There's no avoiding paying income tax but here's how you can earn air miles, rewards, and even cashback from it.
You've filed your taxes now, and then what? Many of us are aware of the many different methods available to pay our annual income tax. From opting for traditional payment methods like internet banking or AXS machines to paying via mobile apps, there is no lack of options.
One overlooked method, however, are credit cards. Think about it: Since taxes are an unavoidable expense, why let all those miles, cashback and rewards points go to waste?
Table of contents
- Can you pay income tax with credit cards?
- Best way to pay income tax with credit cards
- Best income tax credit card
- Best credit cards to pay income tax via CardUp
- When to pay income tax? (and other things to know)
🎤SingSaver Concert Tickets Giveaway🎤: Get a chance to win a pair of VIP Suite Concert tickets of a Grammy-winning Singer on top of existing SingSaver Exclusive Offers when you apply for select credit cards! Valid till 4 May 2025. T&Cs apply.
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SingSaver Exclusive Offer: Receive the following rewards when you sign up for a Standard Chartered Visa Infinite Card:
Get a Samsonite Straren Spinner 67/24 (worth S$600), 15K Max Miles, or S$250 Cash upon activating and spending a min. of S$2,000 in eligible transactions within 60 days of card approval, pay the annual fee of S$599.50, and pay your income tax with the card. Valid until 4 May 2025. T&Cs apply.
Or, get S$100 Cash (fulfilled by SS) and 50K Miles (fulfilled by SCB) upon activating and spending a min. of S$2,000 in eligible transactions within 60 days of card approval, and pay the annual fee of S$599.50. Valid until 4 May 2025. T&Cs apply.
Can you pay income tax with credit cards in Singapore?
Yes you can, but not directly to the IRAS.
You see, IRAS actually does not accept credit card payments, due to the high "transaction costs charged by the credit card service providers", and the "need to keep (their) cost of collection low to preserve public funds."
But that doesn't mean you can't use credit cards to pay for your taxes. It just means you'll need to use either:
1) a 3rd-party payment service like CardUp that lets you pay your taxes using a credit card for a small fee
2) tax payment facility offered by your credit card provider
Best way to pay income tax with credit cards - CardUp
One of the most efficient ways to pay your income tax is by using your existing credit cards via CardUp, which lets you earn credit card rewards on this inevitable one-time payment.
CardUp is an online card payment platform which enables any payment to be made with a credit card -- regardless of whether the recipient accepts credit cards. This also includes your payments to IRAS, which means you can (and should) use CardUp to pay your taxes.
But how much does it cost? CardUp charges a 2.6% fee charged per transaction, but even then, the rewards you earn will still outweigh this cost.
Even better, CardUp is having a promo till 31 August 2025 for reduced fees on your IRAS payments via Mastercard and Visa credit cards. Enjoy fees as low as 1.55%!
How does CardUp work?
Paying taxes with credit cards is as simple as following these three steps:
1) Register for an account on CardUp. Registration is free.
2) Choose "Taxes and stamp duties" as your payment type.
3) Enter the payment details, then sit back and enjoy the amazing rewards earned on your credit cards!
Best income tax credit card: SC Visa Infinite Credit Card
But what if you'd rather not use CardUp? Well you can still pay your taxes using your credit card if your card provider offers a tax payment facility.
One of the best credit cards to pay your income tax with is the Standard Chartered Visa Infinite Credit Card. By applying for the tax payment facility, you can charge your credit card for the total tax amount.
Your provider deposits this amount into your bank account, which you then use to pay IRAS directly. You will earn 360° Rewards Points on your tax payment, while avoiding the CardUp fee.
Made for well-heeled travellers, the SC Visa Infinite Credit Card gives you up to 3 miles per dollar spent, 6 complimentary airport lounge visits per year, and free travel insurance coverage worth up to S$1 million.
🎤SingSaver Concert Tickets Giveaway🎤: Get a chance to win a pair of VIP Suite Concert tickets of a Grammy-winning Singer on top of existing SingSaver Exclusive Offers when you apply for select credit cards! Valid till 4 May 2025. T&Cs apply.
SingSaver Exclusive Offer: Receive the following rewards when you sign up for a Standard Chartered Visa Infinite Card:
Get a Samsonite Straren Spinner 67/24 (worth S$600), 15K Max Miles, or S$250 Cash upon activating and spending a min. of S$2,000 in eligible transactions within 60 days of card approval, pay the annual fee of S$599.50, and pay your income tax with the card. Valid until 4 May 2025. T&Cs apply.
Or, get S$100 Cash (fulfilled by SS) and 50K Miles (fulfilled by SCB) upon activating and spending a min. of S$2,000 in eligible transactions within 60 days of card approval, and pay the annual fee of S$599.50. Valid until 4 May 2025. T&Cs apply.
Best credit cards to pay income taxes via CardUp
If you don't have the Standard Chartered Visa Infinite Credit Card, fret not. You can still pay earn credit card reward on your taxes with the help of CardUp.
Since income taxes are likely range from several hundreds to thousands dollars, that's a whole chunk of credit card rewards you don't want to miss out on. Of course, you don't want any of that to go to waste, so you should pay with a credit card that doesn't cap the rewards you can receive per transaction.
This applies to most air miles and rewards points cards. For cashback cards, you'll want to use an unlimited cashback card for optimal results.
Best Credit Cards For CardUp Payments
For the full list of eligible credit cards, refer to CardUp's page here.
When to pay income tax?
In Singapore, you can start filing your personal income tax from 1 Mar to 18 April. After your taxes are filed, you will receive your Notice of Assessment that tells you how much is your tax payment for the year assessed. This is also known as your tax bill.
Most employees, however, do not need to file taxes, as your company will do so for you, If that is the case, you simply need to wait for your tax bill, which is typically received at the end of April.
Once you have received your tax bill, you have 30 days to pay your taxes. You may do so in one lump sum, or apply to IRAS for monthly instalment payments over the next 10 months. This will be done through Interbank GIRO, and the amount due will be debited from your account each month.
After you’ve filed your taxes and made arrangements to pay them, there’s nothing further you have to do. If necessary, you can login to your personal tax portal on IRAS to view and download your tax documents, check on installments outstanding, and etc.
See also: All You Need to Know About Personal Income Tax in Singapore
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