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Can You Pay Your Federal Taxes With Your Credit Card?

There are certain circumstances under which you can pay the bills with your credit card.
Cover Image Source: Pexels |
Cover Image Source: Pexels |

Can we pay our taxes with our credit cards? It is one of the most-asked questions by users. It does sound like a shady idea to pay your due amount with a credit card. However, there are certain circumstances under which you can pay the bills with your credit card, as per CNN. 

For instance, if you are in a situation where you will be getting money or your salary after the IRS deadline, then you can rely on your credit card and pay the credit card bill when your money arrives.

For this, you can take advantage of a credit card with an introductory 0% interest rate. This way you avoid the agency's interest. 

Another reason you would want to pay your taxes with a credit card is to earn credit card rewards. Regardless of why you are planning to pay your taxes with your credit card if you are willing to do it, then here are something you should keep in mind.

The Best Credit Cards For Paying Taxes In 2023

Pexels | Andrey Matveev
Pexels | Andrey Matveev

While choosing the right credit card for you depends on several factors, but some credit card options are worth exploring. Whether you want to eke out a big bonus after paying your tax or want to access an introductory 0% APR so you can pay off the balance over time, here are some best credit card options for you.

Citi Double Cash Card- Ideal for earning cashback

Chase Freedom Unlimited- best introductory 0% APR offer

Chase Sapphire Preferred Card- Best for flexible travel rewards.

Hilton Honors American Express Surpass Card- Best Hotel Bonus

The Blue Business Plus Credit Card From American Express- Ideal For Business Taxes

Pexels | Candy Flipping
Pexels | Candy Flipping

While the US government doesn't allow people to pay their taxes with a credit card directly, you can always use the authorized companies to process your federal tax payments. Each of these companies charges a fee as a percentage of your tax payments when you pay with your credit card. The fee varies from company to company and depend on whether you are paying the IRS with a credit card or debit card.

PayUSAtax charges 1.85% (minimum fee of $2.69) for credit cards and $2.20 for debit cards, Pay1040 charges 1.87% (minimum fee of $2.50) for credit cards and $2.50 for debit cards, and ACI Payments Inc. charges 1.98% (minimum fee of $2.50) for credit cards and $2.20 for debit cards.

To pay the taxes you need to go to the website of the company and provide your basic information, like your name, address, date of birth, contact info, and taxpayer identification number. 

Let's take a look at these cards individually.

Citi Double Cash

 Pexels | cottonbro studio
Pexels | cottonbro studio

This is an ideal pick if you are planning to pay a large tax bill. The card also earns 2% back for each dollar that you spend. You can redeem any cash back earned with the Citi Double Cash by getting statements credits on your accounts or credits to a linked account. 

Chase Freedom Unlimited

This card will help you earn 1.5% cash back on all kinds of purchases including your tax bill. The card will also help you save on interest as it gives an introductory 0% APR.

Chase Sapphire Preferred

If you want your tax payment to translate into a vacation, this option is for you. The card is currently offering 60,000 bonus points when you spend $4,000 within three months.

Hilton Honors American Express Surpass

This card will earn a free night reward when you spend $15,000 on it within one FY.

Blue Business Plus From American Express

It's the ideal choice if you planning to pay your business taxes with a credit card.