Costco quietly rolled out several valuable perks for Executive members in early 2026, and if you're serious about maximizing rewards, these changes deserve your attention. The warehouse club increased the cash back cap, boosted credit card gas rewards to 5%, and added exclusive shopping hours—all moves that could significantly impact your points and miles strategy.

Key Points

• Costco raised the annual 2% Executive cash back reward cap from $1,000 to $1,250, potentially worth an extra $250 in annual rewards for high-volume shoppers.
• The Costco Anywhere Visa now earns 5% cash back on gas purchases at Costco (up from 4%), making it one of the strongest gas rewards cards available.
• Executive members gained exclusive early shopping hours and a $10 monthly Instacart credit, improving the overall value proposition of the $130 annual membership.

Introduction

If you've been paying attention to credit card rewards and membership programs, you know that every percentage point matters. Costco's recent Executive membership upgrades represent one of the most significant value increases we've seen from a major retailer in 2026—and for points enthusiasts, these changes could reshape how you think about everyday spending categories.

The timing is particularly interesting. While many premium credit cards have been cutting benefits or raising annual fees, Costco is moving in the opposite direction. They're adding value to a membership that already penciled out favorably for most households spending $3,250 or more annually at their warehouses.

Let's break down what changed, who benefits most, and how these updates fit into a comprehensive rewards strategy.

What Actually Changed for Executive Members

Increased Cash Back Cap: $1,000 to $1,250

The most straightforward change is the raised ceiling on Executive member rewards. Previously capped at $1,000 annually, the 2% cash back reward now maxes out at $1,250.

This means you'd need to spend $62,500 at Costco in a year to hit the new cap (versus $50,000 for the old limit). For context, that's roughly $5,208 per month in Costco purchases—a level that most households won't reach, but high-spending families definitely can.

Who this helps: Families with significant grocery, household goods, and gas spending. Business owners using Costco for supplies. Anyone who's previously hit the $1,000 cap and felt frustrated leaving money on the table.

What it's worth: An extra $250 in annual rewards if you can max it out. That alone nearly covers the $65 upgrade cost from Gold Star to Executive membership.

The Big One: 5% Gas Cash Back at Costco

This is the change that should get points enthusiasts most excited. The Costco Anywhere Visa Card by Citi now earns 5% cash back on gas purchases at Costco stations, up from the previous 4%.

That one percentage point increase might not sound like much, but let's look at the math. If you fill up weekly with $50 in gas, that's $2,600 annually. At 5%, you're earning $130 back. At the old 4% rate, that was $104—so you're gaining an extra $26 per year just from this change.

For reference, the card still earns:

• 5% back on gas at Costco (NEW)
• 4% back on other eligible gas stations and EV charging
• 3% back on restaurants and eligible travel
• 2% back at Costco and Costco.com
• 1% back on everything else

The annual cap remains at $7,000 in eligible gas spending (across both Costco and other stations), which translates to a maximum of $330 in gas rewards annually.

Why this matters for points people: Gas is one of those unavoidable monthly expenses. A guaranteed 5% return, paid in cash that you can use however you want, competes favorably with many transferable points programs when you factor in redemption complexity and value variability.

Compare this to earning Chase Ultimate Rewards on gas (typically 1-3x points depending on your card) where you then need to transfer to partners and find award availability to maximize value. The Costco Visa's 5% is simple, guaranteed value.

Exclusive Shopping Hours for Executive Members

Starting in late 2025 and continuing into 2026, Costco added an extra hour of shopping time most mornings exclusively for Executive members. The exact hours vary by location, but most warehouses open one hour early for these top-tier members.

According to Costco's Q1 2026 earnings call, these early hours have already driven measurable sales increases. As of November 2025, Executive cardholders represented 48.8% of global paying members but accounted for 74.3% of net sales—a disparity that exclusive shopping access likely widens.

The practical benefit: Shorter checkout lines, better availability on popular items, and a more pleasant shopping experience. If you've ever fought weekend Costco crowds, you understand the appeal immediately.

For points maximizers: Better inventory access means you're less likely to miss out on high-value deals that could amplify your rewards strategy. Those $100 gift card deals at a discount? You'll actually be able to grab them.

$10 Monthly Instacart Credit

Executive members now receive a $10 monthly credit toward Instacart same-day deliveries of $150 or more. This benefit launched in mid-2025 and provides up to $120 in annual value if you use it every month.

The catch: You need to place qualifying orders (minimum $150, same-day delivery) to use each month's credit. The credits don't roll over, so it's use-it-or-lose-it.

Strategic value: If you're already using Instacart for Costco deliveries, this effectively reduces your membership cost. If you weren't using delivery before, the question becomes whether the convenience is worth building a monthly habit around a $150 minimum order.

For manufactured spending practitioners, this could theoretically support certain strategies if you're buying gift cards or other qualifying items for MS purposes, though you'd need to factor in delivery fees and tips.

Does the Math Work? Breaking Down Executive Membership Value

The Executive membership costs $130 annually—a $65 premium over the basic Gold Star membership. Let's calculate whether these new perks justify the upgrade.

