Earning perks like flights and merchandise with your credit card is a nice bonus, but nothing beats the flexibility of cold, hard, cash back. The redemption terms are often more straightforward (with no points to convert) and you can use what you earn to pay for things you need or things you just want—your choice. So, which cash-back cards in Canada give you the most bang for your buck? We’ve rounded up the cards that earn you the most cash back on your spending and factored in their other offerings too to bring you the best cash-back credit cards in Canada.
When determining a rating for individual credit cards, the Forbes Advisor Canada editorial team factors in an exhaustive list of data points. With cash back, the scoring model used takes into account factors such as, but not limited to, cash back rates and categories, fees, welcome bonuses, and other rewards and features. Keep in mind, what may be best for some people might not be right for you. Conduct informed research before deciding which cards will best help you achieve your financial goals.
This card gives you the most in annual earnings from cash back in Canada, even with the annual fee, at $537.50. With the annual fee waived in the first year, your annual cash back earnings top out at $657.50—that’s a lot of cash back.
Rewards: Earn 4% cash back on grocery and gas purchases and 2% cash back on dining, transportation and recurring bills or payments. However, there is a cap: Up to $20,000 in annual gas and grocery purchases or up to $80,000 in annual net credit card purchases (whichever comes first). In addition, get 1% cash back on all other purchases with no limit.
Welcome Offer: 10% cash back on $2,000 in net purchases over the first four statements in the first year.
Annual Fee: $120
Other Benefits and Drawbacks: The CIBC Dividend Visa Infinite Card doles out a huge amount of cash back every year, including a $200 welcome bonus and 8 types of insurance. That being said, there’s still the matter of the $120 annual fee, which cuts into the cash back you got in the first year, and you have to pay to play, thanks to the high income requirements of $60,000 in personal or $100,000 in household annual income needed to qualify.
This card is the reigning champion for 2024 on a lot of other “Best of” lists out there. However, from an annual cash back earning perspective, it’s a little limited. Despite this, it’s still a pretty rewarding card with some truly steep cash back rates in certain purchase categories—notably, groceries (at least, at the beginning of each month for families and potentially the whole month for single individuals).
Rewards: 5% cash back on eligible grocery purchases to a maximum of $500 per statement. Eligible ground transportation purchases get 4% cash back on the first $300 per billing cycle. Gas and electric vehicle charging purchases on the first $300 per billing cycle get 3% cash back. You’ll also get 2% cash back on recurring bill payments, like a subscription or gym membership, on the first $500 each billing cycle. Finally, all other purchases get 1% cash back with no limit.
Welcome Offer: Up to 10% cash back in your first three months on $2,600 in purchases to a limit of $260 in cash back. The $120 annual fee is also waived in the first year. Must apply before May 31, 2024.
Annual Fee: $120
Other Benefits and Drawbacks: Though the BMO CashBack World Elite has the highest cash-back rate in Canada on groceries at 5% and an almost as high rate on ground transportation and electric vehicle charging at 4%. Problem is, both categories are hard-capped at a pretty low dollar amount each month: $500 on groceries and $300 on ground transportation and electric vehicle charging. This is the only reason it’s not higher on this list, as the annual cash back earnings are more limited than higher cards. Meanwhile, you also get $2 million in emergency travel medical insurance for eight days of a trip if you’re under 65.
Not only does this card give you a high 4% cash-back rate on groceries and recurring bills—along with 10% cash back in the first three months on a $2,000 spend—but you’re also getting 11 types of insurance (and one optional type), including the exceedingly rare mobile device insurance.
Rewards: Get 4% cash back for every $1 you spend on grocery store purchases, recurring bill payments, and subscription purchases. Earn 2% for every $1 you spend on gas purchases and daily transit purchases (including Uber). Plus, 1% cash back on all other purchases with no cash-back limit.
Welcome Offer: 10% cash back in the first 3 months up to $2,000 in total purchases.
Annual Fee: $120
Other Benefits and Drawbacks: From an insurance benefits perspective, this card has the most insurance options on this list. It may have a $120 annual fee, but you’re getting tons of value for that from $1,000 of mobile device insurance to $1 million of emergency travel medical coverage for a whopping 15 days. The only major drawbacks are the high income requirements of $60,000 in annual personal income and $10,000 in annual household income.
