There are about eight different ways to pay federal taxes. Most are free or close to it. The right one depends on whether you're paying once or regularly, whether you have a US bank account, whether you need same-day proof, and how much you're sending. This article walks through each one and tells you when it's the right choice.
The Quick Answer
For one-off individual tax payments from a US bank account: IRS Direct Pay. For recurring business or estimated tax payments: EFTPS. For payments that have to clear today: same-day wire. For taxpayers without a US bank account: foreign wire or credit card. Mailing a check still works but takes time and risks getting lost.
The Eight Ways to Pay
Method 1 - Free
IRS Direct Pay
What it is. A free service on irs.gov that pulls funds directly from a US checking or savings account. No registration required.
Best for. Individual taxpayers paying a one-time amount - balance due with the 1040, an estimated tax payment, a CP14 notice. Quickest way to make a payment without setting up an account.
How it works. Go to irs.gov/payments. Click "Direct Pay." Verify your identity using prior-year return information. Enter the bank account, the amount, the tax year, and the form number (1040, 1040-ES, 1040-V, etc.). Get a confirmation number to keep.
Limits. Two payments per 24-hour window. Single payment cannot exceed $10 million.
Method 2 - Free
EFTPS (Electronic Federal Tax Payment System)
What it is. The Treasury's master payment system for federal taxes. Free, supports both individuals and businesses, but requires enrollment.
Best for. Businesses paying federal tax deposits (payroll, corporate income tax). Individuals making regular estimated tax payments. Anyone who pays the IRS more than once or twice a year.
How it works. Enroll at eftps.gov. The IRS mails a PIN to your address on file - usually 5 to 7 business days. Once enrolled, you log in any time to schedule a payment up to 365 days in advance, and you can change or cancel up to 2 days before the payment date.
Limits. No upper limit. Payments are scheduled, not real-time - submit by 8pm ET the day before for next-business-day execution.
Method 3 - Bank fee applies
Same-Day Wire (FedWire)
What it is. A wire transfer through your bank to the IRS at the Federal Reserve. Same-day clearing, but your bank charges a fee (typically $25 to $50).
Best for. Last-minute payments where the deadline is today. Large estimated tax payments where same-day proof of payment matters. Foreign-resident taxpayers who don't have access to EFTPS.
Cutoff. 5:00 PM ET on the day you want the payment to clear.
IRS Same-Day Wire Instructions
Bank NameFederal Reserve Bank
Routing (ABA)091036164
Beneficiary NameIRS SINGLE PAYOR TAX WIRES
Beneficiary Address333 W. Pershing Rd
Kansas City, MO 64108
Beneficiary TIN(your SSN or EIN)
Tax Type Code(see below)
Tax Period(YYMM, e.g. 2412 for 2024)
Payor Name(your full legal name)
Confirm ReceiptFTCS 1-800-382-0045
EFTPS Inquiry1-800-605-9876
Tax Type Codes (Most Common)
Your bank will ask for a "tax type code" when sending the wire. The IRS uses these to route the payment to the right form and tax period:
- 10401 - Form 1040 balance due (current year)
- 10406 - Form 1040-ES estimated tax
- 11206 - Form 1120 corporate income tax
- 11207 - Form 1120 corporate estimated
- 9410x series - Form 941 employment taxes
- 09405 - Form 940 FUTA
- 10421 - Form 1042 withholding tax
- 22906 - Form 2290 heavy highway use
The full list is in IRS Publication 4990 (EFTPS Payment Instruction Booklet). When in doubt, your bank's wire desk usually has the IRS Same-Day Taxpayer Worksheet, or you can pull it from eftps.gov.
The wire instructions matter. If the beneficiary name, ABA, tax type code, or tax period is wrong, the payment can post to the wrong account, sit in IRS unapplied for weeks, or get returned. Have the wire desk read everything back to you, and keep the wire confirmation number plus the FTCS confirmation. Same-day wires are fast, but they're also unforgiving when the data is wrong.
Method 4 - Foreign senders
Foreign Wire Transfer
What it is. An international wire from a non-US bank to the IRS, used by taxpayers without a US bank account.
Best for. US citizens living abroad, non-resident aliens with US tax liability, foreign corporations paying US tax. Anyone who can't initiate ACH or domestic wires from a US institution.
How it works. The IRS publishes specific SWIFT instructions for foreign wires at irs.gov/payments/foreign-electronic-payments. The instructions include a different routing structure than the domestic same-day wire (typically through the Federal Reserve and a designated US correspondent bank). Fees are typically higher than domestic wires (usually $30 to $80 plus an FX spread).
Verify before sending. The official SWIFT instructions are republished annually. Don't reuse instructions from prior years without confirming they haven't changed.
Method 5 - Slow but free
Check or Money Order (with Form 1040-V)
What it is. The traditional method - mail a check or money order with the appropriate payment voucher.
Best for. People without electronic payment access, or who prefer the paper trail. Note: the Treasury is phasing out paper check payments for federal disbursements after September 30, 2025. Whether the IRS continues to accept paper-check payments long-term remains an open question; verify before relying on this method.
How to write the check correctly.
Pay to: United States Treasury (do not write "IRS")
Memo line: Your SSN or EIN, the tax form (e.g. "2024 Form 1040"), and "Form 1040-V"
Include: Form 1040-V (current-year Payment Voucher) - do not staple to the check
Where to mail. The address depends on the form, the state you live in, and whether the return is being sent with the payment or separately. The current addresses are listed on Form 1040-V instructions.
