You can pay your taxes with a credit card, but that doesn't mean it's always a good idea.
The IRS allows you to pay with a credit card through third-party partners or when you e-file your taxes through online tax services like Turbo Tax.
Paying taxes with a credit card isn't free, but sometimes it could make sense. Here's how to figure out what's best for your situation.
How to pay taxes with a credit card
You can pay taxes annually or with quarterly estimated tax payments, which are most common for self-employed or freelancers.
The IRS works with two payment processors to handle tax payments made via debit or credit card: Pay 1040 and ACI Payments. There are also options for paying your tax bill with a credit card when you e-file.
Debit card payments require a small flat fee, but you can just as easily pay your taxes with a bank account transfer for free. In most cases, that will be the best option when trying to save money.
For those paying taxes via credit card through a third-party processor, you'll pay the following convenience fees:
- Pay1040: 1.75% fee with a $2.50 minimum fee
- ACI Payments: 1.85% fee with a $2.50 minimum fee
If you pay your taxes with a credit card when filing online through tax software, fees typically start at 2.49% but could be even higher.
Steps to make a tax payment via credit card
Paying your taxes with a card is easy and only takes a few minutes. Visit IRS.gov or go directly to your preferred payment service.
When you get there, you'll need to enter your tax ID (Social Security number or Employer Identification Number), credit card number, billing information, and a few other details.
After confirming your payment, print out a copy of your receipt or save it as a PDF and keep it with your tax return. The IRS recommends holding onto copies for at least three years — the typical time in which the IRS would look back if you happen to get audited. If you find yourself in a situation where you've overpaid, you can always get excess payments back with a refund.
Pros and cons of using a credit card to pay taxes
Pros of paying taxes with a credit card
Paying with a credit card makes sense if you're trying to earn a welcome bonus on a rewards credit card, only as long as the rewards are worth more than the cost of the credit card transaction fee and if you pay off your balance before accruing any interest.
You could come out ahead with the right rewards credit card, or at least break even. If you have a cash back credit card that earns 2% back on all purchases, that will cover the fees charged by the IRS processors (though not the fees through tax software like TurboTax) as long as you pay off the balance before interest accrues. You won't come ahead in this situation, but it could help if you don't have cash on hand when your taxes are due but will have the money soon after.
You could also benefit from paying your taxes on a credit card if you're in a bonus rewards period for a new card. For example, suppose you have a card that will give you a $200 bonus for spending $500. If your tax bill is about $500, you'll pay $10 in processing fees, leaving a net reward of $190. Alternatively, if your payment provides enough points to redeem for a flight or hotel worth more than the IRS credit card fee, you could come out ahead. But do the math carefully and ensure the rewards exceed the fees you'll incur.
If you're using your taxes to hit the minimum spending requirement to earn a credit card welcome bonus, you might get a value far exceeding the tax-processing fee you paid. But if you don't earn rewards, or if their value is less than 1.85%, you should only use a card if it will get you over the hurdle for a bonus. Otherwise, you'll spend more than you'll get back in rewards.
Cons of paying taxes with a credit card
It's important to avoid paying interest on your taxes since most credit cards charge extremely high APRs that can double or triple what you owe.
If you don't have the full cash amount to repay your taxes, consider paying with a credit card with an interest-free introductory period. Many of the best zero-interest credit cards can help you spread out your repayment over time without incurring interest.
Above all else, set up a plan to pay off the card before the 0% introductory APR runs out.
Is it worth it to pay your taxes with a credit card?
Paying your taxes with a credit card is only worth it if the rewards you're earning outweigh the fees you'll pay. Figure out how much you'll earn in cash back or points — if it's points, estimate the value of those points — and then calculate how much you'll have to pay in processing fees. Our guide to points and miles valuations can help you determine what your potential rewards are worth.
Take note that a credit card would rarely offer such high reward rates on tax payments to net you more than what you'd pay in fees based on that alone.
Best credit cards for paying taxes in 2025
The most lucrative reason to pay your taxes with a credit card is for the welcome bonus offer. Many rewards credit cards offer a big welcome bonus to new cardholders, but you usually have to spend a certain amount within a certain timeframe to earn it. Paying your taxes with one of these cards can help you get closer to snagging the bonus.
Best no-annual-fee credit card for paying taxes
$0
0% intro APR on purchases and balance transfers for the first 15 months
18.99% - 28.49% Variable
Earn a $200 bonus
Good to Excellent
Pros
Cons
The Chase Freedom Unlimited® is a great choice for credit card beginners and experts alike. With no annual fee and a high earnings rate, it's worth considering as an everyday card — and it's even better when you pair it with an annual-fee Chase card like the Chase Sapphire Reserve®.
Chase Freedom Unlimited- Intro Offer: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
- Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
- No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.99% - 28.49%.
- No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
The Chase Freedom Unlimited® (rates and fees) currently has a welcome offer that can prove quite lucrative for new cardholders with a low earning requirement. You'll earn a $200 bonus after you spend $500 on purchases in the first three months from account opening. You can expect to earn 1.5 points per dollar spent when paying your taxes, and points are worth 1 cent apiece when redeemed for a statement credit.
While this is less than the processing fee, the bonus you'll earn can easily offset it. The Chase Freedom Unlimited® is also a great card to hold longer-term, offering 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases. You'll also have a 0% intro APR on purchases and balance transfers for the first 15 months, followed by 18.99% - 28.49% Variable.
