Best cash back credit cards in the US (2026): flat rate vs categories

Short answer: for spending spread across many shops, a flat-rate card is hard to beat. For a household that spends heavily at supermarkets or restaurants, a category card can earn more, even one with a fee, as long as your bonus spending is large enough to cover it. Two cards, one flat-rate and one category, usually beat any single card.

Every figure in the table below is read from our catalog. Rows we have not yet checked against the issuer are marked, and each card page links to the issuer's own document.

When a card with a fee beats a free one

Compare the extra you earn with the fee. Suppose a fee card pays 3 points more than your free card on one category:

Then check the cap. If the bonus stops at a yearly limit, spending above it earns the base rate, so the extra stops growing.

Rotating categories: worth the effort?

Some cards pay a high rate on categories that change each quarter, up to a cap, and only after you activate them. These reward people who like tracking. If you forget to activate, you earn the base rate for the quarter. A simple rule: only count a rotating card as a real earner if you already remember to do this sort of thing.

Build a simple two-card setup

1. Pick a flat-rate card for everything without a bonus.
2. Add one category card for your largest category.
3. Use the category card only for that category, and only up to its cap.

My cards does this routing for you: add your cards and rough spending, and it shows the best card for each category and what the setup earns in a year.

Cash back or points?

Cash back is simple and hard to devalue, since a dollar stays a dollar. Points can be worth more, but only if you actually use them on flights or hotels. If you have never transferred points to an airline, cash back is the honest choice.

Common questions

Is cash back taxable? In general, the IRS has treated purchase rewards as a rebate, not income. Sign-up bonuses that need no spending can be treated differently. Ask a tax adviser about your own situation.

How do I get paid? Most cards offer a statement credit or a deposit to a bank account, and some set a minimum. Some cards give cash back only as points that you convert, so read the redemption rules on the card page.

This guide explains how to compare cards. It is not financial advice. Card terms change, so confirm the current terms with the issuer before you apply.