The Executive 2% reward, explained

The reward is the whole reason to pay for Executive. Here's how it works, in plain English.

Based on Costco's U.S. terms, last checked October 18, 2026.

The short version

• Executive costs $130 a year, $65 more than Gold Star.
• You get 2% back on qualifying purchases, up to $1,250 a year.
• It pays for itself once you spend about $3,250 a year ($271 a month) on purchases that earn it.
• The reward comes once a year, two to three months before your renewal date.

What earns the reward

Costco says the reward applies to qualifying purchases at its warehouses, on Costco.com and through Costco Travel.

In the U.S., Costco's list of purchases that don't earn it:

• Gas from Costco gas stations (find one near you), and tobacco
• Costco Shop Cards and gift memberships; membership fees
• Food court purchases
• Cell phones, accessories and service contracts sold through third parties
• Fees: tire balance and installation, tire disposal, battery and oil disposal, bottle deposits, Costco.com shipping, home delivery and installation charges, and misc. taxes and fees
• Services: Costco Services, auto purchasing (the Auto Program), optical exams and third-party insurance payments
• Alcohol in 24 states, including California, Texas, Michigan, Ohio and Massachusetts
• Prescriptions in some states, including Arkansas, New Jersey and New York; elsewhere, pharmacy purchases usually count, but only the part you pay after insurance
• Stamps, charity donations at the register, and websites not hosted by Costco.com (including the online Costco Photo Center)

Purchases in Canada and Puerto Rico count; purchases in other countries, such as Mexico, the U.K. and Japan, don't. The list changes, so check Costco's Executive membership terms before you count on a purchase.

Two rules catch people out:

• Only purchases after you upgrade count. Spending earlier in your membership year doesn't earn anything.
• Returned items lose their reward. If you return something, the reward it earned is taken back.

The $1,250 cap

The reward stops growing at $1,250 a year. At 2%, you reach that after $62,500 of qualifying spending. Above that, extra spending earns nothing more from the membership.

When you get it

Costco mails the reward once a year as a paper certificate with your renewal statement, two to three months before your membership renews. (Costco's own pages say about two, two and a half and three months in different places.) It covers purchases up to the day it's issued; the next year's reward starts adding up after that.

Didn't get it, or can't use it?

• It never arrived: the certificate goes to the Primary Member. If it doesn't come, the Primary Member or Account Administrator can call Member Services at 1-800-774-2678 (hours) or ask at any warehouse membership counter.
• Does it expire? The date in the corner is the date it was issued, and Costco says it isn't an expiration date. But you have to be an active member to use it, so a lapsed membership means you can't redeem it.
• Where to use it: at a warehouse register with a cashier, not at self-checkout. You can also use it to pay for your renewal, at a register or the membership counter.
• Want to spend it online? Buy a Costco Shop Card with it at the warehouse; Shop Cards work on Costco.com.
• Can't get to a warehouse? Costco converts the reward to a Shop Card by mail only if you're incapacitated or have moved away from a Costco, military moves included. It takes about 7 to 10 days.
• Tiny rewards: amounts under $1 aren't issued.

Is the reward guaranteed to cover the fee?

No. Costco's terms say the reward isn't guaranteed to equal or exceed the upgrade fee. If you spend less than about $271 a month on qualifying purchases, your reward will be smaller than the extra $65 you paid.

What happens if you downgrade or cancel

You can get the upgrade fee back by downgrading to Gold Star or Business, or by cancelling. But any reward already issued or earned is subtracted from that refund. In practice:

• If you've earned less than $65, you get back the difference.
• If you've earned $65 or more, you get nothing back, and the reward is forfeited.

Our downgrade calculator works out which choice leaves you better off.

Worked examples

Try your own number in the Executive calculator.

Common questions

Do Instacart or Costco Same-Day orders earn the 2% reward?

Yes. Costco's Same-Day Delivery FAQ says Same-Day orders count toward the Executive reward, worked out on the warehouse price before Instacart's markup, and earn 2% cash back on the Costco Anywhere Visa too. CostcoGrocery 2-Day orders count as well.

Price still matters: Same-Day item prices are higher than your local warehouse to cover Instacart's fees, and the 2% is paid on the lower warehouse price. See Costco delivery options and fees.

Does gas earn the 2% reward?

No. In the U.S., Costco excludes gasoline from the reward, along with tobacco, Shop Cards, the food court, membership fees and a list of fees and services; see the full list above.

When does the Costco Executive reward come?

Two to three months before your membership renews, mailed with your renewal statement. Enter your renewal date above to see the window.

Can I get my Executive reward early?

No. Costco says the reward can't be issued early.

Do my household member's purchases count?

Only the Primary Member and the active Primary Household Cardholder on the account. Purchases by anyone else, such as affiliate cardholders, don't count.

Is there an "Executive Plus" or secret higher membership?

Not in Costco's published U.S. memberships, which are Gold Star, Business and Executive. Posts about secret tiers circulate in fan groups, but Costco's membership page doesn't list any.

Sources

• Costco: Executive 2% reward
• Costco customer service: What is an Executive Membership?
• Costco customer service: Executive 2% Reward FAQs (timing, redeeming, missing certificates, checked October 20, 2026)