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What to Know About IRS Payment Plans for Taxes
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Eligible taxpayers can apply online to set up an IRS installment agreement and pay their tax bills over time.
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Editor & Content Strategist
Expertise Taxes InvestingSabrina Parys is an editor and content strategist on the taxes and investing team at NerdWallet, where she manages and writes content on personal income taxes. Her previous experience includes five years as a copy editor and associate editor in academic and educational publishing. She is based in Brooklyn, New York.
Sabrina Parys is an editor and content strategist on the taxes and investing team at NerdWallet, where she manages and writes content on personal income taxes. Her previous experience includes five years as a copy editor and associate editor in academic and educational publishing. She is based in Brooklyn, New York. Published in Editor & Content Strategist + more + more
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11 years of experienceChris Hutchison helped build NerdWallet's editorial operation and has directed coverage across banking, investing, taxes and insurance. He now leads a team exploring new verticals. Before joining NerdWallet, he was an editor and programmer at ESPN and an editor at the San Jose Mercury News.
Chris Hutchison helped build NerdWallet's editorial operation and has directed coverage across banking, investing, taxes and insurance. He now leads a team exploring new verticals. Before joining NerdWallet, he was an editor and programmer at ESPN and an editor at the San Jose Mercury News. Head of Content, New Verticals + more + more
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2 years of experience Expertise Personal income taxes Investing basics Investment fundsBella Avila is a content management specialist on the investing and taxes team at NerdWallet. Previously, she was a copy editing intern at NerdWallet through the Dow Jones News Fund internship program. Bella graduated from The University of Oklahoma with a bachelor's degree in journalism. She lives in Minneapolis, Minnesota.
Bella Avila is a content management specialist on the investing and taxes team at NerdWallet. Previously, she was a copy editing intern at NerdWallet through the Dow Jones News Fund internship program. Bella graduated from The University of Oklahoma with a bachelor's degree in journalism. She lives in Minneapolis, Minnesota. Content Management Specialist + more + moreTable of Contents
What is an IRS payment plan? What is an IRS payment plan? How to set up a payment plan with the IRS How to set up a payment plan with the IRS IRS payment plan fees IRS payment plan fees Does the IRS charge interest on payment plans? Does the IRS charge interest on payment plans? How to calculate your monthly payment How to calculate your monthly payment How do I make changes to an IRS installment agreement? How do I make changes to an IRS installment agreement? Can I apply for an IRS payment plan myself? Can I apply for an IRS payment plan myself?An unexpected tax bill is a surprise no one wants to encounter. And when that balance turns out to be more than you can afford, it's easy to feel overwhelmed. Thankfully, the IRS has tax payment plans that can help you tackle your bill over time.
An unexpected tax bill is a surprise no one wants to encounter. And when that balance turns out to be more than you can afford, it's easy to feel overwhelmed. Thankfully, the IRS has tax payment plans that can help you tackle your bill over time.What is an IRS payment plan?
What is an IRS payment plan?An IRS payment plan is an agreement you make with the agency to pay your federal tax bill over time. You can set one up online, by phone or in person. The IRS offers short-term and long-term payment plan options.
An IRS payment plan is an agreement you make with the agency to pay your federal tax bill over time. You can set one up online, by phone or in person. The IRS offers short-term and long-term payment plan options.Short-term payment plan
Short-term payment planA short-term tax payment plan gives taxpayers the option to pay off their tax debt within 180 days. If you owe less than $100,000 in combined tax, penalties and interest, you’ve filed all your tax returns, and you can finish paying off your tax debt within six months, you are likely eligible for a short-term payment plan.
A short-term tax payment plan gives taxpayers the option to pay off their tax debt within 180 days. If you owe less than $100,000 in combined tax, penalties and interest, you’ve filed all your tax returns, and you can finish paying off your tax debt within six months, you are likely eligible for a short-term payment plan.Long-term payment plan
Long-term payment planA long-term tax payment plan, also sometimes called an installment agreement, gives taxpayers who may need more than 180 days to settle their tax bill the option to pay off their tax debt in monthly installments for up to six years. If you owe $50,000 or less in combined tax, penalties and interest, you’ve filed all your tax returns, and you need more than six months to pay your tax bill, you may be eligible for a long-term payment plan.
