How To Earn A Ton Of Credit Card Points By Paying Taxes With Plastiq

Yes, you can actually earn a stack of credit card points by paying your Canadian taxes. And no, it’s not a loophole. It works like this: You use a third-party payment processor like Plastiq, which charges a fee, but lets you pay bills (including government ones) with a credit card. You earn points. You build cashflow. And if you play your redemptions right, you come out ahead. This also works for Americans. Just swap the cards and providers - try Melio. (Bonus: US fees are often lower.)

The Math (Canada Edition)

Plastiq now lets you pay the CRA with a reduced fee of 2.49% (normally 2.9%). Let’s say you’re using an American Express Business Platinum Card in Canada. You earn 1.25 Membership Rewards points per dollar. You make a $10,000 tax payment through Plastiq.

• Plastiq fee = $249
• Points earned = 12,500

Now comes the question: is it worth it? If you cash those points out as statement credit or gift cards at 1 cent per point, you’re getting $125 in value. That’s a loss. But if you transfer to travel partners like Aeroplan, where values range from 2 to 4.5 cents per point, your 12,500 points could be worth $250 to $562.50. Net gain? Up to $313.50, plus 45 extra days of cash flow. Sometimes you can even get upwards of 10 cents per point with creative transferring & deals.

When This Makes Sense

• You have a premium card that earns well on Plastiq payments
• You know how to redeem points for high-value travel rewards
• You want to float a large payment and delay the cash hit

When It Doesn’t

• You redeem points poorly (gift cards, cashback)
• You carry a balance and get hit with interest
• You’re not tracking fees or redemptions closely

Bottom Line

Using a credit card to pay taxes in Canada through Plastiq isn’t a free lunch. But it can be a smart move — if you know how to squeeze the most out of your points. More points. More cash flow. More money for you 🙂