Scotiabank will stop giving 4% back on rent and tax payments on four Scotia Momentum cards starting October 22, 2026. Until then, those payments still earn the boosted recurring bill rate. If you pay rent or taxes on one of these cards, this is your last week to do it at 4%, and after that the math on paying taxes by card gets much worse.
What exactly is changing on Scotia Momentum cards?
Rent and tax payments will no longer earn the accelerated recurring bill rate on four Scotia Momentum cards. That is the 4% rate. The change starts October 22, 2026.
The report from Prince of Travel is about rent and taxes. It does not say the whole recurring bill category goes away. So other recurring bills may still earn the higher rate. Your tax payment and your rent will not.
If you are not sure which Momentum card you hold, check your card and your Scotiabank account before Thursday. It takes two minutes.
Why does 4% on taxes matter so much?
Because taxes are often the biggest bill a business owner pays all year, and 4% on a big number is real money.
Here is the simple math. At 4%, every $10,000 you pay earns $400 back. Most cards pay far less than that on everyday spending. Getting 4% on a bill you have to pay anyway is rare, and that is what made these cards worth holding for a lot of people.
There is a catch you probably already know. The Canada Revenue Agency does not take credit cards directly, so paying by card usually goes through an outside payment service that charges a fee. With a 4% rate, a fee in the low single digits still left you ahead. Without the 4% rate, most cards will not earn enough to cover that fee.
Honestly, this is a devaluation. It will not ruin anyone's year. But it takes away one of the few clean wins for Canadians who put big bills on a card.
Should you pay your taxes or rent early before October 22?
Yes, if you have a bill coming due soon and the cash to cover it. No, if it means carrying a balance.
A few things to keep in mind:
- Leave time for the payment to post. Do not wait until the last hour. Pay a day or two early so the charge lands before the change.
- Only pay what you owe. Paying a tax installment you already owe is smart. Overpaying the government just to earn 4% ties up your cash.
- Pay the card off in full. Card interest is far higher than 4%. One month of interest wipes out the reward.
- Ask before paying rent early. Some landlords accept early rent, some do not. Check first.
If none of this applies to you this week, do nothing. There is no reason to force a payment just to beat a deadline.
What should you use for tax payments after this?
Run the numbers every time. Compare the payment service fee to what your card earns on that payment. If the fee is bigger, pay another way.
In our view, once this change kicks in, paying taxes by card stops making sense for most people. The big exception is a new card with a welcome bonus. A tax bill can help you hit the minimum spend, and a large bonus can easily be worth more than the fee. If you collect points for travel, a bonus like that can go a lot further than a few percent back.
The bigger lesson: card perks change. The best rates on big bills tend to get cut once enough people use them. Use them while they last, and do not build your whole plan around one.
If you run a business, your spending is already earning something. You can see what your spending buys in business class trips, and decide which card should carry your biggest bills.