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If you’re thinking of paying taxes with a credit card, read this first
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TL;DR
- Paying taxes with a credit card can help earn rewards, meet welcome offer spending requirements, or achieve elite status with airlines/hotels.
- A processing fee, generally just under 2%, is charged when paying taxes with a credit card.
- The Capital One Venture Rewards Credit Card offers a welcome bonus and earns 2 miles per dollar on purchases.
- The Chase Freedom Unlimited card provides a 0% introductory APR for 15 months and earns 1.5% cash back.
- The Delta SkyMiles Reserve American Express Card helps earn Medallion Qualification Dollars (MQDs) towards Delta elite status and offers a large welcome bonus.
- The World of Hyatt Credit Card earns elite night credits and offers a free night certificate.
- It is important to calculate if the value of rewards earned outweighs the processing fee.
- Paying a large tax bill with a credit card can temporarily increase credit utilization.