Money in Canada: currency, ATMs, cards and tipping

Canada's money rules do not change with your passport — the dollar, the tax and the tip are the same for everyone. What changes is how you pay for it: the exchange rate you get, the fee your bank charges, and whether you need cash on hand. The table below covers the practical differences.

Costs below are 2026 estimates in CAD, per person, and follow the site's Canada figures: backpacker CAD 110–215 a day, mid-range CAD 270–510, comfort CAD 650–1,270. Sales tax and tips are already inside those numbers.

The currency is the Canadian dollar, written CAD or just $. One dollar is 100 cents. Coins run 5, 10 and 25 cents plus the $1 loonie and $2 toonie; notes are $5, $10, $20, $50 and $100. US dollars are sometimes accepted near the border and in tourist areas, but usually at a poor rate — pay in CAD.

Cards are the default. Visa, Mastercard and American Express are taken almost everywhere, and Interac debit is the domestic system. Tap-to-pay works on transit, in taxis, at coffee shops and for small purchases, so you can travel for days without touching cash. Contactless limits are high enough for a normal restaurant bill.

Cash still has a place. Small rural vendors, some farmers' markets, a few food trucks and older B&Bs may be cash-only or have a card minimum. Keep CAD 40–80 on you for tips and small stops. If you pay cash, expect coins back — Canada dropped the penny, so cash totals are rounded to the nearest 5 cents.

Bank ATMs are everywhere in cities and towns and are the cheapest way to get cash. Expect a Canadian surcharge of about CAD 3–5 per withdrawal (check), plus whatever your own bank charges. Withdraw larger amounts less often rather than making several small withdrawals.

Always decline dynamic currency conversion. When an ATM or card machine offers to charge you in your home currency, it uses its own rate and adds a margin — choose CAD and let your bank convert. The same rule applies at card readers in shops and restaurants.

Currency exchange offices at airports and in tourist districts usually give worse rates than a bank ATM. If you arrive with US dollars or euros, a bank branch or a downtown exchange office is a better bet than the airport kiosk. Credit cards typically add about 2.5–3% on foreign purchases (check), so a no-foreign-fee card saves real money over a two-week trip.

Tipping is expected in Canada, not optional. At a sit-down restaurant or bar, 15–20% on the pre-tax bill is standard; 15% is fine for ordinary service, 18–20% for good service or a large group. Many card machines now suggest 18%, 20% or 25% — you can choose a lower preset or enter your own amount.

Cafés, food trucks and counter-service places often show a tip prompt too. A dollar or two, or 10%, is normal there and no one will mind if you skip it. Taxis and rideshare: 10–15%, or round up. Hotel housekeeping: CAD 2–5 a day. Tour guides and drivers: CAD 5–10 per person for a half day. Barbers, spa staff and delivery drivers are tipped as well.

Watch the bill for a service charge or auto-gratuity, common for groups of six or more and sometimes already included at tourist restaurants. If it is there, you do not need to tip on top. Sales tax is separate and is not a tip — it goes to the government.

Prices on shelves and menus exclude sales tax. It is added at the till: the federal GST is 5%, and most provinces add a provincial tax, so the combined rate runs about 5–15% depending on where you are. Alberta and the territories charge GST only, which is why a Calgary or Whitehorse bill looks lower than the same bill in Ontario or Quebec.

There is no general tourist tax refund for visitors. The old Visitor Rebate Program ended years ago, and the current rebate scheme is limited to certain business and convention situations, not ordinary shopping. Budget for tax rather than planning to reclaim it.

One exception worth knowing: some provinces run their own rebates on specific items, and duty-free shops at the border sell goods tax-free if you are leaving the country. Neither changes the everyday picture — assume the tax is part of the price.

Tell your bank and card issuer you are travelling, or use an app to set a travel notice, so a first purchase in Toronto or Vancouver does not trigger a fraud block. Carry a second card from a different network in case one is declined.

Keep a small amount of CAD cash for the first hours after landing: an airport coffee, a bus ticket or a tip. Airport ATMs work, but the exchange kiosks beside them do not offer good rates. If you are heading to rural areas, small towns or the far north, withdraw cash before you leave the city — ATMs get sparse and some places are cash-only.

Prices in Canada are quoted before tax and before tip, so the number on the menu is never the number you pay. A CAD 20 main in Ontario becomes roughly CAD 23 with tax and CAD 27 with an 18% tip. That gap is the single most common surprise for first-time visitors.