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Everything you need to know about paying property taxes with a credit card, including the benefits, potential fees, strategies to lower those fees, and tips on selecting the best credit card for this type of payment.
Paying property taxes can be a significant financial responsibility, and for some, using a credit card can offer benefits like rewards, points, or additional flexibility in managing cash flow. However, paying with a credit card also comes with fees, and it’s important to consider the best way to maximize rewards while minimizing costs.
Why Consider Paying Property Tax with a Credit Card?
Paying property taxes with a credit card can be advantageous for several reasons:
- Earn Rewards: Many credit cards offer points, miles, or cash back on payments, which can help offset the cost.
- Utilizing a 0% APR period: Some cards offer a 0% APR introductory period, allowing you to pay off your property taxes over time without incurring interest.
- Meet Spending Requirements: If you’re aiming to hit a spending threshold to earn a welcome bonus or rewards, a property tax payment can help you reach that goal.
- Manage Cash Flow: Paying with a credit card can give you some financial breathing room by deferring the payment until your next statement cycle.
Can I Pay Property Tax with a Credit Card?
Unlike federal or state taxes, property taxes are managed and collected at the local level, usually by county or municipal tax authorities. This means the payment process can vary depending on where you live.
Many local tax offices provide online portals for payments, but others may require payments through specific third-party payment processors or, in some cases, only accept checks by mail or in-person payments.
There are thousands of counties in the US so listing the rules for each of them would be impossible, but we recommend checking with your local tax authority’s website to confirm which payment methods are accepted.
Also consider:
How to make a property tax payment with a credit card
1. Check with Your Local Tax Collector
As mentioned, not all counties or municipalities accept credit card payments, so first confirm that this option is available. They may have a preferred payment processor or online portal.
2. Choose a Payment Processor
If your county or city works with a third-party processor, you’ll likely need to use one of their approved services. Each processor charges a different fee, so compare costs to find the best option.
3. Gather Your Information
Have your property tax bill, credit card information, and any identifying information (such as your property tax account number) ready.
4. Complete the Payment Online or By Phone
Many tax collection websites provide an online portal or phone number for credit card payments. Follow the prompts to complete your payment, review the processing fee, and confirm the details.
5. Record Your Payment Confirmation
Save a copy of your payment confirmation for your records, as you may need proof of payment for tax purposes.
Understanding Fees and Costs (and How Kasheesh Can Help You Save)
Most property tax payments made with a credit card incur a processing fee, typically charged as a percentage of the total amount. Here’s a quick breakdown of common fees:
- Credit Card Fees: These generally range from 1.8% to 2.5% of the payment amount. For example, a $5,000 property tax bill could cost you an extra $90–$125 in fees.
- Debit Card Fees: Debit card fees are often lower and may be a flat rate around $2–$4 per transaction.
How Kasheesh Can Help Lower Fees
The payment service Kasheesh provides a smart workaround for avoiding the higher credit card fees by letting you create a virtual Mastercard debit card that links directly to any credit card as the funding source.
When you make a payment, the tax processor recognizes it as a debit card transaction, applying the lower debit card fee, while Kasheesh seamlessly charges your credit card behind the scenes.
Kasheesh also offers flexibility by allowing you to split your property tax payment across up to five cards—credit, debit, and/or prepaid gift cards—allocating any amount to each card. Kasheesh consolidates your selected cards into one digital Mastercard debit "super card."
Typically, Kasheesh applies a 2% processing fee, but you can avoid this cost during their frequent promotional events. Each month, Kasheesh offers "no fee" or "reduced fee" promotions for several weeks (with details posted on the blog), making it an ideal time to handle your property tax payments without added fees.
Choosing the Best Credit Card for Property Tax Payments
When selecting a credit card for property tax payments, consider the following factors:
- Rewards and Cash Back: Look for a card that offers high rewards, especially for non-category-specific purchases. Cards with 1.5%–2% cash back, points, or miles can help offset the processing fee.
- Introductory 0% APR: Some cards offer a 0% introductory APR on purchases, which can allow you to pay off your tax bill over time without interest.
- Annual Fees: Weigh the card’s annual fee against the potential rewards or savings you’ll receive.
Also consider:
- How to Pay Federal Taxes with a Credit Card
- Best Way to Pay Taxes With a Credit Card
- Can’t Pay Your Taxes? Here’s What To Do
The Pros and Cons of Paying Property Taxes with a Credit Card
Pros:
- Earn Rewards: Accumulate points, miles, or cash back.
- Flexibility in Payments: With a 0% APR offer, you can spread the cost over time without interest.
- Ease of Payment: Credit cards offer convenience, especially when payment deadlines are near.
Cons:
- Processing Fees: Credit card fees can be significant, sometimes offsetting rewards. Use Kasheesh to avoid the higher fee.
- Impact on Credit Utilization: High property tax payments may increase your credit utilization, which could temporarily affect your credit score.
- Interest Charges: If you don’t pay off the balance, interest can quickly add up.
Alternatives to Credit Card Payments
If credit card fees make this option less appealing, consider these alternatives:
- Bank Account Direct Debit: Direct payments from a bank account typically avoid fees.
- Personal Loans: For a large tax bill, a personal loan may offer a lower interest rate than a credit card.
- Installment Plans: Some counties and cities offer installment payment options for property taxes, allowing you to break the payment into smaller parts.
Conclusion
Paying property taxes with a credit card can be a valuable option if you’re looking to earn rewards, access payment flexibility, or meet spending thresholds.
However, it’s essential to factor in processing fees and consider ways to minimize them—like using Kasheesh to get around the credit card fee.
For those looking for alternative options, bank transfers or installment plans may also be a solution. By understanding the pros and cons, you can make the best decision to manage your property tax payment while optimizing your finances.
Not using Kasheesh yet? Split your tax payment across multiple cards:
FAQ
Can I pay my property tax with a debit card instead of a credit card?
Yes, most processors accept debit cards, often with a lower flat fee.
Is there a limit to how much I can pay with a credit card?
Some counties have limits on the amount that can be paid with a card, so check with your local tax office.
Does paying with a credit card affect my tax deductions?
Credit card processing fees generally aren’t tax-deductible. However, paying on time may prevent penalties that aren’t deductible either.
Is it safe to pay property taxes with a credit card?
Yes, paying through an official tax collection site or authorized processor is secure. Be wary of third-party sites that aren’t directly linked by your county’s website.
