Best cash back credit cards in Canada

If you're looking for the best Visa cash back credit card, you've found it. It's the credit card with the top cash back in Canada.

This CIBC cashback card caters to Canadians that dole out a substantial amount of their funds on eligible gas, EV charging, and grocery purchases, giving high 4% cash back rates for purchases in those categories. Though there are annual caps for earning at the card’s accelerated rates (see ‘Cash Back Restrictions’ below), the limits are quite high, and there’s no cap on how much cash back can be earned overall.

Annual fee: $120 primary cardholder. First year rebated†. Each additional card is $30 per year, max 3 — first year rebated†

Cash back structure: After that 4% cash back on eligible gas, EV charging, and grocery purchases†; 2% cash back on eligible transportation, dining purchases and recurring payments†; 1% cash back on all other purchases†. Also, get cash back on demand – redeem your cash back at any time when you have a minimum of $25 through CIBC Online and Mobile Banking®†

Take a look at your monthly spending. If gas and groceries took the biggest bite out of your budget, which is likely the case for many families and commuters, we recommend applying for the CIBC Dividend® Visa Infinite* Card and calling it a day. If you spend at least $250 on gas and groceries each month, you’ll earn enough cash back in a year to make up for the annual fee.

Note: If you don’t meet the CIBC Dividend® Visa Infinite* Card’s annual income requirements, check out the CIBC Dividend Platinum® Visa* Card instead. Its cash back features are almost as strong as the CIBC Dividend® Visa Infinite* Card's, but it comes with a less comprehensive insurance package and a lower minimum annual household income requirement.†

Who's eligible?

Minimum credit score: Good

Minimum income: $60,000 individual or $100,000 household

Age: Age of majority in province

Residency: Canadian resident

Other: No bankruptcy for the past 7 years

†Terms and Conditions Apply. This offer is not available for the residents of Quebec.

The information for the CIBC Dividend® Visa Infinite* Card has been collected independently by Money.ca. The card details on this page have not been reviewed or provided by the card issuer.

You want a free credit card with money rewards? The Tangerine Money-Back Credit Card lets you earn 2% cash back in two spending categories, or three spending categories if you deposit your cash back into a Tangerine Savings Account.

These spending categories are flexible enough to reflect your spending habits which, if they happen to change from time to time, you can choose new categories every 90 days. You’ll earn 0.5% cash back on all other purchases, without any tiers, caps, or limits. Your cash back is dispersed monthly, which means you never have to wait to reap the rewards of your spending.

For the first 30 days of card membership, cardholders can transfer a balance to Tangerine and pay just 1.95% interest for 6 months, 1% transfer fee applies* (19.95% after that).

However, if you have aa higher income, it makes sense to consider the Tangerine World Mastercard^® instead, which offers the same rewards rates as the Tangerine Money-Back Credit Card, but it comes with more features like mobile device insurance, airport lounge access, and car rental insurance.

We think the Tangerine Money-Back Credit Card offers the best flexibility in earning cash back. Even though there’s a limit to how often you can change your spending categories, you still get to choose your own and there is no limit to the cash back you can earn, ensuring you’re truly getting the most bang for your buck on all your spending, plus there’s no annual fee.

Tangerine’s Money-Back Credit Card is the perfect option for pure cash back potential without any limits or fees. Tangerine will also give you an extra high earning cash back purchase category if you direct your cash back earned to a Tangerine Savings Account, making this the best card for anyone who’s using cash back towards a financial goal.

Who's eligible?

Minimum income: $12,000

Age: 18+/age of majority

Residency: Canadian resident/permanent resident

Other: No bankruptcy for the past 7 years

*Terms and Conditions apply

Any Amex will allow you to earn cash back, but the best cash back credit card from American Express is the Simply Cash Preferred. With Amex, your cash back rewards are earned on purchases less returns and other credits and are applied annually to your account and paid out in September of each year.

