If you had asked me a few years ago if I thought it was worth paying a fee to pay taxes with a credit card, I would have said “Absolutely not.”
But my tune has changed since I discovered credit card points for nearly free travel. Keep reading to see why!
When is it a good idea to pay your taxes with a credit card?
*If you’re working on a minimum spend for a big welcome bonus and you need a big purchase to help you finish.
*You have a card that earns more cash back than what it costs you in fees (like earning 2% back on the Capital One Venture or Capital One Venture X or Capital One Venture X Business)
Of course, only use this strategy if you have the money to pay off these bills in full. Otherwise those points you earn are worth a lot less because now you’re paying interest on those hefty balances.
How to Pay Taxes with a Credit Card
The IRS provides a list of approved companies that allow taxpayers to pay their taxes with credit or debit cards. You can access the most up-to-date details on their official website. Currently, there are two payment processors available. For personal debit card transactions, fees typically range from $2.10 to $2.15, while credit card payments incur fees between 1.75% and 1.85%.
Another option for paying taxes is using the Plastiq Bill Pay service. However, this method comes with a higher fee—2.9% of the transaction amount, plus an additional transaction fee.
Important Note: When paying taxes through the IRS-approved Pay1040 platform, it’s best to use a personal Visa or Mastercard. Using business credit cards or any American Express card (personal or business) may result in significantly higher fees, up to 2.89%. However these convenience fees are tax deductible on business tax payments and on qualified personal tax payments
Tax Payment Due Dates
- January 15, 2025: 4th Quarter 2024 estimated taxes due.
- April 15th, 2025: 1st Quarter 2025 estimated taxes due.
- June 16th, 2025: 2nd Quarter 2025 estimated taxes due.
- September 15th, 2025: 3rd Quarter 2025 estimated taxes due.
- January 15th, 2026: 4th Quarter 2025 estimated taxes due.
Best Credit Cards that Earn 2 points per dollar
Since both credit card payment options charge a fee of at least 1.75%, it’s best to use a card that earns more than that in rewards. But remember, if you are making a payment on a new card and trying to hit a minimum spend, the welcome bonus you’ll earn will result in far greater than 2% back. In that case, it’s ok if the purchase itself earns less than 2 points per dollar since the welcome bonus will net a far greater return.
But if you are using a card you currently have, here are some good options!
Amex Blue Business Plus
Earns 2 Membership Rewards points per dollar on up to $50K spend per calendar year. Points can be transferred to a great selection of airline programs or to a few hotel programs.
The Blue Business® Plus Credit Card from American Express
Annual fee: $0Welcome offer
Earn 15,000 Membership Rewards® points after you spend $3,000 in eligible purchases in the first 3 months of Card Membership.
Key perks
- 2x Membership Rewards® points on all eligible business purchases (up to $50,000/year)
- No annual fee. See rates and fees.
- 0% intro APR for 12 months on purchases
- Free employee cards
- No foreign transaction fees
- Keeps Membership Rewards® points alive at no annual cost
- No lifetime language on welcome offer
Capital One Credit Cards
Each of the following cards earns a flat 2 points per dollar on EVERY purchase making them excellent options for making a tax payment.
Capital One Venture Rewards Credit Card
Annual fee: $95Welcome offer
LIMITED-TIME OFFER: Enjoy $250 to use on Capital One Travel in your first cardholder year, plus earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening - that’s equal to $1,000 in travel.
Key perks
- 2x miles on all purchases — no categories to track
- 5x miles on hotels, vacation rentals, and rental cars booked through Capital One Travel
- Purchase Eraser — use miles to offset any travel purchase including Airbnb and Vrbo
- Up to $120 Global Entry or TSA PreCheck credit
- $50 experience credit at Lifestyle Collection hotels
- No foreign transaction fees
- Transfers to 15+ airline and hotel partners
- Travel accident insurance
- Rental car insurance
- Extended warranty
Capital One Venture X Rewards Credit Card
Annual fee: $395Welcome offer
Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening
Key perks
- Earn 75,000 miles after $4,000 spend in first 3 months — worth $750 in travel
- $300 annual travel credit for bookings through Capital One Travel
- 10,000 anniversary bonus miles worth $100 toward travel every year
- Access to 1,300+ airport lounges including Capital One Lounges and Priority Pass
- 10x miles on hotels and rental cars booked through Capital One Travel
- 5x miles on flights and vacation rentals booked through Capital One Travel
- 2x miles on all other purchases
- Up to $120 Global Entry or TSA PreCheck credit
- Premier Collection hotel benefits including $50 experience credit and room upgrades
- No foreign transaction fees
- Transfers to 15+ airline and hotel partners
The Best Credit Cards for a BIG Tax Payment
There are some excellent welcome offers available on some of my favorite travel credit cards, but the minimum spend requirements can be hard to achieve under normal circumstances. However, if you find yourself in a situation where you have a big tax payment, this could be a strategic time to open one of these cards!
The Business Platinum Card® from American Express
The Business Platinum Card® from American Express
Annual fee: $895Welcome offer
You may be eligible for as high as 300,000 Membership Rewards® Points after spending $20,000 in eligible purchases on your new Card in your first 3 months of Membership. Welcome offers vary and you may not be eligible for an offer.
Key perks
- Access to 1,550+ airport lounges across 140 countries
- 10 complimentary Delta Sky Club® visits per year
- Up to $200 annual airline fee statement credit
- Up to $200 annual Hilton statement credit. Enrollment required.
- Up to $600 hotel statement credit at Fine Hotels + Resorts® or The Hotel Collection
- Up to $360 Indeed statement credit ($90/quarter). Enrollment required.
- Up to $250 Adobe statement credit. Enrollment required.
- Up to $150 Dell statement credit. Enrollment required.
