The Ultimate Guide to Credit Cards
Monday, March 30, 2020

10 Best Credit Cards for Tax Payments

10 Best Credit Cards for Tax Payments

credit card advice

Eric Bank
By: Eric Bank
Posted: January 3, 2020
Advertiser Disclosure

Sometimes, tax payments are due, but the cash isn’t there. Even if you have the cash, you may want to use one of the best credit cards for tax payments to reap a signup bonus.

On the other hand, if you need an extended period to pay, you can choose a card with 0% financing. In either case, you’ll need a new credit card to grab the introductory perks.

Read on to discover the 10 best credit cards for tax payments — one or more may suit you perfectly.

Overall | Signup Bonus | 0% Financing | FAQs

Best Overall Credit Card for Tax Payments

Our top pick has a low purchase threshold to earn the introductory bonus plus a long period of 0% APR on purchases. This is a balanced approach for folks who want to finance their tax payment and earn a bonus as well.

  • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening.
  • Earn unlimited 1.5% cash back on all purchases.
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 16.49 - 25.24%.
  • 3% intro balance transfer fee when you transfer a balance during the first 60 days your account is open, with a minimum of $5
  • No annual fee
  • No minimum to redeem for cash back
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% Intro APR on Purchases 15 months
0% Intro APR on Balance Transfers 15 months
16.49% - 25.24% Variable
$0
Good/Excellent

The Chase Freedom Unlimited® offers new cardmembers up to 15 months of 0% APR on purchases. The introductory bonus is yours if you spend the required amount during the first three months after opening the account.

You earn unlimited 1.5% cash back on all purchases without redemption minimums. All this plus no annual fee and a range of other benefits make this card a great choice for tax payments.

Best Cards for Earning a Signup Bonus on Tax Payments

These cards all offer substantial bonuses to new cardmembers. If you obtain the card within three months of when taxes are due, you can use the tax payment to help you earn the bonus. It’s like a discount on your taxes — not bad!

Discover it® Cash Back Review

at Discover Card'ssecure website

CASH BACK RATING

★★★★★
4.9

OVERALL RATING

5.0/5.0
  • INTRO OFFER: Discover will match ALL the cash back you've earned at the end of your first year, automatically. There's no signing up. And no limit to how much is matched.
  • Earn 5% cash back on everyday purchases at different places each quarter like grocery stores, restaurants, gas stations, select rideshares and online shopping, up to the quarterly maximum when you activate.
  • Plus, earn unlimited 1% cash back on all other purchases - automatically.
  • Redeem cash back any amount, any time. Rewards never expire.
  • Use your rewards at Amazon.com checkout.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 14 months
0% for 14 months
13.49% - 24.49% Variable
$0
Good/Excellent

The Discover it® Cash Back card provides a unique way to earn bonus cash back. New cardmembers get an unlimited Cashback Match on all cash back earned in the first 12 months after opening the account. That cuts the cost of your tax payment, no matter how big.

Couple that with a top cash back rate of 5% up to the quarterly limit on rotating merchant categories you activate, and 1% on all other purchases. New cardmembers also get a 0% APR for purchases during the promotional period. There is no annual fee.

AIR MILES RATING

★★★★★
5.0

OVERALL RATING

4.9/5.0
  • Enjoy a one-time bonus of 50,000 miles once you spend $3,000 on purchases within 3 months from account opening, equal to $500 in travel
  • Earn unlimited 2X miles on every purchase, every day.
  • Miles won't expire for the life of the account and there's no limit to how many you can earn
  • Receive up to $100 application fee credit for Global Entry or TSA Pre✔®
  • Fly any airline, stay at any hotel, anytime; no blackout dates. Plus transfer your miles to over 15+ leading travel loyalty programs
  • No foreign transaction fees
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
N/A
17.24% - 24.49% (Variable)
$0 intro for first year; $95 after that
Excellent, Good

The Capital One® Venture® Rewards Credit Card offers a one-time mileage bonus to new cardmembers who spend the required amount on purchases in the first three months after opening the account. You receive unlimited 2X miles on all purchases plus a credit of up to $100 to cover fees for TSA Precheck® or Global Entry.

You can transfer your miles to 12+ travel partners and redeem miles for travel and hotels with no blackout dates. This card doesn’t charge an annual fee for the first year.

