How to Choose a Cash Back Credit Card in Canada
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Credit card reward programs are an incredible tool to help you save money on your day-to-day purchases, but for many of us, the idea of navigating a complicated points program can often feel like another chore added to an already much-too-long list. These cards shine during the big sale waves, covered in our smart shopping guide.
For those of us who are looking to get rewarded when we spend, but without having to learn about saving and redeeming points, cash back credit cards are a great solution.
Cash back credit cards offer a simple, straightforward earning structure and guaranteed value, making it easy to track and enjoy your savings.
In this article, we’ll introduce 5 of our favourite cash back credit cards in Canada, and give you some side-by-side comparisons and spending examples to help you choose the best possible card. Looking for our full monthly roundup of offers instead? Check out the best cash back credit cards this month.
How to Choose the Right Cash Back Card
With so many credit card options available, it can sometimes feel overwhelming trying to figure out exactly which card is best for you.
Key Considerations
To choose the right cash back card for your financial situation and spending habits, there are a few key things to consider:
- Annual fee: How do you feel about paying an annual fee? Will you earn enough cash back to justify this cost? Most cash back credit cards have annual fees that range from $0 to $120, with some offering the first year’s fee for free to new cardholders.
- Minimum income requirement: Before applying for a new credit card, it’s a good idea to make sure that you meet the minimum income requirement. By choosing a card that fits your income, you’ve got the best chance of being approved.
- Earning rates and styles: Cash back cards offer a variety of different earning styles and rates, from flat-rate earnings to tiered category earnings to a choose-your-favourite-category structure. To maximize your return, it’s a good idea to take a look at your past spending to see which style will be most lucrative for you.
- Spending category caps: Some cards limit their elevated cash back earning rates to a set monthly/yearly spending amount. It’s worthwhile confirming these limits so that you don’t miss out on the best earning rates.
- Redemption process: How do you prefer to get your cash back? Depending on the card, your cash back may be deposited automatically once a month or year, or you may need to request your funds at specific intervals and/or amounts.
Best Cash Back Credit Cards in Canada
Now, with the above characteristics in mind, let’s take a look at our picks for the best cash back credit cards in Canada and their key details:
In addition to all the cash back earning opportunities and benefits that we’ll mention below, each of these cards also typically offers a valuable welcome offer to amp up your savings as soon as you start spending.
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $0 | |||
| $119.88 | |||
| $0 | |||
| $0 |
Tangerine Money-Back Credit Card
The Tangerine Money-Back Credit Card comes with no annual fee and a low minimum income requirement of $12,000 personal income.
This card is unique among its peers because you get to customize your earning categories to best suit your spending habits.
Earning and Redeeming
With the Tangerine Money-Back Credit Card, you earn cash back on your purchases as follows:
- Earn unlimited 2% cash back on 2 spending categories of your choosing
- Earn 0.5% cash back on all other purchases
- Unlock a third 2% cash back category if you have a Tangerine Savings Account
You can also change your 2% earning categories every 90 days to adapt to any changes in your spending habits. The spending categories that you can choose from are:
The cash back you earn with the Tangerine Money-Back Credit Card is then deposited automatically every month either as a credit card statement or to your Tangerine Savings Account.
Card Benefits
The Tangerine Money-Back Credit Card doesn’t offer much in the way of added benefits, though it is in line with many no-annual-fee cards.
As a cardholder, you get a 15% discount at H&R Block, plus extended warranty and purchase protection coverage.
Who’s the Card Best For?
The Tangerine Money-Back Credit Card is good for someone who’s after a no-annual-fee card, or those with a lower income, like a student or someone who’s only working part-time.
It’s also a helpful card if you know that you mostly spend your money in 2 or 3 specific categories, or if you can take advantage of the ability to switch up the categories to match upcoming expenses. For example, if you know you have a big trip abroad and switch to the Foreign Currency Spend category, or you have a large home project and switch to the Home Improvement category.
- Annual fee
- $0
- Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$100Total$100Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
- $100
- Welcome offerAfter $1,000 in 2 months
- Up to $100 cash back
- Ends Nov 30, 2026
Apply Now
on Tangerine's website
SimplyCash® Preferred Card from American Express
The SimplyCash® Preferred Card from American Express has a monthly fee of $9.99, except in Quebec, where the fee is $119 charged annually. The card also has no minimum income requirement, making it fairly accessible.
