Can you pay council tax by credit card?
It depends on your council. There's no national standard — each local authority sets its own payment rules.
Many councils accept credit cards directly through their online payment portal. Councils like Reading, Brent, Manchester, and Edinburgh accept card payments with no additional fee. However, most don't accept Amex — Visa and Mastercard only.
Some councils only accept direct debit or bank transfer. In this case, you'll need a bill pay service to route the payment through your credit card.
Check your council's website first. If they accept cards directly, that's the cheapest option (no fee). If not, bill pay is your workaround.
Direct council payment
If your council accepts credit cards:
- Log into your council's online payment portal
- Enter your council tax reference number
- Pay by Visa or Mastercard
- Done — no fee in most cases
The main limitation: almost no council accepts American Express. So if you're trying to hit an Amex welcome bonus, this route won't help. You'll need the bill pay route instead.
The bill pay route
For councils that don't accept cards, or if you specifically need to use an Amex:
- Set up a bill pay account (e.g. Incredible)
- Enter your council's bank details and your reference number
- Pay with your credit card
- The service sends a bank transfer to the council
Typical fee: 1.5-2.5% per transaction. On a £200/month council tax bill, that's £3-5.
Business rates vs personal council tax
If you're running a business, you might be paying both:
- Personal council tax — for your home
- Business rates — for your commercial premises
Business rates can be significantly higher than council tax, making the rewards case stronger. On £500/month in business rates:
- 1% cashback: £60/year in rewards
- Bill pay fee: £90-150/year
- Net cost of float: £30-90/year for 30-45 days extra cashflow per payment
If you're using the cashflow extension to avoid an overdraft, the maths works out easily. If it's purely for rewards, it's marginal on council tax alone but makes more sense when stacked with other bill pay expenses (rent, suppliers, HMRC).
Earning rewards on tax payments
Council tax is a fixed, predictable expense — perfect for methodical rewards earning.
Over a year on £200/month council tax:
- Capital on Tap: 2,400 points (~£24 value)
- Amex Gold Business: 2,400 MR points (via bill pay only)
- Funding Circle: £24 cashback
Not life-changing on its own. But stack council tax with rent, suppliers, and HMRC payments and the rewards add up to hundreds per year.
Best cards for council tax payments
If your council accepts cards directly:
- Capital on Tap — Visa, widely accepted, 1% back
- Barclaycard Select Cashback — Mastercard, 1% cashback (if spending £2k+/month total)
If using bill pay:
- Any card works, including Amex
- Amex Gold Business if you're stacking council tax with other bill pay expenses
Getting started
- Check your council's website for accepted payment methods
- If cards are accepted, pay directly — no fee, easiest option
- If cards aren't accepted (or you need Amex), use a bill pay service
- Stack with other bill pay expenses to maximise rewards value
- Set calendar reminders — council tax is due monthly, don't miss it
Council tax alone won't justify the bill pay fees. But as part of a broader strategy — routing rent, suppliers, and tax through your credit card — it's another expense you can earn rewards on.