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Best Credit Card to Pay Taxes: Is It Worth It?

dest disney credit cards

Nobody likes paying taxes. But being rewarded for your tax payments can certainly ease the bitterness.

While many avoid paying the Internal Revenue Service (IRS) with a credit card due to extra fees, others say it’s worth it to bag a steep sign-up bonus or extra rewards.

Find out if using your card is the way forward or if it’s best to stick to more traditional methods—

This article will tell you—

  • The best way to pay taxes with a credit card.
  • How to pay the IRS with a credit card.
  • If it’s the right decision for you.

Read more:

 

Best Credit Cards to Pay Taxes

 

Top card recommendation Reason
card_name Earn 120,000 Membership Rewards® points after you spend $15,000 on eligible purchases with your Card within the first 3 months of Card Membership.
Citi Double Cash® Card Unlimited 1% cash back when you buy, plus an additional 1% as you pay on every purchase.
card_name Earn a one-time bonus of 50,000 miles – equal to $500 in travel once you spend $4,500 on purchases within 3 months from account opening.
card_name Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®.
card_name Earn 15,000 Membership Rewards® points after you spend $3,000 in eligible purchases on the Card within your first 3 months of Card Membership.
card_name New Cardmember Offer! Earn 100,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening.
card_name Earn five Free Night Awards after you use your new Card to make $8,000 in eligible purchases within the first 6 months of Card Membership. Redemption level up to 50,000 Marriott Bonvoy® points for each bonus Free Night Award, at hotels participating in Marriott Bonvoy®. Certain hotels have resort fees. Offer Ends 3/20/24.
Bank of America® Premium Rewards® Elite Credit Card Preferred Rewards members get 1.87 to 2.62 points on all other purchases for every $1 you spend.
PayPal Cashback Mastercard Earn 3% cash back on PayPal purchases and 2% on all other purchases.

 

The Business Platinum Card from American Express

 

Our Verdict

4.4
Welcome Bonus
N/A (can't find this in QMP)
Annual Fee
annual_fees
Regular APR
reg_apr,reg_apr_type
Credit Score
credit_score_needed

 

The American Express Business Platinum Credit Card is the premier choice for business travelers. Despite its hefty $695 annual fee, you get plenty of exclusive benefits.

 

Jetsetting perks include a $200 airline fee credit each year, access to over 1,400 airport lounges worldwide, and complimentary Hilton and Marriott Bonvoy Gold statuses. You also get a bunch of Fine Hotels and Resorts® benefits valued at around $600.

 

Rewards

  • 5x points on flights and prepaid hotels.
  • 1.5x points in key business categories and on eligible purchases of $5K or more everywhere else.
  • 1x points on other eligible purchases.

 

More details

The Business Platinum Card is the crème de la crème of corporate welcome bonuses. Earn 120,000 Membership Rewards® points after you spend $15,000 on eligible purchases with your Card within the first 3 months of Card Membership.

If you’re a small business owner, that threshold may seem like a push—but that’s where your tax bill comes in. If you spend $15,000 on taxes, payUSAtax will charge around $273 in processing fees—and don’t forget the $695 annual fee.

But that still leaves you with a solid return—especially when transferred to airlines where those welcome bonus points can be worth up to a whopping $3,360.

 

Apply for the Business Platinum Card from American Express.

Dig deeper with our full Amex Business Platinum review.

 

Credit card rates

 

Type Description
Regular APR reg_apr,reg_apr_type
Intro APR intro_apr_rate,intro_apr_duration
Balance transfer rate balance_transfer_rate
Balance transfer intro APR balance_transfer_intro_apr,balance_transfer_intro_duration
Cash advance APR cash_advance_apr

`

Credit card fees

 

Types Description
Annual fees annual_fees
Balance transfer fees balance_transfer_fees
Cash advance fees cash_advance_fee
Foreign transaction fees foreign_transaction_fee
Late payment fees late_payment_fee.

 

Citi Double Cash® Card

 

Our Verdict

4.4
Welcome Bonus
N/A (can't find this in QMP)
Annual Fee
annual_fees
Regular APR
reg_apr,reg_apr_type
Credit Score
credit_score_needed

 

The Citi Double Cash card sets itself apart from its no-annual-fee counterparts by offering 2% cash back on all purchases—1% when making purchases and 1% when paying off your balance.

Redemption options cover cash back, gift cards, online shopping, or Citi Travel bookings. But despite being pretty versatile, it’s not the best choice for travel enthusiasts due to the 3% foreign transaction fees and lack of travel insurance or protection.