A long-term tax payment plan, also sometimes called an installment agreement, gives taxpayers who may need more than 180 days to settle their tax bill the option to pay off their tax debt in monthly installments for up to six years. If you owe $50,000 or less in combined tax, penalties and interest, you’ve filed all your tax returns, and you need more than six months to pay your tax bill, you may be eligible for a long-term payment plan.Which plan makes sense for you depends on how much you owe and how quickly you think you can pay your balance off. As long as you're keeping up with your payments, the agency usually won't issue a tax levy or a tax lien
Which plan makes sense for you depends on how much you owe and how quickly you think you can pay your balance off. As long as you're keeping up with your payments, the agency usually won't issue a tax levy or a tax lien Internal Revenue Service. Additional Information on Payment Plans. Accessed Oct 17, 2025. .» MORE: What happens if you don’t file taxes or file taxes late?
» MORE: » MORE: What happens if you don’t file taxes or file taxes late? AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn moreon Anthem Tax Services' website
AD Let’s resolve your tax issues: Tax Relief & Resolution Services for IRS Tax Debt Certified Enrolled Agents, CPAs, and Tax Attorneys on your case. Learn moreon TaxRise's website
How to set up a payment plan with the IRS
How to set up a payment plan with the IRSYou can apply online for a short- or long-term plan. If the IRS' assistor tool determines that you're ineligible to set up a plan online, you may still be able to apply by mail or by phone (more on that below).
You can apply online for a short- or long-term plan. If the IRS' assistor tool determines that you're ineligible to set up a plan online, you may still be able to apply by mail or by phone (more on that below).Applying for a payment plan online
Applying for a payment plan onlineIf you’ve previously registered for an online IRS account to get a tax transcript or an identity protection PIN, you can log into the IRS' Online Payment Agreement tool with the same user ID and password. If not, you’ll need to create an ID.me account to confirm your identity, which means having the following information on hand:
If you’ve previously registered for an online IRS account to get a tax transcript or an identity protection PIN, you can log into the IRS' Online Payment Agreement tool with the same user ID and password. If not, you’ll need to create an ID.me account to confirm your identity, which means having the following information on hand:A valid email address and access to your email.
A valid email address and access to your email.Photo identification (driver's license, state ID, passport).
Photo identification (driver's license, state ID, passport).Your Social Security number or individual tax ID number.
Your Social Security number or individual tax ID number.Access to a smartphone or webcam to verify your identity.
Access to a smartphone or webcam to verify your identity.Access to a phone or email for multi-factor authentication
Access to a phone or email for multi-factor authentication ID.me. Internal Revenue Service and ID.me. Accessed Oct 17, 2025. .If you need help verifying your information or require accessibility assistance, visit the ID.me help page for more information.
If you need help verifying your information or require accessibility assistance, visit the ID.me help page for more information.Applying for a payment plan by phone or mail
Applying for a payment plan by phone or mailAnother way to apply for a payment plan is to file Form 9465 with the agency. Alternatively, you can also call the IRS' main phone line (800-829-1040) to set up a new plan or revise an existing one. The number for business payment plans is different: 800-829-4933
Another way to apply for a payment plan is to file Form 9465 with the agency. Alternatively, you can also call the IRS' main phone line (800-829-1040) to set up a new plan or revise an existing one. The number for business payment plans is different: 800-829-4933 Internal Revenue Service. Additional Information on Payment Plans. Accessed Oct 17, 2025. .» MORE: Other IRS phone numbers to get customer service help
» MORE: » MORE: Other IRS phone numbers to get customer service help AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn moreon Anthem Tax Services' website
AD Let’s resolve your tax issues: Tax Relief & Resolution Services for IRS Tax Debt Certified Enrolled Agents, CPAs, and Tax Attorneys on your case. Learn moreon TaxRise's website
IRS payment plan fees
IRS payment plan feesThe total cost of an IRS payment plan depends on which plan you choose, how you apply for the plan and whether you qualify for a fee reduction.
