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The tax season is upon us, and while it's not the most exciting time of year, it's a great opportunity to earn credit card rewards. By paying your taxes with a credit card, you can earn cash back, points or miles, which can help offset the cost of the processing fees. Here, we'll explore the best credit cards for paying taxes and earning rewards, explain how to pay taxes with a credit card and discuss when it's worth it to do so.

The Best Credit Cards for Paying Taxes and Earning Rewards

When it comes to paying taxes with a credit card, not all credit cards are created equal. Some cards offer high rewards rates on tax payments, while others offer lucrative welcome bonuses that can be earned by meeting minimum spending requirements. Here are some of the best credit cards for paying taxes and earning rewards:

  1. Citi Double Cash® Card
  2. Chase Freedom Unlimited®
  3. Capital One Venture Rewards Credit Card
  4. The Blue Business® Plus Credit Card from American Express
  5. Ink Business Preferred® Credit Card
  6. The Business Platinum Card® from American Express
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Citi Double Cash® Card

The Citi Double Cash® Card is a personal card that earns cash back on all purchases. You can get even more value out of this card if you also have other Citi cards. While this alone makes paying your federal taxes marginally profitable, you can get even more value out of this card if you also have the Citi Premier® Card or Citi Prestige® Card (no longer available to new applicants). 

Citi Double Cash® Card

Citi Double Cash
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Rates & Fees
  • Our Rating 4.5/5 How our ratings work Read the review
  • APR19.24% - 29.24% (Variable)
  • Annual Fee$0
  • Sign-Up Bonus $200Cash Bonus More Info

    Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.

The Citi Double Cash® Card, from our partner Citi, is among the top cards on the market for general spending. Forget the cards that offer 1% and 1.5% cash back. The Citi Double Cash Card offers you a whopping 2% cash back for all spending. Earn 1% back when you make a purchase and 1% back when you pay your account balance.

Overview

The Citi Double Cash® Card, from our partner Citi, offers attractive and uncomplicated cash back for people who value a flexible credit card reward program. The Citi Double Cash Card gives you the chance to earn 2% cash back on your purchases. You can receive 1% cash back when you make a purchase and an additional 1% cash back once you pay your bill.

Pros

  • No category bonuses to remember, unlimited 2% cash back on everything
  • Earns ThankYou Points, which gives the potential to unlock valuable travel rewards

Cons

  • Foreign transaction fees are applied
  • Limited perks

Quick Tip

Combining your Citi ThankYou® points and transferring them to the full range of Citi’s airline and hotel partners can help maximize your rewards.

Chase Freedom Unlimited®

The Chase Freedom Unlimited® card currently has a welcome offer that can prove quite lucrative for new cardholders. You'll earn cash back in addition to regular earnings on everything you buy up to a certain amount spent in the first year. Because tax payments don't fall into any of the card's bonus categories, they'd normally earn cash back—but with the new cardholder bonus, you could earn even more on your tax bill.

Chase Freedom Unlimited®

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  • Our Rating 4.5/5 How our ratings work Read the review
  • APR20.49% - 29.24% (Variable)
  • Annual Fee$0
  • Sign Up Bonus 1.5%Extra Cash Back More Info

    Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That's 6.5% on travel purchased through Chase Travel, 4.5% on dining and drugstores, and 3% on all other purchases.

We like that the card offers a high flat rewards rate but also provides accelerated rewards on some common everyday spending categories. You’ll also get access to the Chase Travel portal, which allows you to use your cash-back earnings for travel rewards, gift cards and more. If you make this your primary card for most purchases you can quickly rack up a lot of rewards.

Overview

The Chase Freedom Unlimited card is unique for a couple of reasons. First, it comes with purchase protection and extended warranty protection you don’t see with some other cash-back cards. Second, you earn cash back in the form of points (Chase Ultimate Rewards) and when paired with another annual-fee earning Chase product, you can get even more value if you love to travel by transferring to partners.

