If you earn income as an independent contractor, Airbnb host, rideshare driver, or any other type of self-employed worker, you are responsible for managing your own tax payments. No employer is withholding taxes on your behalf, and the IRS does not send invoices. You are expected to pay on time using the right system for your situation.
The good news is that the IRS has made electronic payment straightforward, fast, and free for most taxpayers. This guide covers the best ways to pay both federal and state taxes online, what deadlines apply to quarterly estimated taxes, and how to handle payments if you earn income across multiple states.
How to Submit Your Taxes
The government gives you lots of options for submitting your tax payment. You can send them in the regular mail, pay with a credit or debit card over the phone, use a cash pay location like PayNearMe.
These methods are typically slower, and some require up to seven business days to process. For that reason, paying through an online portal is the recommended approach for most taxpayers. Virtually every federal and state tax authority now offers one.
Most portals accept ACH bank transfers at no charge. Some accept credit or debit cards, though those payments usually carry a processing fee. Electronic payments process the same business day when submitted before the daily cutoff, so there is no risk of missing a deadline due to processing delays.
How to Pay Taxes Online
IRS Direct Pay is the simplest and most widely recommended method for individual taxpayers. It requires no account registration, no enrollment period, and no fee. You pay directly from a checking or savings account in minutes.
To make a payment, go to IRS.gov and select Direct Pay. Choose your reason for payment, such as estimated tax, balance due, or extension payment. Select the applicable tax form, Form 1040-ES for estimated taxes or Form 1040 for a balance due. Enter the tax year, payment amount, and bank account information. You receive a confirmation number immediately on screen. Save that confirmation for your records.
Direct Pay is available 24 hours a day, seven days a week, and supports payments up to $9,999,999. You can also schedule a payment up to 30 days in advance, which is useful if you want to lock in a payment before a quarterly deadline.
One important change: as of October 17, 2025, the IRS stopped accepting new individual enrollments in EFTPS. Individuals who were not already enrolled should use IRS Direct Pay or the IRS Online Account instead.
IRS Online Account
Your IRS Online Account provides a more comprehensive view of your tax situation alongside payment capability. After a one-time identity verification through ID.me, you can see your balance, payment history, and outstanding notices, as well as make payments directly from a bank account.
The Online Account is particularly useful if you want to review what the IRS has on file for you alongside making a payment, or if you want to access your tax transcripts and payment history in one place. Identity verification takes longer to set up than a one-time Direct Pay transaction, so set up the account before a deadline rather than at the last minute.
EFTPS: Best for Business Tax Payments
EFTPS remains the standard payment system for business tax payments, including corporate income tax, payroll tax deposits, and employer-side taxes. Businesses should enroll in EFTPS to manage these payment types. The system allows payments to be scheduled up to 365 days in advance, which is useful for planning quarterly deposits across the full year.
For S-corp owners, partnerships, and other business entities making tax payments, EFTPS is generally the appropriate system. For sole proprietors and self-employed individuals who have not previously enrolled, Direct Pay is now the recommended path.
Paying Federal Taxes by Credit or Debit Card
The IRS accepts credit and debit card payments through several approved payment processors, including PayUSAtax, Pay1040, and ACI Payments. Each processor charges a convenience fee. Debit card fees run approximately $2.20 per transaction. Credit card fees run approximately 1.82 to 1.98 percent of the payment amount.
Paying by credit card rarely makes financial sense unless the card rewards rate exceeds the processing fee or you need to float the payment for cash flow reasons. For most taxpayers, Direct Pay from a bank account is the more cost-effective option.
IRS2Go Mobile App
The IRS2Go app, available for iOS and Android, allows mobile payments through Direct Pay and card processors. It also provides access to refund status and tax records. For taxpayers who prefer to manage finances from their phone, IRS2Go handles all the same payment types as the web-based Direct Pay portal.
How to Pay Estimated Taxes Online: Deadlines and Calculations
If you expect to owe more than $1,000 in federal income tax for the year, you are generally required to make quarterly estimated tax payments. This applies to freelancers, independent contractors, Airbnb hosts, Turo vehicle owners, rideshare drivers, and anyone earning self-employment income without employer withholding.
The quarterly deadlines for the 2026 tax year are April 15 for Q1, June 16 for Q2, September 15 for Q3, and January 15, 2027 for Q4. When a deadline falls on a weekend or federal holiday, it shifts to the next business day.
To make a quarterly payment through IRS Direct Pay, select “Estimated Tax” as the reason for payment and Form 1040-ES as the tax form. Select tax year 2026. Enter your payment amount and bank account details. Save the confirmation number.
Check out our estimated tax payment calculator and estimated tax payments for Independent Contractors posts for more details on determining your estimated taxes.
How to Pay Your State Taxes Online
Federal and state taxes are separate obligations. Each state has its own payment portal, deadlines, and rules, and if you operate in more than one state, you may owe income or sales taxes in multiple jurisdictions.
