Pay Income Tax with Credit Card? Check Rewards, Fees & If It's Worth It

• March 15 is the last day for the final advance tax installment for FY 2025–26; timely payment avoids interest charges.
• Paying income tax via credit card offers potential rewards but incurs transaction charges and risk of steep interest if not cleared on time.
• Premium or business credit cards may offer reward points or milestone benefits that could partially offset processing fees (0.7-1%).
• Credit card tax payments make sense if rewards exceed gateway fees, for unlocking spending milestones, or for short-term liquidity.
• Many cards exclude government payments from rewards; UPI/net banking are often cheaper, and unpaid balances incur high interest.