Foreign-resident mailing addresses are different.
Method 6 - Convenience fee
Debit or Credit Card
What it is. Pay through one of three IRS-authorized third-party processors: payUSAtax, Pay1040, or ACI Payments.
Best for. People who don't have an immediately available bank balance but have credit card capacity. Also useful for chasing credit card rewards on tax payments (the math only works if your reward rate exceeds the processing fee).
Fees. Debit card: flat fee around $2 to $3. Credit card: percentage fee around 1.75% to 1.85% of payment amount. The credit card processor passes the fee straight through, so the IRS receives the full payment, but you pay the fee.
Limits. Generally two payments per processor per tax type per year for individual taxpayers. Aggregate limits per year apply.
Method 7 - With your e-filed return
Electronic Funds Withdrawal (EFW)
What it is. When you e-file a return that has a balance due, you can authorize the IRS to debit your bank account directly through your tax software. Free.
Best for. Taxpayers who want to e-file and pay simultaneously without going to a separate website. The most efficient option if you're already e-filing the return.
How it works. Tax software prompts for bank routing and account numbers, the amount, and the date you want the debit to occur (any date through the original return due date - so you can e-file in February and schedule the debit for April 15).
Limits. Only available with an e-filed return, extension, or estimated tax payment. Not available for paying older balance-due assessments unless you e-file an amended return.
Method 8 - In person
Cash (at a Retail Partner)
What it is. The IRS contracts with retail partners (currently the program runs through ACI Payments at participating 7-Eleven, Walgreens, Family Dollar, and other locations) to accept cash payments toward federal taxes.
Best for. Taxpayers without bank accounts, or those who prefer cash for any reason.
How it works. Register at irs.gov/payments/pay-by-cash, generate a payment code, then visit a participating retail location with the code, your photo ID, and the cash. The retail partner takes the payment, the partner remits to the IRS, and your IRS account gets credited within 5 to 7 business days.
Limits. $1,000 per payment, $1,000 per day. Fee around $1.50 to $2.50 per transaction.
What If You Can't Pay All at Once?
If the balance is more than you can pay right now, the IRS has formal payment plans you can apply for online. The plans are called "Online Payment Agreements" (OPA) and there are several types:
Short-Term Plan (under 180 days)
For balances under $100,000 (combined tax, penalty, and interest). No setup fee. Interest and the failure-to-pay penalty continue to accrue, but the IRS won't pursue collection enforcement (levies, seizures) while the plan is in effect.
Long-Term Installment Agreement
For balances under $50,000 (combined). Setup fee applies (around $31 if you set up online with direct debit, more if you go through paper or phone, with a low-income waiver available). You commit to monthly payments over up to 72 months. Direct-debit installment agreements get the lowest setup fee and the lowest risk of default.
Offer in Compromise
Settling for less than you owe. Available only when you can show you genuinely cannot pay the full amount and never will be able to (the "doubt as to collectibility" standard). The application (Form 656 plus Form 433-A or 433-B) is detailed and most people benefit from professional help. The IRS rejects most OICs - the ones that get accepted are typically well-documented with realistic offers based on the IRS's own collectability formula.
The right strategy if you can't pay. File the return on time even if you can't pay. The failure-to-file penalty (5% per month) is much harsher than the failure-to-pay penalty (0.5% per month). Set up the cheapest payment plan that works for your situation. The IRS's enforcement attention is on non-filers and people who ignore them - taxpayers in compliance with a payment plan are generally left alone.
Penalties and Interest If You're Late
If you don't pay by the original due date (April 15 for individuals, regardless of extensions for filing), the IRS charges:
- Failure-to-pay penalty under IRC §6651(a)(2): 0.5% of unpaid tax per month or part of a month. Caps at 25% of the unpaid amount.
- Failure-to-file penalty under IRC §6651(a)(1): 5% of unpaid tax per month or part of a month, also capped at 25%. Reduced by the failure-to-pay penalty in months where both apply, so the combined penalty for the same month is 5% (not 5.5%).
- Interest under IRC §6601 at the federal short-term rate plus 3%, compounded daily. The rate is reset quarterly. Interest also accrues on the penalties themselves.
The penalties compound fast. A $50,000 unpaid balance left for a year accrues roughly $3,000 in penalties plus several thousand more in interest depending on the rate environment. Pay something even if you can't pay everything - the failure-to-pay penalty is calculated on the unpaid portion.
Authority: irs.gov/payments; IRS Direct Pay; eftps.gov; IRS Same-Day Taxpayer Worksheet (download.eftps.gov/SameDayPaymentWorksheet.pdf); Foreign Electronic Payments (irs.gov/payments/foreign-electronic-payments); Form 1040-V (2025) and instructions; Form 1040-ES (2026); IRS Publication 4990 (EFTPS Payment Instruction Booklet); Form 656 (Offer in Compromise); Form 433-A and 433-B (Collection Information Statement); Form 9465 (Installment Agreement Request); IRC §6151 (time and place for paying tax); IRC §6601 (interest on underpayment); IRC §6611 (interest on overpayment); IRC §6621 (interest rate determination); IRC §6651 (failure to file or pay).