To start, they hit you with a nice welcome bonus: 

Earn accelerated earn rates on eligible gas and grocery purchases. Earn 4% cash back on eligible gas station purchases in Canada, 4% cash back on eligible grocery store purchases in Canada (up to $1,200 cash back) and 2% cash back on all other purchases.

The card also offers buyer’s assurance and purchase protection, doubling the manufacturer’s warranty on purchases by up to one year while also insuring them against damage or theft.

Annual fee: $9.99 per month. Additional cards are free. (Equals a total fee of $119.88 annually)

Cash back structure: Earn 4% cash back on eligible gas station purchases in Canada, 4% cash back on eligible grocery store purchases in Canada (up to $1,200 cash back) and 2% cash back on all other purchases.

Additional perks: Access events and special offers curated for Cardmembers with American Express® Experiences^TM, $100,000 Travel Accident Insurance, Buyer’s Assurance Protection Plan and Purchase Protection Plan. With this card you'll get extensive insurance coverage and 24/7 Customer Service.

We love that with the SimplyCash® Preferred Card from American Express, you’ll get value everywhere, all the time, with the base earn rate. The annual fee, although not the highest we’ve seen, is still an annual fee that other cards may forego.

Who's eligible?

Minimum credit score: Excellent

Minimum income: N/A

Age: 18+/age of majority

Residency: Canadian resident

The Rogers Red World Elite® Mastercard® gives you $25 in cash back rewards as soon as you make your first purchase. You’ll earn 3% cash back on purchases made in U.S. dollars, either online or abroad and 1.5% cash back on all other purchases.

It's arguably the best cash back Mastercard in Canada if you shop at Costco. That flat rate 1.5% cash back applies to Costco even if Costco isn't labelled as a grocery store.

There is a foreign transaction fee of 2.5%, but there are some additional perks like the travel insurance coverage and complimentary membership to Mastercard Travel Pass provided by DragonPass.

Cardholders will earn 3% cash back on each of their purchases made in U.S. dollars, which nets them 0.5% after factoring out the foreign transaction fee (2.5%). If you’re a U.S. frequent traveler and cash back is your favorite credit reward, this is the only card you should have in your wallet!

To start, you get a high 5% cash back rate on groceries and you can redeem that cash any time you like.

It's a long standing winner of the best overall cash back cards and needed a mention here.

You'll also get 3% back on gas, 4% back on transit (ride sharing, bus, and taxis), and 2% cash back on recurring bills (e.g. Spotify, Netflix, Gym membership).

It also throws in roadside assistance which is a pretty sweet perk you just never want to pay for. And, it has pretty decent travel insurance which is rare for cash back cards.

While you will have to pay the $120 annual fee, at least it's waived in the first year. However, you'll need to a minimum of $80,000 individual or $150,000 household income to qualify.

Welcome offer: Get up to 10% cash back in your first 3 months and the $120 annual fee waived in the first anniversary*.

Cash back structure: After that 5% cash back on groceries (up to $500 per month); 4% cash back on eligible transit (up to $300 per month); 3% cash back on gas (up to $300 per month); 2% cash back on recurring bills (up to $500 spent per month); 1% cash back on all other purchases†.

Who's eligible?

Minimum credit score: Excellent

Minimum income: $80,000 individual or $150,000 household

Age: Age of majority in province

Residency: Canadian resident/permanent resident

Other: No bankruptcy for the past 7 years

*Terms and conditions apply

†Statement based on a comparison of the non-promotional grocery rewards earn rate on Canadian cash back credit cards as of June 1, 2024

No credit card “has it all,” but some come pretty close. The Desjardins Odyssey World Elite Mastercard makes sure you get what you want out of your credit card by, well, giving you a well-rounded rewards platform without a foreign transaction fee.

The Desjardins Odyssey® World Elite® Mastercard isn't the most well-known credit card in Canada but it provides a reliable earning platform and plenty of additional perks that make it one of the best cash back credit cards for those who want simplicity but hate to pay additional fees when traveling abroad.

