The Cost Of Paying Taxes With A Credit Card

Jasosn Steele for Smart Balance Transfers writes: As the tax filing deadline approaches, many taxpayers will look to their credit cards in order to meet their payment obligations. But in most instances, using a credit card to pay taxes will be more expensive than simply writing a check. This is because taxpayers must use one of the approved IRS payment processors and these companies charge a credit card processing fee.
Let’s take a look at these options:

Official Payments Corporation: This company charges a fee of 2.35% and accepts Visa, MasterCard, Discover, and American Express.

Choice Pay accepts personal tax payments only for a fee or 1.88%, but they only accept Visa And MasterCard.

Pay1040.com is operated by Link2GovCorporation and charges a 2.35% fee. They accept Visa, MasterCard, Discover, and American Express.

BusinessTaxPayment.com is also part of Link2GovCorporation and also accepts Visa, MasterCard, Discover, and American Express with a 2.35% fee.


PayUSAtax.com is run by WorldPay US, Inc and it accepts Visa, MasterCard, Discover, and American Express with a 1.89% fee.

Which is best?
Taxpayers who are using their credit card should find the one with the lowest fee. For Visa and MasterCard, Choice Pay has the lowest rate at 1.88%. PayUSAtax.com is a close second with 1.89%, and they take American Express and Discover. Both BusinessTaxPayment.com and Pay1040.com charge 2.35%, which is significantly higher.  By understanding all of the available options, taxpayers can spend the least in fees when they choose to pay taxes with their credit cards.