Ah, the joys of home ownership. In the 2+ decades my husband and I have owned this house, we’ve had to replace the central air conditioning, get rid of rats that had made a home in our attic, and re-pipe our entire house because of what I like to call #slableak2017.
The one good thing? As of this past March, the mortgage is paid off. She’s all ours!
The only things in life…
They say the only things in life that are guaranteed are death and taxes. Hopefully the latter won’t happen to us for a long, long time. But, like all homeowners, property taxes are due every year.
Each state has its way of determining how much is owned in property taxes. That amount varies from a median high of 1.89% (New Jersey) to a low of 0.18% (Louisiana) of home value, with the other 48 states (and the District of Columbia) in between. And, of course, each state has its own calendar of when property taxes are due.
Can you pay property taxes with a credit card?
People who are into the points and miles game always look for large purchases to fulfill spending requirements on some of their credit cards. For example, when we bought my Jeep several years ago, the representative at the car dealership let us divide the down payment so it could go onto 2 cards that each had minimum spending requirements.
Similarly, plenty of people put their rent (hello, Bilt!) or mortgage on a credit card. You can even pay your income tax with a credit card (and maximize your points earned if you play your [credit] cards right).
But can you pay property taxes with a credit card?
Maybe. Although some local governments only allow you to pay by check, others allow homeowners to pay their property tax with a credit card. However, the question isn’t necessarily CAN you, but SHOULD you.
OK, SHOULD you pay property taxes with a credit card?
Once again, the answer is maybe ;-).
Of the local governments that do let you pay your property taxes with a credit card, some process the transaction themselves, while others may use a third party to process the payments. Either way, chances are good that you’ll have to pay a convenience fee for the privilege of paying your property taxes with a credit card, just like you have to pay a fee if you choose to pay your income tax with one.
How much is the fee?
Again, it depends on the county. But generally speaking, most charge between 2% and 2.5% of whatever the total tax amount you owe.
How do you determine if paying the extra fee is worth it?
That’s up to you and what value you’d get from your credit card if you paid that 2 to 2.5% extra. If that puts you over the edge of getting a massive welcome offer, then maybe consider doing it.
You have to do the math
According to The Motley Fool, the average home sale in the U.S. was $412,300 as of the second quarter of 2024. To make the number computation easier, let’s say your house is assessed at an even $400,000.
- If you lived in New Jersey, you’d owe the aforementioned 1.89% of $400K, which is $7,560
- If you lived in Louisiana, you’d owe the aforementioned 0.18% of $400K, which would be $720
I don’t know the convenience fees for the different counties in NJ or LA, so let’s say you’d have to pay an even 2% to pay that $7,560 or $720 with a credit card. That would end up being a convenience fee of $151.20 in NJ and $14.40 in LA.
Is paying that much extra for the convenience of using a credit card “worth it?” It depends. Does it put you over the edge of earning 100,000 miles? Or a huge cashback offer? Then, it might be something to consider. Or perhaps not. As the good blog says, Your Mileage May Vary.
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This post first appeared on Your Mileage May Vary
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