Earning and Redeeming
With the SimplyCash® Preferred Card from American Express, you can enjoy elevated cash back earning in two categories and a strong base rate on all other purchases:
- Earn 4% cash back on gas
- Earn 4% cash back on groceries*
- Earn 2% cash back on everything else
Take note that for the grocery earning category, the 4% cash back rate is available on the first $30,000 you spend each year, which is equivalent to $1,200 in cash back. After you hit this limit, the earning rate in this category becomes 2% for the rest of your account year.
In terms of receiving your cash back: it’s automatically distributed once a year and will show up on the credit card statement you receive in September. Your balance will then reset.
Card Benefits
The SimplyCash® Preferred Card from American Express comes with a number of valuable benefits, including:
- Comprehensive travel insurance, including emergency medical insurance, flight delay insurance, baggage insurance, hotel burglary insurance, lost and stolen baggage insurance, and travel accident insurance
- Car rental loss and damage insurance
- Mobile device insurance and purchase protection coverage
- Access to Amex Experiences, Amex Front of the Line presales, Amex Reserved Tickets, and Amex Offers
Who’s the Card Best For?
The SimplyCash® Preferred Card from American Express is ideal for someone whose biggest spending categories are gas and groceries, and who shops at a grocery store that accepts American Express.
The card’s lack of a minimum income requirement also makes it quite accessible—as long as you’re okay with paying an annual fee.
It can also be a very useful addition to your wallet if you can make use of the Amex Offers and Amex’s array of event/experience benefits.
- Annual fee
- $119.88
- Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$200Total$200Plus $50 of bonus paid after the first year, not counted in this total.Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
- $200
- Welcome offerAfter $2,000 in 3 months
- Up to $250 cash back
Apply Now
on American Express's website
Apply with confidenceCheck whether your application will be approved before you submit it, with no impact on your credit score*When you apply for a personal American Express Credit Card, we will tell you whether you are eligible without affecting your credit score. So you can apply with confidence.*Instant decisions are only available for consumer Card applications (also called “personal Cards”).
Scotiabank Momentum® Visa Infinite +* Card
The Scotiabank Momentum® Visa Infinite +* Card is a good cash back Visa option for people whose biggest spending categories include gas and groceries.
This card comes in with an annual fee of $120 (which is often waived), and a minimum income requirement of $60,000–80,000 individual or $100,000–150,000 household, making it accessible to many.
Earning and Redeeming
With the Scotiabank Momentum® Visa Infinite +* Card, you can enjoy the following elevated earning rates across key spending categories:
- Earn 4% cash back on groceries, recurring bill payments and eligible subscriptions (with an annual spend limit of $25,000)
- Earn 2% cash back on gas, EV charging, transit, taxis, rideshares, and food delivery (with an annual spend limit of $25,000)
- Earn 1% cash back on everything else
Your earned cash back can be redeemed at any time as long as you have the minimum redemption amount of $25 (though smaller amounts are allowed at the bank’s discretion).
Redemption requests are easily made through the Scotiabank app or website, and you can have your cash back deposited as a statement credit on your Momentum card or into your eligible Scotiabank chequing or savings account.
Card Benefits
The Scotiabank Momentum® Visa Infinite +* Card also gives cardholders a number of notable perks, including:
- Comprehensive travel insurance: Emergency medical insurance, trip cancellation/interruption insurance, flight delay insurance, delayed and lost baggage insurance, travel accident insurance
- Car rental collision loss/damage insurance
- Mobile device insurance, purchase protection, and extended warranty
- Save up to 10 cents per litre at Shell gas stations
- Complimentary 10 GB global data for up to 15 consecutive days through GigSky, plus further free data and discounts; Visa Infinite travel benefits; and discounts on Avis and Budget car rentals
Who’s the Card Best For?
The Scotiabank Momentum® Visa Infinite +* Card is a great card choice for someone who spends frequently on groceries and gas and would like the convenience of a Visa card.
Offering similar earning rates (though ever-so-slightly lower) to the SimplyCash® Preferred Card from American Express above, but with the wider acceptance of Visa, the Scotiabank Momentum® Visa Infinite +* Card is another great way to save on key expenses each month.
This card is also a solid choice for a traveller who’s looking to save on gas for their road trip, and on travel insurance, car rental insurance, and data for a trip abroad.
- Annual feeNo annual fee the first year
- $0 $120
- Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$300Annual fee rebated$120Total$420Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
- $420
- Welcome offerAfter $2,000 in 3 months
- Up to $300 Cash Back
- Ends Nov 1, 2026
Apply Now
on Scotiabank's website
BMO CashBack® World Elite®* Mastercard®*
The BMO CashBack® World Elite®* Mastercard®* is an excellent premium card, offering the highest cash back rates of this comparison.
