4 Sign-Up Bonuses That Make Paying Your Taxes With a Credit Card Worth It

You could earn up to $750 in credit card rewards.

Paying your taxes with a credit card is rarely a good idea. Not only does this mean running up your credit card balance, but the payment processors you can use to pay taxes with a credit card charge fees of roughly 2{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5}. This means you’ll be charged $2 for every $100 you have to pay, while other methods are free.

If you can’t afford to pay your taxes, there are likely other options that won’t be as costly as paying the high interest rates usually charged by credit cards. However, if you have the money to cover your tax bill, paying it with a credit card and paying off the balance immediately can be beneficial for one reason: credit card rewards.

In most cases, earning regular rewards on your tax payment won’t be enough to offset the fees you’re paying. But using your tax bill to get a lucrative credit card sign-up bonus can be worth it. These bonuses, which generally require you to spend a certain amount within the first few months, can be worth hundreds.

There’s a trick to finding a good sign-up bonus that makes using a credit card to pay your taxes worth it. Look for one that’s high in value and has minimum spend requirement you wouldn’t normally be able to meet. Here are four of the best sign-up bonuses to go after when paying your taxes with a credit card.

1. Chase Sapphire Preferred® Card ($750 value)

The Chase Sapphire Preferred® Card is consistently ranked as one of the best travel credit cards out there for its high value, versatile points system and extensive travel protections. On top of that, the card offers a generous sign-up bonus.

If you spend $4,000 in the first three months, you’ll get 60,000 Chase Ultimate Rewards points. As a Chase Sapphire Preferred® Card holder, Chase points are worth $0.0125 each when redeemed for travel, so this offer will get you $750 worth of plane tickets, hotel rooms, car rentals, cruises, or excursions. If you transfer those points to one of Chase’s travel partners, you can easily double that value.

2. Capital One® Savor® Cash Rewards Credit Card ($300 value)

If you spend big on dining and prefer cash rewards, the Capital One® Savor® Cash Rewards Credit Card is about as good as it gets. You’ll get a $300 cash bonus if you spend $3,000 in the first three months.

This card has great staying power for foodies. It gets you a whopping 4{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} back on dining and entertainment and 2{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} back at grocery stores. If you don’t spend enough to make up for the $95 annual fee, consider the no-annual-fee version, the Capital One® SavorOne® Cash Rewards Credit Card. This comes with a $200 cash bonus if you spend $500 in the first three months.

3. Ink Business Cash® Credit Card ($750 value)

The Ink Business Cash® Credit Card comes with what’s arguably the best cash bonus of any credit card out there, but there’s a catch (or two).

First, it’s a business credit card, so you want to make sure you’re eligible for a business credit card. (You don’t necessarily have to own a business.) Second, it has a high minimum spend requirement — but that’s where your tax bill helps you out.

If you can spend $7,500 in the first three months, you’ll get a $750 cash bonus with this card. Not only is that a massive welcome bonus, but you can increase its value by converting it to Chase Ultimate Rewards points as long as you have a credit card that earns Ultimate Rewards.

4. Capital One® Venture® Rewards Credit Card ($600 value)

The Capital One® Venture® Rewards Credit Card earns some of the most flexible travel points in the game, and the current offer is worth $600 in travel spending. With this card, you’ll get 60,000 bonus miles if you spend $3,000 in the first three months.

You can redeem Capital One Venture Miles as statement credits to cover any travel purchase at a rate of $0.01 each. This includes everything from flights, hotels, and rental cars to vacation rentals, Uber rides, and cruises. You can even transfer your miles to one of Capital One’s travel partners to milk even more value from them.

While you should typically avoid paying credit card processing fees to cover your taxes with a credit card, the best sign-up bonus credit card credits can make the fees worth it.