If you owe the IRS more than you can pay right now, a payment plan is often the first thing to look at. But the monthly number the IRS shows you isn't the whole story. Interest and a late payment penalty keep adding up while you pay, and the setup fee depends on how you apply and how you pay.
I built this estimator so you can see the full picture before you sign up. Enter what you owe and how fast you want to pay it off, or what you can afford each month, and you'll see which plan you likely qualify for, your monthly payment, the setup fee, and how much the plan really costs from start to finish.
I'm Solomon Grosinger, an IRS-licensed Enrolled Agent in Brooklyn since 2017. I help individuals, businesses and trusts with the IRS, New York, New Jersey, Connecticut and Pennsylvania. If the numbers look tight, or you're not sure a payment plan is the right move, book a free consultation and we can go over the options that fit your situation.
IRS Payment Plan Estimator
See which IRS payment plan you likely qualify for, what your monthly payment would be, the setup fee, and how much interest and penalties get added along the way. Uses the IRS fee schedule and the 7% interest rate in effect for the fourth quarter of 2026.
This is a simplified estimate. It assumes interest stays at 7% a year, compounded daily (the IRS underpayment rate for October to December 2026; the IRS resets it every quarter), and that each payment goes to tax first, then penalties and interest. The late payment penalty is figured at 0.25% a month on unpaid tax during a long-term plan if you filed on time, and 0.5% a month otherwise, until it reaches the 25% limit. It goes up to 1% a month if you get a final notice of intent to levy and don't act within 10 days. Setup fees are from the IRS payment plan page: $0 for a short-term plan (180 days or less), and for a long-term plan $29 online or $107 by phone or mail with direct debit, or $69 online or $178 by phone or mail without it. Low income means adjusted gross income at or below 250% of the 2026 federal poverty guidelines ($39,900 for one person plus $14,200 for each additional person). Low income filers pay no setup fee with direct debit, or $43 without it, which may be reimbursed when the plan is finished. Simple Payment Plan limits: $50,000 for individuals and businesses without payroll tax debt, and $25,000 for businesses with payroll tax debt. Your real numbers will come from your IRS account transcripts.
General info, not advice for your specific case.