That’s because while the Freedom cards are marketed as cash-back credit cards, they actually offer points. You can use those points to book travel through Chase at a rate of 1 cent per point. But if you have the Chase Sapphire Preferred® or Chase Sapphire Reserve®, you’ll get 25% and 50% more value on those travel redemptions, respectively. (Plus, the ability to transfer your points, too.)

Pros

  • No category bonuses to remember; earn at least 1.5% back on everything
  • No annual fee
  • Generous travel and purchase protection benefits

Cons

  • Can't transfer Chase points unless paired with another annual-fee Chase product

Quick Tip

Transferring points from the Chase Freedom Unlimited credit card to a Chase travel credit card can help increase the value of your rewards.

Capital One Venture Rewards Credit Card

The Capital One Venture Rewards Credit Card offers a hefty welcome bonus when you spend a certain amount on purchases in the first few 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 a certain amount in travel.

Capital One Venture Rewards Credit Card

Product Image for Capital One Venture Rewards Credit Card
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Secure application on issuer’s website

Rates & Fees
  • Our Rating 4.5/5 How our ratings work Read the review
  • APR19.99% - 29.99% (Variable)
  • Annual Fee$95
  • Sign Up Bonus 75,000Capital One Rewards Miles More Info

    You can earn 75,000 bonus miles after spending $4,000 on purchases within three months of account opening, equal to $750 in travel. Dollar Equivalent: $1,350 (75,000 Capital One Rewards Miles * 0.018 base)

The Capital One Venture Rewards Credit Card offers a lot of value to both beginner and expert travelers. The upfront bonus and high ongoing rewards rate aren’t easy to beat, making the card a solid option for a large audience. Where it really shines is with the flexibility of the redemption process, though. You can redeem miles to cover past travel expenses, book travel through Capital One or transfer miles to any of Capital One’s airline and hotel loyalty programs.

Overview

The Capital One Venture Rewards Credit Card offers a lot of value to beginner and expert travelers alike. The card’s big upfront bonus and high ongoing rewards rate aren’t easy to beat, making it a solid option for a large audience. Where it really shines, though, is with the redemption process. When it comes to travel credit cards, it can be really challenging to find a way to use your rewards in the way you want.

With hotel and airline credit cards, for instance, you’re basically stuck redeeming your points or miles with the co-branded hotel or airline partner. And with some general rewards programs, you might get less value if you use your points or miles to book a flight versus a rental car or hotel.

With the Capital One Venture Rewards Credit Card, though, you’ll get a lot of flexibility. Here are some of the top redemption options that are available: redeem miles to cover past travel expenses, book travel through Capital One or transfer miles to any of Capital One’s multiple airline and hotel loyalty programs.

Perks

  • Receive up to a $100 credit for Global Entry or TSA PreCheck®
  • No foreign transaction fees
  • Access to premier culinary events, must-see music events and major sporting events

Pros

  • Simple rewards and earning structure
  • Ability to earn transferable points to use with travel partners
  • Relatively modest $95 annual fee
  • Receive up to a $100 credit for Global Entry or TSA PreCheck®

Cons

  • Other travel cards offer higher rewards rates on certain spending categories

The Blue Business® Plus Credit Card from American Express

The Blue Business® Plus Credit Card from American Express has no annual fee and offers rewards points for every dollar spent on up to a certain amount in purchases per calendar year. It's also offering a welcome bonus offer after you spend a certain amount in eligible purchases on the card within your first few months of card membership.

Quick Tip

Redeeming Membership Rewards points for flights through the American Express Travel Portal or transferring them to 20 different airline and hotel partners can help increase the value of your rewards.

Ink Business Preferred® Credit Card

If you're a fan of Chase Ultimate Rewards® points, the Ink Business Preferred® Credit Card is a great option for small business owners. It's currently offering a welcome bonus after spending a certain amount on purchases in the first few months from account opening, which could be easy to unlock if you have a substantial tax bill.