The card has an annual fee of $139 and a minimum income requirement of $80,000 individual and $150,000, which is standard for World Elite Mastercards.
Earning and Redeeming
The BMO CashBack® World Elite®* Mastercard®* earns cash back in a tiered structure, with spending caps on the elevated categories:
- Earn 5% cash back on groceries (on the first $500 you spend per statement cycle)
- Earn 4% cash back on transit (on the first $300 you spend per statement cycle)
- Earn 3% cash back on gas and EV charging(on the first $300 you spend per statement cycle)
- Earn 2% cash back on recurring bill payments (on the first $500 you spend per statement cycle)
- Earn 1% cash back on all other purchases
Once you’re ready to cash in your rewards, you can request one-time cash back deposits of as little as $1, via the BMO app or website. You can also set up a recurring redemption of $25 or more that will be deposited monthly (if there’s sufficient cash back available) 2–5 business days after your statement cycle ends.
Cash back will be deposited into your eligible BMO chequing, savings, or InvestorLine account, or as a statement credit on your card.
Card Benefits
With the BMO CashBack® World Elite®* Mastercard®*, you can take advantage of the following perks:
- Discounts on car rentals with National, Alamo, and Enterprise, and a complimentary roadside assistance program
- Emergency medical insurance, flight delay insurance, baggage insurance, hotel burglary insurance, common carrier insurance, and rental car collision/loss damage insurance
- Complimentary Mastercard Travel Pass provided by DragonPass, giving you access to the network of 1,400 airport lounges (each visit costs around $32 USD per person)
- 6 months of Instacart+ for free, plus $10/month Instacart credit when you link your BMO credit card
- Purchase protection, extended warranty, and Mastercard Travel Rewards perks and benefits
Who’s the Card Best For?
The BMO CashBack® World Elite®* Mastercard®* is a solid choice if you want to enjoy high cash back earning rates and your monthly spending fits within the card’s capped amounts in each spending category.
The card also offers helpful travel perks like travel insurance coverage, discounts on car rentals, and airport benefits, which make it attractive to any traveller looking to save money and enjoy some extra comfort.
- Annual feeNo annual fee the first year
- $0 $139
- Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$480Annual fee rebated$139Total$619Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
- $619
- Welcome offerGet 40 points after $2,000 in purchases per month for 12 months
- Up to $480 cash back
Apply Now
on BMO's website
How Much Cash Back Can You Earn?
With so many categories and variants around earning rates, it can be difficult to sort out which card is REALLY best for you.
To help get a realistic sense of the cash back you could earn, let’s look at a couple of monthly spending examples to see what you might expect.
Example 1 – Family of Four
For this first example, let’s see how much cash back a family of four might earn each month, with groceries as their largest expense and lots of money being spent in the « all other purchases » category:
| Spending Category + Amount $ | Tangerine Money-Back Credit Card | SimplyCash® Preferred Card from American Express | Scotiabank Momentum® Visa Infinite +* Card | BMO CashBack® World Elite®* Mastercard®* |
|---|---|---|---|---|
| Groceries: $1,200 | 2% = $24 | 4% = $48 | 4% = $48 | 5%, then 1% after $500 = $32 |
| Gas: $400 | 2% = $8 | 4% = $16 | 2% = $8 | 3%, then 1% after $300 = $10 |
| Recurring bills: $400 | 2% = $8 | 2% = $8 | 4% = $16 | 2% = $8 |
| Dining out: $300 | 0.5% = $1.50 | 2% = $6 | 1% = $3 | 1% = $3 |
| All other purchases: $1,000 | 0.5% = $5 | 2% = $20 | 1% = $10 | 1% = $10 |
| Total monthly cash back | $46.50 | $98 | $85 | $63 |
| Annual cash back | $558 | $1,176 | $1,020 | $756 |
Example 2: Urban Couple
For this second example, let’s look at the potential cash back for a couple in the city with no car, who go out to restaurants/bars a few times a week:
| Spending Category + Amount $ | Tangerine Money-Back Credit Card | SimplyCash® Preferred Card from American Express | Scotiabank Momentum® Visa Infinite +* Card | BMO CashBack® World Elite®* Mastercard®* |
|---|---|---|---|---|
| Groceries: $700 | 2% = $14 | 4% = $28 | 4% = $28 | 5%, then 1% after $500 = $27 |
| Transit $300: | 0.5 = $1.50 | 2% = $6 | 2% = $6 | 4% = $12 |
| Recurring bills: $400 | 2% = $8 | 2% = $8 | $4% = $16 | 2% = $8 |
| Dining out: $900 | 2% = $18 | 2% = $18 | 1% = $9 | 1% = $9 |
