Municipal and school taxes represent a major expense in a household every year. For users of points & miles, this is the opportunity to unlock welcome bonuses, thanks to these expenses.
As always, only use these methods:
- if you are able to pay your credit card balance in full by the due date (otherwise the interest charged will eat up all the bonus you earned)
- if you take into account the fees generated vs. the rewards collected: if your card only earns you 1% and does not offer any welcome bonus, there is no need to pay a 2% or 2.85% fee by using the two solutions below!
Pay your municipal taxes with Plastiq
The fee charged by Plastiq varies depending on the card used. Usually it is 2.85% for payments with an American Express card , but sometimes there are promotions that lower the fee to 1%!
Paying your municipal taxes on Plastiq.com with an American Express card is also a great way to unlock the welcome bonus!
In fact, American Express requires that you carry a certain amount of money in the first 3 months to unlock the generous welcome bonus, especially for certain referral offers that require you to spend up to $7,000 in 3 months!
- The Marriott Bonvoy™ Business American Express® Card: some transactions on Plastiq are displayed as travel expenses and allow you to earn 3 Marriott Bonvoy points per dollar while other expenses are displayed at 2 Marriott Bonvoy points per dollar.
Pay for your municipal taxes with PayTM
We have written an article that describes how PayTM works.
However, since 2019, this innovative application has been the focus of attention:
- Visa considers payments from this application as cash advances: PayTM had therefore withdrawn the possibility to pay with Visa cards, before re-introducing it on 1 November 2019.
- After more than 6 months without any fees for payments with American Express cards, PayTM started collecting fees of around 3%.
- And since April 2020 PayTM charges a 2% fee for payments with Mastercard cards.
If you have registered by yourself with PayTM, it’s not too late to take advantage of the sponsorship offer below: just enter this code: PTM2645309 at the time of payment! You are limited to $1,500 per transaction. Nothing prevents you from making several!
No matter which Mastercard or Visa credit card you use, you will earn points and miles.
For example, the BMO® World Elite®* Mastercard®* offers 2 points per dollar for every transaction and a welcome bonus of 35,000 points if you spend $3,000 in the first 3 months! In addition, this card is free for the first year and offers 4 free access to the airport lounges!
So by subscribing to the BMO® World Elite®* Mastercard®* and paying $3,000 in municipal taxes through PayTM with this new card , you’ll get:
- 35,000 welcome bonus points (a $250 value in travel points)
- 6,000 points for the expense (a value of $43 in travel points)
That’s a total of 41,000 points which amounts to nearly $300 in travel points! This puts into perspective the 2% fee paid through PayTM for this transaction ($60).
It’s the same with the BMO® AIR MILES® World Elite®* Mastercard®*, which offers 1 AIRMILES mile for every $10 in purchases and a welcome bonus of 2,000 miles if you spend $3,000 in the first 3 months! In addition, this card is free for the first year and offers 2 free access to the airport lounges!
So, by subscribing to the BMO® AIR MILES® World Elite®* Mastercard®* and paying $3,000 in municipal taxes through PayTM with this new card , you’ll get:
- 2,000 Welcome Bonus AIR MILES (a minimum value of $210 in CASH rewards or more in DREAM MILES)
- 200 bonus AIR MILES for the expense (a value of $21 in CASH rewards or more in DREAM MILES)
Of course, it will always be more profitable to spend this $3,000 in 3 months through other purchases – like at Costco, for example – but if paying municipal taxes can help you, why not?
Here are other interesting Mastercard credit cards to use on PayTM: