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Canada Travel: CAD Exchange & Money Tips

Plan your Canada trip finances with this guide covering CAD exchange rates, tipping culture, banking options, seasonal rate considerations, and city-by-city cost breakdowns.

Managing Money for Your Canadian Adventure

Canada spans six time zones and offers everything from the cosmopolitan energy of Toronto and Montreal to the pristine wilderness of the Rockies, the rugged coastlines of the Maritimes, and the northern lights of the Yukon. As the second-largest country in the world, travel costs vary enormously depending on where you go and when.

The Canadian Dollar (CAD) typically trades at a discount to the US Dollar, which is good news for American visitors. For travelers from other countries, understanding how to exchange and manage CAD effectively can make your trip significantly more affordable.

Understanding the Canadian Dollar (CAD)

Exchange Rate

The Canadian Dollar generally trades around 1.35-1.40 CAD per 1 USD. The rate is influenced by oil prices (Canada is a major petroleum exporter), interest rate differentials, and overall commodity market conditions.

Denominations

Polymer Banknotes:

Denomination Color Approximate USD
$5 CAD Blue ~$3.65
$10 CAD Purple ~$7.30
$20 CAD Green ~$14.60
$50 CAD Red ~$36.50
$100 CAD Brown ~$73.00

Based on approximate rate of 1.37 CAD = 1 USD

Coins: 5¢ (nickel), 10¢ (dime), 25¢ (quarter), $1 (loonie — gold-colored), $2 (toonie — bi-metallic)

Canada eliminated the penny in 2013. Cash transactions are rounded to the nearest 5 cents. Card payments are charged to the exact amount.

Where to Exchange Canadian Dollars

Best Options Ranked

Method Typical Cost Convenience Best For
Wise/Revolut card 0.3-0.6% markup Very High Most transactions
Canadian bank ATM Your bank's fee + 1-3% High Cash needs
Credit union ATM Often lower fees Medium US travelers
Airport exchange (Canada) 3-6% markup High Emergency only
Hotel/resort exchange 4-8% markup Low value Avoid
Pre-trip bank exchange 2-5% markup Medium Small amounts

ATMs in Canada

Canadian ATMs are operated by the major banks: RBC (Royal Bank), TD (Toronto-Dominion), Scotiabank, BMO (Bank of Montreal), and CIBC. These are found throughout the country, including in smaller towns.

Key considerations:

  • Canadian bank ATMs may charge $2-3 CAD for foreign card withdrawals
  • Your home bank will likely add its own fee ($2-5) plus foreign transaction fee (1-3%)
  • Some US banks have partnerships with Canadian banks (e.g., Bank of America with Scotiabank) that waive or reduce ATM fees
  • Maximum withdrawal is typically $500-1,000 CAD per transaction

For US Travelers: Cross-Border Banking

If you live near the Canadian border or visit frequently, consider:

  • Scotiabank partners with Bank of America for reduced ATM fees
  • TD Bank operates in both the US and Canada
  • RBC has a US banking division
  • Charles Schwab reimburses all ATM fees worldwide

Card Payments in Canada

Highly Card-Friendly

Canada is one of the world's most card-friendly countries. Interac (Canada's domestic debit network), Visa, and Mastercard are accepted nearly everywhere.

Where cards work:

  • All restaurants, cafes, and bars
  • Transit systems (tap-to-pay in major cities)
  • Retail shops of all sizes
  • Farmers' markets (most vendors)
  • Taxis and ride-hailing (Uber, Lyft)
  • Parking meters
  • Vending machines

Where cash might be needed:

  • Some very small rural businesses
  • Certain parking areas
  • Laundromats
  • Tips at restaurants (if you prefer cash tips)

Contactless Payments

Tap-to-pay is the default payment method in Canada. Most card terminals expect you to tap rather than insert. Apple Pay and Google Pay work everywhere contactless is accepted.

Tipping Culture in Canada

Similar to the US

Canada has a tipping culture very similar to the United States, and tipping is an important part of service worker compensation. Not tipping (or tipping poorly) is considered rude for table-service situations.

Situation Expected Tip
Restaurant (table service) 15-20% (pre-tax amount)
Bar (per drink) $1-2 CAD per drink
Coffee shop (counter) $1-2 or skip (optional)
Taxi/Uber 15-20%
Hotel porter $2-5 per bag
Hotel housekeeping $3-5 per night
Hairdresser/barber 15-20%
Spa services 15-20%
Tour guide $5-10 per person for half day
Food delivery 15-20%

Note: Many Canadian payment terminals now present tip options of 18%, 20%, and 25% by default. You can select "custom" to enter your preferred amount, and 15% for standard service is perfectly acceptable.