Scenario 1: Moderate Costco User

Annual Costco spending: $6,000Executive 2% reward: $120Gas purchases at Costco (5% back): $2,000 = $100Instacart credits used: 6 months = $60Early shopping hours value: Subjective, but let's say $20 in time saved and better deals

Total annual value: $300Net benefit after $130 fee: $170 positive

Scenario 2: Heavy Costco User

Annual Costco spending: $15,000Executive 2% reward: $300Gas purchases at Costco (5% back): $4,000 = $200Instacart credits used: 12 months = $120Early shopping hours value: $50 in better deal access

Total annual value: $670Net benefit after $130 fee: $540 positive

Scenario 3: Points Maximizer with Strategic Spending

Annual Costco spending: $10,000Executive 2% reward: $200Gas purchases at Costco (5% back): $3,500 = $175Instacart credits used: 9 months = $90Early shopping hours value: $100 (access to discounted gift cards for MS)

Total annual value: $565Net benefit after $130 fee: $435 positive

The pattern is clear: if you're spending more than $3,250 annually at Costco, the Executive membership pays for itself through the 2% reward alone ($3,250 × 2% = $65). Everything else—the enhanced gas rewards, Instacart credits, and early shopping hours—is bonus value.

How This Fits Into Your Broader Rewards Strategy

As someone who writes about points and miles, I need to address the elephant in the room: cash back isn't as sexy as transferable points.

The Chase Sapphire Preferred earns 3x points on dining. The American Express Gold Card earns 4x points at U.S. supermarkets and restaurants. These programs offer the potential for outsized redemption value when you transfer to airline and hotel partners.

But here's the thing: the Costco Anywhere Visa's 5% back on gas is guaranteed value. You don't need to:

• Navigate transfer partners
• Find award availability
• Deal with devaluations
• Meet minimum redemption thresholds
• Track expiration dates

That 5% comes back as cold, hard cash that Costco pays out annually. For a category like gas—which you're buying anyway and which offers limited opportunities for premium credit card bonus categories—this is hard to beat.

The Complementary Card Strategy

Smart rewards maximizers don't use a single card for everything. The optimal approach is building a card portfolio where each card dominates specific spending categories.

Here's how the Costco Anywhere Visa fits into a well-structured rewards portfolio:

Costco Anywhere Visa:

• Gas at Costco (5%)
• All Costco purchases (2%)
• Restaurants (3%)
• Travel (3%)

Chase Sapphire Preferred or Reserve:

• All other travel (3-5x points)
• Dining when you want Ultimate Rewards instead of cash (2-3x points)

Category bonus card (Amex Gold, Citi Custom Cash, etc.):

• Groceries outside Costco
• Other specific categories where you can earn 4x+ points

Flat-rate card (Citi Double Cash, Capital One Venture):

• Everything else

This approach maximizes returns across all spending without leaving easy value on the table.

What About the Business Version?

For business owners, the Costco Anywhere Visa Business Card is worth considering alongside a personal card, especially given that you can have both.

The business version offers the same enhanced gas rewards (5% at Costco, 4% elsewhere) but with some key differences:

Business card advantages:

• Keeps business and personal spending separated for accounting
• Same rewards structure as the personal version
• Allows businesses to take advantage of Costco's bulk pricing while maximizing cash back

Business card considerations:

• Still requires a Costco Business membership
• Rewards are paid annually via certificate (same as personal version)
• Subject to the same $7,000 annual gas spending cap

If you run a business that involves significant driving or delivery (real estate agents, contractors, service providers), the combination of Executive membership perks and 5% back on business gas spending can deliver substantial value.

The Hidden Benefit: Forcing Consolidated Spending

One underrated aspect of the Executive membership upgrades is how they incentivize spending consolidation—and for rewards maximizers, that's actually valuable.

When you know you're earning 2% back on Costco purchases PLUS whatever your credit card earns (2-5% depending on category), you're motivated to shift more spending to Costco. This creates a virtuous cycle:

1. You buy more at Costco to maximize Executive rewards
2. You hit higher reward tiers on the Costco Visa
3. Your overall rewards earnings increase
4. You justify the membership fee multiple times over

This is exactly how annual fees can make sense—when they drive behavior that generates more value than the fee costs.

What Costco Didn't Change (But Maybe Should Have)

While these Executive membership updates are positive, there are some areas where Costco could have gone further:

No change to reward redemption: You still receive your Executive rewards and Costco Visa cash back once annually via certificate. Some competitors offer more flexible redemption options.

Gas cap unchanged: The $7,000 annual limit on eligible gas spending for the 5% reward hasn't increased. Heavy drivers will still hit this cap.

No grocery category bonus: Unlike cards like the Amex Gold (4x points at U.S. supermarkets), the Costco Visa earns just 2% on grocery purchases at Costco. Given that groceries are a primary reason people shop at Costco, a higher rate here would be compelling.

Business membership parity: Business Executive members receive the same 2% reward, but some competitors offer higher rates for business spending. There's room for Costco to differentiate here.

