Best Credit Cards for Tax Payments

An individual making a tax payment with a credit card, highlighting the convenience of online financial transactions

An individual making a tax payment with a credit card, highlighting the convenience of online financial transactions

Paying taxes with a credit card is a very viable option for many, offering both flexibility and added benefits. Yes, it is possible to pay your income tax with a credit card in India, and several banks have introduced credit cards. The Indian government allows taxpayers to use credit cards to settle their dues, which opens up a world of convenience.

Paying taxes through credit cards can come with various perks, such as reward points, cashback, and the ability to earn loyalty benefits. The best credit cards for utility bill payments and rent payments often provide similar rewards, making them ideal for those looking to maximize their financial flexibility. Hence consider credit cards for tax payments, which may include small processing fees.

If you’re looking for the best credit cards for utility bill payments, rent payments, or tax payments, there are several options to explore. This blog will help you provide detailed information on credit cards, allowing users to manage their tax payments.

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Credit Cards for Tax Payments

The table below outlines some of the top credit cards that offer the best benefits and rewards when used specifically for tax payments, ensuring you maximize savings, rewards, and convenience while handling your tax obligations: 

Bank Credit Cards
HDFC Bank
  • BizBlack
  • BizPower
  • BizGrow
  • BizFirst
SBI Credit Card
  • SBI Vistara card
  • SBI Prime Credit Card
  • SBI SimplyCLICK Credit Card
ICICI Bank
  • ICICI Bank Platinum Credit Card
  • ICICI Bank Titanium Credit Card
  • ICICI Bank Coral Credit Card
Axis Bank
  • Axis Bank Privilege Credit Card
  • Axis Bank Enrich Credit Card
  • Axis Bank My Choice Credit Card
American Express
  • American Express Platinum Credit Card
  • American Express Gold Card
  • American Express Green Card
Citibank
  • Citi Rewards+® Card
  • Citi Custom Cash® Card
  • Citi PremierMiles® Card
Standard Chartered Bank
  • Standard Chartered Priority Credit Card
  • Standard Chartered Mandiri Credit Card
  • Standard Chartered Rewards+ Credit Card
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Top 7 Credit Cards for Tax Payments

1 – HDFC bank business card

HDFC Bank offers business credit cards that can be used to conveniently pay your Goods and Services Tax (GST) online. Here are the major offers provided by the bank

Feature BizBlack BizPower BizGrow
Annual Fee ₹10,000 + GST ₹2,500 ₹1,500
Reward Points 5X accelerated reward points 3X accelerated reward points 2X accelerated reward points
Airport Lounge Access Unlimited domestic and international Domestic airport lounges Domestic airport lounges
Fuel Surcharge Waiver 100% waiver on fuel surcharge 100% waiver on fuel surcharge 100% waiver on fuel surcharge
Other Benefits Complimentary hotel stays, travel insurance,

concierge services

Complimentary hotel stays, travel insurance Travel Insurance

2 – SBI Credit Cards

When selecting the best SBI credit card for paying taxes, you’ll want to consider features such as reward points, cashback, or benefits specifically related to expense management. As of my last update, here are some of the SBI credit cards that could be beneficial for tax payments.

Feature SBI Vistara Credit Card SBI Prime Credit Card SBI SimplyCLICK Credit Card
Annual Fee ₹3,000 ₹4,500 ₹499
Reward Points 3 Vistara points per ₹100 spent 3 Vistara points per ₹100 spent 3 Vistara points per ₹100 spent
Other Benefits Lounge access, fuel surcharge waiver, travel insurance Lounge access, fuel surcharge waiver, travel insurance Fuel surcharge waiver, travel insurance

3 – ICICI Credit Cards

ICICI Bank offers several credit cards that can be used for tax payments. These cards often provide benefits such as cashback, reward points, and complimentary airport lounge access.

Feature ICICI Bank Titanium Credit Card ICICI Bank Coral Credit Card
Annual Fee Varies Varies
Reward Points (Fuel) 0 2
Reward Points (Other) 2 per ₹100 spent 2 per ₹100 spent (except fuel)
Reward Points (Bonus) N/A 2000 points on spending ₹2,00,000 & 1000 points for every additional ₹1,00,000
Fuel Surcharge Waiver Up to ₹4,000 at HPCL Pumps N/A

4 – Axis Bank:

Axis Bank Privilege Credit Card: Known for its cashback offers and travel benefits, this card can be used for tax payments.

Feature Axis Bank Privilege Credit Card Axis Bank Enrich Credit Card Axis Bank My Choice Credit Card
Annual Fee ₹1,500 ₹1,500 ₹500
Welcome Bonus ₹5,000 travel or shopping voucher ₹5,000 travel or shopping voucher ₹1,000 welcome bonus
Reward Points 10 points per ₹200 spent 3 points per ₹100 spent 1 point per ₹100 spent
Other Benefits Airport lounge access, travel insurance, dining discounts Travel-focused benefits, airport lounge access Basic benefits, fuel surcharge waiver

5 – American Express:

American Express Platinum Credit Card brings to you lots of travel benefits and rewards, this card is suitable for tax payments.

