Choose an Insurance Quote
2026's Best Cash Back Credit Cards for Canadians
Earn guaranteed cash back when you make everyday purchases with a cash back rewards credit card.
What is a cash back credit card?
A cash back credit card is a rewards credit card that allows you to earn a small percentage (usually around 1-4%) of your purchase back in cash, helping you save money on everyday purchases. Cash back rewards can be based on a flat-rate, bonus, or flexible bonus structure. Each structure has its own benefits.
Most cash back cards allow you redeem your cash reward as either a deposit into your bank account or a statement credit that reduces how much you owe on your credit card statement. Start saving money by finding the best cash back credit card today.
Best Credit Cards for 2026: Best Cash Back Credit Card
| First year value* | Credit score required | Winner | |
|---|---|---|---|
| $1,074 | Excellent | BMO CashBack® World Elite®* Mastercard®* | |
| $409 | Good | Tangerine Money-Back World Mastercard |
*The Rates.ca Best of Finance methodology assumes the cardholder spends an average of $2,000 a month on their card to determine the first-year value. The calculation includes all welcome bonuses and promotional offers at the time of publishing.
Best Overall Cash Back Credit Card
It’s all right there in the name. Cash back credit cards allow cardholders to earn a small percentage of each purchase back in rewards. We compared the top cash back credit cards using our Best of Finance methodology and ranked the cards that provided the highest first-year value.
To determine our winners, our team has analyzed 80 credit cards using more than 100 data points over several weeks.
| First year value* | Credit score required | Top features | |
|---|---|---|---|
WINNER | $1,074 | Excellent | Amongst the highest cash back earn rate on groceries in Canada at 5%. |
Runner up | $832 | Excellent | Generous cash back earns in key spending categories (4% on gas and groceries, 2% on recurring bills, transportation, and dining, 1% on everything else). Great base travel insurance. |
Runner up | $788 | Good | Earn 3% cash back in a variety of categories. |
Winner: BMO CashBack® World Elite®* Mastercard®*
When it comes to cash back credit cards, you can't go wrong with the BMO CashBack® World Elite®* Mastercard®*. In the first year, you can earn up to $650 in value, which includes $40 cash back each month in that first year. To top it off, you also won't have to pay your $139 annual fee.
.png)
Runners-up: Best Overall Cash Back Credit Card
2. CIBC Dividend® Visa Infinite*
3. TD Cash Back Visa Infinite* Card
.png)
Best No-Fee Cash Back Credit Card
Just because a card doesn’t charge an annual fee doesn’t mean it skimps on rewards. Many no-fee credit cards offer hundreds of dollars in cash back for making everyday purchases and feature additional benefits like shopping coverage or exclusive offers.
We compared the top no-fee cash back credit cards using our Best of Finance methodology and ranked the cards that provided the highest first-year value.
| First year value* | Credit score required | Top features | |
|---|---|---|---|
WINNER | $409 | Good | Earn 2% cash back on purchases in up to 3 categories. |
Runner up | $468 | Good | Earn 2% cash back on gas and grocery purchases. |
Runner up | $425 | Fair | Up to 4% cash back on eligible restaurant, bar, and coffee shop purchases. |
Winner: Tangerine Money-Back World Mastercard
If you're looking for a no-fee cash back credit card, your best option might just be the Tangerine Money-Back World Mastercard. Its flexibility allows you to choose which categories earn you the most cash back. In fact, you can earn 2% cash back on purchases in up to three categories. To top it off, the requirements for qualifying for this card are not stringent at all.
.png)
Runners-up: Best No-Fee Cash Back Credit Card
2. SimplyCash® Card from American Express
3. Simplii Financial™ Cash Back Visa* Card
What are the different types of cashback credit cards available?
Different cash back credit cards offer different perks. But generally, you can compare cash back credit cards in Canada that either have fees or don't.
The most important difference between the two is that cash back credit cards without an annual fee offer less cash back rewards than those with fees.
An example of this can be seen in some major bank credit card offerings. The Scotiabank Momentum Visa Infinite Card, for example, offers an introductory offer of up to $200, an annual fee of $120 (which is waived the first year), and a reward rate between 1% and 10%.
However, the HSBC Cash Rewards Card, without a fee, offers a lower reward rate between 0.5% and 1.5% and an introductory bonus of $100.
The choice is yours, but make sure you understand the nuances of rewards before deciding on which card is best for your spending needs.
Cash back credit cards rewards structure
Every cash back card has its own rewards structure. Here are the three different types of cash back rewards you’ll see when comparing cash back credit cards:
- Bonus cash back: Bonus cash back credit cards are the most popular cashback credit cards. They offer cash back bonuses on purchases that fall under certain categories such as groceries, gas, entertainment and bill payments. Typically, the cash back rate on purchases in these categories is much higher than the flat rate you might earn on other cards. This specialization makes bonus cash back cards excellent choices for individuals who know they spend predominantly in these everyday categories.
