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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.
Your choice of card depends on how your issuer codes the transaction. Many exclude tax and government payments from their bonus categories: the spend is then processed at the regular earn rate, which may be enough to cancel out the gain once the 1.75% fee is deducted.
Check your card’s current terms before committing, and compare options in our guide on the best credit cards for recurring payments.
Note: even though Chexy now accepts Mastercard, 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 MILES10 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, it’s worth first checking how your issuer categorizes tax payments: many exclude them from their bonus categories. If you’re aiming for a big 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 a card whose issuer recognizes tax payments in a bonus category, or aim for a welcome bonus instead. On PaySimply: Visa, Mastercard, and American Express cards all work. On Plastiq: the same logic applies, while factoring the higher fees into your calculation.
The math is simple. If your card earns more than the platform’s fee, the strategy is profitable. Example: you pay $5,000 in municipal taxes via Chexy (fee: $87.50). Your net gain depends on the rate your issuer actually applies to this spend, which may be the regular purchase rate rather than a bonus rate.
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.
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