The total cost of an IRS payment plan depends on which plan you choose, how you apply for the plan and whether you qualify for a fee reduction.If you’re a low-income taxpayer, the IRS waives the user fee if you agree to let it make automatic withdrawals from your bank account for the payments. Generally, to qualify as a low-income applicant, your adjusted gross income is at or below 250% of the federal poverty level. (See IRS Form 13844.)
If you’re a low-income taxpayer, the IRS waives the user fee if you agree to let it make automatic withdrawals from your bank account for the payments. Generally, to qualify as a low-income applicant, your adjusted gross income is at or below 250% of the federal poverty level. (See IRS Form 13844 .)Payment plan type
Payment plan type
Payment plan type Payment plan typeMaximum you can owe to qualify
Maximum you can owe to qualify
Maximum you can owe to qualify Maximum you can owe to qualifySetup fee & payment methods
Setup fee & payment methods
Setup fee & payment methods Setup fee & payment methodsShort-term payment plan (180 days or less)
Short-term payment plan Short-term payment plan (180 days or less)$100,000 in combined tax, penalties and interest.
$100,000 in combined tax, penalties and interest.$0 to apply online, by phone, by mail or in person. Pay balance by:
$0 to apply online , by phone, by mail or in person. Pay balance by:Withdrawals from your checking account or savings account (Direct Pay), or
Withdrawals from your checking account or savings account (Direct Pay), orCheck, money order or debit/credit card.
Check, money order or debit/credit card.Long-term payment plan (more than 180 days)
Long-term payment plan Long-term payment plan (more than 180 days)$50,000 in combined tax, penalties and interest.
$50,000 in combined tax, penalties and interest.If you pay through automatic debit withdrawals:
If you pay through automatic debit withdrawals:$22 setup fee to apply online.
$22 setup fee to apply online .$107 setup fee to apply by phone, mail or in person.
$107 setup fee to apply by phone, mail or in person.Setup fee may be waived for low-income taxpayers.
Setup fee may be waived for low-income taxpayers.If you pay by another method (e.g., Direct Pay, EFTPS or money order):
If you pay by another method (e.g., Direct Pay, EFTPS or money order):$69 setup fee to apply online.
$69 setup fee to apply online.$178 setup fee to apply by phone, mail or in person.
$178 setup fee to apply by phone, mail or in person.$43 setup fee for low-income taxpayers; may later be reimbursed.
$43 setup fee for low-income taxpayers; may later be reimbursed.Does the IRS charge interest on payment plans?
Does the IRS charge interest on payment plans?Yes. Getting on an IRS payment plan doesn’t get you out of interest and penalties for late payment; those accrue until your balance is zero. However, per the IRS, the failure-to-pay penalty is cut in half when on a payment plan
Yes. Getting on an IRS payment plan doesn’t get you out of interest and penalties for late payment ; those accrue until your balance is zero. However, per the IRS, the failure-to-pay penalty is cut in half when on a payment plan Internal Revenue Service. IRS has options to help taxpayers who missed the filing deadline. Accessed Oct 17, 2025. . This means you'd have a 0.25% late-payment penalty tacked onto your bill, rather than a 0.5% penalty.Don't put off filing your return because of a tax bill, the IRS says. Doing so could result in late-filing fees for each month or part of the month your return is late. Instead, consider filing your return, paying what you can, and looking into an IRS payment plan or other tax debt relief options.