For example, the TD Cash Back Visa Infinite offers 3% back on gas, groceries and recurring bills, but only 1% on everything else. The Tangerine Money Back Card has no annual fee and offers 2% in up to three spending categories of your choice. - Flat-rate cash back: A flat-rate cash back credit card offers you a fixed cash back rate on every purchase. For example, an earn rate of 1.25% cash back on everything you buy. Cash back is usually applied as a statement credit every month or once per year on a specific date. It can also be deposited directly into a chequing or savings account. This is a good option for you if most of your purchases don’t tend to be focused around certain categories, such as groceries or if you aren’t sure of your monthly purchases.
- Flexible bonus cash back: A flexible bonus cash back credit card is customizable. It allows you to choose your cash back bonus category, helping you align your rewards with your spending habits. Your bonus categories can be just about anything – from groceries, hotels and entertainment to public parking.
A card like BMO’s Cashback World Elite Mastercard offers up to 5% cash back on purchases, free roadside assistance, 13 types of insurance and 10% cash back for the first three months, up to $2,600 in spend. But this type of card has a high-income threshold – between $80,000 personal or $150,000 household – and has low monthly spending caps on bonus categories. - Category cash back: This type of card rewards the user for shopping in specific spending categories, like gas or groceries, at an accelerated rate. For example, 4% cash back for some purchases and 1% back on everything else. Shoppers who routinely purchase items in privileged categories can maximize their rewards with a category card.
Frequently asked questions about cash back credit cards
Got more questions about cash back credit cards? We got you covered.
What are the benefits of a cash back rewards credit card?
Using a cash back credit card allows you to earn a percentage of your money back when you make your purchases, meaning you don’t have to change any of your spending habits to start earning credit card rewards. Cash back rewards are just as good as cash because the cash back credit is instantly applied to your credit card statement. You have the flexibility of using your cash back rewards for anything you want.
Cash back cards do have their potential cons. Like most rewards credit cards, cash back credit cards may also come with a higher annual fee averaging $100-$120, so make sure that the cash back rewards structure helps you earn the maximum rewards on your day-to-day purchases (and offsets the annual fee). Also, many cash rewards programs have an annual maximum limit, meaning your cash back rewards will be capped at a certain amount.
How does a cash back credit card work?
Cash back credit cards usually work on a percentage formula. For example, if your cash back credit card promises you 3% instant cash back on grocery purchases, and you decide to purchase $500 worth of groceries with your card, you will earn $15 back into your credit account. This means you save 3% from your total amount spent.
If the same card promises you a bonus cash back of 5% on entertainment purchases and you purchase movie tickets for $200, you’ll receive an instant cash back of $10.
How can I redeem my cash back rewards?
When it comes to redeeming your cash back rewards, most credit card providers pay you the cash back in the form of a credit on your monthly statement. If you hold a bank account with the same credit card provider, you can also receive cash back deposits into your chequing account. The frequency of your cash back rewards payments depend on your credit card provider and the card itself. Some credit card providers allow you to redeem your cash back credit at intervals such as monthly, quarterly or annually, while others may set up an automatic redemption whenever you reach a certain balance, or even allow you to redeem whenever you choose.
Your credit card lender may also give you the option of receiving a cheque with your total cashback credit at the end of the calendar year.
Which is better – an annual fee cash back credit card or a no-fee cash back credit card?
It’s difficult to say which is better. If you are someone on a tight budget or a fixed income, you might appreciate the card that offers no fees but still allows you to earn some rewards on your purchases.
If, however, you are not as financially constrained and you frequent certain stores or categories of shopping, you might want to consider the cards with fees that offer greater rewards. It’s really a personal decision that can be helped by comparing cards and rewards options on sites like Rates.ca.
Rates.ca may receive compensation when you click on links to those products or services. however, our content and calculations are objective and free from bias. The opinions expressed are purely those of Rates.ca; thus, partners are not responsible for any editorials or reviews that may appear. For current term and conditions on any advertiser or partner’s product, please visit their website.
Best credit cards in other categories
- All the Best Credit Cards in Canada
- Best No-Fee Travel Credit Card
- Best Overall Travel Credit Card
- Best Low Interest Credit Card
- Best Balance Transfer Credit Card
- Best Secured Credit Card for Building Credit
- Best Credit Card for Young Professionals
- Best Student Credit Card
- Best Credit Card for Earning Travel Points
- Best Credit Card With No Foreign Transaction Fees
- Best Family Credit Card for Gas and Groceries
- Best Credit Card for Subscriptions
Latest Credit Card Articles:
Services like Plastiq and Rentmoola allow you to pay bills – and even rent – with your credit card. But should you? We break down the pros and cons of paying for more with your plastic.
With the loonie so low, is it a good idea to open a U.S. dollar bank account? Depending on your needs, it could save you on exchange fees. You also won’t have to ever worry about converting funds…
Grocery prices are going up 4-6% in 2026. Learn the best credit cards for grocery store purchases and rewards to make your money count.
Closing a credit card may feel like the right thing to do, especially if you find yourself overspending. But before getting out the scissors, understand the risks, and follow the right steps to make a clean cut.
If you're overwhelmed by your credit card debt, consider switching to a balance transfer card. This credit card can let you roll over all your existing balances into one card, while paying significantly less interest. However, like any credit card, this one doesn't come without risks.
Before you purchase optional insurance for your rental car, check your credit card, as it may already offer coverage for rental cars. Here are our picks for the best credit cards for rental car insurance in Canada.