Comparison to Competing Warehouse Clubs

How do these Executive membership benefits compare to Sam's Club and BJ's Wholesale?

Sam's Club Plus Membership ($110/year)

• 2% cash back (same as Costco Executive)
• $10 annual reward cap (much lower than Costco's $1,250)
• Free shipping on most online orders
• Early shopping hours (similar to Costco's new perk)
• Free select prescriptions

Verdict: Costco's higher cash back cap and enhanced credit card gas rewards give it an edge for high spenders.

BJ's Club+ Membership ($110/year)

• 2% cash back on most purchases (BJ's credit card)
• 5% back on gas at BJ's (competitive with Costco's new rate)
• 2% back in-club and 10% back on BJ's brand

Verdict: The gas rewards are competitive, but Costco's higher-quality product selection and the combination of Executive + Visa rewards still provide superior value for most shoppers.

Costco's integrated approach—where the membership rewards stack with credit card benefits—creates a more lucrative overall package than competitors' separate programs.

Is Now the Time to Upgrade to Executive?

If you've been on the fence about Executive membership, the 2026 enhancements make the decision clearer:

Upgrade if:

• You spend $3,250+ annually at Costco (rewards break even on membership fee)
• You buy significant gas at Costco stations
• You value avoiding crowds and want early shopping access
• You already use or would use Instacart for Costco delivery
• You're hitting or approaching the old $1,000 cash back cap

Stick with Gold Star if:

• Your annual Costco spending is under $2,500
• You rarely buy gas at Costco
• You have no interest in Instacart delivery
• You prefer shopping during regular hours

Consider downgrading from Executive if:

• Your shopping patterns have changed and you're spending significantly less
• You're not using the exclusive hours or Instacart credits
• You're earning less than $65 annually in Executive rewards (meaning you're spending less than $3,250)

Remember that Costco offers a satisfaction guarantee on memberships. If you upgrade to Executive and don't feel like you're getting value, you can downgrade and receive a prorated refund.

Looking Ahead: Future Enhancements?

Based on Costco's Q1 2026 earnings calls and management commentary, the company is clearly focused on enhancing Executive membership value. What might come next?

Possible future additions:

• Prescription drug price transparency through the Navitus partnership (already announced for 2026)
• Enhanced checkout technology to reduce wait times
• App improvements for password-less sign-in and easier digital shopping
• Potential additional category bonuses on the Costco Visa
• More exclusive member-only events or product launches

The pattern is clear: Costco is investing in its highest-tier members because that's where the profit concentration lives. With 74.3% of sales coming from the 48.8% of members who are Executive cardholders, expect continued focus on this segment.

Maximizing Your Costco Executive Membership

If you decide the upgraded Executive membership makes sense for your situation, here's how to extract maximum value:

1. Get the Costco Anywhere Visa

The membership and credit card work together. Don't leave the enhanced gas rewards on the table—you need the Costco Anywhere Visa to earn that 5% back at Costco gas stations.

2. Consolidate Eligible Spending

Buy everything you can at Costco to maximize that 2% Executive reward. Household goods, groceries, electronics, appliances—if the price is competitive and you'd buy it anyway, get it at Costco.

3. Use the Early Hours Strategically

Plan major shopping trips during Executive member hours. You'll have better access to limited-quantity deals, shorter checkout lines, and a more pleasant experience.

4. Set Instacart Reminders

If the $10 monthly credit makes sense for your household, set a reminder to use it before each month expires. At $120 annually, that's meaningful value to leave on the table.

5. Monitor Your Rewards Progress

Check your year-to-date Executive rewards accumulation. If you're approaching the $1,250 cap, you might adjust your strategy. If you're falling well short of the upgrade break-even point, consider whether you should downgrade.

6. Stack with Other Strategies

The Executive membership works alongside other points and miles strategies. You can still use manufactured spending techniques where appropriate, maximize category bonuses on other cards, and pursue valuable welcome bonuses on premium travel cards.

The Bottom Line

Costco's 2026 Executive membership enhancements represent genuine added value for the warehouse club's most loyal customers. The increased cash back cap, boosted gas rewards, exclusive shopping hours, and Instacart credits combine to create a compelling value proposition—especially for households that were already spending significantly at Costco.

For points and miles enthusiasts specifically, these changes highlight an important principle: cash back isn't always inferior to transferable points. When the return is high enough (5% on gas), guaranteed (no redemption uncertainty), and frictionless (annual certificate you can spend like cash), it deserves a place in your rewards strategy.

The key is understanding where each type of reward fits best. Use transferable points for high-value travel redemptions where you can extract 2+ cents per point in value. Use cash back programs like the enhanced Costco Executive membership for everyday spending categories where simplicity and guaranteed returns make more sense.

If you're spending $3,250 or more annually at Costco—and especially if you're buying gas there regularly—the upgraded Executive membership is one of the easiest rewards optimization decisions you'll make in 2026. The math just works.

For those interested in related strategies, check out our Complete Guide to the Costco Anywhere Visa Card for deeper analysis of the credit card side, or explore how annual fees can make sense when they drive valuable behavior changes.

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