Feature American Express® Platinum Card American Express® Gold Card American Express® Green Card
Annual Fee ₹60,000 plus taxes ₹1,000 (First Year), ₹4,500 (Second Year onwards) ₹1,000 (First Year), ₹4,500 (Second Year onwards)
Welcome Offer ₹45,000 stay vouchers from Taj, SeleQtions and Vivanta 4,000 Membership Rewards® Points 40,000 Membership Rewards® Points after spending ₹2,50,000
APR N/A N/A 21.24% to 29.24% variable APR
Reward Earn Rate N/A N/A 1 Membership Rewards Point for every ₹50 spent

6 – Citibank:

This card offers reward points that can be redeemed for various benefits, including cashback and travel rewards.

Feature Citi Rewards+® Card Citi Custom Cash® Card Citi PremierMiles® Card
Annual Fee No annual fee No annual fee ₹3,000
Welcome Bonus Up to 20,000 ThankYou® Points 10,000 ThankYou® Points 10,000 ThankYou® Points
Reward Points 2 ThankYou® Points per

$1 spent (up to $6,000)

5% cashback on one category

(up to $500)

1.8 ThankYou® Points

per $1 spent

Travel Benefits Airport lounge access, travel insurance None Airport lounge access, travel insurance
Redemption Options Travel, shopping, gift cards Cashback Travel rewards (flights, hotels, etc.)

7: Standard Chartered Bank:

This card provides a range of benefits, including travel insurance and lounge access.

Feature Standard Chartered Priority CC Standard Chartered Mandiri CC Standard Chartered Rewards+ CC
Annual Fee Varies based on card variant Varies based on card variant Varies based on card variant
Welcome Bonus May offer welcome offers or bonuses May offer welcome offers or bonuses May offer welcome offers or bonuses
Reward Points Earn reward points for spending Earn reward points for spending Earn reward points for spending
Other Benefits Lounge access, travel insurance, complimentary hotel stays. May offer specific benefits tailored to Indonesia May offer a range of benefits
Note: It’s always recommended to check the latest updates on the Income Tax Department’s website or consult with a tax professional to ensure there are no changes in the specific rules or procedures.
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Tips for Using Credit Cards for Tax Payments

Using credit cards to pay taxes can be a smart way to earn rewards and manage large payments effectively. However, to make the most out of this strategy, it’s important to be mindful of interest rates and repayment plans. Here are some key tips for using credit cards for tax payments:

Rewards: Choose a credit card that offers high rewards or cashback on government or utility payments to get the most value from your tax payment.
Welcome Bonuses: Consider using a new credit card to meet the spending requirement for a welcome bonus, especially for large tax payments.
Pay the Balance in Full: To avoid interest, always pay your credit card balance in full by the due date, ensuring the rewards outweigh any potential costs.
Consider 0% APR Cards: If you can’t pay the balance immediately, use a card with 0% APR to spread payments over time without incurring interest.

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Frequently Asked Questions

Q. Are there credit cards that offer rewards for tax payments?
A.
Yes, several credit cards in India offer rewards for tax payments. These rewards can include cashback, reward points, or complimentary flight tickets.

Q. Can I earn points or cash back by using a credit card to pay taxes?
A.
Many credit cards provide rewards or cashback on tax payments, allowing you to earn points or cash back that can be redeemed for various benefits.

Q. Which credit card has the lowest fees for tax payments?
A.
When using a credit card for tax payments, compare cards for lower fees like annual fees or transaction charges.

Q. Are there 0% APR credit cards for paying taxes?
A.
Some credit cards offer 0% APR for a limited period, which can be beneficial if you need time to pay off your tax liability. However, interest may be charged after the promotional period ends.

Q. Can I use a business credit card to pay my taxes?
A.
Yes, you can generally use a business credit card to pay your business taxes. However, ensure that the card is authorized for tax payments.

Q. Do credit card companies offer bonuses for tax payments?
A.
Check if your card issuer offers bonuses for tax payments.

Q. How do credit card tax payment fees compare across providers?
A.
Using a credit card to pay taxes is usually fee-free, but some cards may have additional charges, so compare fees from different providers.

Q. What credit cards offer payment plans for taxes?
A.
Credit cards may not have tax payment plans, but you can use them for installment payments, with possible interest accumulation.

Q. Is it worth using a credit card to pay taxes for the rewards?
A.
When deciding on using a credit card for tax payments, consider rewards, fees, and benefits offered to maximize benefits.