Canada
Currency in Canada: what to use and how to exchange
Canada uses the Canadian dollar (CAD, $), divided into 100 cents. Use a card for almost everything and carry CAD 40–80 in cash for tips, small cafés and rural stops. Exchange at a bank or use an ATM rather than an airport kiosk; cards are accepted nearly everywhere, so cash is a backup, not a plan.
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Key facts
- Currency
- Canadian dollar (CAD, $), 100 cents
- Coins and notes
- 5c, 10c, 25c, $1 (loonie), $2 (toonie); notes $5, $10, $20, $50, $100
- Card acceptance
- Very high — tap Visa, Mastercard, Amex and Interac debit almost everywhere
- Cash you actually need
- CAD 40–80 for tips, small vendors, rural areas
- Best exchange route
- Bank or credit-union counter, or a local ATM; avoid airport kiosks
- Prices shown
- Before sales tax; tax is added at the till
- Tipping
- 15–20% at restaurants and bars, 10–15% taxis
- US dollarscheck
- Sometimes accepted near the border at a poor rate; not elsewhere
Details
Canada is a card country. Tap-to-pay works at supermarkets, transit gates, coffee shops, museums and most market stalls, and contactless is the default at the till. Visa and Mastercard are the widest accepted; American Express works at larger businesses but not every small café. Interac is the domestic debit network and is what locals use, but foreign debit cards usually run over Visa or Mastercard instead.
Cash still has a job. Tips on a card are easy, but a tip jar, a farmers' market stall, a rural gas station or a small-town taxi may prefer coins and notes. Carry CAD 40–80 in mixed denominations and top it up when it runs low rather than carrying a week's spending in your pocket.
Prices on shelves and menus are shown before sales tax. The tax rate depends on the province or territory and the type of goods, so the total at the till is higher than the tag. On a CAD 100 restaurant bill, expect tax plus a 15–20% tip to add roughly CAD 30 or more.
If you are arriving from the United States, do not assume US dollars will work. Some border-town businesses take them at a rate that is worse than a bank's, and elsewhere they are simply refused. Change a small amount on arrival and rely on cards after that.
Summary table
Use this to decide what to carry before you land.
| Situation | Best option | Notes |
|---|---|---|
| Restaurants, shops, transit | Card, tap | Visa and Mastercard widest; Amex not universal |
| Tips and small vendors | Cash | CAD 40–80 covers a few days |
| Arriving at an airport | Small cash withdrawal or card | Kiosks at airports usually give the worst rate |
| Needing more cash | Bank ATM | Decline the ATM's own conversion if offered |
| Rural areas and small towns | Some cash | Card still works at most fuel and grocery stops |
| Paying in US dollars | Avoid | Accepted only in some border areas, at a poor rate (check) |
Tips
- Withdraw from a bank-branded ATM rather than a private one in a shop or bar; fees are lower and the machine is less likely to add a markup.
- If the ATM or card terminal offers to charge you in your home currency, decline it and pay in CAD — the conversion is usually worse.
- Check whether your bank charges a foreign transaction fee (often around 3%) before you rely on one card for the whole trip.
- Keep a second card from a different network in a separate bag; a blocked card is the most common money problem on a long trip.
- Coins add up fast: the $1 loonie and $2 toonie are useful for lockers, parking meters and laundromats.
- In Québec, staff may greet you in French; a short bonjour before switching to English is normal and appreciated.
FAQ
Questions people ask
What currency is used in Canada?
The Canadian dollar (CAD, symbol $), divided into 100 cents. Coins run 5c to $2 and notes $5 to $100. US dollars are not the local currency and are only accepted in some border areas, usually at a poor rate.
Where is the best place to exchange money in Canada?
A bank or credit-union counter, or a bank-branded ATM, gives the fairest rate. Airport kiosks and hotel desks are the most expensive. If a machine offers to convert to your home currency, decline and pay in CAD.
Is it better to bring cash or use a card in Canada?
Use a card for almost everything — tap works nearly everywhere. Bring or withdraw CAD 40–80 for tips, small vendors and rural stops. Cash is a backup, not the main way to pay.
Do I need cash for tips in Canada?
No, you can add a tip to a card payment at restaurants and bars. Cash is handy for tip jars, taxis and market stalls. Expect 15–20% at restaurants and bars, 10–15% for taxis.
Can I pay with US dollars in Canada?
Only at some businesses near the border, and usually at a rate worse than a bank's. Elsewhere US dollars are refused. Change a small amount of CAD on arrival and use cards after that.
Deep dive
Every source; changeable facts are marked check
Sources
- officialBank of Canada
- officialCanada Revenue Agency – GST/HST
- officialCanada Border Services Agency – Visitors to Canada
- secondaryWikivoyage – Canada