This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Disclosure, visit this page.

If you won’t be getting a tax refund this year, don’t fret too much—you may still be able to get some rewards out of paying your taxes. By using some of the best credit cards for paying taxes in 2022, you may be able to earn points or miles plus limited-time credit card bonuses. These bonuses can get you some cash back or can help you cover travel expenses for the future.

However, be aware that the rewards have to justify the processing fee for using your travel credit card. Although any credit card will pay your taxes, the rewards need to be greater than the additional processing fees you will pay. The IRS won’t collect a penny of the credit card processing fees, but the three payment processors that partner with the IRS will.

Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.

Using the best credit cards for paying taxes can help offset the fees you’ll be paying. You can use H&R Block’s virtual tax services that come with human expertise. Credit: H&R Block

Tax Deadlines

The federal 2022 tax filing deadline is April 18, 2022. If you need to file a state tax return, that filing deadline might be the same date (or later). If you have to “pay in” this year, you can make your payments interest-free.

Making any payments after the deadline is subject to additional interest and penalties that can erase any additional rewards after you pay the processing fee. Whether you pay your taxes by credit or not, file your return by end of day April 18, 2022, to ensure you don’t get hit with any surprise fees.

The Best Credit Cards for Paying Taxes: Consumer Cards

While many people think that the best time to apply for a new travel credit card is when they book their summer vacation or open their wallets for holiday travel and gifts, tax time can be just as rewarding.

Before you pay your taxes with just any run-of-the-mill credit card, you need to look at two important factors:

  • Purchase rewards
  • Signup or Welcome Bonus value

Each point you earn must be worth at least 2 cents each ($0.02) to offset the payment processing fees. The sign-up/welcome bonus can make up the difference.

If using a credit card to pay your taxes is the difference between receiving a sign-up bonus or not, paying a 2% processing fee is well worth it to get a mountain of bonus points in return.

Chase Sapphire Preferred Card

Bonus Offer: New Chase Sapphire Preferred® Card cardholders can earn 60,000 bonus points after spending $4,000 on purchases in the first 3 months from account opening. That’s $750 when redeemed through Chase Ultimate Rewards®.

The Chase Sapphire Preferred Card is a go-to favorite for travelers that want flexible travel rewards without a steep annual fee. Here are three main reasons beyond the sign-up bonus to consider the Chase Sapphire Preferred Card:

  • 1:1 Chase travel partners including United, Southwest Airlines, Hyatt, and Marriott
  • 25% travel redemption bonus when booking award travel through Chase Ultimate Rewards
  • $95 annual fee, but no foreign transaction fees

By transferring your Ultimate Rewards points to your favorite frequent flyer program, you can easily make each point worth at least 2 cents each—the sweet spot to cancel out the processing fees on your tax bill.

Purchase Rewards

The Chase Sapphire Preferred earns unlimited:

  • 5x points on travel purchased through Chase Ultimate Rewards® (excluding hotel purchases that qualify for the $50 Anniversary Hotel Credit)
  • 3x points on dining (including eligible delivery services, takeout, and dining out)
  • 3x points on online grocery purchases (excluding Target®, Walmart®, and wholesale clubs)
  • Also 3x points on select streaming services
  • 2x points on all other travel purchases
  • 1x point per $1 spent on all non-bonus purchases 

There is a $50 annual Ultimate Rewards Hotel Credit. It comes in the form of a statement credit that will automatically be applied to your account when your card is used for hotel accommodation purchases made through the Ultimate Rewards program, up to an annual maximum accumulation of $50.

Plus, on each account anniversary, you’ll earn bonus points equal to 10% of your total purchases made the previous year. So, if you spend $25,000 on purchases, you’ll get 2,500 bonus points.

Additional Chase Sapphire Perks

Points are worth 25% more when redeemed for statement credits against existing purchases in select, rotating categories with the Chase Pay Yourself Back feature

The annual fee is $95.

