If you cannot pay your tax bill in full, the IRS will often agree to let you pay over time. The cost depends on the type of plan and how you apply, and interest and penalties keep running while you pay.
This guide explains the plan types, the current setup fees, who can apply online, what a plan does and does not stop and how to apply, using the IRS payment plans page (fees updated March 2026) and Tax Topic 202.
| Plan | Time to pay | Setup fee (individuals) | Notes |
|---|---|---|---|
| Pay in full today | Immediately | $0 | Stops further penalties and interest |
| Short-term payment plan | 180 days or less | $0 | Interest and penalties continue to accrue |
| Long-term plan, direct debit | Monthly payments | $29 online; $107 by phone, mail or in person | Automatic payments from a checking account |
| Long-term plan, other payment methods | Monthly payments | $69 online; $178 by phone, mail or in person | Pay by Direct Pay, EFTPS, check, money order or card |
The IRS says a payment plan is an agreement to pay what you owe within an extended timeframe, and that it now offers Simple payment plans for individuals and businesses. Low-income individuals (adjusted gross income at or below 250% of the federal poverty level) have the long-term setup fee waived with direct debit, or pay $43 which may be reimbursed. Changing an existing plan costs $6 online or $89 by phone, mail or in person, and changes to an existing direct debit plan are free. Fees apply when paying by card.
The IRS says an individual may qualify to apply online if, for a long-term plan, they owe $50,000 or less in combined tax, penalties and interest and have filed all required returns, or, for a short-term plan, they owe less than $100,000 in combined tax, penalties and interest. Business taxpayers should call the number on their notice or 800-829-4933, and sole proprietors and independent contractors apply as individuals. Topic 202 adds that the proposed payments must pay the liability in full by the Collection Statute Expiration Date, generally 10 years from assessment, that a Guaranteed Installment Agreement is available to individuals owing $10,000 or less (excluding interest and penalties) who meet filing and payment history conditions, and that taxpayers in an open bankruptcy are generally not eligible. If you cannot make the minimum payment online you may be asked to complete a Collection Information Statement (Form 433-F, 433-H or 433-B).
A plan does not stop interest or the monthly late payment penalty: the IRS says interest and some penalty charges continue until the balance is paid in full, and that paying as soon as you can minimizes the extra cost. It does help in other ways. While a request is pending the IRS is generally prohibited from levying, and the collection period is suspended; if a request is rejected it is suspended for a further 30 days. Not paying may lead to a Notice of Federal Tax Lien or an IRS levy; see our federal tax lien guide. You should still file your return on time, since there is a separate penalty for failure to file.
| Situation | Plan and setup fee |
|---|---|
| Owe $8,000 and can pay in full within 120 days | Short-term plan: $0 setup fee, interest and penalties still accrue |
| Owe $30,000 and want automatic payments, applying online | Long-term plan with direct debit: $29 |
| Same debt, applying by mail | $107 |
| Same debt, applying online but paying by check each month | $69 |
| Same debt, low-income taxpayer using direct debit | Setup fee waived |
These are our illustrations of the IRS fee table. As a rough guide, $12,000 paid over 24 months is $500 a month before interest and penalties, and your actual payment would be higher because those keep accruing.
Apply through your IRS online account, by phone, or by mail with Form 9465, Installment Agreement Request. Low-income taxpayers who are not identified automatically can send Form 13844 within 30 days of their acceptance letter to ask for reconsideration. If you cannot afford a plan, see our offer in compromise guide, and for penalties see our penalty abatement guide.
IRS: Payment plans and installment agreements, IRS Topic 202: Tax payment options.