Can You Pay Taxes with a Credit Card, and How Much Will it Cost? The IRS allows taxpayers to use credit cards to settle outstanding tax bills, sparking a mixed reaction from financial experts and ordinary citizens.
Some see this development as a lifeline for those caught off guard by surprise tax obligations, while others question whether the convenience comes at too great a cost.
Using credit cards to pay taxes is not new; third party payment processors have been processing such transactions for years with fees ranging from 1. 75% to 1. 85%.