The Platinum Card from American Express

Welcome Offer: New The Platinum Card® from American Express cardmembers can earn 100,000 Membership Rewards® Points after spending $6,000 on purchases on the Card in the first 6 months of Card Membership. Plus, new cardholders can choose new Platinum Card designs! Select your preferred metal Card design: classic Platinum Card®, Platinum x Kehinde Wiley, or Platinum x Julie Mehretu. Terms apply.

Learn more: Johnny Jet Recommended Credit Cards

Earning this bonus can get you well on your way to many American Express perks. The Platinum Card® from American Express is one of best credit cards for paying taxes for a number of reasons, including:

  • Up to $200 air travel credit (in the form of a statement credit; enrollment required)
  • Complimentary access to the Global Lounge Collection
  • 1:1 travel partners

The Amex Platinum earns Membership Rewards that can be transferred directly to Delta, Emirates, and Etihad to name a few of the 1:1 travel partners. Frequent flyers will benefit most from this premium travel rewards card.

Cardholders earn 5x Membership Rewards® Points for flights booked directly with airlines or with American Express Travel, up to $500,000 on these purchases per calendar year, and earn 5x Membership Rewards® Points on prepaid hotels booked with American Express Travel.

Cardholders can get $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings, which requires a minimum two-night stay, with American Express Travel when paying with their Platinum Card®.

Also, get up to $200 in statement credits per calendar year in baggage fees and more at one select qualifying airline.

Plus, American Express has expanded The Centurion® Network to include 40+ Centurion Lounge and Studio locations worldwide. Now there are even more places your Platinum Card® can get you complimentary entry and exclusive perks.

Terms apply. Enrollment may be required.

New Benefits

There’s also a new digital entertainment credit. Cardholders can get up to $20 in statement credits each month when you pay for eligible purchases with The Platinum Card® from American Express at your choice of one or more of the following providers: Peacock, Audible, SiriusXM, and The New York Times. Enrollment required.

In addition to enjoying TSA PreCheck or Global Entry access, cardholders can also enjoy CLEAR perks. Cardholders can use their Card and get up to $189 back per year on their CLEAR® membership. Terms apply.

Another exciting new benefit is the ability for cardholders to enjoy up to $25 back each month on select Equinox memberships when you pay with your Platinum Card®. This amounts to up to $300 annually. Enrollment required. 

There is also a $155 Walmart+ credit to enjoy. This covers the cost of a $12.95 monthly Walmart+ membership with a statement credit after you pay for Walmart+ each month with your Platinum Card. Cost includes $12.95 plus applicable local sales tax.

Get the full details and learn more in our in-depth The Platinum Card from American Express review.

The annual fee is $695 (See Rates & Fees) but can be offset with the perks, which are valued at over $1,400. 

The Amex Platinum Card is worth the annual fee, assuming the cardholder can use and benefit from the extras that come with this card.

Learn more: Johnny Jet Recommended Credit Cards

Hilton Honors American Express Surpass Card

Welcome Offer: New The Hilton Honors American Express Surpass® Card cardholders can earn 130,000 Bonus Points after spending a total of $2,000 in purchases on the Card in the first 3 months of Card Membership. Plus, earn up to $130 in Statement Credits on eligible purchases made directly at a property within the Hilton portfolio in the first 12 months of Card Membership (terms apply). With 130,000 Bonus Points, a Card Member could redeem up to 4 free nights at more than 2,300+ Hilton hotels worldwide. The offer expires 7/6/2022.

The annual fee is $95 (See Rates & Fees).

Learn more: Hotel Rewards Credit Cards

You may be surprised to find a co-brand hotel credit card in our best credit cards for paying taxes list. However, the Hilton Honors American Express Surpass® Card made the list due to its enhanced welcome bonus that can set you up with several free nights. Cardholders can also earn a Weekend Night Reward from Hilton Honors after spending $15,000 on purchases on their Card in a calendar year.

Cardholders earn:

  • 12x points for each dollar of eligible purchases charged on your Card directly with a hotel or resort within the Hilton portfolio
  • 6x points for each dollar of eligible purchases on your Card at U.S. restaurants, at U.S. supermarkets, and at U.S. gas stations
  • 3x points for all other eligible purchases on your Card

If cardholders spend $40,000 on eligible purchases on their Card in a calendar year, they can earn Hilton Honors Diamond status through the end of the next calendar year.

