The Executive Membership costs more upfront but returns a percentage of your spending
A Costco Executive Membership costs $130 per year (as of 2024), compared to $65 for a Gold Star membership. The main benefit is a 2% reward on most Costco purchases, paid as an annual certificate you can use on anything at the warehouse or online. Members also receive additional discounts on Costco services like gas, pharmacy, and travel bookings.
Whether the Executive tier makes financial sense depends on how much you spend. If you spend $3,250 or more per year at Costco, the 2% reward alone covers the membership premium. Most households that shop regularly at Costco cross that threshold, but the math is personal to your spending pattern.
The membership also includes all the standard Gold Star benefits—warehouse access, bulk purchasing, return policies—plus a few perks that Gold Star members do not receive.
Key Takeaways
- Executive members earn 2% back on most Costco purchases as an annual reward certificate, which breaks even at roughly $3,250 in annual spending.
- The membership includes additional discounts on Costco services like gas, pharmacy, and travel, though these vary by location and membership tier.
- Household members on the same account both receive Executive benefits, so a family can pool spending toward the breakeven point.
- Costco refunds the full membership fee if you are not satisfied within the first year, no questions asked.
How the 2% reward certificate works
Costco calculates your 2% reward on purchases made during your membership year (the date you renew). The reward is issued as a certificate that arrives by mail or email near your renewal date. You can spend it on anything at the warehouse or on Costco.com—groceries, gas, services, or merchandise.
The reward does not explore to gas, pharmacy, or food court purchases. It also does not explore to certain services like memberships, stamps, or insurance. Costco publishes the full exclusion list on its website, but the rule of thumb is that the 2% applies to items you would normally buy in the warehouse or online.
If you do not spend the certificate before it expires (usually one year from issue), you lose it. Some members set a phone reminder for the expiration date to avoid leaving money on the table.
Executive-only discounts on services
Beyond the 2% reward, Executive members receive discounts on several Costco services. These include reduced rates on Costco Travel packages (cruises, vacations, rental cars), discounted rates at Costco pharmacies in some regions, and lower prices on Costco-branded insurance products. The pharmacy discount varies by location—some warehouses offer it, others do not.
Gas discounts are available to both Gold Star and Executive members, so this is not exclusive to the higher tier. However, Executive members sometimes see slightly lower per-gallon prices at certain locations, though this is not may provide and depends on regional pricing.
Travel discounts tend to be the most valuable service benefit for members who book vacations through Costco. The site often undercuts retail travel agencies on package deals, and Executive members receive an additional percentage off.
When the Executive membership pays for itself
The $65 annual difference between Gold Star and Executive membership is covered by a 2% reward once you reach $3,250 in annual spending. For a household of four, that works out to roughly $813 per person per year, or about $68 per month. Most families that do their primary grocery shopping at Costco exceed this amount.
To estimate your own breakeven point, look at your last year of Costco receipts if you have them. Add up the total spending (excluding gas, pharmacy, and food court, since those do not earn the reward). If the number is above $3,250, the Executive tier will pay for itself through the reward alone.
The service discounts—travel, pharmacy, insurance—are a bonus on top of the 2% reward. If you use any of these services, the Executive membership becomes even more cost-effective.
Household members and shared accounts
A Costco membership is tied to a household, not an individual. Both the primary member and the household member on the same account receive the Executive benefits and can make purchases that count toward the 2% reward. This means a family can combine their spending to reach the breakeven point faster.
If two adults in the same household each have their own separate membership, they do not share rewards or benefits. Only members on the same account (one primary, one household member) pool their purchases. Some families choose to combine accounts to maximize the reward, while others keep separate memberships for convenience.
The membership refund may provide
Costco offers a full refund of your membership fee if you are not satisfied within the first year. You do not need to provide a reason—you can straightforward return to the membership desk and request a refund. This makes it low-risk to upgrade from Gold Star to Executive if you want to test whether the 2% reward will cover the extra cost.
The refund applies to the membership fee only, not to purchases you made during the year. If you decide the Executive tier is not worth it after a few months, you can downgrade back to Gold Star and receive the difference in membership cost.
Comparing Executive to Gold Star membership
| Feature | Gold Star | Executive |
|---|---|---|
| Annual cost | $65 | $130 |
| Warehouse access | Yes | Yes |
| Online shopping (Costco.com) | Yes | Yes |
| Reward on purchases | None | 2% annual certificate |
| Travel discounts | No | Yes |
| Gas discounts | Yes | Yes |
| Pharmacy access | Yes | Yes (with additional discounts in some regions) |
Frequently Asked Questions
Do I earn the 2% reward on everything I buy at Costco?
No. The 2% reward excludes gas, pharmacy, food court, and certain services like memberships and insurance. It applies to most items you buy in the warehouse or on Costco.com—groceries, household goods, electronics, and clothing. Costco publishes the full list of exclusions on its website.
What happens if I do not use my reward certificate before it expires?
The certificate expires, usually one year after it is issued. You lose the value if you do not spend it by the expiration date. Set a phone reminder for the expiration date to avoid missing it.
Can I upgrade from Gold Star to Executive mid-year?
Yes. Costco will charge you the difference between the two membership tiers and extend your renewal date accordingly. Your 2% reward will be calculated based on purchases made after the upgrade date.
Do both people on a household membership get the 2% reward?
Yes. Both the primary member and the household member earn rewards on their purchases, and the rewards are combined on a single annual certificate issued to the account.
Is the Executive membership worth it if I only shop at Costco a few times a year?
Probably not. If you spend less than $3,250 per year, the 2% reward will not cover the $65 premium over Gold Star. Stick with the Gold Star membership unless you plan to increase your shopping frequency or use the travel and service discounts regularly.