You can redeem points for cash back, transfer them to frequent flyer and hotel loyalty partners or use them to purchase travel through Chase with a bonus. The card also comes with excellent travel and purchase protection, including cellphone protection.

Ink Business Preferred® Credit Card

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Secure application on issuer’s website

  • Our Rating 4.5/5 How our ratings work Read the review
  • APR21.24% - 26.24% (Variable)
  • Annual Fee$95 More info

    This fee includes extra cards for authorized users, such as employees, at no additional charge.

  • Sign Up Bonus 100,000Chase Ultimate Rewards Points More Info

    Earn 100,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening. Dollar Equivalent: $2,300 (100,000 Chase Ultimate Rewards Points * 0.023 base)

Those with travel and advertising expenses will like the high earning rates in these categories, plus cardholders can eke out even more value with fully transferable rewards through the Chase Ultimate Rewards portal. One drawback is the modest annual fee, though many can offset this with the card’s earning potential.

Overview

This card offers a whopping 100,000 bonus points after you spend $8,000 in the first three months — with the card’s 25% bonus on travel booked through Chase, that’s worth $1,250. But you could potentially get more through one of the bank’s transfer partners. The rewards you earn from the Ink Business Preferred Card can be transferred to 10 different airline partners including United, Southwest, Virgin Atlantic, Singapore and British Airways, as well as hotel partners Hyatt, Hilton and Marriott.

Unlike the other two Ink Business cards, you can use this card to transfer your rewards directly to airline miles and hotel points. Travelers may also like this card’s cellphone protection policy that will cover up to $600 per claim.

Pros

  • 3x points on 5 different categories (up to $150,000)
  • Robust travel, purchase and cellphone protections
  • Ability to earn transferable points to use on travel partners
  • No additional charge for extra cards for additional authorized users

Cons

  • $95 annual fee
  • Businesses that don't spend on the category bonuses won't benefit

The Business Platinum Card® from American Express

While it doesn't offer a high rewards rate on regular spending, The Business Platinum Card® from American Express currently has a generous welcome offer. If you need a little help hitting that minimum spending requirement, your business tax bill might do the trick. The card also offers rewards points on single purchases of a certain amount or more, so if your tax bill is over that amount, your transaction is even more lucrative.

When Is It Worth It to Pay Your Taxes With a Credit Card?

paying with credit card online

Twenty20

At this point, you may be wondering if paying your taxes with a credit card is actually worth it. The answer is that it can be, but it depends on several factors. Here are some things to consider.

Rewards vs. Fees

Paying your taxes with a credit card is usually 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 and then calculate how much you'll have to pay in processing fees. 

Credit Card Welcome Bonuses

The most profitable reason to pay your taxes with a credit card is usually to earn a welcome bonus offer. Lots of rewards credit cards offer big welcome bonuses to new cardholders, but you usually have to spend a certain amount within a certain time frame to earn it. Paying your taxes with one of these cards can help you get that much closer.

Unlocking Benefits

Some rewards credit cards require you to spend a certain amount in a year to earn some of the card's more enticing benefits. If you're close to hitting that spending threshold, paying your taxes with your credit card could help you unlock that benefit.

Pay Taxes, Earn Rewards

Filing your taxes may not be the most exciting thing to do, but it's a necessary part of life. If you owe money to the government, paying with a credit card can be a way to earn rewards on a bill you have to pay anyway. Just remember to do the math to make sure the rewards you earn are worth the fees you'll pay.

Consider using one of the credit cards mentioned in this post if you want to maximize your rewards, and always pay your balance in full and on time to avoid interest charges and debt. And if you're ever unsure about paying your taxes with a credit card or need help navigating the complex world of personal finance, don't hesitate to reach out to a financial advisor or credit card expert for advice.

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Ashlyn Brooks

Ashlyn Brooks is a financial writer and former civil engineer. She's on a mission to show others how to save and spend smarter through purposeful money habits. Her work has been featured on Investor.com, HerMoney.com, MoneyGeek and QuickBooks