Tax season brings up the same question every year in the points and miles community: should you put your tax bill on a credit card? The short answer is yes, you can, but whether you should depends entirely on what you’re earning in return.

Here’s what you need to know before you charge that bill.

Before we get into it, if you’re going to charge a big payment like this, make sure it’s landing on a card that’s actually worth it. I keep my current best offers updated here: Best Offers.

How It Works

You can pay your federal taxes with a credit card through an authorized third-party payment processor. The IRS doesn’t accept credit cards directly, so you’ll go through one of a handful of approved companies instead.

Approved processors: The IRS uses independent companies like Pay1040 and ACI Payments to handle card payments.

Processing fees: Expect to pay a fee of about 1.75% to 1.85% of your total payment amount when using a credit card.

Accepted cards: Major networks like Visa, Mastercard, Discover, and American Express are all accepted.

If you owe state or local taxes too, don’t forget those. You can pay your personal property tax online with a credit card through your specific local county or city collector’s website, though fees and processors vary by jurisdiction.

Pros and Cons

Sign-up bonuses: This is the real reason to consider it. Paying a large tax bill can help you reach the minimum spend required for a new credit card welcome bonus. If you owe several thousand dollars and a new card needs $4,000 spent in three months to unlock a big bonus, your tax bill can knock that out in one transaction.

Rewards vs. fees: Do the math before you swipe. If your card earns less than the processing fee percentage (around 1.75%), you will lose money on the transaction. A card earning 1 point per dollar on general spending isn’t going to cut it here.

Interest charges: If you do not pay your credit card bill in full, high interest rates will quickly outweigh any rewards earned. A processing fee is a small, known cost. Carrying a balance on a $10,000+ tax payment is not.

My Rule of Thumb

I only put my tax bill on a credit card when I’m working toward a large welcome bonus, not when I’m earning just one point per dollar on everyday spend. A big tax payment is one of the fastest ways to clear a minimum spend requirement, and that’s where the math actually works in your favor. Outside of that scenario, the processing fee just isn’t worth it for standard earning rates.

Before you pay, run the numbers: compare the processing fee to the value of what you’re earning, whether that’s a welcome bonus, a category bonus, or points toward a specific redemption you already have in mind. If the payoff is clearly worth the 1.75%–1.85% fee, go for it. If not, save yourself the fee and pay another way.

If you don’t have a card in your wallet right now that makes this move worth it, take a look at my current best offers before tax season hits: Best Offers.

Frequently Asked Questions

Can you pay federal taxes with a credit card? Yes. The IRS doesn’t accept credit cards directly, but you can pay through an approved third-party processor like Pay1040 or ACI Payments.

How much does it cost to pay taxes with a credit card? Processing fees typically run about 1.75% to 1.85% of your total payment.

Is it worth paying taxes with a credit card for points? Only if what you earn is worth more than the fee. It usually makes the most sense when the payment helps you hit a large welcome bonus, not for everyday flat-rate earning.

Can you pay state or property taxes with a credit card? Often, yes. You can pay your personal property tax online with a credit card through your specific local county or city collector’s website, though fees and accepted processors vary by jurisdiction.