 

Rewards

  • Unlimited 1% cash back when you buy, plus an additional 1% as you pay on every purchase.

 

More details

If you pay taxes with a credit card, you face a minimum 1.82% processing fee. So, I don’t recommend paying federal taxes online to boost your cash back unless the reward rate is over 2%.

 

 

Most budget-friendly cards don’t exceed 1.5% in flat-rate rewards, but the Citi Double Cash is a rare exception. With 2% cash back on all purchases, you gain a 0.18% return after tax processing fees. Whether that meager $18 is worth it is up to you.

Tip: If you pair the Citi Double Cash with the Citi Rewards+ card, you can increase the cash back to 2.22%.

 

Apply for the Citi Double Cash® Card.

Check out the best cash back credit cards.

 

Credit card rates

 

Type Description
Regular APR reg_apr,reg_apr_type
Intro APR intro_apr_rate,intro_apr_duration
Balance transfer rate balance_transfer_rate
Balance transfer intro APR 0balance_transfer_intro_apr,balance_transfer_intro_duration
Cash advance APR cash_advance_apr

 

Credit card fees

 

Types Description
Annual fees annual_fees
Balance transfer fees balance_transfer_fees
Cash advance fees cash_advance_fee
Foreign transaction fees foreign_transaction_fee
Late payment fees late_payment_fee

 

Capital One Spark Miles for Business

 

Our Verdict

4.4
Welcome Bonus
N/A (can't find this in QMP)
Annual Fee
annual_fees
Regular APR
reg_apr,reg_apr_type
Credit Score
credit_score_needed

 

The Capital One Spark Miles for Business Card is a solid pick for corporate jet setters looking to elevate their travel game. With a $95 annual fee (waived during the first year), this card offers plenty of business perks and two annual lounge passes.

What sets this card apart is its impressive mile redemption options. You can transfer your miles to Capital One’s extensive network of 18 airline and hotel partners, such as Emirates Skywards and Air Canada Aeroplan.

 

Rewards

  • 5x miles on hotels and rental cars booked through Capital One Travel.
  • 2x miles on every purchase for your business.

 

More details

Frequent flyers can benefit big-time from the Capital One Spark Miles for Business welcome offer. Earn a one-time bonus of 50,000 miles – equal to $500 in travel once you spend $4,500 on purchases within 3 months from account opening.

If paying taxes helps you reach the threshold, you can get solid value from this sign-up bonus. The best bang for your buck comes from transferring to Capital One’s transfer partners at a 1:1 redemption rate—and watch out for the occasional extra transfer bonuses on offer.

Tip: When you pay business taxes, the fees may be considered business expenses for tax purposes.

 

Apply for the Capital One Spark Miles for Business.

Learn all the ins and outs with our Capital One Spark Miles for Business review.

 

Credit card rates

 

Type Description
Regular APR reg_apr,reg_apr_type
Intro APR intro_apr_rate,intro_apr_duration
Balance transfer rate balance_transfer_rate
Balance transfer intro APR balance_transfer_intro_apr,balance_transfer_intro_duration
Cash advance APR cash_advance_apr

 

Credit card fees

 

Types Description
Annual fees annual_fees
Balance transfer fees balance_transfer_fees
Cash advance fees cash_advance_fee
Foreign transaction fees foreign_transaction_fee
Late payment fees late_payment_fee

 

Chase Sapphire Preferred® Card

 

Our Verdict

4.2
Welcome Bonus
N/A (can't find this in QMP)
Annual Fee
annual_fees
Regular APR
reg_apr,reg_apr_type
Credit Score
credit_score_needed

 

The Chase Sapphire Preferred is a fan favorite amongst food lovers and travelers (and for good reason). Earn valuable points on travel and dining purchases, which you can redeem for flights, hotels, rental cars, and more through Chase’s Ultimate Rewards portal.

You can also transfer points to popular airline and hotel loyalty programs like World of Hyatt, United, and Southwest. The card also comes with a bunch of travel protections, including trip cancellation and interruption insurance and primary car rental insurance.

 

Rewards

  • Earn 5x total points on travel purchased through Chase Ultimate Rewards®.
  • Earn 3x points on dining, including eligible delivery services, takeout, and dining out.
  • Earn 3x points on online grocery purchases (excluding Target, Walmart, and wholesale clubs).
  • Earn 3x points on select streaming services.
  • Earn 2x on other travel purchases.
  • Earn 1 point per dollar spent on all other purchases.