POINTS & GIFTS RATING

★★★★★
4.9

OVERALL RATING

4.8/5.0
  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash's subscription service. Activate by 12/31/21.
  • Earn 5X points on Lyft rides through March 2022. That's 3X points in addition to the 2X points you already earn on travel.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
N/A
17.49% - 24.49% Variable
$95
Good/Excellent

The Chase Sapphire Preferred® Card offers introductory bonus points when you spend the required amount on purchases during the first three months after opening the account.

It also rewards travelers with 2X points on restaurant dining and travel, plus 1X points on all other purchases. Points are worth 25% more when redeemed for travel at Chase Ultimate Rewards. This is a premium card and it charges an annual fee.

CASH BACK RATING

★★★★★
4.8

OVERALL RATING

4.8/5.0
  • Earn a one-time $300 cash bonus after you spend $3000 on purchases within the first 3 months from account opening
  • Earn unlimited 4% cash back on dining and entertainment, 2% at grocery stores and 1% on all other purchases. Plus, earn 8% cash back on tickets at Vivid Seats through May 2020.
  • No rotating categories or sign-ups needed to earn cash rewards; plus cash back won't expire for the life of the account and there's no limit to how much you can earn
  • No foreign transaction fees
  • Capital One cardholders get access to premium experiences in dining, entertainment and more
  • $0 intro annual fee for the first year, $95 after that
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
N/A
15.99% - 24.99% (Variable)
$0 intro for first year; $95 after that
Excellent, Good

The Capital One® Savor® Cash Rewards Credit Card provides a one-time cash back bonus after new cardmembers spend the specified amount within the first three months from account opening. You earn unlimited cash back rewards of 4% on entertainment and dining, 2% at grocery stores, and 1% on all other purchases.

The categories are not rotating and don’t require activation. The card charges no annual fee for the first year.

Discover it® Miles Review

at Discover Card'ssecure website

AIR MILES RATING

★★★★★
4.9

OVERALL RATING

4.8/5.0
  • UNLIMITED BONUS: Discover will match ALL the Miles you’ve earned at the end of your first year, automatically. For example, if you earn 35,000 Miles, you get 70,000 Miles. That’s $700 towards travel! The more you earn, the more you get.
  • Earn unlimited 1.5x Miles for every dollar spent on all purchases - with no annual fee.
  • No Blackout Dates. Simply pay for travel purchases like airlines, hotels, rental cars, and more with your Discover it® Miles card.
  • Miles Pay You Back. Easily redeem Miles as a statement credit for travel purchases. Or get cash.
  • Freeze your account in seconds with an on/off switch either on the mobile app or website to prevent new purchases, cash advances, and balance transfers.
  • Get your free Credit Scorecard with your FICO® Credit Score, number of recent inquiries and more.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 14 months
10.99% for 14 months
13.49% - 24.49% Variable
$0
Good/Excellent

The Discover it® Miles lets you earn an introductory bonus in the form of a Miles Match. You get 1.5X miles on all purchases as well as unlimited matching miles at the end of the first year after opening the account.

You can redeem your miles for cash or use them to pay for travel purchases with no blackout dates. The card charges no annual fee. It also provides benefits like free FICO credit scores and Social Security number alerts.

Best 0% Financing Cards for Tax Payments

If you need time to pay off your tax bill, the following cards all offer at least one year of 0% APR financing. Rather than choking on a big tax bill due all at once, these cards allow you to cut down the size of your tax payments into more digestible monthly chunks.

0% INTRO APR RATING

★★★★★
4.9

OVERALL RATING

5.0/5.0
  • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
  • Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter!
  • Unlimited 1% cash back on all other purchases - it's automatic
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 16.49 - 25.24%.
  • 3% intro balance transfer fee when you transfer a balance during the first 60 days your account is open, with a minimum of $5.
  • No annual fee
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% Intro APR on Purchases 15 months
0% Intro APR on Balance Transfers 15 months
16.49% - 25.24% Variable
$0
Good/Excellent

The Chase Freedom® card gives new cardmembers a promotional 0% purchase APR after opening the account. You also can earn a cash back bonus when you spend the required amount during the first three months.

