TaxWrenWhat changed
- Final rules (T.D. 10060) published October 19, 2026 let the IRS accept credit and debit card payments itself, instead of sending you to a private processor.
- If the IRS pays a card processing fee, it must charge you the same amount on top of the tax. The fee is not tax and is never refunded.
- Nothing changes yet: the rules do not start a new payment service. Until one exists, card payments still go through Pay1040 or ACI Payments, at 1.75% to 1.85% for credit cards.
The IRS can now accept credit and debit card payments directly instead of routing every card payment through a private processor, under final rules (T.D. 10060) published in the Federal Register on October 19, 2026 and effective the same day. For taxpayers nothing changes yet: the rules give the IRS the authority but do not launch a payment service, so paying by card still means going through Pay1040 or ACI Payments and paying their fee.
What the rules change
Until now the regulations barred the IRS from paying anything under a card processing contract, which is why card payments have always gone through outside companies that charge the taxpayer a convenience fee. The Taxpayer First Act of 2019 lifted that ban in the law, and Treasury and the IRS proposed matching rules in 2024. They received 8 comments and adopted the proposal without changes.
Under the final rules the IRS may sign two kinds of card contracts:
- Contracts where the IRS pays a processing fee. The IRS must then charge you a reimbursement fee equal to what it pays, collected at the same time as, and on top of, the tax. The IRS has to try to keep that fee as low as it can.
- Contracts where the IRS pays nothing. Card issuers or other parties may still charge you their own fees, and none of that money goes to the IRS. This is how card payments work today.
The reimbursement fee is not a tax. It is never refunded or credited, even if you later overpay. Disputes about the card charge go through the normal credit card and debit card error procedures, while disputes about the tax itself stay with the IRS.
The legislative history gives one example of what a direct service could look like: paying by card over the phone with the IRS, without being transferred to a processor. The rules apply to payments made on or after October 19, 2026, but the IRS has not announced when, or whether, it will offer such a service.
What paying by card costs today
| Processor | Debit card | Personal credit card | Fee on $5,000 by credit card |
|---|---|---|---|
| Pay1040 | $2.15 | 1.75% (min $2.50) | $87.50 |
| ACI Payments | $2.10 | 1.85% (min $2.50) | $92.50 |
Source: IRS, Pay your taxes by debit or credit card. No part of the fee goes to the IRS.
On a $5,000 balance, a debit card costs about $2.10 and a credit card $87.50 to $92.50. Paying from a bank account through IRS Direct Pay or your online account has no fee.
Sources
- Federal Register: T.D. 10060: Regulations Regarding Payment of Tax by Commercially Acceptable Means (official)
- IRS: Pay your taxes by debit or credit card (official)
Figures come from the official documents listed above. See our methodology and editorial policy. This article is general information, not tax advice.
Frequently asked questions
Can I pay the IRS directly with a credit card now?
Not yet. The final rules allow it but do not set up a payment service or a start date. For now, card payments go through the IRS-authorized processors Pay1040 and ACI Payments.
Will paying taxes by card still cost a fee?
Probably. If the IRS pays a fee under a card contract, it must recover the full amount from the person paying, at the time of the payment. The rules also allow contracts under which the IRS pays nothing, in which case card issuers or other parties may charge their own fees.
How much does it cost to pay taxes by credit card today?
Pay1040 charges 1.75% and ACI Payments 1.85% of the payment for personal credit cards (minimum $2.50), or a flat $2.15 or $2.10 for a debit card. None of the fee goes to the IRS.
Is the card fee refundable or deductible?
Under the new rules, a reimbursement fee charged by the IRS is not a tax and cannot be refunded or credited. The IRS card payments page says processing fees are deductible for businesses; for individuals it says nothing about deducting them.
Run your own numbers
- Income tax calculator
Federal and state income tax owed for 2026.
- Estimated tax calculator
Quarterly federal estimated tax (Form 1040-ES): this year's tax, the safe amount from 90% of this year or 100%/110% of last year, withholding and every due date.