IRS Payment Plan Calculator
Find out which plan your balance qualifies for, what the setup fee will be, and what interest and penalties add before you are clear.
IRS Payment Plan Cost Calculator
See which plan you qualify for, what the setup fee will be, and what interest and penalties add before you are clear.
Estimate only. Interest is modelled at the 7% annual rate in effect for Q3 2026 (July 1 – September 30, 2026), which is the federal short-term rate plus 3 points. The IRS compounds it daily and resets it every quarter, so your real figure will differ. The failure-to-pay penalty is applied at 0.25% per month while an agreement is in effect and 0.5% on a short-term plan, and stops at 25% of the tax originally assessed — this estimate measures that cap against the balance you enter, so if that balance already includes penalties and interest the cap is reached slightly late.
The setup fee depends entirely on how you apply
The same agreement, for the same balance, costs anywhere between nothing and $178 depending on the channel you use and whether you let the IRS take the money automatically. Applying online and paying by direct debit is $29; the same agreement arranged by phone without direct debit is $178. It is the easiest money to save in the whole process.
| How you set it up | Setup fee |
|---|---|
| Short-term plan, 180 days or fewer (any channel) | $0 |
| Long-term, online, direct debit | $29 |
| Long-term, online, no direct debit | $69 |
| Long-term, phone, mail or in person, direct debit | $107 |
| Long-term, phone, mail or in person, no direct debit | $178 |
| Revising a plan you already hold | $6 |
| Low income, at or below 250% of the federal poverty level | $0–$43 |
A plan does not stop the meter
This is the part people are most often surprised by. Getting approved for a payment plan stops the IRS taking enforced collection action against you — no levy on your wages, no seizure. It does not stop interest, and it does not stop the failure-to-pay penalty.
What an installment agreement does do is halve that penalty, from 0.5% of the unpaid balance each month to 0.25%. Interest carries on at the federal short-term rate plus three points — 7% for the third quarter of 2026 — compounded daily and reset every quarter. A short-term plan is not an installment agreement, so it keeps the full 0.5% penalty; it is still usually cheaper because it is over so much faster and carries no setup fee.
The two balance thresholds that decide your options
Under $100,000 in combined tax, penalties and interest, you can take a short-term plan of up to 180 days. Under $50,000, you can set up a long-term agreement of up to 72 months through the online tool. Above $50,000 the online route closes and you are into Form 9465 and, usually, a financial statement — which is also where the setup fees climb.
For the full walkthrough of applying, qualifying and what happens if you default, see our guide to IRS payment plans and installment options.