This no-annual-fee card lets you earn 5% cash back on the first $1,500 of purchases each quarter for the quarterly-revolving merchant category that you activate. All other purchases earn 1% cash back.

0% INTRO APR RATING

★★★★★
4.9

OVERALL RATING

4.8/5.0
  • One-time $150 cash bonus after you spend $500 on purchases within 3 months from account opening
  • Earn unlimited 1.5% cash back on every purchase, every day
  • No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won't expire for the life of the account and there's no limit to how much you can earn
  • 0% intro APR on purchases for 15 months; 15.49%-25.49% variable APR after that
  • 0% intro APR on balance transfers for 15 months; 15.49%-25.49% variable APR after that; 3% fee on the amounts transferred within the first 15 months
  • Pay no annual fee or foreign transaction fees
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 15 months
0% for 15 months
15.49% - 25.49% (Variable)
$0
Excellent, Good

The Capital One® Quicksilver® Cash Rewards Credit Card has a 0% introductory purchase APR for the first months after opening the account. There is also a one-time cash bonus when you meet the spending requirement on purchases during the first three months.

You earn an unlimited 1.5% cash back on every purchase, every day. The card charges no annual fee, no foreign transaction fees, and your cash back rewards don’t expire as long as the account remains open.

0% INTRO APR RATING

★★★★★
4.9

OVERALL RATING

4.8/5.0
  • Earn a one-time $150 cash bonus after you spend $500 on purchases within the first 3 months from account opening
  • Earn unlimited 3% cash back on dining and entertainment, 2% at grocery stores and 1% on all other purchases
  • No rotating categories or sign-ups needed to earn cash rewards; plus cash back won't expire for the life of the account and there's no limit to how much you can earn
  • 0% intro APR on purchases for 15 months; 15.49% - 25.49% variable APR after that
  • 0% intro APR on balance transfers for 15 months; 15.49% - 25.49% variable APR after that; 3% fee on the amounts transferred within the first 15 months
  • No foreign transaction fee
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 15 months
0% for 15 months
15.49% - 25.49% (Variable)
$0
Excellent, Good

The Capital One® SavorOne® Cash Rewards Credit Card gives new cardmembers 0% APR for several months on purchases from account opening. It also provides a one-time bonus when you spend the requisite amount during the first three months.

The card offers three tiers of unlimited cash back rewards, starting with 3% on entertainment and dining. You also get 2% at grocery stores and 1% on all other purchases. The card offers nice benefits, including virtual card numbers, point redemptions for direct purchases on Amazon.com, and special event access.

0% INTRO APR RATING

★★★★★
4.6

OVERALL RATING

4.8/5.0
  • $0 annual fee and no foreign transaction fees
  • Earn a bonus of 20,000 miles once you spend $1,000 on purchases within 3 months from account opening, equal to $200 in travel
  • Earn unlimited 1.25X miles on every purchase, every day
  • Travel when you want with no blackout dates and fly any airline, stay at any hotel, anytime
  • Miles won't expire for the life of the account and there's no limit to how many you can earn
  • Transfer your miles to over 15+ leading travel loyalty programs
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 12 months
N/A
14.49% - 24.49% (Variable)
$0
Excellent, Good

The Capital One® VentureOne® Rewards Credit Card has an introductory APR of 0% for a promotional period. In addition, you can earn bonus miles by spending a set amount on purchases during the first three months.

All purchases earn unlimited 1.25X miles. You can use the miles for travel on any airline without any blackout dates or for any hotel stay.

You can also transfer your miles to more than a dozen travel partners. The Capital One® VentureOne® card charges no annual or foreign transaction fees.

Is it Smart to Pay Taxes with a Credit Card?

It can be convenient to use your credit card to pay taxes, but it’s really smart to get a bonus and free financing as well. Your choice of credit card should depend on the primary reason for using the card.

If you are mainly interested in getting rewards, then your card should offer you the maximum reward for your tax payment. For example, if you owe $500 to Uncle Sam, you wouldn’t necessarily choose a card that requires $2,000 in purchases during the first three months to earn the bonus.

Rather, you might want to choose among the several cards that require modest spending, of which the Chase Freedom Unlimited® card comes in first. On the other hand, if you owe several thousand in taxes, a card like the Capital One® Venture® Rewards Credit Card offers a larger bonus in return for a higher purchase requirement.