This is the no nonsense and no limit card on this list because you don’t have to worry about what rate of cash back you’re getting for what purchase category. Instead, you get one rate of cash back, all the time and forever, on every single purchase with no spending cap. If you don’t want to have to think about anything and just get your cash back, this is the card you should get.
Rewards: 4% cash back on groceries (up to $1,200 in cash back per year) and gas, 2% cash back on all purchases with no limit.
Welcome Offer: Earn $10 cash back each time you spend $300 in a monthly billing period in the first 10 months (up to $400 in statement credits).
Annual Fee: $119.88 (monthly payment of $9.99)
Other Benefits and Drawbacks: Along with a consistent rate of flat-rate cash back, this card also carries the highest cash back welcome offer for any cash back card in Canada in terms of what can be earned (up to $400).
This card’s combined 5% cash back in a number of popular purchase categories (3% for gas and groceries and 2% for transportation, dining and recurring bill payments) equates to just enough annual cash-back rewards to just crack our top five. With a reasonable annual fee along with it, you can’t go wrong.
Rewards: Earn 3% cash back on groceries and gas purchases, 2% cash back on dining and transportation and recurring bill payments and 1% cash back on all other purchases.
Welcome Offer: None
Annual Fee: $99
Other Benefits and Drawbacks: Beyond the cash back rewards and the annual fee waiver in the first year, there isn’t a ton of meat on the bone here. There’s no welcome bonus, but at least you do get some additional benefits in purchase protection and car rental insurance. Plus, if you link your Journie Rewards card, you can earn up to $0.10 per litre on gas. Separately, you can get 25% off car rentals at Avis and Budget Rent-a-Car at participating locations. Along with no welcome offer, there is a $15,000 annual income requirement that’s also hard to ignore.
Not many cards are high-earning, have excellent perks and give cash back, but this card is a notable exception.
Rewards: Earn 3% cash back on groceries and gas, as well as on recurring bill payments. Dining, entertainment, travel and online purchases all earn just 1% cash back.
Welcome Offer: Earn up to $500 in value†, including 10% in Cash Back Dollars in the first 3 months on Bonus Eligible Purchases up to a total spend of $3,500†. Conditions apply. Account must be approved by June 3, 2024. Not available for residents of Quebec.
Annual Fee: $139 (rebated in the first year, account must approved by June 3, 2024)
Other Benefits and Drawbacks: In addition to cash back, this card offers a number of insurance plans, including $2 million in emergency travel medical insurance for a maximum of 10 days and rental car insurance covering the value of vehicles up to $65,000 MSRP. The only drawbacks to speak of are the higher $139 annual fee and the income requirements, which are $60,000 annual personal income or $100,000 annual household income.
If you’re making most purchases at Costco, you can expect $422.58 in annual cash back from this card. That’s on top of World Mastercard benefits, like car rental insurance and travel perks like free Wi-Fi at Boingo hotspots and airport lounge access through Mastercard Travel Pass. Remember though, this card is invite-only, as you need $60,000 in annual personal income or $100,000 in annual household income to qualify.
Rewards: Cardholders get 3% cash back at restaurants and on Costco gas (Costco gas purchases capped at $5,000 annually). They also get 2% cash back at other gas stations and on Costco.ca purchases (Costco.ca purchases capped at $8,000 annually). Finally, they will receive 1% cash back on all other purchases and once the caps are reached in relevant purchase categories in a given year.
Welcome Offer: None
Annual Fee: $0 (requires Costco membership: $60 for Gold, $120 for Executive)
Other Benefits and Drawbacks: This card may seem like it doesn’t have an annual fee—and officially, it doesn’t—but you need a Costco membership to get one and the cost of an annual membership ($60 for Gold and $120 for Executive) might as well be an annual fee. Other than that, this card is inappropriate for people who never, or only occasionally, shop at Costco because the difference in annual earnings is so stark: $422.58 in cash back earned with Costco purchases versus $367.62 without any.
This card may look like it will give you a break on your Rogers cable, phone and internet bills (it doesn’t), but it’s actually a sleeper hit for those who make most purchases in U.S. dollars. This is where you’ll find its highest cash back rate, so if you’re buying a lot of things in U.S. dollars, this is a card you should consider.
Rewards: Earn unlimited 2% cash back (exclusively for eligible Rogers, Fido or Shaw customers) on non-U.S. dollar purchases, otherwise earn 1.5% unlimited cash back. Earn unlimited 3% cash back on U.S. dollar purchases.
