Can You Pay Taxes with a Credit Card or Credit Card Reward Points?

Although the Internal Revenue Service (IRS) doesn’t directly accept credit card payments, you can still pay your taxes with a credit card by using an authorized third-party payment processor, which will charge a fee for the service. 

While you can put the taxes you owe on your credit card, most card issuers don’t allow you to use your points to pay your taxes. You could, however, redeem your points for cash to use to pay your taxes. 

In most cases, paying your taxes with a credit card isn’t the best move, but if the rewards are big enough and you can pay off your balance in full, it might be worth considering.

Exploring Your Options: Fees, Benefits and Best Practices for Paying Taxes with Credit Cards or Reward Points

While paying your taxes with a credit card may be convenient, you must consider some key factors that could make it a poor choice.

First, if you can’t pay your balance in full after using your credit card to pay your taxes, you’ll accrue interest, which could be expensive. You also must ensure your tax payment isn’t more than your credit limit or you’ll rack up fees for exceeding your limit. 

But if you’ve recently opened a credit card with a 0% annual percentage rate, paying your taxes with your card might work to your advantage — especially if you earn money rewards spent using your credit card.

Top Credit Card Options For Paying Taxes

This guide explores the top credit cards for paying your taxes. 

Wells Fargo Active Cash Card

With no annual fee and a 0% APR, the Wells Fargo Active Cash Card will let you pay your taxes without incurring more debt — provided you pay it off before the introductory APR expires. After the first 12 months, your variable APR will be 19.24%, 24.24% or 29.24%.

You’ll earn a $200 cash rewards bonus after spending $500 in purchases on your card within the first three months of opening your account. 

You’ll also earn unlimited 2% cash back on purchases — including paying your taxes. You can redeem your rewards as a credit to your card or at an ATM for cash in $20 increments when you use your Wells Fargo ATM or Debit Card.

The card offers various benefits, including up to $600 in cellphone protection against damage or theft, travel and emergency assistance services worldwide and roadside dispatch when you need a tow. 

You won’t have to pay for unauthorized transactions as long as you report them quickly, and with Wells Fargo’s Credit Close-Up feature, you can track your FICO Score for free. 

Why We Picked It: The Wells Fargo Active Cash Card has a 0% APR on purchases and balance transfers for 12 months from the day you open the account, so even if you can’t pay your taxes in full, you won’t be penalized. 

Chase Freedom Unlimited

The Chase Freedom Unlimited Card’s introductory 0% APR allows you to pay your taxes without adding to your debt with interest rate charges for 15 months. 

You also won’t have to pay an annual fee for the card, which gives you a $200 bonus after you spend $500 on purchases in the first three months after opening your account. 

The card gives you 3% cash back on restaurants and takeout orders and drugstore purchases. You’ll earn 5% cash back on travel purchased through Chase Travel and 1.5% cash back on all other purchases. 

For example, if your monthly spend is $100 on travel, $500 on restaurants, $100 at drugstores and $500 on everything else, you’ll get $366 back at the end of the first year.

Your rewards don’t expire as long as your account is open, and there isn’t a minimum requirement to redeem cash back. 

You won’t be responsible for unauthorized charges made with your card or account information, and your purchases are protected for up to $500 for 120 days from the date of purchase. 

Chase also provides trip cancellation and interruption insurance for up to $1,500 per covered traveler and $6,000 per trip for prepaid, nonrefundable passenger fares if your trip is cut short or canceled due to illness, severe weather or other covered situations. 

Why We Picked It: You can earn 1.5% cash back on your taxes through the card’s unlimited cash-back program — and you’ll keep earning cash back on every purchase with no categories to keep track of.

Blue Business Plus Credit Card from American Express

Businesses can also use credit cards to pay their taxes, and the Blue Business Plus Credit Card from American Express is an attractive option. 

The introductory 0% APR on purchases for 12 months from opening your account means you won’t pay extra for using the card to pay your taxes — as long as you pay the balance off within a year. 

After the introductory 12-month period, your APR will be variable, between 17.49% and 25.49%, depending on your creditworthiness and other factors. 

You’ll also earn 15,000 membership rewards points when you spend $3,000 within the first three months of opening your account, and there’s no annual fee for this card. 

The card allows you to stretch your spending by going over your credit limit with Expanded Buying Power. You won’t be charged over-limit fees or have to enroll in a separate program. All you have to do is make the minimum payment due each month. 

Why We Picked It: You can make paying your taxes work for you by earning 2X membership rewards points on the first $50,000 in purchases and 1X points after you hit the limit. 

Discover it Miles

With an introductory 0% APR for 15 months and no annual fee, the Discover it Miles card is a good option for paying your taxes. 

You’ll earn 1.5X miles for each dollar you spend on all your purchases, and your miles never expire. The miles can be redeemed for cash or travel expenses, such as hotels, rideshares, gas stations or dining out. Discover also matches all your miles for the first year you have your card. 

