Does the CRA require me to report loyalty point sales?

The CRA has not issued specific guidance on reporting individual loyalty point sales from personal credit card rewards. For occasional personal sales, most tax professionals treat them similarly to selling personal property. However, if you sell points regularly or in large volumes, consult a tax professional about your specific situation.

Will I receive a T4A slip for selling my points?

No. Mega Miles Broker does not issue T4A slips for point purchases. We do not report individual transactions to the CRA. You are responsible for your own tax reporting based on your specific circumstances.

Do I need to charge HST when selling my loyalty points?

No. Individual Canadians selling personal loyalty points are not required to charge or collect HST/GST. This applies to occasional personal sales. If you were operating a points-selling business, different rules might apply.

How much can I sell before I need to worry about taxes?

There is no specific CRA threshold for loyalty point sales. The key factor is whether you are selling occasionally (personal property disposal) or regularly (business activity). For most Canadians selling accumulated points from personal spending, the amounts are modest and treated similarly to other personal property sales.

Are points earned from business credit cards treated differently?

Potentially yes. Points earned from business expenses may have different tax implications than personal rewards. If your business claimed the expense that generated the points, the sale proceeds could be considered business income. Consult your accountant for business-related point sales.

What records should I keep when selling loyalty points?

Keep records of: (1) your quote confirmation emails, (2) Interac e-Transfer payment receipts, (3) the number of points sold and rate per point, (4) credit card statements showing how points were earned, and (5) total annual sale amounts. These records help your tax professional assess your situation.

Tax Guide: Selling Loyalty Points in Canada (2026)

Does the CRA Tax Loyalty Point Sales?

This is the most common question we hear from sellers, and the honest answer is: it's a grey area. The Canada Revenue Agency has not published specific guidance on how individual Canadians should treat the sale of loyalty points earned from personal credit card spending.

Here's what we do know:

Points as rebates: The CRA generally views credit card reward points as a "rebate" or discount on purchases, not as income. When you earn points from personal spending, they reduce the effective cost of what you bought.
No specific legislation: Unlike the United States (where the IRS has issued guidance on frequent flyer miles in certain contexts), Canada has no specific tax legislation addressing loyalty point sales.
Personal property analogy: Selling accumulated personal points is analogous to selling other personal-use property (like a used item). The CRA does not typically tax the sale of personal-use property unless you make a profit above the original cost basis or operate as a business.

Since points are earned as "free" rebates (zero cost basis), the tax treatment of converting them to cash is genuinely unclear. Most tax professionals we have consulted treat occasional personal sales as non-taxable, but this is not guaranteed by CRA policy.

When Point Sales MAY Be Taxable

While occasional personal sales are generally low risk, there are situations where the CRA may consider your point sales as taxable income:

1. Business-Earned Points

If your points were earned through business expenses that were deducted from business income, the CRA may view the sale proceeds as business income. For example, if your company's credit card earned Aeroplan points on deductible travel expenses, selling those points could be considered a taxable benefit.

2. Employment Benefits

If your employer provides you with loyalty points as a benefit (e.g., a signing bonus in points), these may already be a taxable benefit under the Income Tax Act. Selling them adds another layer of potential tax implications.

3. Regular, High-Volume Sales

If you sell points frequently and in large volumes, the CRA could argue you are operating a business. The "adventure in the nature of trade" doctrine considers factors like frequency, volume, and commercial intent. Selling once or twice a year is very different from monthly sales.

4. Points Acquired Specifically to Resell

If you purchase points from a loyalty program (e.g., buying Marriott Bonvoy points during a sale) with the intent to resell them at a profit, this is more clearly a taxable commercial activity.

When Point Sales Are Likely NOT Taxable

For most Canadians who sell loyalty points, the following circumstances apply:

Occasional personal sales

You sell accumulated points once or twice, not as a regular activity.

Points from personal credit card spending

Your points were earned from everyday purchases (groceries, gas, dining) on personal credit cards.

Small amounts relative to income

The cash received is modest compared to your annual income.

No intent to profit

You are simply converting unused rewards to cash, not operating a points-trading business.

Points from personal flights or hotel stays

Aeroplan points from personal travel or Marriott points from personal hotel stays.

Program-Specific Tax Considerations

Program	Common Sources	Tax Consideration
Aeroplan	Air Canada flights, TD/CIBC credit cards, retail partners	Points from personal flights and personal card spending are generally treated as rebates. Points from business travel cards may differ.
Amex MR	Amex Platinum, Gold, Cobalt, Business cards	Personal card points are rebates. Business Platinum/Gold card points earned on deductible expenses may have business income implications.
Marriott Bonvoy	Hotel stays, Amex Bonvoy card, promotions	Points from personal hotel stays are rebates. Points from business travel on corporate accounts may be treated differently.

Record-Keeping Best Practices

Regardless of whether your point sales are ultimately taxable, good record-keeping protects you. If the CRA ever asks about your loyalty point income, having organized records makes the process straightforward.

Transaction Records

•Quote confirmation emails
•Interac e-Transfer receipts
•Number of points sold per transaction
•Rate per point received

Financial Records

•Total annual sales amount
•Bank statements showing deposits
•Credit card statements (how points were earned)
•Any business vs. personal allocation

Important: Mega Miles Broker does NOT issue T4A slips and does not report individual transactions to the CRA. You are solely responsible for reporting any income as required by your tax situation.

HST/GST Implications

Good news: individual Canadians selling personal loyalty points are not required to charge or collect HST/GST on the transaction. This applies to occasional personal sales.

If you are registered for GST/HST because you operate a business, and you sell points that were earned through that business, you should consult your accountant about whether GST/HST applies to the sale.

Canada vs. United States: Key Differences

If you have read US-based information about selling miles, be aware that Canadian tax rules differ significantly:

Factor	Canada	United States
Specific Guidance	No CRA-specific guidance on loyalty point sales	IRS has issued guidance in some contexts (e.g., bank bonuses)
Reporting Forms	No T4A issued by brokers	Some US brokers issue 1099 for large transactions
General Treatment	Personal points treated as rebates	Similar rebate treatment, but more IRS scrutiny

Practical Advice for Point Sellers

Keep it simple and occasional

Selling once or twice a year when you have accumulated a balance is very different from frequent trading. Keep your sales occasional.

Separate business and personal

If you have both business and personal credit cards earning points, keep clear records of which points came from where.

Consult a tax professional for large amounts

If you are selling more than $5,000 worth of points in a year, it is worth getting a professional opinion on your specific situation.

Save all documentation

Keep transaction confirmations, payment receipts, and credit card statements for at least 6 years (the CRA's standard record retention period).

Tax Guide: Selling Loyalty Points in Canada

Important Disclaimer

Key Takeaways