Welcome Offer: N/A
Annual Fee: $0
Other Benefits and Drawbacks: This card’s World Elite status gives you access to a plethora of travel and insurance benefits, including rental car insurance and access to 1,300 airport lounges worldwide through the Mastercard Travel Pass app facilitated by DragonPass. However, It should be noted that beyond the high rate of cash back on U.S. dollar purchases, there isn’t much here–and that’s with the income requirement of maintaining $15,000 in annual income a year to stay qualified for it. The rental car insurance is secondary, so it will cover anything your primary car insurance doesn’t as far as theft, damage and loss. Despite the membership to Mastercard Travel Pass being complimentary, actually sitting in an airport lounge through this credit card still costs money. It costs $32 USD ($41.72 CAD) per person each time you partake, so be aware of that.
This card is the Scotia Momentum Visa of the non-Infinite variety. It has a more reasonable annual fee at $39, a lower annual income requirement of $12,000 and an uncomplicated cash-back structure. Though the cash back isn’t as high as its Visa Infinite counterpart, it still delivers decent annual value and if you carry a balance, it has a great promotional interest rate on balance transfers. Look to this card if you want to put a dent in your debt.
Rewards: Cardholders get 2% cash back on gas, grocery and drugstore purchases, as well as recurring bills, with a $25,000 annual cap on gas and groceries. They also get 1% cash back on all other purchases.
Welcome Offer: None
Annual Fee: $39
Other Benefits and Drawbacks: The 0% interest on balance transfers for six months is a benefit that cannot be understated. Low promotional balance transfer rates exist among very few credit cards in Canada. When it comes to drawbacks, it’s a shame that no purchase categories elicit a cash-back rate higher than 2% on this card. It would also rank higher if the card had more insurance options aside from just purchase protection and an extended warranty. The fact that it has an income requirement at all is also to its detriment.
An enticing cash back card for social butterflies and urbanites, this card offers generous cash back rates on bar, restaurant and coffee shop purchases.
Rewards: Cardholders get 4% cash back at bars, coffee shops and restaurants up to $5,000 annually, after that 0.5% unlimited, 1.5% on eligible gas, groceries, and drugstore purchases, as well as pre-authorized payments up to $15,000 per year, after that 0.5% unlimited and 0.5% cash back on everything else†.
Welcome Offer: Get 20% cashback in your first 3 months on eligible gas, groceries, drugstore purchases and pre-authorized payments (up to $500 spend)†.
Annual Fee: $0
Other Benefits and Drawbacks: While the cash-back rewards at restaurants, coffee shops and bars are stellar, there’s a huge drop-off in cash-back rate for any other purchase, with only 1.5% cash back for everyday staples like gas, groceries and drugstore purchases. It’s quite the reversal when these everyday purchase categories are usually the marquee players of most cash back cards. However, if you live in a big city and don’t drive or cook at home often, this could be a great card for you. However, if you’re looking for insurance coverage, look elsewhere because this card only comes with extended warranty and purchase protection plans. It’s only the high rate of cash back in its featured purchase categories that has it just making this list.
†Terms and conditions apply. This offer is not available for residents of Quebec.
Data research and analysis by Debra Toews, Tia Duncombe and Jack Choros.
Typically, users earn a percentage of their spending back as a reward in the form of cash back. Some cards offer a flat rate (for example, 2% cash back on all purchases) and others offer different cash-back rates based on spending categories and a flat rate for all other purchases (For example, 3% on groceries and gas and 1% back on all other spending).
Cash-back credit cards allow you to earn a percentage of money back on all your purchases.
In order to get cash back from a credit card, you need to first earn the cash back and then redeem it. The process typically operates this way:
Earning Process
Depending on your card’s cash back offer, you’ll earn cash back at either a flat rate (the same percentage earned across all eligible spending) or at different rates per purchase category (in addition to a low base rate for spending outside of those categories).
Redemption Process
Cash-back credit cards vary in their redemption process. Many cash back cards allow you to redeem your cash back either as a statement credit on your credit card or by depositing it into a chequing or savings account.
The redemption process varies depending on the credit card. Some cards only allow you to redeem cash back once per year, typically on your January statement. Other cards allow you to redeem cash back at any time, but only once you’ve accumulated enough of it (such as $5, $10 or $20 denominations). Some cards allow you to redeem any cash-back amount at any time.
