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At Solvable, we care about your financial well-being and are here to help. Our research, articles and ratings, and assessments are based strict editorial integrity. Our company gets compensated by partners who appear on our website. Here is how we get compensated.
At Solvable, we care about your financial well-being and are here to help. Our research, articles and ratings, and assessments are based strict editorial integrity. Our company gets compensated by partners who appear on our website. Here is
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If you qualify, you can get a personal loan to pay off your back taxes, but weigh the pros and cons of doing so first.
When getting a loan, compare interest rates among several lenders, and pay attention to fees and requirements before making your decision.
Other back tax assistanve options include using a credit card, using a home equity line of credit, getting an offer in compromise, or paying it off in installments.
When faced with a tax bill you can’t afford, things can seem bleak. Back taxes aren’t something you want to fall into. And if you don’t pay off your taxes in a timely manner, the Internal Revenue Service (IRS) isn’t very forgiving. Fortunately, you have options — one of which is taking out a personal loan. Here’s how to determine if you should use a loan to pay off your back taxes.
Pros and Cons of Getting a Loan
You can get a personal loan for pretty much anything, including to pay off your taxes. The loan amount can range from $2,000 and $50,000, and you typically have to pay it back within one to seven years. While this seems simple enough, weigh the pros and cons of taking out a loan before doing so.
Pros
Lower fees. If you don’t pay your taxes on time, the IRS will hit you with both interest and fees. While you’ll also pay interest on a personal loan, you might not have to pay fees, saving you money in the long run.
More time. Because you have several years to pay off a personal loan, it’s often more feasible and less stressful than trying to pay back your back taxes.
Good standing with the IRS. A personal loan allows you to pay off your back taxes all at once. You avoid not only the IRS’s interest and fees but also other consequences of being in back taxes, such as seized assets and property liens.
Cons
High interest rates. If you don’t have a good credit score, lenders might tack on a higher interest rate than you’d have to pay the IRS. Compare options with various lenders to see which one is lowest. If you do get stuck with a high interest rate on a personal loan, try to pay it off early to avoid owing as much.
Hidden fees. Read the fine print about your loan. Some come with additional fees and costs that aren’t immediately apparent.
Continued debt. Even though a personal loan will allow you to pay your taxes, don’t forget you still have an amount to pay. Make sure you’re financially able to take on a loan and pay it off in time. Otherwise, you risk lowering your credit score and affecting your ability to get loans in the future.
How to Get a Loan
If it makes sense to use a personal loan to pay off your back taxes, getting the loan is fairly straightforward. First, check your credit score to see if you’re likely to qualify for a good interest rate. Then go to several banks, credit unions, and even online lenders to find out what interest rate you actually qualify for. Compare these to find out which lender offers the best rate. Don’t just compare interest rates, however; also check the annual percentage rate, penalties for prepayment, and origination fees.
When you decide on a lender, be prepared to present documentation such as your government-issued identification, Social Security number, employment and financial information, and, in some cases, a copy of your tax bill.
In some scenarios, it doesn’t make sense to get a personal loan to pay your back taxes. For instance:
When you owe more than $50,000. If you own the IRS more than this amount, a loan is not going to cover it in full.
When you have a poor credit score. You usually won’t qualify for a loan (or at least not a competitive one) if your credit score is lower than 650.
When you can’t afford monthly payments. Don’t take on a loan you can’t afford to pay it back; this will impact your credit score for years to come.
Other Options
If you determine you cannot or do not want to use a personal loan to settle your back taxes, you do have other payment options.
Credit Card
If the amount you owe is less than your card’s limit, and you believe you can pay your balance soon enough to avoid affecting your credit score, putting your back taxes on a credit card might make sense. Credit card interest rates, however, are often higher than that of the IRS. One way around this, if your credit score is high enough, is to open a new credit card with a zero-percent interest promotion. Put your tax payment on a credit card that has a rewards program so you can earn points or cash as you pay it off.
Offer in Compromise
With an offer in compromise, the IRS agrees to let you pay off your back taxes for less than you owe. You must meet certain criteria, however, to qualify for this arrangement.
Payment Plan
If you owe less than $50,000 on your taxes, the IRS might allow you to pay off that amount in installments for up to six years. This option typically comes with penalties and high interest rates, however.
Home Equity Line of Credit
If you can secure a lower interest rate on a home equity line of credit than what the IRS charges, this option might make sense. In this scenario, you borrow against whatever equity you have in your home. If you default on this line of credit, however, the bank can take possession of your home.
If you’re struggling or unable to pay off your back taxes, you can find assistance in several ways. One of those is using a personal loan to pay the IRS. Contact our experts at Solvable to find out if this is the right option for you.
