Making the switch from renting to owning a home can cause some sticker shock. Besides the cost of your mortgage, you also have to consider insurance and taxes. Nationwide, property taxes have skyrocketed. Across the U.S., 2024 property taxes for single-family homes were 5.1% higher than they were the previous year.
With rising rates, you may be the recipient of a surprise tax bill. If you don’t have the cash to cover the entire outstanding amount, it’s possible to use a credit card to pay your property taxes — but it’s not always a good idea.
What are property taxes?
Property taxes are part of being a homeowner. Counties and cities collect property taxes to fund essential services, including infrastructure, schools, and emergency services. The tax amount is based on a percentage of your home value.
As of 2025, property tax rates range from 0.27% 2.23%. If you owned a $300,000 home, that means you’d owe between $810 and $6,690 in property taxes.
Can you pay property taxes with a credit card?
Counties and cities usually have multiple payment options. Typically, you can pay your bill via personal check, electronic transfer, or money order, and many areas allow homeowners to pay their property taxes with a credit card.
Some counties use a third-party payment processor to handle credit card payments, which charges processing fees for its services. For instance, if you owed $2,000 in property taxes and the company charged a 2.00% processing fee, you’d pay $40 in extra fees.
What services are available and what fees apply varies by location, so check with your local tax collector’s office or website for details. To find your tax collector, you can start by searching for details on your state department of revenue site.
Pros and cons of using a credit card to pay property taxes
If you don’t have the cash available to pay your property taxes upfront, using a credit card to pay your bill can be tempting. But, before you do so, weigh the benefits against the drawbacks:
Pros
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Convenience: With a credit card, you can make a payment from your computer or phone, at any time day or night. There’s no need to visit a tax collector’s office in person or find a stamp to mail a check; you can just use your card to pay online.
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Rewards: Some credit cards allow you to earn valuable rewards, such as cash back, points, or airline miles, on every purchase. Depending on the card, the rewards could be significant. For example, if a card offers 1.5% cash back and you use it to pay a $2,000 tax bill, you could earn $30 in rewards.
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Improved cash flow: If you pay the property tax bill from your savings, you may drain your account, leaving you stretched thin if unexpected expenses pop up. By using a credit card, you can leave that cash untouched.
Cons
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Processing fees: With most counties and cities, you’ll have to pay a processing fee to use a credit card to pay your property taxes. Fees vary by area, but you can expect to pay anywhere from 2 to 3%.
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High annual percentage rates (APRs): Credit cards can have high APRs; most cards have rates over 20%. If you’re unable to pay off the property tax bill and your other charges by the statement due date, substantial amounts of interest accrue.
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Impact on credit utilization: Your property tax bill can be a large total, so using a credit card to pay for it can increase your credit utilization. Using so much of your available credit can damage your credit, and hurt your odds of qualifying for competitive rates if you plan on applying for a loan in the near future.
Tips for using a credit card to pay your property taxes
Use a credit card with an introductory APR
To attract new customers, some credit cards have special promotional APRs for new purchases for a specific period For example, you could qualify for a card that offers 0% APR on new purchases for 18 months. If you qualify for a card with a promotional APR, you could use it to pay your property tax bill and have over a year to pay off the total amount without worrying about interest charges.
Just be aware that once the promotional APR ends, the regular APR will apply. If you haven’t paid off your balance by the time the introductory rate ends, interest can accrue quickly.
Take advantage of signup bonuses
Some cards have special bonus offers for new customers who meet spend requirements within the first weeks or months of opening an account. For instance, you could qualify for a $500 bonus if you spend $4,500 or more within three months of opening the card.
By using your new credit card to pay your property tax bill, you can make significant progress toward the signing bonus’ spending requirement, helping you earn extra cash.
Have a repayment plan in place
While a credit card can be convenient, their APRs can be pricey. To minimize interest charges, have a credit card repayment plan in place so you can pay off your balance within the introductory APR period. To come up with a plan, create a budget, and look for corners you can cut to free up money to put toward your credit card balance.
Aim to pay off the card as quickly as possible, but definitely by the time the next property tax bill is due, to avoid credit card debt.
Bottom line
You can usually use a major credit card to pay your property tax bill, but you’ll have to pay processing fees and may accrue interest charges. If you can’t afford to pay the bill in cash, contact the tax collector to ask about other options before turning to credit. In some areas, you may be eligible for installment plans; with these plans, you break up your tax bill into monthly or quarterly installment payments, making the cost more manageable.
If you decide that a credit card is right for your situation, pick a low-interest credit card to minimize interest charges.