Best premium rewards credit card for paying taxes
The Capital One Venture X Rewards Credit Card offers a hefty welcome bonus of 75,000 bonus miles when you spend $4,000 on purchases in the first three months from account opening. If you use your tax payment to help meet the minimum spending requirement, it can be worth it because the bonus is worth at least $1,275 in travel, based on Business Insider's valuation of Capital One miles, and potentially much more if you transfer your miles to Capital One's airline and hotel partners.
The Capital One Venture X Rewards Credit Card earns 2 miles per dollar on most purchases, including tax payments. Each mile is worth 1 cent in credit toward travel purchases, so you can come out marginally ahead with this card even if you don't consider the welcome bonus offer.
It's packed with premium benefits that can more than offset the hefty $395 annual fee, including $300 a year in credits toward travel booked through Capital One, Priority Pass™, and Capital One airport lounge access (even for authorized users), a 10,000-mile bonus on each account anniversary (worth $100 in travel), and Visa Infinite travel and purchase benefits.
Best new customer bonus credit card for paying taxes
$95
N/A
19.99% - 28.24% Variable
Earn 60,000 bonus points
Good to Excellent
Pros
Cons
If you're new to travel rewards credit cards or just don't want to pay hundreds in annual fees, the Chase Sapphire Preferred® Card is a smart choice. It earns bonus points on a wide variety of travel and dining purchases and offers strong travel and purchase coverage, including primary car rental insurance.
Chase Sapphire Preferred- Earn 60,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
- Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.
- Earn up to $50 in statement credits each account anniversary year for hotel stays through Chase Travel℠
- 10% anniversary points boost - each account anniversary you'll earn bonus points equal to 10% of your total purchases made the previous year.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Complimentary DashPass which unlocks $0 delivery fees & lower service fees for a min. of one year when you activate by 12/31/27. Plus, a $10 promo each month on non-restaurant orders.
- Member FDIC
The Chase Sapphire Preferred® Card (rates and fees) is currently offering an introductory offer of 60,000 bonus points after you spend $5,000 on purchases in the first three months from account opening. We value Chase points at 1.8 cents apiece, making the welcome offer worth $1,080 in travel.
This welcome bonus offsets the card's $95 annual fee, which is also cushioned by a few other perks, such as reimbursements for flight cancellations and lost luggage, rental car insurance coverage, and a $50 annual hotel credit.
Best annual spend bonus credit card for paying taxes
$95
N/A
19.99% - 28.49% Variable
Earn up to 60,000 bonus points
Good to Excellent
Pros
Cons
If you like staying at Hyatt hotels, The World Of Hyatt Credit Card is an excellent complement to Hyatt's generous and competitive loyalty program that offers free nights and a path toward higher-tier elite status. Even if you're not a hardcore Hyatt fan, the card's useful benefits can appeal to most travelers — and make the card worth keeping year after year.
World Of Hyatt credit card- Earn up to 60,000 Bonus Points. Earn 30,000 Bonus Points after you spend $3,000 on purchases in your first 3 months from account opening. Plus, up to 30,000 more Bonus Points by earning 2 Bonus Points total per $1 spent in the first 6 months from account opening on purchases that normally earn 1 Bonus Point, on up to $15,000 spent.
- Enjoy complimentary World of Hyatt Discoverist status for as long as your account is open.
- Get 1 free night each year after your Cardmember anniversary at any Category 1-4 Hyatt hotel or resort
- Receive 5 tier qualifying night credits towards status after account opening, and each year after that for as long as your account is open
- Earn an extra free night at any Category 1-4 Hyatt hotel if you spend $15,000 in a calendar year
- Earn 2 qualifying night credits towards tier status every time you spend $5,000 on your card
- Earn up to 9 points total for Hyatt stays – 4 Bonus Points per $1 spent on qualified purchases at Hyatt hotels & up to 5 Base Points per $1 from Hyatt as a World of Hyatt member
- Earn 2 Bonus Points per $1 spent at restaurants, on airline tickets purchased directly from the airlines, on local transit and commuting and on fitness club and gym memberships
- Member FDIC
The World Of Hyatt Credit Card (rates and fees) is offering 30,000 bonus points after you spend $3,000 on purchases in the first three months from account opening, plus up to 30,000 more bonus points by earning 2 bonus points per dollar in the first six months from account opening on purchases that normally earn 1 bonus point on up to $15,000 spent. This allows new cardholders to earn up to 60,000 bonus points within the first year.
There's an extra incentive to keep using this card: In addition to the one free night at any Category 1—4 Hyatt hotel on your cardmember anniversary, you can earn a second free night if you spend $15,000 within that calendar year. The cherry on top is that cardholders earn 2 additional Elite night credits for every $5,000 spent.
FAQs
Can I pay any type of tax with a credit card?
Most federal and many state tax obligations can be paid with a credit card, including income taxes, estimated quarterly taxes, and business taxes. However, it's important to check with the specific tax authority or payment processor for eligibility and any restrictions.
Are there any limits to how much I can pay with my credit card?
Limits can depend on the credit card's available credit limit and the payment processor's policies. Some processors may also set transaction limits for tax payments.
How do I choose a payment processor for paying taxes with a credit card?
Consider the processing fees charged and whether the processor allows payments for the specific type of tax you owe. Also, check if the payment will qualify for rewards on your credit card.
Will paying my taxes with a credit card affect my credit score?
Paying taxes with a credit card impacts your credit score if the payment significantly increases your credit utilization ratio. You can minimize the impact by keeping the balance low and paying it off quickly.
Is paying taxes with a credit card a cash advance?
Paying taxes with a credit card is considered a retail purchase, not a cash advance. Therefore, you will not incur any cash advance fees.