Solvable is a for-profit company that connects consumers with third-party providers across a wide range of financial and home service categories, including tax resolution, personal loans, credit cards, student loan refinancing, home insurance, and home services. Our platform is free for consumers to use, and we may receive compensation from partners when users engage with their products or services.
We publish a mix of editorial content and partner-supported features. Some articles may include sponsored offers or affiliate links, which are clearly labeled. While compensation may influence which products are featured or where they appear, it does not affect our editorial opinions or reviews. We do not accept payment in exchange for favorable ratings or endorsements. Reviews and assessments reflect our own independent views and may not cover every option available.
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Solvable is compensated by some of the companies featured on our website. Most often, we receive fees when a user clicks on a link, fills out a form, applies for, or obtains a product or service from one of our partners. These may include providers of financial services (like loans and credit cards), tax assistance, home insurance, and home services.
We may also earn fees for:
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Sponsoring specific content, tools, or sections of our website
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Article pages
Comparison tables
Matching results
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Solvable has not reviewed or written about every product or service available in the marketplace. We do our best to provide helpful information, but our recommendations are based on available data and editorial judgment—not comprehensive analysis.
In addition, we may be compensated in the following ways:
Referrals to consumers who use online forms or tools that may connect them with experts;
Marketing services related to tax resolution, tax preparation, tax audit help, and general tax assistance;.
Referrals to providers in categories such as financial services, tax support, home insurance, and home services.
We encourage you to shop around, compare services and costs, and perform your own due diligence before making a decision—especially since individual experiences with providers can vary over time.
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Free Solvable Services
The offers you’re matched with through Solvable are from companies, attorneys, or service providers with whom we may have a paid relationship. Based on our initial screening, we believe these providers may be a good fit for consumers, but we do not make guarantees about their services or results. We do not recommend providers solely because they pay us. However, we may prioritize or display offers from partners with whom we have an existing business relationship.
We encourage all users to:
Shop around and compare costs, services, and reviews
Conduct independent research before making a decision
Ask questions directly to the provider before signing any agreements
Solvable is not a law firm and does not provide legal advice. If you’re working with an attorney or financial professional, we encourage you to speak with them about your specific situation, as they will be most familiar with your needs and the laws in your state.
Our goal is to make it easier for you to explore your options, but the decision is ultimately yours.
Personal Loans Advertiser Disclosure
The personal loan offers you see on Solvable are from companies or affiliates that may compensate us. This compensation may impact where offers appear on the site, including their order, prominence, or whether a lender is featured. Solvable does not include every personal loan provider or all available offers in the marketplace.
Loan approval and terms are determined solely by the lender. You should carefully review each provider’s terms and conditions to find the option that best fits your financial situation. We make reasonable efforts to keep information up to date, but rates, fees, and terms are not guaranteed and may change at the discretion of each provider. There is no guarantee you will be approved for credit or that you will qualify for the advertised rates or terms.
Be sure to:
Review actual loan terms directly with the lender
Ask about origination fees, which can typically be around 1%
Understand all costs, repayment terms, and requirements
Know that some lenders may require an existing account or specific credit profile for approval
Loan amounts typically range from $1,000 to $35,000, but the amount you qualify for, and the terms offered, will depend on your state, credit history, financial situation, and the lender’s underwriting criteria.
Credit Card Advertiser Disclosure
Some of the credit card offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may influence how and where products appear on our site, including their order or whether they’re labeled as “featured.” Solvable does not include all credit card companies or offers available in the marketplace.
Credit card approval is determined by the individual issuer. We recommend reviewing each provider’s terms and conditions to ensure the card fits your financial needs.
We strive to provide accurate information, but rates, fees, and terms are not guaranteed and may change at any time at the discretion of the issuer. Approval is not guaranteed, and advertised rates or rewards may not be available to all applicants.
Please keep in mind:
Information is provided by the card issuer and may not reflect real-time updates
Any opinions, reviews, or recommendations are those of the author and/or Solvable
They have not been reviewed or endorsed by any credit card issuer
You should always verify the final terms and disclosures on the issuer’s official site before applying
When you click “Apply Now,” you’ll be taken to the credit card provider’s website where you can review the full terms and submit your application.
Business Loans Advertiser Disclosure
Some of the business loan offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may influence how and where products appear on our site, including their order or whether a lender is featured. Solvable does not include all business loan providers or offers available in the marketplace.
Business loans are intended strictly for commercial purposes. Any funds or assets obtained through these loans must be used for business-related activities—not for personal, family, or household use.