If you stay at Hilton Hotels often, this might be the best option for you. However, you can compare the other Hilton co-brand cards in our review of the best Hilton credit cards.

Capital One Venture Rewards Credit Card

Sign-Up Bonus Offer: New Capital One Venture Rewards Credit Card cardholders can earn 75,000 miles after spending $4,000 on purchases in the first 3 months. This is equal to $750 in travel. 

The Capital One Venture Rewards Credit Card earns unlimited 2x miles on every purchase, making it easy to earn miles. Cardholders can also enjoy a fee credit of up to $100 for TSA PreCheck or Global Entry. Miles can be redeemed on travel and transferred to travel partners. You may also enjoy the new Capital One airport lounges.

However, if you are wanting to earn a few more miles on travel, good news—earn 5x miles on hotels and rental cars booked through Capital One Travel. Plus, Venture cardholders will earn 5x miles when booking through the Turo app or on Turo.com (through May 16, 2023). 

The annual fee is $95. Compare the Chase Sapphire Preferred vs Capital One Venture Credit Card if you are debating between the two.

Learn more: Travel Rewards Credit Cards

Chase Sapphire Reserve

Bonus Offer: 50,000 bonus  Chase Ultimate Rewards® points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 toward travel when you redeem through Chase Ultimate Rewards®.

If you prefer benefits like lounge access, travel credits, and more, this premium card might be perfect for you. Frequent flyers looking for more than 1:1 point transfers can find more value out of the Chase Sapphire Reserve®. This is the sister card of another best credit cards for paying taxes option, the Chase Sapphire Preferred.

You will enjoy the following travel benefits with the Chase Sapphire Reserve:

  • Global Entry application fee reimbursement
  • Priority Pass Select membership
  • 50% travel redemption bonus
  • 1:1 Chase travel partners
  • $300 annual travel credit

Cardholders can earn unlimited: 

  • 10x total points on hotels and car rentals purchases through Chase Ultimate Rewards (after the first $300 is spent on travel purchases annually)
  • 10x total points on Chase Dining purchases with Ultimate Rewards
  • 5x total points on flights when you purchase travel through Chase Ultimate Rewards (after the first $300 is spent on travel purchases annually)
  • 3x points on other travel worldwide (after the first $300 is spent on travel purchases annually)
  • 3x points on other dining at restaurants, including eligible delivery services, takeout, and dining out
  • 1x points for all remaining purchases

 You will not receive rewards points on your first $300 in annual travel purchases as the annual travel statement credit reimburses these purchases.

Additional Sapphire Reserve Benefits

Points are worth 50% more when redeemed for statement credits against existing purchases in select, rotating categories with the Chase Pay Yourself Back feature.

The additional Sapphire Reserve benefits can easily offset the $550 annual fee if you fly on a regular basis. And you get full access to the 1:1 Chase airline and hotel travel partners too.

You can view our Chase Sapphire Preferred vs Sapphire Reserve Review for comparison if you are torn between the two cards.

Bonus: Capital One Venture X Rewards Credit Card

The Capital One Venture X Rewards Credit Card is a great option if you want premium benefits, such as a fee credit of up to $100 for Global Entry or TSA PreCheck, Capital One Lounge and worldwide Priority Pass lounge access, and up to $300 back annually as statement credits for bookings through Capital One Travel. 

Cardholders also earn unlimited:

  • 10x miles on hotels and rental cars booked through Capital One Travel
  • 5x miles on flights booked through Capital One Travel
  • 2x miles on all other purchases

Plus, get 10,000 bonus miles (equal to $100 towards travel) every year, starting on the first anniversary. 

Use the miles you earn to cover your travel expenses. This can include flights, hotels, rental cars, and more. You can also transfer your miles to several Capital One travel partners

New Capital One Venture X Rewards Credit Cards cardholders can earn 75,000 bonus miles when they spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel.

This is one of the best Capital One credit cards.

