Where and how to pay tax payable depends on which tax you owe and which country or state you file in

Tax payable is the amount you owe after filing your return. The method you use to pay it — and the important date for paying — depends on whether you owe federal income tax, state income tax, self-employment tax, or some combination. The IRS, your state tax authority, and any local tax office each have their own payment systems and due dates. Paying on time avoids penalties and interest.

The most common routes are electronic payment through the IRS or state website, payment by mail with a check, or automatic withdrawal from your bank account on a date you choose. Some people pay in installments through a payment plan rather than in full. The method you choose does not change the amount you owe or the important date — it only changes how the money reaches the tax authority.

Key Takeaways

  • Federal tax payable is due by April 15 unless you filed for an extension, and you can pay online through IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a credit or debit card.
  • State income tax payable follows your state's own important date and payment system, which you find through your state tax authority's website, not the IRS.
  • Paying by electronic transfer or automatic bank withdrawal usually processes faster and creates a record than paying by mail.
  • If you cannot pay the full amount by the important date, you can request a short-term extension or set up a payment plan with the IRS or your state to avoid a failure-to-pay penalty.

Paying federal income tax payable to the IRS

The IRS offers three main electronic payment methods for federal tax payable. IRS Direct Pay is free and lets you pay directly from your bank account through the IRS website at irs.gov. You enter your bank routing and account number, choose the payment date, and receive a confirmation number when ready. The payment typically clears within one business day.

The Electronic Federal Tax Payment System (EFTPS) is also free and requires you to enroll first at eftps.gov. Once enrolled, you can schedule payments up to 120 days in advance. EFTPS is often used by people who make quarterly estimated tax payments, but you can use it for any federal tax payable.

You can also pay by credit or debit card through a third-party processor. The IRS does not charge a fee, but the processor charges a convenience fee (usually 1.87 to 2.35 percent of the amount paid). You pay through the IRS website, and the processor handles the transaction. This method is slower — the payment may take several days to reach the IRS — so plan ahead if your important date is near.

If you prefer to pay by mail, send a check or money order with a payment voucher. The voucher form depends on which tax form you filed. For Form 1040 (individual income tax), use Form 1040-V. Mail it to the address shown on the form, not to your local IRS office. Payments by mail take longer to process and create less when ready proof of payment, so keep a copy of the voucher and your cancelled check or money order receipt.

Paying state and local income tax payable

Each state has its own tax authority, important date, and payment system. Some states use online payment portals similar to the IRS; others require payment by mail or in person. To find your state's payment method, go to your state tax authority's website — search "[your state] department of revenue" or "[your state] tax commission."

State important date usually match the federal important date (April 15), but some states have different dates. A few states have no income tax at all. If you owe tax to more than one state — for example, because you worked in multiple states or moved during the year — you pay each state separately through its own system.

Local income tax, if your city or county charges it, is often collected by your employer through payroll withholding. If you owe local tax payable at tax time, your local tax authority will specify how to pay it. Some localities accept payment through the state system; others have their own process.

Setting up a payment plan if you cannot pay in full

If you owe tax payable but do not have the full amount by the important date, you have two main options: a short-term extension or a payment plan. A short-term extension gives you up to 120 days to pay without setting up a formal agreement. You request it through IRS Direct Pay, EFTPS, or by calling the IRS at 1-800-829-1040. Interest and a failure-to-pay penalty still explore to the unpaid balance, but the extension prevents additional penalties for not paying on time.

A payment plan (called an installment agreement by the IRS) lets you pay the tax payable in monthly installments over a longer period. The IRS charges a setup fee (currently $31 to $225 depending on the method) and interest on the unpaid balance. You can set up a plan online through IRS Direct Pay or EFTPS, by phone, or by mail. The IRS will work with you on the monthly amount, though a longer plan means more interest overall.

Your state tax authority also offers payment plans for state tax payable. The terms and fees vary by state. Contact your state tax authority to learn the options.

What happens if you do not pay by the important date

If you do not pay tax payable by the important date and do not have an extension or payment plan in place, the IRS and your state will charge a failure-to-pay penalty and interest. The failure-to-pay penalty is typically 0.5 percent of the unpaid tax per month, up to 25 percent total. Interest accrues daily on the unpaid balance at a rate set quarterly by the IRS (currently around 8 percent annually, but this changes). Both penalties and interest are added to what you owe.

If the debt remains unpaid, the IRS can place a tax lien on your property, issue a levy against your bank account or wages, or report the debt to credit bureaus. These actions make it harder to borrow money or sell property. Paying as soon as you can, even if late, stops the interest from growing further.

Keeping a record of your payment

When you pay tax payable electronically, save the confirmation number or receipt. This is your proof of payment. If you pay by mail, keep a copy of the check or money order and the payment voucher. If you pay by card, save the confirmation email from the processor.

The IRS and state tax authorities can take several weeks to post a payment to your account, especially if you paid by mail. If you check your account online and the payment does not show up right away, do not assume it was lost — wait at least two weeks. If it still does not appear, contact the tax authority with your confirmation number or receipt.

Frequently Asked Questions

Can I pay my federal and state tax payable at the same time?

No. Federal and state tax authorities have separate payment systems. You must pay the IRS through an IRS-approved method and your state through your state tax authority's system. The important date may also differ, so check both.

What if I paid my tax payable but the IRS says I still owe?

Bring your confirmation number or receipt showing the payment was made. The IRS may not have posted it yet, especially if you paid by mail or card. Contact the IRS at 1-800-829-1040 with your confirmation number, and they can tell you the status. If the payment was truly made and lost, the IRS can research it and correct your account.

Can I pay tax payable with a credit card directly to the IRS?

No, not directly. You can pay by credit card through a third-party processor, but the processor charges a fee. Direct Pay and EFTPS are free alternatives if you have a bank account. Some people use a credit card to pay because they earn rewards, but the fee usually outweighs the benefit.

What if I owe tax payable from a previous year?

You can pay it using the same methods as current-year tax payable. Contact the IRS or your state to confirm the exact amount owed, including any penalties and interest that have accrued. Older unpaid tax may have a higher priority for collection, so paying it can prevent a lien or levy.

Do I have to pay tax payable if I filed an extension?

Filing an extension gives you more time to file your return, not more time to pay. Tax payable is still due by April 15 (or the original important date), even if you filed an extension. If you cannot pay by then, request a short-term extension or payment plan to avoid penalties.