Calculator
IRS payment plan calculator
Enter what you owe and what you can pay. See how long the plan runs, what accrues while you pay, and the payment needed to finish before the collection statute runs out.
Monthly payment illustrator
Rates as of Q4 2026
The late-payment penalty runs on unpaid tax only. Blank treats the whole balance as tax, which runs a little high.
The IRS generally has 10 years from assessment to collect. Most plans must pay in full before that date.
Payoff time
8 yr 7 mo
Added while paying
$13,937
Payment to finish in 10 yr
$404
Simple Payment Plan range. Assessed balances of $50,000 or less generally qualify if every required return is filed and the plan pays in full by the collection statute date. No financial statement required.
Setup fees for plans entered on or after July 5, 2026: $29 online with direct debit, $69 online otherwise, $107 by phone or mail with direct debit, $178 by phone or mail otherwise. Low-income taxpayers pay less or nothing.
Illustration only, not legal advice. It assumes the 7% interest rate in effect for October through December 2026 holds steady (the IRS resets it every quarter), compounds daily, applies payments to tax first, and ignores penalties already charged before the plan began. Your IRS payoff figure will differ.
How the illustration works
Interest is charged at the federal underpayment rate, which the IRS set at 7 percent a year, compounded daily, for October 1 through December 31, 2026 (IR-2026-98, Rev. Rul. 2026-15). The rate is reset every quarter.
The failure-to-pay penalty runs on unpaid tax at 0.5 percent a month under IRC 6651(a). It drops to 0.25 percent a month while an installment agreement is in effect for an individual who filed on time (IRC 6651(h)) and rises to 1 percent a month after a notice of intent to levy (IRC 6651(d)). It stops at 25 percent of the tax.
Payments are applied to tax first, then penalty, then interest, the order described in IRM 5.14.1.2.
What the result means
Most IRS plans must pay the balance in full before the collection statute expiration date. If your payment cannot get there, the IRS looks at a partial payment installment agreement instead. Balances of $50,000 or less usually fit a Simple Payment Plan.
Your actual IRS payoff figure will differ. Penalties already on the account, future rate changes, refund offsets and extra payments all move it. Treat this as a planning tool and confirm the number with the IRS or your representative.
Owe more than you can pay this month?
A payment plan is usually available. The question is which one, on what terms, and what it costs you over the life of the plan. One call sorts that out.