The main reason a cash-back card may be worth it is flexibility and transparency. Unlike rewards programs, which can often only be redeemed for certain items, cash can be used anywhere. Plus, points value can vary and you know exactly what you are earning with cash back and its value, as you earn it.
That said, there are rewards cards that could offer you more value than cash back, if you do the math and use your rewards strategically. Therefore, between cash back and rewards credit cards, it really comes down to personal preference.
A flat-rate cash-back card offers the same amount of cash back across all spending, regardless of the purchase category.
A bonus category cash-back card offers a flat rate as well–typically offering an increased amount of cash back when you spend in certain categories.
Select cards allow cardholders to choose their own bonus categories, based on their spending habits. Rather than offering more cash back in predetermined purchase categories, cardholders get to choose their own purchase categories for cash back.
In Canada, common categories for bonus cash back are: Groceries, gas, transportation (often including ride shares, taxis and public transportation), dining, entertainment, recurring bill payments, airlines and hotels.
How Cash-Back Bonus Categories Work
Often, cash-back bonus categories have a spending limit per year or billing cycle, after which you’ll earn the card’s lower base rate on spending in those categories. For instance, a card may offer 4% cash back on groceries (the bonus purchase category) up to a limit of $500 per monthly billing cycle. Afterward, the cardholder will earn 1% in the same bonus purchase category (the base rate).
Cash back is awarded on every purchase with a cash back credit card. However, usually certain purchase categories, like groceries, transit and travel carry higher earn rates that give you a higher percentage of cash back on purchases in those categories, rather than just the base rate you receive for all other purchases.
The base rates of cash-back credit cards are usually 0.5%, 1%, and in rare cases, 2%. Most cash-back credit cards also have spending caps, which means you only get the higher cash-back earn rate, in certain purchase categories, up to a certain amount you spend in those categories. Past that threshold, or spending cap, your cash back earn rate reverts to the lower base earn rate, you would get on all purchases, in that previously more lucrative spending category.
Although much more common in the U.S., there is one cash-back card in Canada that allows you to pick the spending categories where you receive the highest available earn rate. The Tangerine Money-Back Card allows you to pick two purchase categories that give you 2% cash back on those types of purchases and allows you to pick a third category at 2% if you have a savings account with Tangerine Bank. All other purchases get 0.50% cash back.
Redeeming cash-back rewards usually happens through your credit card dashboard on online banking or through your credit card issuer’s mobile app. If you can redeem at any time, you can likely click redeem on either of these portals and the cash-back is either instantly applied to your statement or deposited into a savings account. In some cases, all cash-back earned is applied once a year to your monthly statement or sent as a cheque on or around your account anniversary.
January is usually a good time to redeem cash back, as you can recoup any extra spending from the holidays. However, if we’re being honest, the best time to redeem cash back is when you need it.
Cash-back bonus categories are those purchase categories that give you extra cash back beyond the standard rate that can be earned for all other purchases. For example, if the standard rate is 1% cash back, then the bonus rate is actually the additional cash back percentage on top of that. So if you get 5% cash-back on groceries for example, the bonus rate is 4% and the base rate is 1%. Of course, the base rate comes into play on all other purchases or when the spending limit for the bonus rate is reached and the purchase category switches to the base rate on all other purchases. It should be noted that base rates in Canada on cash-back credit cards range from 0.5% to 2%.
In Canada, you will generally see an accelerated earn rate on the following purchase categories:
Not all cash back is redeemed equally.
When you can redeem the cash back you have received through your spending depends on the issuer of your credit card. Some issuers allow you to redeem cash back on a monthly basis, while others only allow you to redeem cash back annually on your account anniversary. Below are the cash-back redemption rules for many popular cash-back credit card issuers:
Look for a card that has a standard interest rate or lower. 19.99% is usually what most cards offer for purchases.
When it comes to a cash-back credit card, you want to make sure the annual fee doesn’t negate any cash back rewards you earn. A no-annual-fee cash-back card is your safest option. But, if you crunch the numbers and have an idea of your typical spending, a credit card with a yearly fee might pay off. They often come with higher earn rates for cash back and extra perks (like travel insurance) that you would end up paying for anyway if they didn’t come with a credit card.
Many cash-back credit cards have intro offers in the form of enhanced cash back for an introductory period.
As a sign-up bonus for new applicants, many cards offer a welcome bonus and/or waive the annual fee, if your card has one.