Don't put off filing your return because of a tax bill, the IRS says. Doing so could result in late-filing fees for each month or part of the month your return is late. Instead, consider filing your return, paying what you can, and looking into an IRS payment plan or other tax debt relief options .» MORE: 10 more ways to make an IRS payment
» MORE: » MORE: 10 more ways to make an IRS paymentHow to calculate your monthly payment
How to calculate your monthly paymentIn general, if you have a long-term payment plan, you can choose how much you pay every month. That is, the IRS will ask you what you can afford. However, you must choose a payment amount that will pay off your debt within 72 months
In general, if you have a long-term payment plan, you can choose how much you pay every month. That is, the IRS will ask you what you can afford. However, you must choose a payment amount that will pay off your debt within 72 months Internal Revenue Service. Topic No. 202, Tax Payment Options. Accessed Apr 11, 2024. . To get a rough estimate of what you can expect to pay per month, divide what you owe by 72.A few other fee-related details to note
A few other fee-related details to noteIf you make your payments with a debit or credit card, you’ll have to pay a processing fee. The charge for debit cards runs $2 and some change per payment; the charge for credit cards can be nearly 2% of the payment
If you make your payments with a debit or credit card, you’ll have to pay a processing fee. The charge for debit cards runs $2 and some change per payment; the charge for credit cards can be nearly 2% of the payment Internal Revenue Service. Pay Your Taxes by Debit or Credit Card or Digital Wallet. Accessed Oct 17, 2025. .Businesses that owe more than $10,000 and set up their plan online must pay via automatic withdrawals from a bank account (“direct debit”)
Businesses that owe more than $10,000 and set up their plan online must pay via automatic withdrawals from a bank account (“direct debit”) Internal Revenue Service. Additional Information on Payment Plans. Accessed Oct 17, 2025. .How do I make changes to an IRS installment agreement?
How do I make changes to an IRS installment agreement?The IRS' payment agreement tool lets you change your monthly payment amount, change the monthly due date, sign up for automatic withdrawals and reinstate a payment plan you’ve fallen behind on.
The IRS' payment agreement tool lets you change your monthly payment amount, change the monthly due date, sign up for automatic withdrawals and reinstate a payment plan you’ve fallen behind on.If your new monthly plan does not meet IRS requirements, you may need to adjust the payment amount.
If your new monthly plan does not meet IRS requirements, you may need to adjust the payment amount.If you can't afford the monthly payment amount, you may need to fill out Form 433-H, Form 433-F and/or Form 433-B.
If you can't afford the monthly payment amount, you may need to fill out Form 433-H, Form 433-F and/or Form 433-B.Can I apply for an IRS payment plan myself?
Can I apply for an IRS payment plan myself?Yes. You are not required to pay a third party to apply for a payment plan.
Yes. You are not required to pay a third party to apply for a payment plan.If you do hire a tax-relief company to help you settle your debt, you may have to give it power of attorney to apply for an IRS payment plan on your behalf. Proceed with caution and do your research, as the Federal Trade Commission warns on its website:
If you do hire a tax-relief company to help you settle your debt, you may have to give it power of attorney to apply for an IRS payment plan on your behalf. Proceed with caution and do your research, as the Federal Trade Commission warns on its website:“The truth is that most taxpayers are unlikely to qualify for the programs these scammers advertise. In many cases, these companies don't settle your tax debt. Some don't even send your paperwork to the IRS to apply for programs to help you. These companies often leave people even further in debt
“The truth is that most taxpayers are unlikely to qualify for the programs these scammers advertise. In many cases, these companies don't settle your tax debt. Some don't even send your paperwork to the IRS to apply for programs to help you. These companies often leave people even further in debt Federal Trade Commission. Tax Relief Companies. Accessed Oct 17, 2025. .”Helpful resources
Helpful resources How to File a Tax Extension Online in 2026 What Is a Tax Lien? How It Works, How to Stop One Tax Levy: What It Is, How It Works and How to Stop One More like this Taxes Tax Relief and Resolution: 5 Ways to Deal With Tax Debt If you're behind on taxes or finding it hard to keep up with your IRS payments, here are five tax relief options that could help. 2 By Sabrina Parys, Tina Orem Guide to IRS Customer Service and Phone Numbers Lesser-known IRS customer service phone numbers could help you skip the line or talk to a person faster. Plus, learn where you can get in-person help if you need it. 2 By Tina Orem, Sabrina Parys IRS Free File: What It Is, How It Works Interested in the IRS Free File service? All you need to know about the program, plus other IRS options for free tax filing. 2 By Sabrina Parys, Tina Orem Get started Get startedon Anthem Tax Services's website
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