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How to pay your tax bill by credit card

Whether you want to settle your tax debt quickly or earn reward points, here's what you need to know about paying your tax bill with a credit card.

If you wish to pay the Inland Revenue (IRD), using your credit card could be a convenient and flexible way to do it. However, using a credit card to pay your tax bill can also attract fees and specific terms and conditions. Use this guide to learn how to pay your tax bill with your credit card.

What credit cards can I use to pay my tax bill?

The IRD does not stipulate what provider your credit card needs to come from, but it does say that you need to use a Mastercard or Visa credit card. If you have an American Express credit card, you cannot pay your tax bill using it and need to find an alternative way, such as Internet banking.

How can I pay my tax bill with a credit card?

Westpac has an agreement with the IRD to run an online credit card service for paying IRD bills. You do not need to be a Westpac member to use the service, and you can use your Visa or Mastercard to make a payment to the IRD. A fee of 1.42% is applied by Westpac when you use this service. The IRD does not receive any of the convenience fee, and it appears on your credit card statement as “Westpac Convenience Fee”.

If you have a myIR account, you can pay your tax bill that way. Ensure you have your Visa or Mastercard debit or credit card details handy; these include:

  • Your name as it is on the card
  • Your credit card number
  • The expiry date
  • The CVV or CVS number on the back of the card.

Once you are on the myIR homepage, choose the account you want to pay. For a credit card, you select “Make a payment” – “Credit card payment.” You can decide if you want to save your credit card details for the next time you use the service, plus if you want an email to confirm the transaction. Then, you need to agree to the terms and conditions. Complete the transaction by filling in your credit card details and authorising it. You will receive a confirmation telling you if your payment has been approved or declined.

Please note, as with paying through Westpac, a 1.42% surcharge is applied when you pay with myIR using a credit card.

IRD payments deadline

Note that the Tax Office must receive all payments on or before the deadline stated on your Tax Notice. Transactions completed outside regular office hours, on weekends or public holidays, or after 6:00 pm on weekdays are processed the following business day. Take these details into consideration when paying, especially if you’re running close to the deadline, because late payments may be penalised with additional fees.

If you’re having trouble paying the full amount owed, call the IRD on 0800 775 247 (for individuals); 0800 377 774 (for businesses) or message using myIR to discuss your options. You can request an instalment plan through myIR or for financial relief.

What are the benefits of using a credit card to pay your tax bill?

There are several reasons you might choose to pay the IRD by credit card. We’ve outlined these below.

  • Build credit history. Payments like these, if promptly repaid, can help establish a healthy credit history over time, which in turn helps with having future credit or loan applications approved. See more ways to develop your credit rating.
  • Ease cash flow. Charging a large lump sum payment like your tax bill to your credit card may help with cash flow, but be careful about incurring interest fees on your account.
  • Earn interest on early tax. If you are in your first year of business and make voluntary tax payments throughout that first year, you may be eligible for a 6.7% discount. See the IRD website for full details.

    What else do I need to consider when using a credit card to pay the IRD?

    Make sure you also look at the following factors before pulling out plastic for your IRD payments:

    • Interest charges. If you use your credit card to pay the IRD and don’t clear the balance by the due date on your statement, you will pay interest on the debt.
    • Interest-free days. Some cards that offer interest-free days specify they are only available for “eligible purchases”. As paying the IRD is not considered an eligible purchase, interest is charged from the date you pay your tax bill.

    Can I earn Airpoints on my credit card when I pay my tax bill?

    No, you cannot earn Airpoints when you pay your tax bill using an Airpoints credit card because it is not classed as eligible spending.

      With most credit card payments to the IRD attracting a surcharge, make sure you do your sums before deciding how to pay. It’s also worth considering fee-free options – such as a direct transfer from your everyday bank account – so that you can find the most convenient and affordable way to pay your tax bill.

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