- Up to $120 annual wireless telephone statement credit ($10/month). Enrollment required.
- Up to $209 CLEAR+ statement credit
- 5x points on flights and prepaid hotels through AmexTravel.com
- Flexible spending limit
- Doesn't count toward 5/24
The Platinum Card® from American Express
American Express Platinum Card®
Annual fee: $895Welcome offer
Apply and find out your welcome offer. As high as 175,000 Membership Rewards® points after you spend $12,000 in eligible purchases in the first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer.
Key perks
- Access to 1,550+ airport lounges across 140 countries
- 10 complimentary Delta Sky Club® visits per year
- Up to $200 annual airline fee statement credit
- Up to $200 annual Uber Cash + $120 Uber One credit. Enrollment required.
- Up to $300 digital entertainment statement credit ($25/month). Enrollment required.
- Up to $400 annual Resy statement credit ($100/quarter). Enrollment required.
- Up to $600 hotel statement credit at Fine Hotels + Resorts® or Hotel Collection
- Up to $300 annual lululemon statement credit ($75/quarter). Enrollment required.
- Up to $209 CLEAR+ statement credit
- Global Entry or TSA PreCheck® statement credit
- 5x points on flights and prepaid hotels through AmexTravel.com
- Points transfer to airline and hotel partners
American Express® Business Gold Card
American Express® Business Gold Card
Annual fee: $375Welcome offer
You may be eligible for as high as 200,000 Membership Rewards® Points after spending $15,000 in eligible purchases on your new Card in your first 3 months of Membership. Welcome offers vary and you may not be eligible for an offer.
Key perks
- 4x Membership Rewards® points on your top 2 spending categories each billing cycle
- 3x points on flights and prepaid hotels through AmexTravel.com or the Amex Travel App™
- Up to $240 annual business statement credit ($20/month at FedEx, Grubhub, U.S. Office Supply stores). Enrollment required.
- Walmart+ membership statement credit included (up to $12.95/month plus applicable taxes on one membership fee). Enrollment required.
- No foreign transaction fees. See rates and fees.
- Free employee cards
- Points transfer to airline and hotel partners
- Doesn't count toward 5/24
Capital One Venture X Business
This card has a $30,000 minimum spend in 3 months but it comes with a hefty welcome bonus of 150,000 miles. Since you earn 2x points on every dollar you spend, you’ll have 210,000 Venture miles once you hit the minimum spend requirement.
Capital One Venture X Business
Annual fee: $395Welcome offer
Earn 150,000 bonus miles once you spend $30,000 in the first 3 months from account opening
Key perks
- $300 annual travel credit for bookings through Capital One Travel
- 10,000 anniversary bonus miles worth $100 toward travel every year
- 2x miles on all business purchases — no categories to track
- 5x miles on hotels and rental cars booked through Capital One Travel
- 10x miles on hotels and rental cars booked through Capital One Travel
- Access to Capital One Lounges
- Access to 1,300+ Priority Pass lounges with 2 complimentary guests per visit
- Global Entry or TSA PreCheck credit up to $120
- No preset spending limit — flexible spending that adapts to your usage
- No foreign transaction fees
- Transfers to 15+ airline and hotel partners
Capital One Spark Cash Plus
Chase Ink Business Preferred®
This is basically the business version of my favorite personal travel card, the Chase Sapphire Preferred®. This one has an $8,000 minimum spend in three months with a welcome bonus of 90,000 points. It’s one of the best ways to build up your supply of Chase Ultimate Rewards and it’s easier to qualify for than you may think. Check out this post to learn how you can qualify for a business card.
Ink Business Preferred Credit Card
Annual fee: $95Welcome offer
Earn 100,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening.
Key perks
- 3x points on travel, shipping, internet/cable/phone, and social media and search engine advertising (up to $150,000 in combined purchases per year, then 1x)
- 5x points on Lyft rides through September 30, 2027
- 1x points on all other purchases with no limit
- Points transfer to 10 airline and 3 hotel partners at 1:1 including World of Hyatt, United, Southwest, and Aeroplan
- Complimentary DashPass membership -- $0 delivery fees on eligible orders. Activate by December 31, 2027.
- Up to $10 off monthly on non-restaurant DoorDash orders
- Cell phone protection up to $1,000 per claim (max 3 claims per 12 months, $100 deductible)
Small businesses with annual or quarterly tax payments, or just significant monthly expenses could see huge benefits from opening one or two business credit cards with travel rewards. These cards often offer generous sign-up bonuses, earning potential on business expenses like office supplies, advertising, or shipping, and perks like free airport lounge access, complimentary travel insurance, and statement credits for travel-related purchases.
All Around GREAT Cards to Open
The cards mentioned so far are great for earning at least 2 points back per dollar or for BIG tax payments. But there are so many great cards you could open to earn SUPER valuable welcome offers on ANY purchase. Here’s a list of the first 7 cards I think everyone should open. You can’t go wrong with any of them!
In Summary
Using a credit card to pay taxes can be a clever strategy to rack up rewards and hit spending thresholds for lucrative signup bonuses. While it might feel overwhelming initially, knowing the basics and selecting the right card can turn the process into a rewarding opportunity. With tools like instant card numbers, expedited shipping, and strategic card choices, you can make the most of your payment—even if you’re short on time. As tax deadlines draw near, take a moment to explore how paying your taxes with a credit card could bring you closer to your next dream trip!
More on Our Families Free Travels!
Family vacations were a near impossibility for us not that long ago. But about 7 years ago we discovered credit card points and miles and now traveling several times a year is the norm for us! If you want to learn more about how our family travels for next to nothing, I would love for you to check out my Quick Start Guide to Traveling with Points and Miles. It is a hobby that has forever changed our lives and given us the opportunity to see the world!