 

More details

Paying taxes with your credit card means securing the Chase Sapphire Preferred® Card sign-up bonus. Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®.

Once you’ve got your hands on those points, you can redeem them for 25% more via the Chase Ultimate Rewards Platform, bringing the value up to 1.25 cents per point.

 

Apply for the Chase Sapphire Preferred® Card.

Learn more about the best Chase credit card for you.

 

Credit card rates

 

Type Description
Regular APR reg_apr,reg_apr_type
Intro APR intro_apr_rate,intro_apr_duration
Balance transfer rate balance_transfer_rate
Balance transfer intro APR balance_transfer_intro_apr,balance_transfer_intro_duration
Cash advance APR cash_advance_apr

Credit card fees

 

Types Description
Annual fees annual_fees
Balance transfer fees balance_transfer_fees
Cash advance fees cash_advance_fee
Foreign transaction fees foreign_transaction_fee
Late payment fees late_payment_fee.

 

 

The Blue Business® Plus Credit Card from American Express

 

Our Verdict

4.8
Welcome Bonus
N/A (can't find this in QMP)
Annual Fee
annual_fees
Regular APR
reg_apr,reg_apr_type
Credit Score
credit_score_needed

 

The American Express Blue Business Plus card is a budget-friendly gem for small business owners. As well as no annual fee, you also get 0% APR on purchases for the first twelve months.

 

Business benefits include employee cards, account management tools, and access to QuickBooks. You also get an extended warranty and purchase protection—an extra safeguard for your office clobber. But watch out for that 2.7% foreign transaction fee if you’re a frequent business traveler.

 

Rewards

  • 2x points on everyday eligible business purchases (up to $50k per calendar year).
  • 1x points on other eligible purchases (after the first $50k spent on your Blue Business Plus Card).

 

More details

The Blue Business Plus offers a worthwhile welcome bonus you could earn with one swift tax payment. Earn 15,000 Membership Rewards® points after you spend $3,000 in eligible purchases on the Card within your first 3 months of Card Membership.

With Expanded Buying Power, you can also go over your credit limit for big purchases (like hefty tax bills) with no extra fees or interest. They’ll add the amount to your minimum payment due, and you’ll need to pay back it by the end of the billing cycle.

 

Apply for the Blue Business® Plus Credit Card from American Express.

 

Credit card rates

 

Type Description
Regular APR reg_apr,reg_apr_type
Intro APR intro_apr_rate,intro_apr_duration
Balance transfer rate balance_transfer_rate
Balance transfer intro APR balance_transfer_intro_apr,balance_transfer_intro_duration
Cash advance APR cash_advance_apr

 

Credit card fees

 

Types Description
Annual fees annual_fees
Balance transfer fees balance_transfer_fees
Cash advance fees cash_advance_fee
Foreign transaction fees foreign_transaction_fee
Late payment fees late_payment_fee

 

Ink Business Preferred Credit Card

 

Our Verdict

The Chase Ink Business Preferred Credit Card is excellent for businesses seeking robust rewards and a solid sign-up bonus. You can earn 3x points (up to $150,000 annually) in corporate categories. But after passing the threshold, your rewards drop to a subpar 1x points. Key features include 1:1 point transfers to travel partners, trip insurance, extended warranty, and cell phone insurance.

4.4
Welcome Bonus
N/A (can't find this in QMP)
Annual Fee
annual_fees
Regular APR
reg_apr,reg_apr_type
Credit Score
credit_score_needed

 

The Chase Ink Business Preferred Credit Card has solid rewards and an enticing sign-up bonus. Not to mention a bunch of business perks, including quarterly reports and employee cards—a handy way to boost your points.

Standout features include 1:1 point transfers to travel partners, trip insurance, extended warranty coverage, purchase protection, and cell phone insurance. Jetsetters also benefit from the 25% more value in travel redemption through Chase Travel.

 

Rewards

  • 3x points per $1 on the first $150,000 spent in combined purchases in the following categories each account anniversary year:
    • Shipping purchases
    • Advertising purchases made with social media sites and search engines
    • Internet, cable, and phone services
    • Travel
  • Unlimited 1 Point Per $1 spent on all other purchases.

 

More details

Chase offers the opportunity to bag a generous welcome bonus with their New Cardmember Offer! Earn 100,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening.