| All other purchases: $500 | 0.5% = $2.50 | 2% = $10 | 1% = $5 | 1% = $5 |
| Total monthly cash back | $44 | $70 | $64 | $61 |
| Annual cash back | $528 | $840 | $768 | $732 |
Card Comparison
Now, to bring together much of what we’ve covered above, let’s compare key aspects of our 5 cash back card choices in one spot:
| category | Tangerine Money-Back Credit Card | SimplyCash® Preferred Card from American Express | Scotiabank Momentum® Visa Infinite +* Card | BMO CashBack® World Elite®* Mastercard®* |
|---|---|---|---|---|
| Annual fee | $0 | $119 (Quebec), and $9.99/month (rest of Canada) | $120* | $139* |
| Minimum income requirement | $12,000 individual | None | $60,000–80,000 individual or $100,000–$150,000 houshold | $80,000 individual or $150,000 household |
| Top earning rates | 2% | 4% | 4% | 5% |
| Caps on elevated categories? | No | Yes, on groceries | Yes, on all | Yes, on all |
| Redemption frequency/amount | Deposited automatically every month | Cash back distributed once a year | By request (min. $25) | Monthly (min. $25), or by request (min. $1) |
| Redemption option | Credit card statement or Tangerine Savings Account | Credit card statement | Credit card statement or eligible Scotiabank account | Credit card statement or Eligible BMO account |
| Best/unique perks | Extended warranty & purchase protection | Amex Front of the Line/Amex Offers | Save up to 10 cents per litre at Shell | Complimentary Mastercard Travel Pass via DragonPass |
*These annual fees are often waived as part of the welcome offers.
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $0 | |||
| $119.88 | |||
| $0 | |||
| $0 |
Bottom Line
Cash back credit cards are a great way to enjoy simple and straightforward rewards on all your day-to-day expenses.
By adding a cash back credit card to your wallet, you can enjoy guaranteed savings every time you make a purchase, keeping more of your hard-earned money in your pocket.
Right now, take advantage of an exceptional offer on the Scotia Momentum Visa Infinite +* Card: 15% cash back and a first year with no annual fee.
To learn more ways to save money on groceries, at the gas station, and on other regular expenses, check out our other guides and articles below.
To compare every option on the market, also check out our page of the best credit cards in Canada. And to receive our analyses every week, sign up for our newsletter.
FAQs
Who should use a cash back credit card?
Cash back credit cards are great for anyone who wants to save money on all their expenses without having to navigate a rewards program.
Cash back credit cards provide simple, straightforward earnings with a guaranteed redemption value.
How do I redeem my cash back?
Each credit card has its own way of redeeming its cash back. Some cards give you your cash back automatically each month or once a year, while others wait until you request that the money be released.
Additionally, some cards only let you use the cash back for statement credits, and others let you choose between this and depositing your earnings into an eligible bank account.
What’s the single best cash-back card in Canada for most households?
For households spending $30,000+ per year, the BMO CashBack World Elite Mastercard typically wins thanks to:
- 5% on groceries (cap: $500/month)
- 4% on transit (cap: $300/month)
- 3% on gas and EV charging (cap: $300/month)
- $139 annual fee, often waived first year + welcome offer up to $480
Lower-spending or fee-averse households should consider the Tangerine Money-Back Credit Card with 2% on two custom categories and no annual fee. The Scotiabank Momentum Visa Infinite + is the closest premium competitor at 4% groceries / 4% recurring bills with broader Visa acceptance.
Since October 2026, the Capital One Quicksilver cards add another no-fee option: uncapped 3% on groceries and gas, 1% everywhere else, no foreign transaction fees, and cash back matched in year one.
Are cash-back rewards taxable in Canada?
For personal use, cash-back rewards are not taxable in Canada. The CRA treats them as a discount on purchases rather than income. This applies whether the cash back is paid as a statement credit, deposit, or applied to an investment account.
Caveats:
- If a business earns cash back on a corporate card and uses it personally, it can become a taxable benefit
- Sign-up bonuses from referral programs (cash for referring friends) are taxable as miscellaneous income
- Cash back redeemed against business expenses generally reduces deductible expenses dollar-for-dollar
Consult a tax professional for borderline cases involving business cards or complex household structures.