QuickBooks Tutorial: How to pay sales tax with a credit card in QuickBooks Desktop

  • Posted on Dec 31, 2015

It’s that time again to file sales tax. You have already made your payment online via a credit card and it’s time to enter the transaction into QuickBooks. You go to Vendors > Sales Tax > Pay Sales Tax, you select all the information to pay and realize that you don’t have the option to pay with a credit card. How can this be? You guessed it folks, you can’t! There is a fix.

This video was made years ago, pulled from our archives and Intuit still hasn’t gotten around to fixing it! Watch the video for a workaround.

Footnote: In addition to the bank account used in the video, you can set up a clearing bank account to keep it separate from the banking account.

21 thoughts on “QuickBooks Tutorial: How to pay sales tax with a credit card in QuickBooks Desktop

  1. Penny says:

    This did not work – the payment did not show up in the credit card register.

    1. Jenny says:

      HI Penny, its possible the wrong credit card register was chosen or maybe the date was set wrong where the register needs to be sorted to see it. Just guesses really as I cant tell what was done from this end. You should be able to go to the checking register and see both the in and the out of the transaction and you can also tell from there the account that you used. If you don’t see both transactions in the checking account, then that is maybe where the problem lies. Good luck, let me know if you have any questions.

  2. Crystal Rodriguez says:

    First site I came across, and solution worked great. Thank you!
    I’m using 2015 Premier edition, btw.

  3. Charlie Harbin says:

    Here it is 2020 and I just went thru the same problem as I have always paid with checking in the past so didn’t know of the problem. I followed your instructions to the letter and BAM, perfect. Thanks.
    (I had tried doing General Journal entries which left the balance payable in Pay Sales Tax without showing the credit! Yours is an easy solution. Probably be using this way again in 2021. Thanks for sharing.)

    1. Jenny says:

      HI Charlie, welcome! Glad it still works!

  4. Pat says:

    Thank you so much for figuring this out. It worked perfectly for me. I bet a lot of businesses are using credit cards for things right now.

    1. Jenny says:

      silly that Intuit still hasn’t fixed that feature!

  5. Lori says:

    Thank you so much for the information AND video of you completing the transaction. Worked perfectly!

    1. Jenny says:


  6. Marcie says:

    After multiple frustrating phone calls to Intuit and resorting to Google, we found your video and it worked perfectly! Thank you for your knowledge!

    1. Jenny says:

      Thanks Marcie! Shocking they have never fixed, I made this video along time ago!

  7. Richard says:

    Guys, I gotta be honest – this is amazing. Works like a charm for a local entity that allows us to pay sales taxes via credit card. I am absolutely baffled as to why Intuit cannot simply add credit card as a type of payment for sales tax like any other bill in the system… Thank you for creating this, and please, please do not ever take it off your site – I refer to it every quarter when I file this one specific sales tax…

    1. Jenny says:

      Nice! Thanks Richard! No plans in taking it down! Glad it helps you.

  8. Cassidy says:

    Worked Perfectly! I had to add Tennessee’s Credit Card Processing Fee in a basic Journal Entry, but that was simple.

    1. Jenny says:

      Fantastic! Isn’t it crazy they have never fixed this?

  9. karla says:

    Thank you worked very well

  10. Lisa Rockel says:

    What if the credit card was a personal one – where we reimbursed the owner for the payment?

    1. Jenny says:

      Sorry this was flagged as spam for some reason. You probably worked it out, but you could do the same process and pay it to the bank account and then your entry to remove it from the check register would be owners draw or whatever equity account you use for personal stuff.

  11. GenaD says:

    Just upgraded to QB Premier Plus 2024 and QB STILL DOES NOT have the option of using credit card to pay sales tax. After multiple searches, it landed me to your site. Thank you for sharing your knowledge!!! Worked perfectly.

    The City charges a “convenience fee” so ended up making a credit card entry and coded to bank fees account.

    1. Jenny says:

      Thats crazy, thanks for sharing. Wonder why they haven’t added that function. Very strange. Glad it was helpful.

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