Advertiser disclosure
Advertisers are not responsible for the content of this site, including any editorial or review that may be published on it. For complete and up-to-date information about any product featured, please visit their website. We maintain business relationships with certain partners mentioned in our communication tools. While we may receive compensation if you sign up for a product or service through our affiliate links, our reviews and content are based on an objective assessment. Value estimates are established by Milesopedia and are not provided, endorsed, or verified by the issuing financial institutions. †*Terms and conditions apply.
Paying your municipal taxes by credit card is possible in Canada. Thanks to platforms such as Chexy, PaySimply, and Plastiq, you can turn this mandatory expense into an opportunity to earn points or cash back. Here is how to get the most out of every municipal tax payment.
In this guide, we compare the three main platforms, their fees, the cards they accept, and the best credit cards to use depending on your situation.
Canadian municipalities do not accept credit cards directly. Intermediary platforms—Chexy, PaySimply, and Plastiq—bridge that gap. You pay the platform by credit card, and it pays your municipality by bank transfer or cheque. The result: you earn points on an expense you had to pay anyway.
Municipal taxes often amount to several thousand dollars per year. Even with platform fees between 1.75% and 2.99%, the math works in your favour if your card earns more than those fees. And if you are aiming for a welcome bonus, this type of expense can help you reach the threshold in just a few payments.
Chexy is a Canadian company founded in Toronto. It is the platform with the lowest fees in Canada for this type of payment: 1.75% for Canadian Visa, Mastercard, and American Express cards. One important detail: certain payment categories on Chexy require a Visa card. For municipal taxes, all three networks are accepted.
You create an account on chexy.co. You search for your municipality in the list of payees. You enter the amount to pay and select your credit card. Chexy charges your card, then pays your municipality three business days later. Plan your payment in advance to meet your deadlines.
The payee search is precise: try your city’s name in French, in English, and with or without accents if you do not find it on the first try. Not all municipalities are available.
The Scotia Momentum Visa Infinite Card remains our top pick for Chexy. It offers 4% cash back on recurring payments and subscriptions, the category in which Chexy transactions are generally coded. With a 1.75% fee, you earn a net profit of 2.25% on each payment.
Since Mastercard was added to the platform, the MBNA Quebec Rewards World Elite Mastercard is also an excellent option. It earns 5% on recurring payments, for a net profit of 3.25% after Chexy fees. Note that BMO Mastercard cards do not earn points on Chexy.
To maximize a welcome bonus, several Visa and American Express cards offer substantial bonuses. Use the code MILES15 to get $15 off your first recurring payment via Chexy (not applicable to one-time payments).
PaySimply is a payment platform authorized by the Canadian government. It accepts Visa, Mastercard, and American Express, with a 2.5% fee. It is more expensive than Chexy, but PaySimply has a different payee network that may include certain municipalities not available elsewhere.
PaySimply is a good option for triggering welcome bonuses on cards that accept transactions on this platform. Check that your card earns points on PaySimply before using it.
Plastiq stands out for the breadth of its network. You can send a payment to almost any payee, even if they are not in a predefined list. Fees are 2.99% for most cards. If your municipality is not on Chexy or PaySimply, Plastiq may be your solution.
Plastiq also offers a welcome promotion: if you spend $2,500 within 30 days of signing up via our link, you get 0% fees on your next $1,000 in payments, for savings of $25.
Your choice of card depends on your goal. If you want to maximize cash back on Chexy, the Scotia Momentum Visa Infinite Card (4%) and the MBNA World Elite Mastercard (5%) are the best options. If you are aiming for a strong welcome bonus, the American Express Platinum Card offers up to 100,000 points (70,000 points for $10,000 in spending in the first 3 months, plus 30,000 points between months 15 and 17).
For the Aeroplan American Express Prestige Card, see the card page for the current welcome offer.
On Chexy: prioritize cards that offer a high earn rate on recurring payments. The Scotia Momentum Visa Infinite and the MBNA World Elite Mastercard stand out. On PaySimply: Visa, Mastercard, and American Express cards all work. On Plastiq: same logic, factoring the higher fees into your calculation.
The calculation is simple. If your card earns more than the platform fees, the strategy is profitable. Example: you pay $5,000 in municipal taxes via Chexy (fees: $87.50). With the Scotia Momentum Visa Infinite at 4%, you earn $200 in cash back. Net profit: $112.50, without changing your habits.
If your goal is a welcome bonus, even a card with a modest earn rate can be worthwhile. Paying $100 in fees to trigger a $1,000 bonus in points is a good deal.
Looking for the ideal card to pay your taxes and earn points? Check out our selection of the best credit cards in Canada and subscribe to our newsletter so you do not miss any welcome offers.
Savings this way:
You can change your preferences or opt out at any time by clicking on one of the hyperlinks available at the bottom of each newsletter.
If you are already a subscriber and would like to unsubscribe, you can click on the link at the bottom of any of our e-mails.
