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Each year, you must pay your municipal taxes. What if this mandatory expense became an opportunity to earn points?
In Canada, it is possible to pay your municipal taxes with a credit card by using a third-party payment provider, such as Chexy, PaySimply, and Plastiq.
This approach allows you to transform a significant bill into leverage for earning points.
In this guide, you will discover how to implement this strategy, which tools to use, and how to maximize the rewards obtained.
First, municipal taxes often amount to several thousand dollars per year. This makes them an ideal expense for quickly earning points.
Furthermore, even if municipalities do not always accept credit cards directly, platforms like Chexy, PaySimply, and Plastiq act as intermediaries.
Specifically, you pay these platforms with your credit card. They then make a payment to your municipality.
Thus, you earn points, miles, or cash back on an expense you have to pay anyway.
The higher the amount paid, the faster the accumulation. This technique is particularly powerful for unlocking a welcome bonus.
Third-party payment providers generally charge fees between 1.75% and 3%. These fees must be included in your profitability calculation.
When the value of the points obtained exceeds these fees, the strategy is advantageous.
Moreover, you must always repay your balance in full. Otherwise, interest will negate the benefits.
Finally, verify that your card allows for point accumulation on this type of transaction.
Chexy is a Canadian platform that allows you to pay your bills, taxes, and municipal taxes with a credit card.
To pay your municipal taxes by credit card, Chexy charges a fee of 1.75%, among the lowest on the market. This rate can even decrease during promotions.
Thus, you can earn points on a significant and recurring expense, while keeping competitive fees.
Accepted cards are Visa and American Express.
The best credit card for paying your municipal taxes on Chexy is the Scotia Momentum Visa Infinite Card.
It offers 4% cash back on recurring payments and subscriptions, a category in which Chexy transactions are generally coded. Thus, despite the 1.75% fee, you realize a net profit of approximately 2.25% on each municipal tax payment.
This combination therefore allows for accumulating a rebate greater than the fees charged, making the strategy particularly profitable.
PaySimply is a Canadian company that allows you to pay many government bills, including your municipal taxes, with a credit card.
It has been recognized among Canada’s Best Managed Companies and collaborates notably with the Canada Revenue Agency and Canada Post.
To pay your municipal taxes by credit card, PaySimply charges a fee of 2.5%, a lower rate than some competing platforms.
The platform supports both large cities and smaller municipalities, such as Laval, Quebec, or Saguenay.
Mastercard, Visa, and American Express cards are accepted, allowing you to earn points or cash back depending on your card.
PaySimply is therefore an effective solution for paying your municipality or school board while optimizing your rewards.
The City of Montreal is no longer among PaySimply’s providers for paying your municipal taxes with a credit card. If you live in Montreal, you will need to use another platform, such as Plastiq, to make your payment.
With Plastiq, you can pay your municipal taxes with a Visa, American Express, or Mastercard.
Fees amount to 2.99%, which remains competitive for earning points or cash back on a mandatory expense.
By using a card offering a high cash back rate or travel points, you can generate a positive net gain, thus transforming your municipal taxes into a rewards opportunity.
Here are the best credit cards with travel rewards for paying your municipal taxes.
Some American Express cards require reaching a minimum amount to unlock the welcome bonus. For example, the American Express Platinum Card® offers a bonus of up to 100,000 Membership Rewards points.
Although the annual fee is $799, this card can quickly pay for itself thanks to the value of accumulated points, travel and dining credits, as well as the flexibility to transfer your points to other programs.
In addition, you benefit from practical advantages, such as airport lounge access and comprehensive insurance protections.
By using these cards to pay your municipal taxes, you transform a mandatory expense into an opportunity to earn travel points while enjoying the card’s additional benefits.
Here are the best Aeroplan credit cards for paying your municipal taxes.
Some American Express cards require reaching a minimum amount to unlock the welcome bonus. For example, the American Express® Aeroplan®* Reserve Card offers a generous bonus of Aeroplan points.
These points can be used for flights, transforming your municipal tax payments into an opportunity to earn high-value travel rewards.
Here is the best credit card with hotel points for paying your municipal taxes.
By using this card, each municipal tax payment allows you to earn points redeemable at major hotel chains.
Thus, a mandatory expense transforms into an opportunity for free stays or discounts on your travels.
Here are the best cash back credit cards for paying your municipal taxes.
By using these cards, each payment allows you to recover a percentage of your expense as cash back.
Some cards also offer a welcome bonus of at least $200, which you can obtain by reaching the minimum required amount.
Thus, your municipal taxes become an opportunity for net gains, while enjoying the card’s additional benefits, such as insurance protections and associated loyalty programs.
Professionals, self-employed individuals, and small businesses can earn travel points by paying their municipal and school taxes with a credit card.
Some cards also offer an attractive welcome bonus upon reaching a minimum spending amount.
For example, the Business Platinum Card® from American Express allows you to transform your mandatory payments into travel points usable for your business or personal trips, while enjoying the card’s additional benefits, such as insurance protections and associated credits.
Currently, the best Aeroplan credit card for Business to pay your municipal taxes is the American Express® Aeroplan®* Business Reserve Card.
It allows small businesses and self-employed individuals to convert their mandatory payments into Aeroplan points, usable for business travel.
In addition to the welcome bonus, this card offers practical benefits, such as airport lounge access and insurance protections, making every transaction more advantageous for your business.
Here is the best credit card with hotel points for business to pay your municipal taxes.
Each payment made with this card allows your business to earn points redeemable at major hotel chains, transforming a mandatory expense into concrete rewards for your business or personal travel.
This strategy is particularly interesting for small businesses and self-employed individuals who wish to maximize their points on recurring expenses, while enjoying the protections and benefits associated with the card.
Professionals, self-employed individuals, and small businesses can get cash back by paying their municipal and school taxes with a credit card.
The BMO CashBack Business Mastercard allows you to transform these mandatory payments into net gains, while also offering an attractive welcome bonus for your first transactions.
Thus, each payment becomes an opportunity to recover a percentage of your expense, while enjoying the card’s additional benefits for your business.
Paying your municipal taxes with a credit card is an effective strategy to earn points on an essential expense.
Thanks to third-party payment services, you can transform several thousand dollars into travel rewards or attractive rebates.
By planning your payment correctly and choosing the right card, you optimize your accumulation without changing your financial habits.
You must use a third-party payment provider like Chexy, PaySimply, or Plastiq, which then transfers the funds to your municipality.
Yes. The payment is processed as a credit card transaction, allowing you to earn points or miles.
The most well-known are Chexy, PaySimply, and Plastiq. They allow you to pay various government bills.
Yes. Municipal taxes can represent a sufficient amount to quickly trigger a bonus.
Yes. For the strategy to remain profitable, you must repay your balance in full each month.
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