Best Credit Cards for Tax Payments
Paying taxes can feel like a financial burden, but with the right credit card, it can turn into a rewarding experience. Government spending—including Income Tax, GST, and Advance Tax—is often unavoidable for individuals and businesses. However, using a credit card that offers rewards on these payments can help offset some of the costs. The best credit cards for tax payments allow you to earn valuable rewards, cashback, or points while staying on top of your financial obligations.
In this blog, we’ll explore some of the top credit cards that offer excellent benefits for tax payments, helping you maximize your returns this tax season.
HDFC BizBlack Credit Card
- Base Returns: 3.33%
- Bonus Rewards: 5X points (up to 7,500 points, equivalent to a 16.5% return)
- Minimum Spend for Bonus: ₹50,000
- Maximum Spend for Maximum Rewards: ₹56,250 (3.33% reward rate after that)
- Milestone: 1% milestone bonus on ₹5L spends (SmartBuy/Taj Stay voucher)
HDFC BizPower Credit Card
- Base Rewards: 4 RPs per ₹150 (1.3% return)
- Bonus Rewards: 5X points (up to 5,000 points on business & government spends, equivalent to a 6.6% return)
- Minimum Spend for Bonus: ₹25,000
- Maximum Spend for Maximum Rewards: ₹47,000 (1.6% reward rate after that)
- Milestone: 1% bonus, ₹2.5K MMT/Reliance Digital voucher on quarterly spends of ₹2.5L
Amex Platinum Travel Credit Card
- Base Reward: No base rewards (but counted for milestones)
- Bonus Rewards: 40K Membership Rewards (MR) + ₹10K Taj Voucher on ₹4L spends
- Tip: Use the Canara Bank payment gateway for Amex transactions to boost rewards for government spending.
IDFC Club Vistara Credit Card
- Base Rewards: 3%
- Rewards Rate: 6 RP per ₹200 spent up to ₹1 lakh; 4 RP on spends above ₹1 lakh
- Milestone: Counted for milestones as well (₹4.5L spends)
HSBC Premier Credit Card
- Base Rewards: 3% (uncapped until March 31)
- Post-March: Government spends capped at ₹1L, no rewards beyond that.
ICICI Times Black Credit Card
- Base Rewards: 2%
- Max Rewards: 5,000 RPs
- Maximum Spend for Rewards: ₹2.5L
Conclusion
Choosing the right credit card for tax payments can help you stay on top of your financial obligations while earning valuable reward points that can be converted into statement credits or travel benefits. Whether you're looking for high returns on business and government spending or luxury travel perks, the cards mentioned above offer some of the best benefits for paying taxes. Always ensure you select a card that aligns with your spending habits and tax payment frequency to maximize rewards.
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