Can I pay tax with a credit card?

Can I pay tax with a credit card?

The answer is yes. You can now pay tax with a credit card. 

The IRD has recently introduced a new payment option that allows taxpayers to pay their tax obligations by using Visa or Mastercard.

This option could be attractive to people who want to maximise any points benefits offered by their credit card company or to those who may struggle to make payment on a due date. 

In keeping with a growing number of organisations, the IRD will pass on a surcharge when using the credit card of 1.42%. This covers the commission charged by the credit card companies. This may be subject to change so make sure you check out the terms and conditions. 

Whilst the surcharge might seem like a disadvantage, it is almost always better than the interest or penalties charged for a late payment. We presume it is also tax deductible. 

The IRD have set up a new payment portal for credit card payments which you can access by clicking here

Angus is the CEO and founder of Generate Accounting.