What is the best credit card to pay taxes?

Yes, you can pay property taxes with a credit card. But it’s going to cost you extra, so paying from your checking or savings account might be better. There are some benefits to paying with credit, though. Using a credit card allows you to pay your taxes when you don’t immediately have the funds, perhaps even with a 0% APR. It shifts your debt away from the government. And it could help you earn a significant amount of rewards. But a lot depends on the card you use. So you have to weigh the costs and benefits against each other for your situation. … read full answer

Here’s how paying property taxes with a credit card works:

• You can pay property taxes with a credit card through your local tax office’s website or through IRS-authorized third-party sites: pay1040.com, payusatax.com and officialpayments.com/fed.
• You’ll get charged a convenience fee of around 2%+ for using your credit card.
• Tax payments are eligible for credit card rewards. This type of large purchase could be especially helpful if you’re trying to qualify for a large initial rewards bonus that requires you to spend a few thousand dollars within the first few months your account is open.
• If you use a credit card, you’re still eligible for a refund if you overpay, and you’ll be asked for additional money if you underpay – just like with any payment method.
• Be careful about how much of your credit line you use up. It’s best for your credit score if your so-called credit utilization is below 30%.

While you definitely can pay property taxes with a credit card, you also have to crunch the numbers to confirm it makes sense. The fees you’ll be charged for using a credit card will outweigh the rewards and interest savings that many credit cards can provide. But the best rewards and 0% APR credit cards should help you come out ahead. And it’s better to charge property taxes to a card than to not pay them on time, especially since late payments will trigger a fee.

The best 2.5% cash back credit card is the Alliant Cashback Visa® Signature Credit Card. Cardholders earn 2.5% cash back on the first $10,000 per month (with qualifications met) and 1.5% otherwise, and the card’s annual fee is $0.

To get the card, you’ll need to be a member of the Alliant Credit Union, but it’s not difficult to join. Some people are eligible for free, and everyone else can qualify with a $5 donation to Foster Care to Success. You’ll also need excellent credit to be approved for the card.… read full answer

Currently, there are no other credit cards offering a flat 2.5% cash back rewards rate on all purchases. But there are cards that offer even higher earning rates in specific spending categories.

Best 2.5%+ Cash Back Credit Cards

If you don’t want to keep track of specific categories and are looking for a flat cash back rate, the Wells Fargo Active Cash® Card is another good option. It gives 2% cash rewards on purchases and has an annual fee of $0. The Wells Fargo Active Cash also offers an initial bonus of $200 cash rewards after spending $1,000 in the first 3 months after account opening.

There are many ways to pay including online from your bank account, credit card, debit card, etc. You can even apply for an installment plan if having trouble paying your tax bill now. You can see these options and make payments here at the IRS website.