How to Pay Taxes with a Credit Card & Earn Free Travel Rewards

Most people don't know that paying your taxes with a credit card can help you earn thousands of dollars in free travel! While most people dread tax season, savvy Travel Hackers see it as an opportunity to rack up rewards points and unlock luxury vacations. Here’s why and how you should use your credit card to pay your annual and/or quarterly taxes strategically.

Why Pay Taxes with a Credit Card?

1. Earn Huge Welcome Bonuses – Many travel rewards credit cards offer 80,000-100,000+ points as a welcome bonus when you meet a minimum spending requirement (typically $3,000-$6,000 in the first 3-6 months). If you owe taxes, paying them with a new card is a fast and easy way to hit the minimum spend and unlock those points! 

2. Maximize Everyday Points – Even if you aren’t working toward a welcome bonus, putting taxes on a high-earning rewards card can add thousands of points to your balance.

This is why I look ahead and strategically sign up for a new credit every year when tax season hits. I know that I'm going to have to pay taxes, so I want to leverage those payments for free travel!

How to Pay Taxes with a Credit Card

The IRS does not directly accept credit cards, but it partners with two approved payment processors that allow you to pay by card for a small processing fee (Typically 1.75%-1.85%). Here’s how to do it:

1. Choose a Payment Processor 

   • Go to: https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card

   • Compare the options between the two payment processors

   • Choose whether to pay with Pay1040 or ACI Payments, Inc

2. Select the Right Credit Card – Use a travel rewards card with a large welcome bonus or a high-category earning rate to maximize your points.

3. Make Your Payment – Enter your payment details and complete the transaction.

4. Redeem Your Rewards – Use your newly earned points to book free flights, hotels, cruises, or even all-inclusive resorts!

Is the Fee Worth It?

Yes—if done strategically! For example, if you earn a 100,000-point welcome bonus worth $2,000+ in travel, paying a $37 fee on a $2,000 tax bill is a no-brainer.

Don’t miss out—use tax season to your advantage and turn your tax bill into free travel!