qualifying circumstances that form may not be needed.21Internal Revenue Service. Currently Not Collectible
What It Costs to Pay Late
Two separate penalties apply when you miss the deadline, and the gap between them is huge. The failure-to-pay penalty is 0.5% of the unpaid tax per month or partial month, capped at 25%.18Internal Revenue Service. Failure to Pay Penalty The failure-to-file penalty is 5% per month, ten times higher, also capped at 25%.22Internal Revenue Service. Failure to File Penalty When both apply in the same month, the failure-to-file penalty is reduced by the failure-to-pay amount. The practical rule: if you can’t pay, file anyway and pay what you can.
On top of both penalties, interest runs on the unpaid balance at a quarterly rate set at the federal short-term rate plus three percentage points. For early 2026, individual underpayment rates run between 6% and 7% annually, compounded daily.17Internal Revenue Service. Quarterly Interest Rates Unlike the penalties, interest has no cap.
One more cost worth knowing about: if your bank returns an electronic payment or check for insufficient funds, the IRS charges a dishonored payment penalty. For payments under $1,250, it’s the payment amount or $25, whichever is less. For payments of $1,250 or more, it’s 2% of the payment.23Internal Revenue Service. Dishonored Check or Other Form of Payment Penalty The IRS may waive it for reasonable cause, such as a bank error, if you submit a written explanation with documentation.