Most business funding partners in our network do not require collateral, but depending on your needs and the lender’s underwriting criteria, you may be offered other financial products. Traditional bank and SBA loans often require collateral and have more extensive approval processes.
It’s important to understand:
There is no one-size-fits-all business loan solution
Offers and terms will vary depending on your business’s financial profile
Underwriting criteria, approval, and terms are determined solely by each lender
Rates, fees, and availability are subject to change and are not guaranteed
Not all products are available in all states or for all types of businesses
We encourage you to review each provider’s terms and consult with a financial advisor or tax professional before accepting any loan offer.
Student Loan Refinancing Advertiser Disclosure
Student loan refinancing offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may impact where and how offers appear on our site, including the order in which they appear or whether a lender is featured. Solvable does not include all student loan companies or all available refinancing options in the marketplace.
Pursuant to agreements with our partners and affiliates, Solvable may receive updates about the status of your application, including—when available—loan amounts, application status, or final decisions. Each partner’s use of your information is governed by their own privacy policy, which we encourage you to review directly.
Refinancing may help reduce your monthly payments or interest rate, but potential savings will vary depending on the interest rate, balance, and remaining repayment term of your existing loans. In some cases, refinancing may result in a longer repayment term and higher total repayment over the life of the loan—even if monthly payments are lower.
Please keep in mind:
Variable rates may fluctuate over time based on market indices like SOFR, Prime, or another benchmark rate, and may vary based on borrower qualifications and whether a co-signer is used.
Fixed interest rates may also depend on term length, credit profile, or presence of a co-signer.
All terms, rates, and product availability are subject to change at the lender’s discretion and may not be available in all states or for all types of loans.
Due to federal lending regulations, lenders are required to provide potential borrowers with certain disclosures, including an Application Disclosure and an Approval Disclosure, during the application process. Solvable is not a lender or creditor and does not originate or fund loans, nor can we alter or offer credit terms. Only the lender you apply with can provide specific loan details and required disclosures.
Please Note:
Certain federal and private loans may not be eligible for consolidation or refinancing.
Some refinancing options may eliminate borrower benefits (e.g., grace periods, income-driven repayment plans, or federal loan forgiveness eligibility).
Loans in default typically cannot be refinanced until you complete a qualifying repayment program.
Be wary of providers requesting upfront fees for student loan services.
Other financial options—like personal loans, debt relief, or consolidation—may also be worth exploring. Consult with a licensed financial or tax professional to determine what’s best for your situation.
Home Insurance Advertiser Disclosure
Home insurance offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may impact how and where offers appear on our site, including whether a company is featured or the order in which it is listed. Solvable does not include all home insurance providers or all offers available in the marketplace.
Each provider sets its own underwriting criteria, and coverage availability may vary based on the age, condition, location, and value of the home. Policy terms, limits, exclusions, and pricing are determined by the insurer and may change at any time.
Solvable is not a licensed insurance agency and does not issue policies or offer insurance advice. We recommend that users:
Compare quotes from multiple home insurance providers
Review coverage options, exclusions, and deductibles carefully
Confirm all terms directly with the insurer
Speak with a licensed insurance agent if you have questions about your specific needs
Home Services Advertiser Disclosure
Home service offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may affect how and where offers appear on our site, including their placement, order, or whether a provider is featured. Solvable does not include all home service companies or all available options in the marketplace.
Services may include HVAC repair, plumbing, electrical work, home cleaning, appliance maintenance, and other residential needs. Providers set their own pricing, availability, and service standards.
Solvable does not provide home services directly and does not guarantee the quality or reliability of any third-party service. We recommend that consumers:
Compare multiple providers and read recent customer reviews
Ask about service guarantees, pricing structures, and insurance or licensing where applicable
Confirm all details directly with the provider before scheduling any service
Important Notice About Solvable’s Role
Solvable is an online lead generation platform that allows consumers to compare rates, terms, and offers from a network of lenders and service providers. We do not offer, extend, or fund any loans. Instead, we connect users with lenders who may be able to help based on the information submitted through our forms.
Submitting an inquiry on Solvable is not a loan application. To move forward, you must speak directly with the lender, review their terms, and complete any application materials they require. Lenders in our network may not offer the lowest available rates, so we encourage you to compare quotes from multiple sources—including banks, credit unions, and other financial institutions—to ensure you’re getting the best deal.
Solvable does not guarantee loan approval, interest rates, or potential savings. Any estimated savings or quotes are for informational purposes only and may not reflect your actual terms. Final rates, loan amounts, and eligibility are determined solely by the lender based on their underwriting criteria, which Solvable does not control or have access to.
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