 

If spending around $3,000 a month isn’t feasible, paying for your taxes can push you over the threshold. The welcome bonus equals $1,000 in cash back or $1,250 when you redeem for travel via Chase Travel.

 

Apply for the Ink Business Preferred® Credit Card. 

Is this the card for you? Find out with our Chase Ink Business Preferred Card review.

 

Credit card rates

 

Type Description
Regular APR reg_apr,reg_apr_type
Intro APR intro_apr_rate,intro_apr_duration
Balance transfer rate balance_transfer_rate
Balance transfer intro APR balance_transfer_intro_apr,balance_transfer_intro_duration
Cash advance APR cash_advance_apr

 

Credit card fees

 

Types Description
Annual fees annual_fees
Balance transfer fees balance_transfer_fees
Cash advance fees cash_advance_fee
Foreign transaction fees foreign_transaction_fee
Late payment fees late_payment_fee

 

Marriott Bonvoy Business® American Express® Card

 

Our Verdict

4.8
Welcome Bonus
N/A (can't find this in QMP)
Annual Fee
annual_fees
Regular APR
reg_apr,reg_apr_type
Credit Score
credit_score_needed

 

The American Express Marriott Bonvoy Business credit card caters to business travelers and fans of the Marriott Bonvoy franchise—which includes over 7,000 properties worldwide.

For a $125 annual fee, you get exclusive hotel perks like Marriott Bonvoy Gold Elite status, giving you room discounts and premium internet access. You also get a suite of business benefits, including account management tools, QuickBooks access, year-end summaries, and Vendor Pay by Bill.com.

 

Rewards

  • 6x Marriott Bonvoy Points per $1 on eligible purchases at hotels participating in the Marriott Bonvoy® program.
  • 4x Marriott Bonvoy Points per $1 at restaurants worldwide at US gas stations, on wireless telephone services purchased directly from US service providers, and on US purchases for shipping.
  • 2x Marriott Bonvoy Points per $1 on other purchases.

 

More details

Welcome bonus points and cash back are usually the main reasons to use your card for taxes. However, extra spending can also mean exclusive perks, airline elite statuses, and free night awards.

Earn five Free Night Awards after you use your new Card to make $8,000 in eligible purchases within the first 6 months of Card Membership. You get a redemption level of up to 50,000 Marriott Bonvoy® points for each bonus Free Night Award at hotels participating in Marriott Bonvoy®.

Marriott Bonvoy Business also offers an extra free night (up to 35,000 points) after spending $60,000 a year. Each point is worth around 0.8 cents, so the free night is worth approximately $280. If you’re just under the threshold, you could pay your tax bill to tip you over the edge—just make sure the 1.82% processing fees don’t offset the free night value.

 

Apply for the Marriott Bonvoy Business® American Express® Card.

Discover more with our Marriott Bonvoy Amex Business Credit Card review.

 

Credit card rates

 

Type Description
Regular APR reg_apr,reg_apr_type
Intro APR intro_apr_rate,intro_apr_duration
Balance transfer rate balance_transfer_rate
Balance transfer intro APR balance_transfer_intro_apr,balance_transfer_intro_duration
Cash advance APR 2cash_advance_apr

 

Credit card fees

 

Types Description
Annual fees annual_fees
Balance transfer fees balance_transfer_fees
Cash advance fees cash_advance_fee
Foreign transaction fees foreign_transaction_fee
Late payment fees late_payment_fee

 

Bank of America® Premium Rewards® Elite Credit Card

 

The Bank of America Premium Rewards Elite is a luxury card with premium perks and a hefty $550 price tag. But if you want the total elite experience, you need to be a Preferred Rewards member, giving you a 75% boost in points and premium perks.

Both members and non-members can get top-notch benefits like trip insurance, four complimentary Priority Pass™ Select Memberships, and credits towards airline travel and lifestyle purchases.

 

Rewards

  • Unlimited 2x points for every $1 spent on travel and dining purchases.
  • Unlimited 1.5x points per $1 on all other purchases.
  • Preferred Rewards members earn 25%-75% more points on every purchase.

 

More details

The standard rewards with the Bank of America® Premium Rewards® Elite Credit Card are nothing to shout about (especially for a $550 annual fee card). But for Preferred Reward members, the 25% to 75% boost could be a game changer.

Members can move up the Preferred Rewards tiers to earn more points alongside other benefits. Climbing up means you get between 1.87 to 2.62 points on all purchases, with one point worth 1 cent each. So, despite the minimum 1.82% processing fee, you can still make a small return, which only gets better the higher your status.