Typically, these periods have time limits and a spending cap. For instance a card may offer 10% cash back for the first three months of card membership, but only up to a $3,000 spending limit, maxing out that bonus’s value at $300.
Some welcome offers will include increased rates in one of the bonus categories for a period time. For instance, 10% back on groceries for the first three months, after which you revert to the previous earn rate for groceries.
Many cash-back cards include travel insurance benefits. These can include out of province/country emergency medical coverage, common carrier insurance and a number of insurance coverages for trip cancellation or delay, lost or delayed luggage and more.
A select few cash-back cards include roadside assistance–similar to what you can expect from a third-party provider like CAA.
Many cash-back cards include mobile device insurance, protecting a device from accidental loss or damage. The device usually has to be purchased on the card in order to be eligible for coverage.
Many cash-back credit cards offer 24/7 concierge services. These services connect you with a representative that can help you with a variety of services, like booking a rental car or making a dinner reservation.
Many cash-back cards offer extended warranty for items bought with the card. They typically extend the manufacturer’s warranty for an additional year.
Purchase protection covers most new purchases made on your credit card for a period of time (usually at least 30 days from the date of purchase) from theft or damage.
In order to apply for a cash-back credit card, you have to have reached the age of majority in your province or territory and be a resident of Canada.
Many cash-back cards have credit score requirements. However, there are cards aimed at those with low credit scores or little credit history, like students. If you are applying for a student credit card, you must at least show proof of income.
Some cash-back credit cards have income requirements that usually ask for $60,000 to $80,000 in annual personal income and $100,000 to $150,000 in annual household income.
Related: Best Canadian Credit Cards
If you know you’re going to be spending more than usual on a certain item, it might pay to be strategic with your cash-back credit card. For instance, if you know you’re going to be buying a new couch or laptop, choosing a card with a 10% cash-back welcome offer could help you get some money back on that big purchase.
Staying on top of sign-up bonuses for cash-back credit cards can help cut costs. Just be sure to factor in the annual fee, as this will cut into your cash-back rewards.
If you don’t mind managing multiple cards, it can be worth it. You can use a specific card for certain expenses (like groceries and gas) and another for other expenses (like travel) to maximize your rewards.
Some people buy gift cards at a specific retailer to maximize their rewards. However, you have to check that these purchases are eligible for cash back with your credit card provider.
You can add supplementary users on your card, like your spouse or family members, in order to earn more rewards on their spending.
Some websites or browser plug-ins like Rakuten or Honey offer cash back on certain purchases. If these are combined with a cash-back rate from your card, you can accumulate more cash back.
It depends on the rewards value and how you plan to redeem them. Most rewards programs point values fluctuate based on how you choose to spend them.
Cash Back vs. Points: Which is Better?
If you like a straightforward approach earning rewards on your everyday spending–cash back is king. However, if you don’t mind navigating the fluctuating point values of a rewards program and know it will be more profitable for you, opt for points.
The CIBC Dividend Visa Infinite card will earn you the most in net annual cash back at $537.50 and $657.50 in your first year, when the annual fee is waived.
The SimplyCash® Preferred Card from American Express offers a $40 statement credit for each monthly billing period in which you spend $750 for your first 10 months, adding up to $400 total.
The BMO CashBack World Elite Mastercard offers 5% cash back on grocery purchases up to $500 per billing cycle.
The Rogers Red World Elite® Mastercard® offers 1.5% cash back on all purchases not in U.S. dollars (that would be 3%) with no spending caps. Plus, you get five types of insurance, including emergency travel medical, car rental, trip delay and trip cancellation. Meanwhile, you get complimentary access to over 1,300 airport lounges worldwide and all of this comes to cardholders for no annual fee.
Many cash-back cards have limits on bonus cash back earnings in specified categories. That said, there is usually no limit to how much cash back you can earn with the base rate.
Generally, cash back earned from personal spending is not considered taxable. It is classified as a discount and is not considered income.
The Scotia Momentum Visa Infinite Card gives the best cash-back rate on recurring bill payments at 4%, the highest cash-back rate offered on bills in Canada.
Yes. If the idea of credit cards is to post purchases to the credit card and then pay them off, any cash back you can get to reduce your balance is helpful. On the other hand, if you never carry a balance, your cash back becomes essentially free money that puts your available credit on the positive side. Therefore, spending your cash back amount on purchases will not generate a balance on your cash-back credit card.
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