Any reason to pay prop tax bill with 2% cash back CC when there is a 2.5% convenience fee?

I’d be paying a $29 convenience fee and getting $23 cash back (rounded off) now and again at the end of December. $12 isn’t much but it’s still $12 and I can just as easily send payment with bill pay. The only reason I can think of, is if it’s a day or two before it’s due, but it’s due on the 30th so plenty of time.

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If you have a credit card with a promotion that pays a large bonus for $X spending, and you have no other way to meet that spending level. Then it may be worth paying a few dollars in fees.

Otherwise, no, there is [almost] never a reason to pay a fee to do something you can do for free anyways. Even online, I’d bet there is an option to pay with your bank account which incures no fee, so even being the last minute isnt an excuse. The only reason to do so is if you need to use your credit to pay the bill because you do not have the money - in which case you are already in a hole.


No bank account payment option. Debit card ok but $4 fee.

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4 < 6

Yes I pay that convenience fee, just paid Estimated IRS and CA tax last week. That’s 2% rebate on my Citi Double Cash card. Matter of fact received $500 DC check a few days ago. :blush:

Along with everything else I charge on that card making evidence easy to manage at Income Tax time. Of course I pay off DC card monthly. This month is “a biggie”. Remembering gas charges for multiple vehicles.

Oh well, easy come, easy go…

If you need to hit a sign-up bonus on a new credit card . . .


I usually do this using my 2.625% credit card from BoA.

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No, you use the 2.625% card…

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What card gives 2.625% back? Or is this on specific categories nonsense?

It’s a lesser face-value card, that gives a bonus on redemptions based on having assets at BofA/ML.


Presuming that you mean using a bank’s bill pay service … The last two county’s that I’ve lived in did not offer an easy way to pay with your bank account. Both Chase and Wells specifically warn(ed) you not to pay your taxes with bill pay. I’m not sure why, but suspect there is some sort of potential liability that they’re trying to avoid.

ETA: Fortunately, last year’s property taxes in my two counties waived CC convenience fees due to Covid. So, now there are at least two good things that came out Covid (convenience fee waiver and traffic reduction).

The only other reason would be floating the amount for a while. If you had a credit card with 0% APR on purchases for a year, you could float the tax money. If it returned more money than the convenience fee paid, then you’d have a pretty good reason. Not saying this is the right time to do this, but it would be a reason given favorable interest rates.


The card is the Bank of America premium rewards
card. You do have to jump through hoops but the 2.625% applies to all purchases.

The card has special reward categories but the basic reward is 1.5%. But if you have more than $100,000 in, for example, a Merrill Edge account then you qualify for a platinum bonus of 1.75 of every reward earned. So 1.5×1.75 equals 2.625%

There is a $95 annual fee but you can play games like using the travel reward to buy an American Airlines gift card and selling it to make up most of that fee.

There’s a thread on the card on the bogleheads and also the frugalprofessor blog talks about it

I like this card a lot and it’s the only card I carry.

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OK, too many complications. I’ll stick to my Capital 1 VISA with 2% cash back on everything every month and no annual fee.

Which card is that? I’m pretty sure CapOne does not have a 2% cb on everything card with no AF.

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This one but I pay no annual fee. Capital One

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This has been discussed here before. This is the summary of what I did:

  1. Moved my IRA with more than $100k in it from Fidelity to Merrill Edge. (same mutual funds, and ETFs, just different brokerage firm as custodian).
  2. That made me eligible for Platinum Honors with Bank of America, which gives a 75% bonus on CC rewards, and for a no-fee checking account.
  3. BoA has a 1.5% cashback card with $95 fee that becomes a 2.625% card for those with Platinum Honors status. For me, the $95 fee is offset in normal years by check bag fees on airline trips.
  4. The rewards are credited to my credit card or checking account each month without me having to do anything.

wonder if I should do this vs my USAA 2.5%…

Tell us about USAA 2.5% card. We are all ears… :wink:

I love my Citi DC card, 2%. Cash in hand or whatever, but I’m open to 2.5% or 2.6%. Rather not end up paying a fee. :blush: BUT starting over is a pain. Right now my credit limit is very high $$$$.