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.
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.
Yes, property taxes can be paid with a credit card. Many municipalities have their own sites that allow homeowners to pay property taxes online with a credit card, but that is done with a fee, usually around 2-3% of the tax. So you might want to think twice before using your credit card to pay your property taxes, because it might not be worth it.
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