 

Apply for the Bank of America® Premium Rewards® Elite Credit Card.

Find out more with our Bank of America Premium Rewards Elite review.

 

Credit card rates

 

Type Description
Regular APR 20.24% to 27.24% Variable
Intro APR N/A
Balance transfer rate 20.24% to 27.24% Variable
Balance transfer intro APR N/A
Cash advance APR 23.24% to 29.24% Variable

 

Credit card fees

 

Types Description
Annual fees $550
Balance transfer fees 3% of the amount of each transaction
Cash advance fees 3% of the amount of each transaction
Foreign transaction fees None
Late payment fees Up to $40

 

PayPal Cashback Mastercard

 

You might be surprised to see the PayPal Cash Back Mastercard on this list—but hear me out. Despite having no welcome bonus, the maximum 3% cash back is a good enough reason to use this card for your next tax bill.

With no annual fee, you also get an unlimited 2% flat-rate cash back on every purchase, giving you a no-fuss way to earn rewards without rotating categories or spending caps. You can redeem at any amount, and there’s no waiting until the end of the month for it to come through.

 

Rewards

  • 3% cash back on PayPal purchases.
  • 2% on all other purchases.

 

More details

The IRS includes PayPal as an accepted tax payment method, so this card can help boost your rewards. With 3% cash back and a minimum of 1.82% in fees, you can net 1.18%—not a huge amount, but if you’re making large tax payments, it can generate solid cash back.

 

Apply for the PayPal Cashback Mastercard®.

 

Credit card rates

 

Type Description
Regular APR 20.24% – 32.24% Variable
Intro APR N/A
Balance transfer rate N/A
Balance transfer intro APR N/A
Cash advance APR 32.24% Variable

 

Credit card fees

 

Types Description
Annual fees None
Balance transfer fees N/A
Cash advance fees Either $10.00 or 5% of the amount of each cash advance, whichever is greater.
Foreign transaction fees 3% of each transaction.
Late payment fees Up to $40.00

Benefits of Paying Taxes With a Credit Card

 

Score a generous welcome bonus

Unlocking a coveted welcome bonus is the most popular incentive for using a credit card to pay taxes. Credit card sign-up offers can require a hefty chunk of spending—using your card for tax payments can tip you over the edge and help you score valuable points and cash back.

 

The Business Platinum Card from American Express is a great example. Earn 120,000 Membership Rewards® points after you spend $15,000 on eligible purchases with your Card within the first 3 months of Card Membership.

Note: Only use this method if you’re natural spending habits can’t reach the bonus threshold. And most importantly, make sure your returns outweigh the processing fees.

 

Earn rewards and cash back

Paying taxes with your credit card won’t catapult your rewards. But if you enjoy playing the points game, this method could get you a few extra bucks.

When you use a credit card to pay taxes, you’ll incur a minimum processing fee of 1.82%. To make it worthwhile, your rewards should exceed this fee—so you’ll need a card that offers rewards of 2% or higher.

The Citi Double Cash® Card is a solid contender, offering unlimited 1% cash back when you buy, plus an additional 1% as you pay on every purchase. The Bank of America® Premium Rewards® Elite Credit Card also offers up to 2.62% points on every purchase for Preferred Rewards members.

 

Reach spending thresholds for exclusive perks

Premium credit cards frequently dangle perks such as complimentary hotel stays, upgrades to elite status, or airline perks. But unlocking these benefits hinges on meeting high spending thresholds.

When you’re just short of the target, using your credit card for taxes can give you that much-needed boost. This strategy could propel you to a higher tier in the hotel or airline card program or earn you free nights with valuable monetary worth.

For example, the Hilton Honors American Express Business Card upgrades you to Hilton Diamond Status if you spend $40,000 a year. This status can be worth up to $2,880 if you take advantage of all the benefits.

 

Downsides of Paying Taxes With a Credit Card

 

Pay third-party processing fees

When tax season comes around, nobody wants to pay more than they need to—but that’s exactly what happens when using your credit card.

Third-party processors currently charge between 1.82% and 1.98% for credit card tax payments (payUSAtax being your cheapest option).

