The IRS updated its payment plan page on March 3, 2026. A short plan of 180 days or less has no setup fee. A long plan paid by automatic debit costs $29 if you apply online. Interest and penalties keep adding up until the balance is paid.
The IRS has two kinds of payment plans. A short term plan gives you 180 days or less to pay in full. A long term plan, also called an installment agreement, lets you pay each month.
A short term plan has a $0 setup fee. That is true online and by phone, mail or in person. Only people, not businesses, can apply for a short plan online.
A long term plan has a setup fee. The fee depends on how you apply and how you pay. Applying online and paying by automatic debit from a bank account costs the least.
Online with automatic debit, the fee is $29. By phone, mail or in person with automatic debit, it is $107. Online with other ways to pay, it is $69. By phone, mail or in person with other ways to pay, it is $178.
Some people with low income pay less. The IRS says this applies when your adjusted gross income is at or below 250% of the federal poverty level. With automatic debit, the fee is waived. Without it, the fee is $43, and it may be paid back when the plan is done.
The IRS lists who may apply online. For a long plan, you owe $50,000 or less in tax, penalties and interest, and you filed all required returns. For a short plan, you owe less than $100,000.
A plan does not stop the clock on what you owe. Interest and the late payment penalty keep adding up until the balance is paid in full. Paying more each month means you pay less in the end.
Every case is different. A tax pro can look at your own numbers and tell you which plan fits. You can also check your balance in your IRS online account.
Key facts
- Short plan: 180 days or less, $0 setup fee
- Long plan online with automatic debit: $29
- Long plan by phone, mail or in person with automatic debit: $107
- Long plan online, other ways to pay: $69; by phone, mail or in person: $178
- Apply online for a long plan if you owe $50,000 or less and filed all returns
Next steps
General information, not tax or legal advice. Updated October 30, 2026. Sources are linked.