The determining factor is nexus: a meaningful connection between your business and a state that creates a tax obligation there. For Airbnb hosts, owning rental property in another state typically creates income tax nexus in that state. For vehicle owners renting through Turo, nexus rules depend on where the vehicle is registered and used.
Nine states have no personal income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you operate only within one of these states and have no nexus elsewhere, state income tax may not apply. However, some of these states do tax investment income, dividends, or other income types, and most still have sales, use, or occupancy tax obligations relevant to short-term rental and sharing economy activity.
For all other states, payments are made through the state’s department of revenue or tax authority online portal. Most state portals accept ACH bank transfers at no charge and credit or debit cards with a processing fee. State payment systems vary in design, but all major state tax authorities now offer online payment options with same-day or next-day processing.
For Airbnb hosts, many states and localities also impose Transient Occupancy Taxes or short-term rental excise taxes separately from state income tax. Airbnb automatically collects and remits these occupancy taxes on behalf of hosts in most jurisdictions. Review your Airbnb transaction history to confirm which taxes Airbnb is handling for you and which remain your responsibility.
Click on your state’s name below to learn how to pay your state taxes:
What to Do If You Can’t Pay Your Full Tax Bill
If you owe taxes and cannot pay the full balance by the deadline, the IRS offers installment agreements that let you pay over time. Interest and penalties continue to accrue on the outstanding balance during the repayment period, so paying as much as possible upfront reduces the total cost.
For balances of $50,000 or less, an online payment plan can be set up directly through the IRS website without needing to call or visit an office. For larger balances or more complex situations, working with a tax professional to negotiate the terms is advisable.
Filing your return on time even if you cannot pay in full avoids the failure-to-file penalty, which is significantly steeper than the failure-to-pay penalty. If you cannot pay, file the return anyway and address the balance separately.
Closing Thoughts
Managing your own tax payments is one of the more consequential responsibilities that comes with self-employment and sharing economy income. Late payments, missed quarterly deadlines, and multi-state nexus issues all create costs that compound over time. Using the right payment system, staying on top of quarterly deadlines, and understanding where your income creates tax obligations keeps those costs manageable.
If you have questions about your estimated tax obligations, multi-state filing requirements, or how to structure your Airbnb or gig income for the most favorable tax outcome, schedule a one-on-one strategy session with a Shared Economy Tax pro.
Frequently Asked Questions
What is the easiest way to pay the IRS online?
IRS Direct Pay is the simplest option for most individual taxpayers. It requires no account registration, no fee, and processes payments the same business day from a checking or savings account. You receive an immediate confirmation number after each payment.
Can I still enroll in EFTPS as an individual?
No. As of October 17, 2025, the IRS stopped accepting new individual enrollments in EFTPS. Individuals who were not already enrolled should use IRS Direct Pay or the IRS Online Account for federal tax payments. EFTPS remains available for business tax payments and for individuals who enrolled before that date.
When are quarterly estimated tax payments due?
For the 2026 tax year, the deadlines are April 15 for Q1, June 16 for Q2, September 15 for Q3, and January 15, 2027 for Q4. When a deadline falls on a weekend or federal holiday, it shifts to the next business day.
Do Airbnb hosts have to make estimated tax payments?
Yes, if net taxable income from the rental activity is expected to exceed $1,000 for the year after deductions. Airbnb hosts who provide substantial services to guests are treated as self-employed and owe both income tax and self-employment tax on net profit. Hosts with more passive rental income may owe income tax only, depending on how the IRS classifies the activity.
How do I pay taxes if I earn income in multiple states?
Each state where you have nexus requires a separate payment through that state’s tax authority portal. For Airbnb hosts, owning property in another state typically creates income tax nexus there. Most state portals accept ACH bank transfers at no charge. If you regularly operate across multiple states, working with a tax advisor who specializes in state and local taxes simplifies compliance significantly.
Is there a fee to pay the IRS online?
IRS Direct Pay and EFTPS are both free when paying from a bank account. Credit card payments carry a processing fee of approximately 1.82 to 1.98 percent of the payment amount depending on the processor. Debit card payments run approximately $2.20 per transaction. Most taxpayers use Direct Pay to avoid fees entirely.
What happens if I miss a quarterly estimated tax deadline?
The IRS charges an underpayment penalty calculated based on the amount underpaid and the number of days it remained unpaid, using the applicable federal short-term interest rate. The penalty applies even when the full tax is eventually paid with the annual return. Paying at least 100 percent of prior-year liability, or 110 percent if prior-year AGI exceeded $150,000, across the four quarters protects against the penalty through the safe harbor rule.
What if I cannot pay my full tax bill by the deadline?
File your return on time even if you cannot pay the full amount. The failure-to-file penalty is significantly larger than the failure-to-pay penalty. After filing, set up an installment agreement through the IRS online payment plan portalfor balances of $50,000 or less. Interest and penalties continue to accrue during the repayment period.