So, if you spend $1,100 per month on your card, you’d earn 19,800 miles each year, valued at $198. And after your first year in the Discover Match program, you’d earn 39,600 miles, valued at $396.

You can use your miles at Amazon.com and when you pay using PayPal. 

Discover also will help you remove your personal information from people-search websites that may sell your data. You’ll also be able to view your FICO Score for free.

Why We Picked It: From the introductory 0% APR offer to earning 1.5X miles for each dollar spent and the Discover Match program, you could earn many rewards by paying your taxes with the Discover it Miles credit card.

Citi Simplicity Card

If you use the Citi Simplicity Card to pay your taxes, you’ll have 12 months to pay off your bill before the introductory 0% APR switches to a variable rate of 18.25% to 28.99%. If you transfer balances from other high-interest cards, you’ll have 21 months to pay them off before the rate changes. 

The card also doesn’t have an annual fee, late fees or a penalty rate, which means it does not earn rewards. 

Other benefits include flexible payment due dates and 24/7 customer service. You also won’t be liable for paying any unauthorized charges on your account. Citi also allows you to set up your card in a digital wallet that protects your information. 

You can set up automated alerts for your phone or email account to remind you about your balance levels, payments due or when you exceed your credit limit.

The ID Theft Protect program offered through Mastercard protects you from identity theft by monitoring your account and alerting you to suspicious activity.

Why We Picked It: The Citi Simplicity credit card is tough to beat, with its introductory 0% APR and no late fees. 

Wells Fargo Reflect Card

The Wells Fargo Reflect Card offers an introductory 0% APR on purchases and balance transfers for 21 months, which is longer than most other cards. 

Wells Fargo also offers up to $600 of cellphone protection against damage or theft and a 24/7 referral dispatch network that provides emergency roadside assistance, towing or locksmith services when needed. 

Through My Wells Fargo Deals, you can get personalized deals from an array of merchants while earning cash back as account credit when you shop, dine or enjoy an experience by paying with your Wells Fargo card.

You won’t be responsible for unauthorized transactions on your card if you report them quickly. 

Wells Fargo also offers Credit Close-UP, which allows you to track your FICO Score and receive insights into your credit.

Why We Picked It: You’ll have 0% APR for 21 months from the day you open your account, giving you plenty of time to pay your tax bill. 

Capital One Savor Cash Rewards Credit Card

You can earn unlimited 3% cash back at grocery stores, on dining, entertainment and popular streaming services with the Savor Rewards card from Capital One — plus you’ll get a $200 cash bonus when you spend $500 in the first three months of opening your account. 

You’ll earn 5% cash back on hotels and rental cars booked through Capital One Travel and unlimited 1% cash back on all other purchases. Rewards don’t expire for as long as you keep your account open. 

You can redeem your Capital One reward at millions of online stores using PayPal.

When you use your credit card to purchase your fare, you’ll receive extended warranty protection on eligible items purchased with your card and travel accident insurance for a covered loss. 

You’ll also get great prices on travel for booking with Capital One Travel, and the card’s complimentary concierge service will also help you make dining reservations and book entertainment tickets. 

If Capital One detects suspicious activity on your account, you’ll be notified by text, email and phone. You can enhance security by making online purchases with virtual card numbers. 

J.D. Power named the Savor Rewards credit card No. 1 in customer satisfaction for two consecutive years. 

Why We Picked It: The 15-month 0% APR on purchases and balance transfers — plus Capital One’s generous cash-back rewards — make the Savor card a good option for paying taxes. 

Chase Ink Business Unlimited

The Chase Ink Business Unlimited offers a $750 cash-back bonus after you spend $6,000 on purchases within three months after you open your account. 

You’ll also get 0% APR for 12 months after opening your account, making paying your business taxes with your card an option. Your account will be reviewed every six months to determine your eligibility for a credit line increase. 

In addition to the $750 bonus, you’ll earn 1.5% cash back on all your purchases — if you spend $2,500 per month on your card, you’ll earn $1,200 cash back (including the bonus) at the end of your first year. 

You can use your points to pay for eligible purchases at Amazon.com when you use PayPal or book your next business trip with Chase Travel, including flights, hotels and car rentals. You can also redeem your points for gift cards to more than 175 brands, including Apple.

Your points don’t expire for as long as your account is open. 

Your eligible purchases are covered against damage or theft up to $10,000 per item for 120 days after the day you buy them. 

Why We Picked It: You’ll get 1.5% unlimited cash back on every purchase — including your taxes. 

Understanding the Costs, Rewards and Risks of Using Credit Cards for Tax Payments 

Paying taxes with a credit card is convenient, but it’s important to understand the costs, rewards and risks of doing so. Benzinga selected cards with an introductory 0% APR so that if you don’t pay them off all at once, you won’t incur high interest charges. 

We also looked for cards that offered cash back or points for purchases, including tax payments, so you could earn rewards for paying your taxes. Sign-up bonuses for spending a certain amount in a set time were also considered.

Frequently Asked Questions