Currency in Canada
The complete Canadian Dollar (CAD) travel guide
The Canadian Dollar (CAD, often written C$ or CAD$ to distinguish from USD) is one of the world's major "commodity currencies" — heavily correlated with oil prices given Canada is the world's fourth-largest crude oil producer. Issued by the Bank of Canada, banknotes are polymer in C$5, C$10, C$20, C$50, and C$100 denominations; coins are 5¢ (nickel), 10¢ (dime), 25¢ (quarter), C$1 (loonie), and C$2 (toonie). The 1-cent penny was discontinued in 2013 — cash transactions round to the nearest 5 cents.
Cash, cards, and ATMs in Canada
Canada is extremely card-friendly — tap-to-pay is universal, including at coffee shops, food trucks, and many small businesses. Interac (Canada's domestic debit network), Visa, Mastercard, and Amex are all widely accepted. ATM coverage from RBC, TD, Scotiabank, BMO, and CIBC is excellent and most are fee-free for foreign cards. Avoid standalone "white-label" ATMs in convenience stores and bars — fees of C$3–5 plus poor exchange rates are common. US dollars are accepted at some tourist businesses near border crossings and in Niagara Falls but at unfavorable rates — always pay in CAD.
Tipping culture in Canada
Tipping in Canada is similar to the US — expected and significant. Restaurants: 15–20% (often pre-suggested at 18/20/22% on card terminals). Bars: C$1–2 per drink or 15–20% on the tab. Taxis: 10–15%. Uber: 10–15% via the app. Hotels: C$2–5 per bag for bellhops, C$2–5 per night for housekeeping. Tour guides: C$5–10 per person for short tours, C$20–50 for full-day. Hairdressers: 15–20%. Tipping is genuinely expected — server minimum wages in most provinces are below standard minimum wage with tips assumed.
Best way to get Canadian Dollar (CAD)
For USD-to-CAD, multi-currency cards (Wise, Revolut) and fee-free debit cards (Charles Schwab for US residents) deliver rates within 0.4–0.7% of mid-market. Avoid Canadian-airport currency-exchange counters and tourist-area Travelex — spreads exceed 6–10% above mid-market. RBC and TD branches will exchange USD cash at moderate rates (2–3% above mid-market) if you need physical CAD. For substantial transfers (C$10,000+), Wise, OFX, and CurrencyFair beat the Big Five Canadian banks by 1–3% on total delivered amount.
Practical money tips for Canada
- •GST/HST (5–15% depending on province) is added at checkout — sticker prices don't include tax
- •Tipping is calculated on the pre-tax amount, not the total
- •Tap-to-pay limits are C$250 without PIN; higher amounts require PIN
- •Niagara Falls accepts USD at most tourist businesses but at terrible rates — convert to CAD
- •Some Quebec businesses (especially rural) are more cash-oriented than the rest of Canada
- •Canadian plug type B (same as US) with 120V/60Hz — no adapter needed from the US
- •The C$ "loonie" coin pictures a loon (waterbird) on the reverse; the C$2 "toonie" is bi-metallic
Common money scams to avoid in Canada
Tourist money scams in Canada are rare by global standards. Main risks: ATM skimming in Vancouver and Toronto downtown areas (use bank-branch ATMs); dynamic currency conversion at retail terminals (always pay in CAD); overpriced "currency exchange" at Pearson and Vancouver airports; fake "charity" collectors near tourist landmarks; and unmetered taxi fares from airport-area pickup zones (use the official taxi rank or Uber/Lyft). Cash counterfeiting is rare due to polymer note technology — but always check large bills (C$50, C$100) in dim lighting.
Frequently asked questions
Can I use US dollars in Canada?
Some tourist businesses near the border accept USD, but at terrible exchange rates (you'll lose 5–10% of value). Everywhere else requires CAD. Always pay in CAD if you have it, or use a tap card. Withdraw CAD from a bank ATM on arrival.
Is Canada cashless?
Largely yes — tap-to-pay works at nearly every retailer including coffee shops, food trucks, and parking meters. Carry C$20–50 cash for the rare cash-only spot, primarily in rural areas or small farmers' markets.
How much should I tip in Canada?
Restaurants 15–20% (essential — servers earn less than minimum wage). Bars C$1–2 per drink or 15–20% on tab. Taxis/Uber 10–15%. Hotels C$2–5 per bag. The tip is calculated on pre-tax total, not the final bill with tax included.
What is HST vs GST in Canada?
GST (Goods and Services Tax) is the federal 5% sales tax. Some provinces combine federal and provincial taxes into HST (Harmonized Sales Tax) of 13–15% (Ontario 13%, NB/NS/NL/PEI 15%). Quebec uses GST + QST (Quebec Sales Tax) totaling about 14.975%. Alberta has only the 5% GST. Tax is always added at checkout — never included in sticker prices.
Why is the Canadian Dollar called the "loonie"?
The nickname comes from the loon (Gavia immer, a North American waterbird) pictured on the reverse of the C$1 coin, introduced in 1987. By extension, the C$2 bi-metallic coin introduced in 1996 became the "toonie".
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Exchange rates refresh hourly from Frankfurter (European Central Bank reference data). Travel money information was compiled in 2026 and reflects current cash/card culture, tipping norms, and common scam patterns.