I receive compensation for many links on this blog. You don’t have to use these links, but I am grateful to you if you do. American Express, Citibank, Chase, Capital One and other banks are advertising partners of this site. Any opinions expressed in this post are my own, and have not been reviewed, approved, or endorsed by my advertising partners. I do not write about all credit cards that are available -- instead focusing on miles, points, and cash back (and currencies that can be converted into the same).
Plastiq, the online bill pay service that charges your credit card and then sends out checks on your behalf, has a new tax payment promotion where their fees are just 1.75% for tax payments made with a MasterCard.
The next lowest fee for tax payments is 1.87% from sites like Pay1040.com.
You may want to meet minimum spend on a MasterCard. Or you may want to earn cash back on your tax payment with the no annual fee Citi Double Cash card which gives you 1% back when you make a purchase and another 1% back when you pay the bill for that purchase.
Either way you’ll be making money (or plenty of points) on paying your taxes.
Plastiq supports several federal tax types:
And they support several state taxes as well, which I expect vary by state. For instance, they do not support any in Texas which has no state income tax. But in my former home state of Virginia they list:
The Plastiq 1.75% promo for tax payments with a MasterCard runds through April 18 at 5 p.m. Pacific time.
I set up a few figure amount in payments when they were running a 1.5% promotion via MasterCard. I’ve asked Plastiq about the timeliness of sending out tax payments, and which ones are sent electronically and will update this point. Until then I wouldn’t likely send payments due on April 15 on that day. But for those thinking about their taxes in advance this could be a very attractive option.