IRS payment plan: what you pay each month and in total
Type what you owe today and the number of months. The calculator gives the payment that clears the balance on time, the interest and penalty the plan adds, and which kind of plan the IRS offers for that amount.
- Online plan, balance up to
- $50,000
- Short-term plan
- 180 days
- Set-up fee, direct debit online
- $29
- Late payment penalty in a plan
- 0.25 %
Monthly payment over 36 months
$477
Simple Payment Plan, no financial statement. Ends October 2029; you pay $17,170 in all for $15,000 owed today.
| Interest while the plan runs | $1,699 |
| Late payment penalty (0.25 % a month) | $442 |
| Set-up fee | $29 |
| Extra cost over today's balance | $2,170 |
Fees in force on irs.gov on October 20, 2026. Interest at 7 %, kept for future quarters. Estimate, not tax advice.
| Term | Monthly | Interest and penalty | Total paid |
|---|---|---|---|
| 6 months | $2,584 | $500 | $15,500 |
| 12 months | $1,313 | $750 | $15,779 |
| 24 months | $686 | $1,443 | $16,472 |
| 36 months | $477 | $2,141 | $17,170 |
| 72 months | $268 | $4,287 | $19,316 |
| 120 months | $186 | $7,250 | $22,279 |
Compiled by Radif Partners · How we calculate · rules and rates read on irs.gov · not tax advice, the IRS decides
The IRS offers two kinds of payment plan to individuals. A short-term plan gives up to 180 days to pay a balance under $100,000 and has no set-up fee. A long-term plan, called an installment agreement, takes monthly payments; for a balance of $50,000 or less in tax, penalties and interest, with all returns filed, it is a Simple Payment Plan that needs no financial statement and gives most people up to 10 years. The set-up fee is $29 online with direct debit, $69 online with other payments, $107 or $178 by phone, mail or in person, and it is waived or reduced for low incomes. Interest keeps running at 7 % a year, compounded daily, and the late payment penalty drops from 0.5 % to 0.25 % a month if the return was filed on time. On $15,000, a 36-month plan costs $481 a month and $2,308 of interest and penalty in total.
The two plans and who gets them
The IRS payment plan page sorts every balance into one of two boxes. If you can pay in full within 180 days and owe less than $100,000 in combined tax, penalties and interest, you get a short-term plan: no user fee, no fixed monthly amount, only a deadline. Interest and the late payment penalty still run until the balance is paid. If you need longer, you ask for a long-term plan, the installment agreement of section 6159 of the tax code.
A long-term plan for an individual who owes $50,000 or less and has filed all required returns is what the IRS now calls a Simple Payment Plan. It requires no collection information statement and no lien determination, it is offered online, by phone or at a Taxpayer Assistance Center, and the IRS writes that most taxpayers have up to 10 years to pay. Above $50,000 the plan is still possible, but the IRS asks for Form 433-F or 433-H and measures the payment against its Collection Financial Standards.
| Fee | Direct debit | Other payment | Low income |
|---|---|---|---|
| Long-term plan, applied online | $29 | $69 | $0 with debit, $43 otherwise |
| Long-term plan, phone, mail or in person | $107 | $178 | $0 with debit, $43 otherwise |
| Short-term plan | $0 | $0 | $0 |
| Changing an existing plan | $6 online | $89 by phone or mail | may be reimbursed |
How the monthly payment is figured
The IRS lets you propose the payment, as long as the balance is cleared within the term you choose. The calculator above finds the smallest whole-dollar payment that does it, month by month: interest is added every day at the rate of the quarter on everything still owed, the late payment penalty is added each month on the tax still unpaid, and each payment goes first to the tax, then to penalties, then to interest. Paying the tax first keeps the penalty as low as possible, since the penalty is figured on unpaid tax only.
The term matters more than the fee. On $15,000 of tax, a plan over 36 months costs $481 a month and adds $2,308; stretched to 120 months, the payment falls to $190 and the extra cost climbs to $7,677. The table runs the same balance over each term with the current rate.
| Term | Monthly payment | Interest | Late payment penalty | Total paid |
|---|---|---|---|---|
| 6 months | $2,595 | $310 | $255 | $15,566 |
| 12 months | $1,318 | $579 | $233 | $15,811 |
| 24 months | $690 | $1,133 | $427 | $16,560 |
| 36 months | $481 | $1,704 | $604 | $17,308 |
| 60 months | $314 | $2,900 | $915 | $18,814 |
| 120 months | $190 | $6,178 | $1,499 | $22,677 |
Your balance over 36 months
Monthly payment over 36 months
$477
| Interest while the plan runs | $1,699 |
| Late payment penalty (0.25 % a month) | $442 |
| Set-up fee | $29 |
| Extra cost over today's balance | $2,170 |
Why a return filed on time halves the penalty
The failure to pay penalty page sets the rate at 0.5 % of the unpaid tax for each month or part of a month. For an individual who filed the return on time and has an approved plan, the rate drops to 0.25 % while the plan runs. A person who filed late keeps the full rate. On the same $15,000 over 36 months, the late filer pays $1,167 of penalty instead of $604. Either way the penalty stops at 25 % of the tax. Interest is not reduced by a plan; only paying sooner reduces it.
Applying without a representative
Individuals apply through their online IRS account, by calling the number on the notice, by mailing Form 9465 with the return or the notice, or at a Taxpayer Assistance Center. The online route is the cheapest and gives an answer at once. You need the balance from your latest notice or your account, the payment you propose and, for direct debit, a checking account. All returns due must be filed first: a missing return blocks the plan, which is why a person with unfiled years files them before asking.
What happens once the plan is in place
While a request is pending and while the plan is in force, the IRS generally may not levy, as the payment plan page explains. A plan does not stop a refund from being applied to the balance, and it does not release a lien already filed. Missing a payment or failing to file and pay later taxes can end the plan; the missed payment page explains the notices and how to reinstate it. You can change the payment amount or date online for $6.
A plan is the right tool when the full balance can be paid over time. When it cannot, because the monthly payment the IRS would require is more than the household has after its allowable expenses, the routes are a partial payment installment agreement, an offer in compromise or currently not collectible status. None of them needs a paid representative, and the IRS decides on each one.