The annual fee is $395 but there are no foreign transaction fees.

Learn more: Travel Rewards Credit Cards

The Best Credit Cards for Paying Taxes: Business Cards

If you have a business and will be paying your taxes, one of the options below might work out better for you. You can keep your business expenses separate and earn some rewards in the process. Here are a few business credit card options that might be worth your while.

Ink Business Preferred Credit Card

Bonus Offer: Earn 100k bonus points after you spend $15,000 on purchases in the first 3 months from account opening. That’s $1,000 cash back or $1,250 toward travel when redeemed through Chase Ultimate Rewards®

The Ink Business Preferred® Credit Card not only has that enticing signup bonus, but it also comes with several perks for your business. This includes Fraud Protection on your card transactions and Zero Liability which means you won’t be held responsible for unauthorized charges made with your card or account information.

Cardholders can enjoy Purchase Protection, which covers new purchases for 120 days against damage or theft, up to $10,000 per claim and $50,000 per account.

Ink Business Preferred Credit Card cardholders earn 3x points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year. Earn unlimited 1x point per $1 on all other purchases. Points are worth 25% more when you redeem for travel through Chase Ultimate Rewards®.

The annual fee is $95 and there are no foreign transaction fees, making this one of the best Chase business credit cards.

The Business Platinum Card from American Express

Welcome Offer: New The Business Platinum Card® from American Express cardholders have the opportunity to earn 120,000 Membership Rewards® points after you spend $15,000 on eligible purchases with your Card within the first 3 months of Card Membership. 

The annual fee is $695 (See Rates & Fees).

If you prefer more air travel business rewards, The Business Platinum Card® from American Express is worth taking note of. Cardholders earn 5x points on flights and prepaid hotels on amextravel.com.

Flyers can enjoy a 35% airline bonus when paying with their points for all or part of a flight with their selected qualifying airline. They can get 35% of the points back, up to 500,000 bonus points per calendar year when booking on amextravel.com.

Other Rewards

Cardholders earn 1.5x Membership Rewards® points for each eligible purchase of $5,000 or more as well as 1.5x Membership Rewards® points on eligible U.S. purchases in the following select business categories (up to $2 million per calendar year):

  • Construction material and hardwaresuppliers
  • Electronic goods retailers and software & cloud system providers
  • Shippingproviders

Also, unlock over $1,000 in value per year for statement credits on select purchases with your Card. This includes up to $400 with Dell Technologies (up to $200 semi-annually), up to $360 with Indeed, up to $150 with Adobe, and up to $120 on wireless telephone purchases. Enrollment required.

Plus, get up to $200 in statement credits per calendar year toward baggage fees and more at one qualifying airline. Other airport benefits include a $189 annual CLEAR® credit when you use your Card to enroll in CLEAR® membership and access to more than 1,400 airport lounges across 140 countries and counting with The American Express Global Lounge Collection®. You’ll have more lounge location options than any other credit card on the market (as of 9/2021).

They also have access to the Pay Over Time Option. This is a flexible payment option to help manage cash flow on purchases of $100 or more.

This is one of the best American Express business cards

Summary

In conclusion, using the best credit cards for paying taxes can set you up for some bonus rewards. Most of us view paying taxes as going to the dentist—something done as quickly and painlessly as possible. While paying taxes is never fun, using a rewards credit card can actually help you make money by paying your taxes. That won’t happen if you pay your taxes with cash instead.

Related Articles:

For rates and fees of The Platinum Card® from American Express, please click here.

For rates and fees of the Hilton Honors American Express Surpass Card, please click here.

And for rates and fees of The Business Platinum Card® from American Express, please click here.

Advertisement

Chase Sapphire Preferred® Card

recommended-cart-post-image
APPLY NOW
  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®.
  • Enjoy benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and 2x on all other travel purchases, plus more.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
  • With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories
  • Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
  • Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2024.

The comments on this page are not provided, reviewed, or otherwise approved by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airlines or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities.

0 Comments On "The Best Credit Cards To Use For Paying Your Taxes"

    Leave a Reply

    Required fields are marked *