Cardholders earn up to 3% cash back on groceries, 2% back on transit, dining and entertainment, and an unlimited 1.5% back on all other purchases. Additionally, cardholders enjoy no FX fees, comprehensive travel insurance and lounge access all for a reasonable $130 annual fee.

Annual fee: $130

Additional perks: No foreign transaction fees, mobile device insurance, trip cancellation coverage, baggage protection and DragonPass lounge access.

Who's eligible:

Minimum credit score: Fair

Minimum income: $80,000 personal; $150,000 household

Age: Age of majority in province/territory

Residency: Canadian citizen/permanent resident

First and foremost, there's no limit on cash back you can earn at 0.5% cash back with the RBC Mastercard.

With groceries, you can spend up to $6,000 per year and get cash back at 2%. After $6,000, it drops to 1%. But therein lies the good news. After $6,000 spend, your average cash back jumps up to 1% from 0.5%.

Unfortunately, there's no welcome bonus or travel perks, but you do get purchase security and extended warranty protection.

It's great for students as a shared cash back credit card because there are no fees for additional cards.

*This post contains affiliate links. Please read disclaimer for more info.

Refer to RBC page for up to date offer terms and conditions

For each cashback credit card there are some broad criteria we look at when assessing a card’s merit. To identify the best cash back credit cards, our methodology focuses on the critical features that Canadians value, including welcome bonuses, earn rates, annual fees, interest charges and other associated costs of card ownership. 

Here are some of the factors we considered when determining the best cashback credit card in every sub-category of cash back cards:

• Cash back earn rate: The point of a cash back credit card is to earn cash back! However, which card will deliver the most cash back depends a lot on how you spend your money. Because most cash back credit cards provide more value in some purchase categories than others, your own spending patterns will determine if a tiered rewards or flat-rate earnings structure is best.
• Promotional bonuses: We love credit cards that deliver major perks sooner than later, which is why the promotional balance matters when signing up for a credit card. We did our main assessment without factoring any time-sensitive bonuses, but make sure you consider how extra cash back or a faster earn rate for a certain period can make one card stand out above the others for you.
• Annual fee: An annual fee can really cut into the value of a cashback credit card, so you have to ensure the dollar value it provides in cash back and other perks exceeds this cost. In order to come up with an accurate comparison, we presented the above cards’ net cash back earnings after subtracting the annual fee.
• Redemption structure: How you get your cash back is as important as earning it. Some cards disperse cash back monthly, others annually, and some only when you hit a minimum balance threshold. Since many cash back credit cards will only disperse cash back to a chequing or savings account at the same bank, you might want to stick with one of the financial institutions you’re already using if you really want cold hard cash. However, virtually all cash back credit cards let you use your cash back as statement credit, so you have your pick!
• Overall value relative to cost: Free isn’t always better. We determine if features like a big welcome bonus, strong redemption value, or high earn rate trump a card’s annual fee.
• Other fees: Annual fees aren’t always the only cost of owning a credit card. We factor in other charges like foreign transaction fees and balance transfer fees into the mix.
• Special features and perks: Benefits like extended warranties, discounts, premium insurance packages and exclusive invites warrant scrutiny. When assessing a card’s added perks, we also consider their relevance for the cardholder. We know cash back cards are a favorite of savvy shoppers, so discounts or freebies stand out as fringe perks.

When comparing cash back cards, make sure to consider how much cash back it will really deliver to your budget. Where and how you spend your money is the biggest determining factor. However, other things like where you bank, how often you want to receive cash back, how you want to use your cash back, and if you want other perks from your credit card will make it easier to choose. The items listed below are the most important to think about when applying for a cash back credit card.

