How to Pay Taxes with a Credit Card in 2019

Tax season is approaching, and it’s a prime opportunity to meet the minimum spend requirement on a new credit card.

Disclaimer: I am not a tax professional, and the information on this blog is for informational purposes only. Consult your tax professional/accountant for the most accurate information related to your taxes.

Benefits of Paying Taxes with a Credit Card

There are several methods to pay your taxes, which include debit card, credit card, and check. If you have a credit card that earns rewards or cash back, then it might be worth considering using the card.

Most premium travel cards or business cards have an attractive welcome offer that might require spending $3,000+ within the first three months of account opening. For some people, this might be a struggle.

Although there are payment processing fees, paying your taxes with a credit card is one method to meet the minimum spend requirement on a new credit card.

Some business might also be able to write-off the processing fee as a business expense. Consult your tax or accounting professional to see if you qualify.

Another benefit of paying your taxes with a credit card is that you will also earn point rewards or cash back on the amount you spend.

For example, if you make a tax payment with the Chase Freedom Unlimited, you’ll earn 1.5x on the payment. When you pool the points to the Chase Sapphire Reserve and redeem the points for travel, the points are worth 2 cents per point via airline and hotel transfer partners.

Chase Freedom Unlimited®


Ink Business Unlimited℠ Credit Card

Pay Your Taxes with a Credit Card

The IRS recommends three primary payment processor partners to pay your taxes with a credit card.

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Each payment processor has different credit card fees:

  1. PayUSATax: 1.96% (min $2.69)

  2. Pay1040: 1.87% (min $2.59)

  3. OfficialPayments: 1.99% (min $2.50)

In most cases, it makes sense to go with Pay1040 because it has the lowest fee at 1.87%.

Pre-Paying Taxes

For most people, there are 5 periods for you to prepay taxes. Each period, up to 2 times.

Estimated taxes for Q1, Q2, Q3, Q4 and estimated taxes for the entire 1040.

If you are a contractor, you’re required to make quarterly payments regardless, so pre-paying taxes is a method to meet minimum spend on a new credit card.

Below is a chart from the IRS on how frequently you can make payments. See the full chart here:

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Chart via

Plastiq for Business

Plastiq has a higher payment processing fee (2.5%) than the ones recommended by the IRS, but if you own a business, they’re currently running a promotion to earn 10,000 fee-free dollars.

How it works:

  1. Signup for Plastiq using this link (new users only):

  2. Make $10,000 in business payments via Plastiq with a business credit card by March 31, 2019

  3. Earn 10,000 fee-free dollars

Be sure to do the math to see if earning the 10,000 fee-free dollars make sense for you. If not, stick with one of the payment processors mentioned above.

Editorial Note: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airlines or hotel chain, vendors or companies, and have not been reviewed, approved, or otherwise endorsed by any of these entities. 

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