Chase Freedom Unlimited® and Capital One Venture®

The Chase Freedom Unlimited® is a great choice to get 0% financing and earn a small signup bonus, whereas the Capital One Venture® Rewards Credit Card is a top option if you need to make a large tax payment and achieve a bigger signup bonus.

Alternatively, the Cashback Match or Miles Match available from Discover cards can pay off, no matter how much you owe in taxes. Whether you owe $100 or $10,000, you get bonus rewards that match the rewards you earned during the first 12 months after opening the account.

If you are more interested in free financing, many of the cards reviewed here offer new cardmembers 15 months of 0% APR on purchases. That means you can use get up to three months of free financing for the following tax year if you correctly time the acquisition of your new credit card.

Here’s how that works: You time the card acquisition such that it arrives just before April 15 and then use it to pay this year’s tax payment. Next year on April 15, you’ll still have about three months left in the introductory 0% APR period. That can come in handy when you pay next year’s tax bill.

By the way, you can use your credit card when you establish a monthly payment plan with the IRS. There is a one-time setup fee for this service. Then, you pay an installment each month on the tax you owe.

The IRS will assess interest and possibly penalty charges until your balance is paid. However, if your income is at or below 250% of the poverty line, the IRS can waive your interest and late fees.

What is the Fee for Paying Taxes with Credit?

The IRS allows you to pay your taxes with a credit card, but you’ll have to pay a fee to the designated payment processor. All three processors accept Visa, Master Card, Discover, and American Express. Here are your choices:

Payment Processor Fees

In addition, you can pay by credit card when you e-file your tax return, but the cost is higher. The following table specifies the fee rates and minimum fees for combined e-file/tax payment transactions:

Payment Processor Fees

Note that this table also applies to combined e-filing/debit card payments.

Many tax professionals and tax preparation programs besides TurboTax offer combined e-filing and credit card tax payments. If you use one of these, check to see the available options and costs. Note that some tax software programs permit partial payments, but none support multiple payments.

Another benefit of using your credit card for taxes is that, as long as you use it to pay at least $1 of your estimated tax, you receive a free filing extension without having to fill out IRS Form 4868. Note that payment processing fees go to the processor, not the IRS.

If you are paying business taxes, the fee is deductible. Your credit card statement will list the tax payment (as “United States Treasury Tax Payment”) separately from the fee (“Tax Payment Convenience Fee”).

Finally, take note that you cannot use your credit card on the official IRS Direct Pay System.

What Forms of Payment Does the IRS Accept?

While using a credit card is a convenient way to pay your taxes, it’s not your only choice. If you’d like to pay directly from your checking account, you can use the IRS Direct Pay System for free.

Direct Pay accepts Automated Clearing House (ACH) payments from your bank account. You must provide your bank’s routing number and your account number to make an ACH payment.

If you are making a direct federal tax payment for your business, you must instead use the Electronic Federal Tax Payment System.

If your employer took payroll deductions from your paychecks, you may not owe any tax payments when filing your return.

You can also use a debit card to make a tax payment, subject to the following fees:

Payment Processor Fees

The IRS will also accept cash at a retail partner location. These locations are in retail stores that participate in the PayNearMe program.

The fee for this service is $3.99 per payment. You can also pay by mail via check or money order made out to The United States Treasury. There is no fee, just the cost of postage, and, if applicable, the fee for a money order.

When you pay by card, you don’t have to send in the IRS Payment Voucher (Form 1040-V). If you want to cancel a credit card tax payment, you must contact the card processor, not the IRS.

Of course, the IRS will refund any overpayment you make, except if you owe money on your tax account. If your payment relieves a tax lien, expect up to a 30-day wait time before you receive your lien release from the IRS.

Get a Little Something Extra When You Pay Taxes

If you are looking for an efficient and rewarding way to pay your taxes, consider credit cards for tax payments. By using a credit card, you could earn a bonus reward, free financing for a set time period, and rewards in the form of cash back, miles, or points.

The 10 cards reviewed here are great choices for getting something extra when you pay your taxes. You can use your credit card to make tax payments online, through a mobile app, or over the phone. If you prefer, you can pay with a debit card, an ACH payment, cash, a check, or money order.