IRS payment plans: costs, limits and how to apply
If you cannot pay your tax bill in full, the IRS lets you pay over time. Many people can apply online without calling anyone.
The two kinds of plans
Short-term plan
Pay in full within 180 days. Apply online if you owe less than $100,000 in tax, penalties and interest. No setup fee.
Long-term plan (installment agreement)
Monthly payments. Apply online if you owe $50,000 or less and have filed all required returns.
Setup fees
| Plan and how you apply | Setup fee |
|---|---|
| Long-term plan, automatic bank payments, apply online | $29 |
| Long-term plan, automatic bank payments, apply by phone, mail or in person | $107 |
| Long-term plan, other payment methods, apply online | $69 |
| Long-term plan, other payment methods, apply by phone, mail or in person | $178 |
| Low income: automatic bank payments | fee waived |
| Low income: other payment methods | $43, may be reimbursed if conditions are met |
| Short-term plan (180 days or less) | $0 |
Penalties and interest keep adding up until the balance is paid in full. Fees as listed by the IRS (updated March 2026).
How to apply
- File any missing returns first.
- Go to the IRS online payment agreement application and sign in to your IRS account.
- Choose automatic bank payments if you can: it has the lowest fee and helps avoid missed payments.
- Keep every payment on time. Missed payments can put the plan in default.
Common questions
Can I set up an IRS payment plan myself?
Often, yes. Individuals can apply online for a long-term plan if they owe $50,000 or less in combined tax, penalties and interest and have filed all required returns, or for a short-term plan (180 days or less) if they owe less than $100,000.
Does interest stop on a payment plan?
No. Penalties and interest keep adding up until the balance is paid in full. Paying sooner costs less.
What if I owe more than $50,000?
You can still ask for a payment plan by phone or mail, but the IRS may ask for financial information. This is where many people choose professional help.
Sources
Facts on this page were checked against these sources on October 8, 2026. Rules change each year; confirm with the official source before you file.