The best no annual fee credit card in Canada for most everyday spending is the Tangerine Money-Back Credit Card, because it pays 2% in categories you choose at a $0 annual fee. This guide compares it with the Rogers Red Mastercard, the CIBC Dividend Visa, the PC Financial Mastercard cards and the Wealthsimple credit card, so you can decide whether a no-fee card or a paid card fits your spending. It is general education, not financial advice.
No annual fee credit cards in Canada at a glance
| Card | Annual fee | Cash back or points |
|---|---|---|
| Tangerine Money-Back Credit Card | $0 | 2% in two categories you choose (three if rewards go to a Tangerine Savings Account) and 0.5% on everything else |
| Rogers Red Mastercard | no annual fee; approval subject to credit assessment (no minimum income listed) | 2% on all eligible purchases with an eligible Rogers service; without one, 2% on U.S.-dollar purchases and 1% on everything else — on the first $16,000 a year, then 1% |
| CIBC Dividend Visa | $0 | 2% cash back on eligible groceries; 1% on eligible gas, EV charging, transportation, dining, recurring payments and CIBC by Expedia travel |
| PC Mastercard | No annual fee | no annual fee, 10 PC Optimum points per $1 and 25 points per $1 at Shoppers Drug Mart |
| PC World Elite Mastercard | No annual fee | no annual fee and 30 PC Optimum points per $1 on groceries at participating stores (45 points per $1 at Shoppers Drug Mart) |
| Wealthsimple Visa Infinite+ (paid unless waived) | $240 a year ($20/month), waived with $100,000+ in individual assets or $4,000+/month direct deposit | 2% on every purchase |
Sources: each issuer’s card page. YieldMaple re-checked Tangerine, PC Financial, Wealthsimple and the CIBC Dividend Visa Infinite fee on October 7, 2026; the other Rogers Bank and CIBC figures were checked in late September 2026.
Which no annual fee credit card earns the most?
The Tangerine Money-Back Credit Card earns the most for typical Canadian spending, because its 2% rate applies to categories you pick and Tangerine calls those rewards unlimited. The card pays 2% in two categories you choose (three if rewards go to a Tangerine Savings Account) and 0.5% on everything else. The category list covers grocery, restaurants, gas, entertainment, furniture, hotel-motel, drug store, recurring bill payments, home improvement, public transportation and parking, e-games, fitness and sports clubs, and foreign currency spend, and you can switch categories every 90 days.
A worked example shows the scale. Someone who puts $1,000 a month into two 2% categories and $500 a month on everything else would earn about $270 a year in cash back, with no annual fee to subtract.
Two other no-fee cards can beat Tangerine on specific spending:
- Groceries at Loblaw-owned stores: the PC World Elite Mastercard offers no annual fee and 30 PC Optimum points per $1 on groceries at participating stores (45 points per $1 at Shoppers Drug Mart), but it needs a minimum annual income of $80,000 personal or $150,000 household. The entry PC Mastercard has no annual fee, 10 PC Optimum points per $1 and 25 points per $1 at Shoppers Drug Mart. Points are only useful if you redeem them in the PC Optimum program.
- Groceries anywhere: the CIBC Dividend Visa pays 2% cash back on eligible groceries; 1% on eligible gas, EV charging, transportation, dining, recurring payments and CIBC by Expedia travel at a $0 fee, and CIBC asks for $15,000 household.
For a wider comparison of cash back cards, including paid ones, see the best cash back credit cards in Canada.
Is a no-fee card better than a card with an annual fee?
A no-fee card comes out ahead until your spending in a paid card’s bonus categories is high enough for the extra rewards to cover the fee. The CIBC Dividend Visa Infinite shows the math: it costs $120 (first year rebated under the current offer); $50 for each of up to 3 additional cards and pays 4% cash back on eligible gas, EV charging and groceries; 2% on eligible transportation, dining, recurring payments and CIBC by Expedia travel.
Against Tangerine’s 2% on the same categories, the Dividend Visa Infinite earns 2 extra percentage points. Covering a $120 fee at that difference takes about $6,000 a year of spending on gas, EV charging and groceries. Below that level the no-fee card earns more after the fee; above it, the paid card pulls ahead, and the paid card’s first-year fee rebate helps in year one only. CIBC’s Visa Infinite cards also ask for a minimum income of $60,000 individual or $100,000 household.
Which no-fee credit card works for U.S. dollar purchases?
No card on this list turns U.S.-dollar spending into a gain, because the foreign currency fee is larger than the cash back. The Rogers Red Mastercard pays 2% on U.S.-dollar purchases for people without an eligible Rogers service, but charges 2.5% (0% only on the Rogers Red World Legend Mastercard). On a $1,000 U.S.-dollar purchase (in Canadian-dollar terms), that works out to about a $5 net cost. Tangerine charges 2.5% on foreign currency purchases, so the same purchase costs about $20 net at the base rate, or the same small net cost as Rogers Red if foreign currency spend is one of your 2% categories.
The Home Trust Preferred Visa takes a different approach: it has no annual fee, no foreign exchange fees and 1% cash back, but it pays none — foreign transactions, including online purchases in foreign currencies, don't earn cash back. For frequent travel spending, the best travel credit cards in Canada compares cards built around foreign purchases.
Is the Wealthsimple credit card a no-fee card?
The Wealthsimple credit card is a paid card with a fee waiver, not a no-fee card. The Wealthsimple Visa Infinite+ costs $240 a year ($20/month), waived with $100,000+ in individual assets or $4,000+/month direct deposit, and by plan the fee is $20/month on Core (waivable with a $4,000+ monthly direct deposit); $0 on Premium and Generation.
For clients who meet the waiver, it pays 2% on every purchase with 0% foreign transaction fees, which is more than any card above on U.S.-dollar spending. It needs a personal income of at least $80,000 or household income of at least $150,000. Earlier versions of this guide described a lower monthly fee and a smaller waiver threshold; those terms no longer match Wealthsimple’s card page.
Who each no-fee card suits
- Tangerine Money-Back suits people whose spending is concentrated in two or three categories, such as groceries, gas and recurring bills. The Tangerine Money-Back review covers the card in detail.
- Rogers Red Mastercard suits Rogers customers, since an eligible Rogers service lifts the rate to 2% on all eligible purchases with an eligible Rogers service up to the $16,000 annual cap.
- CIBC Dividend Visa suits grocery-heavy budgets at stores outside the PC Optimum program.
- PC Mastercard cards suit people who already shop at Loblaw-owned stores and Shoppers Drug Mart.
- KOHO is a prepaid card, not a credit card: KOHO offers instant approval with no credit check, and a prepaid card doesn't build credit on its own.
No-fee cards still charge interest: Tangerine’s purchase rate is 20.95%, so cash back only adds up when the balance is paid in full. If you have no Canadian credit history yet, the guide to credit cards for newcomers with no credit history covers secured and newcomer cards.