Promotional earn rate

Many cash-back credit cards will offer a short term promotional earn rate, that will let you earn a supercharged amount of cash back on some or all of your purchases. This typically lasts for up to 3 months and can make a big difference in the card’s benefits to you. If you’re planning to make a large purchase with your credit card, like booking a vacation, a generous cash back promotion can really pay off!

Earn rate by spending category

Cash back credit cards either offer a flat rate of cash back, or they offer tiered rates, with higher returns in some spending categories than others. Knowing your personal budget and spending behavior will tell you where you spend the most money, and therefore can reap the most rewards! Many cards offer higher cash back earn rates on groceries and gas purchases, but a lower rate on everything else. Review your own spending patterns to determine if you’ll earn the most from a flat-rate cash back card, or if you can benefit from one that rewards specific categories of purchases.

Cash back caps

One of the more frustrating aspects of some cash back credit cards is a cap on how much cash back you can earn. Sometimes this cash back is only for the promotional period at a higher earn rate, but sometimes it’s for a specific spending category or overall for the card. Most cash back caps are quite high, but some are surprisingly low which can really put a damper on the value of a card. However, there are plenty of cash back credit cards out there that let you earn unlimited cash back! Knowing how much you’re planning to charge to your credit card before you apply will tell you if you’ll hit a cash back limit or not, so do the math before you apply.

Redemption frequency and flexibility

Virtually all cash back cards will give you the option to use your cash back for statement credit. Others will deposit it to a chequing or savings account. Some cash back cards require you to hit a minimum cash back balance of $25 or $50 to redeem, whereas others will automatically disperse any amount you’ve earned. There are cash back cards that pay monthly, and ones that pay annually! The schedule and threshold required to access your cash back that you feel comfortable with is totally personal to your spending habits.

Annual fee

Paying an annual fee for a cash back credit card seems counter-intuitive, but it can be worth it if the card offers a particularly high cash back rate and other perks. Don’t write off a card with a fee immediately, as the rewards sometimes pay off the fee. Do the math to find out if the amount you plan to spend on the card will generate enough cash back to justify the cost!

Processor

A card’s payment processor, whether Visa, Mastercard, or American Express, can tremendously impact its cash back value to you. If your favourite grocery store where you do most of your spending doesn’t accept American Express, it doesn’t matter how great the cash back rate is! To truly earn cash back from a credit card, you need to make sure it’s accepted where you shop, so take this into consideration before you apply.

Cash back credit cards come in three main categories:  

Flat percentage: these cash-back cards are just as they sound --- they pay cash back at the same rate for all purchases.These cards are best for people who want something back without having to overthink it. The trade-off for this convenience is that you typically only earn 1% or 2% for each transaction.

Tiered rewards: These cash back cards are great for people who tend to spend more on certain things. If you do all the grocery shopping for your household and a lot of the driving, a tiered rewards card that pays a higher percentage for groceries and gasoline may be an excellent option. You’ll get a smaller return on other purchases.

Bonus category: These cards are for dedicated rewards earners. They offer high rebates of up to 5% in specific spending categories, such as at restaurants.The bonus categories can change every quarter, and you may have to register, or "opt in," for the bonus category each quarter.

Spending that earns the bonus may also be capped at a certain amount, like $1,500 during the quarter; and purchases in other categories will likely earn you just 1% cash back.

Merchant category codes, or MCC, help tell a credit card issuer what credit card category your purchase falls into for cash back. 

Shoppers drug mart, for example, despite selling many grocery items, is still categorized as "Pharmacies/Drug Stores" and therefore its merchant code is MCC 5912. Grocery stores are 5411. 

Here's how this may affect your cash back with an example comparing the Tangerine Money Back Card, PC Financial World Elite Mastercard, and our pick for the best cash back card, the CIBC Dividend® Visa Infinite*. To limit our results, let's pick Shoppers Drug Mart as our pharmacy of choice. 

Let's also assume you're spending $1,000 per year on drugstore purchases that may include shampoo, soap, toilet paper, etc.