Here are the processing fees for 2024—

 

Processor Credit card fee Debit card fee Accepted cards Other accepted payments
payUSAtax 1.82%

(minimum fee: $2.69)

$2.14 Visa, Mastercard, Discover, American Express, STAR, Pulse, NYCE, Accel Digital Wallet (PayPal, Click to Pay)
Pay1040 1.87%

(minimum fee: $2.50)

$2.50 or 1.87%

(minimum fee: $2.50)

Visa, Mastercard, Discover, American Express, STAR, Pulse, NYCE, Accel, AFFN, Cirrus, Interlink, Jeanie, Shazam, Maestro Digital Wallet (PayPal, Click to Pay)

Pay With Cash (VanillaDirect)

ACI Payment, Inc. 1.98%(minimum fee: $2.50) $2.20 Visa, Mastercard, Discover, American Express, STAR, Pulse, NYCE Digital Wallet (PayPal, Click to Pay, Venmo)

Pay With Cash (VanillaDirect)

*fees are subject to change.

 

In most cases, it makes no sense to pay extra fees unless you’re balancing them out with the value of a welcome bonus.

Even if the rewards from your card offset the minimum 1.82% fee—you’ll only end up with a narrow profit margin. And since many cards offer flat-rate rewards below 1.5%, the fees would easily outweigh any benefits.

 

Face high-interest rates

Those generous welcome offers may catch your eye, but what will get your attention even more? Those hefty interest rates if you can’t settle your balance in full.

Credit card interest rates can be as high as 30%, meaning you could face hundreds of dollars in monthly interest charges alone if you carry a balance.

If funds are tight, consider the monthly payment plans provided by the IRS as a more wallet-friendly alternative. While interest rates fluctuate, they generally remain below 10%—I’d take that over the 20% or higher rates associated with credit cards.

 

How to Pay Taxes Online With Your Credit Card

 

Here’s how to make an IRS payment online in four simple steps—

  1. Visit the IRS website: Start by going to the official website of the IRS. Select “Pay” at the top of the page and head to “Pay by debit or credit card.”
  2. Choose a payment processor: The IRS doesn’t accept credit card payments directly, so you have to select a third-party payment processor. Options include PayUSAtax, Pay1040, and ACI Payments, Inc. From there, choose whether to make a personal or business payment.
  3. Enter payment details: Follow the prompts to enter your payment details. These include your tax type, personal information, payment amount, and payment method. You can pay with a credit card, debit card, or via PayPal.
  4. Confirm payment: Once you’ve confirmed and reviewed the payment details, you’ll receive a confirmation. Keep this confirmation for your records as proof of payment.

You can also make an IRS tax payment by phone—

  • PayUSAtax: 844-729-8298
  • Pay1040: 888-729-1040
  • ACI Payments: 888-272-9829

 

Bottom Line: Is It Worth Paying Taxes With Credit Card?

 

Paying taxes with a credit card can offer solid benefits, mostly for meeting minimum spending thresholds for welcome bonuses. If you’re considering this route, always do your calculations to make sure the benefits justify the fees.

Remember: The golden rule is if you can’t pay off your statement balance in full, you probably shouldn’t even be thinking about this method due to high interest rates.

So, unless you’re working towards a valuable welcome offer, it’s usually not worth using a credit card for tax payments simply due to the fees involved.

 

FAQs

 

Can you pay the IRS with a credit card?

Yes, you can pay your federal taxes with a credit card. However, the IRS doesn’t directly accept credit card payments. Instead, they partner with third-party payment processors to facilitate credit card payments. These processors charge a processing fee for their services, typically ranging from 1.82% to 1.98% of the transaction amount.

Discover the best ways to lower your taxes.

 

What is the TurboTax credit card convenience fee?

The TurboTax credit card fee is currently 2.49% if you pay income tax via credit card through its website.

Despite expert help and an easy-to-use interface, using TurboTax usually isn’t worth the steep fees, especially for more advanced versions. Some credit card issuers offer TurboTax discounts and cash back returns, such as Chase, Amex, and Capital One.

Check out the best tool for tax planning.

 

What is the fee for paying taxes with a credit card?

The fee for paying taxes with a credit card currently ranges from 1.82% to 1.98% of the transaction amount, depending on the payment processor used. These fees come from third-party payment processors authorized by the IRS to handle credit card transactions for tax payments and can change over time.

 

Can you pay property taxes with a credit card?

Yes, in many cases, you can pay property taxes with a credit card. However, it depends on the policies of your local government or property tax collector. Your best bet is to check with your local tax authority or property tax collector to see if credit card payments are accepted and if any fees apply.

 

A generous and temporarily increased welcome bonus of 80,000 points & Peloton membership credits on the Chase Sapphire Preferred & premium card perks with the Chase Sapphire Reserve!


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