Tip Calculation Shortcut

In most Canadian provinces, the combined sales tax (GST + PST or HST) is 12-15%. A quick tipping shortcut is to roughly match the tax amount on your bill for a 12-15% tip.

Seasonal Rate Considerations

Summer Peak (June-September)

Summer is Canada's peak tourism season. Accommodation prices in popular areas (Banff, Jasper, Vancouver, Niagara Falls) can be 50-100% higher than winter rates. The CAD exchange rate itself does not change seasonally, but your travel costs certainly do.

Ski Season (December-March)

Ski resorts in Whistler, Banff, and Mont-Tremblant see premium pricing. Budget extra for lift tickets ($100-200 CAD/day) and mountain dining.

Shoulder Seasons (April-May, October-November)

These periods often offer the best value: reasonable weather (especially in September-October for fall foliage), lower accommodation prices, and fewer crowds. Montreal and Ottawa are particularly beautiful in autumn.

Winter Deals (January-March, excluding ski areas)

Cities like Toronto, Montreal, and Vancouver offer lower hotel rates in winter. If you do not mind cold weather, this can be an excellent time for budget travel.

What Things Cost in Canada (2025)

Food and Drinks

Item Price (CAD) Approximate USD
Coffee (chain) $2.50-5.00 $1.82-3.65
Coffee (specialty cafe) $5.00-7.00 $3.65-5.11
Fast food meal $10-15 $7.30-10.95
Casual restaurant lunch $15-25 $10.95-18.25
Mid-range restaurant dinner $25-50 $18.25-36.50
Poutine (classic) $8-14 $5.84-10.22
Beer (bar/pub) $7-10 $5.11-7.30
Craft beer (brewery) $8-12 $5.84-8.76
Wine (glass, restaurant) $10-16 $7.30-11.68
Grocery shopping (weekly) $80-150 $58.40-109.50

Transportation

Mode Price (CAD) Notes
Toronto TTC (single ride) $3.35 Presto card
Montreal STM (single ride) $3.75 OPUS card
Vancouver TransLink (1 zone) $3.15 Compass card
Uber/Lyft (city, 10km) $15-30 Varies by city
Taxi (flag fall + 10km) $20-35 Varies by city
VIA Rail (Toronto-Montreal) $50-180 Book ahead for best price
VIA Rail (Toronto-Vancouver) $500-1,500+ Multi-day journey
Domestic flight $150-500 Book 4-6 weeks ahead
Gas/petrol $1.40-1.80/L Self-driving
Car rental (per day) $50-120 Plus insurance

Accommodation

Type Toronto/Vancouver Montreal/Ottawa Smaller Cities
Hostel dorm $35-60 $30-50 $25-40
Budget hotel $100-180 $80-150 $70-120
Mid-range hotel $180-350 $150-280 $100-200
Luxury hotel $350-700+ $280-500+ $200-400+

Per night in CAD

Activities

Activity Price (CAD) Notes
Niagara Falls boat tour $30 Hornblower cruise
CN Tower (Toronto) $43 General admission
Banff gondola $72 Round trip
Whale watching (BC) $120-180 Half day
Hockey game (NHL) $50-300+ Depends on team/seat
Ski lift ticket (Whistler) $170-230 Full day
National Park pass $10.50/day Per adult
Museum entry $15-25 Many have free days

Daily Budget Estimates

Travel Style Daily Budget (CAD) Daily Budget (USD)
Backpacker $70-120 $51-88
Budget $120-200 $88-146
Mid-range $200-400 $146-292
Luxury $400-800+ $292-584+

Tax in Canada

Sales Tax Varies by Province

Canada's sales tax system has two components: federal GST (5%) and provincial sales tax (PST), which varies. Some provinces combine them into HST (Harmonized Sales Tax).

Province/Territory Total Sales Tax
Alberta 5% (GST only)
British Columbia 12% (5% GST + 7% PST)
Ontario 13% (HST)
Quebec 14.975% (5% GST + 9.975% QST)
Nova Scotia 15% (HST)
Manitoba 12% (5% GST + 7% PST)

Important: Prices in Canada are almost always displayed BEFORE tax. Your actual cost will be higher than the sticker price. This catches many visitors off guard.

Practical Tips

Free Cancellation Bookings

Canadian weather can be unpredictable. Book accommodations with free cancellation when possible so you can adjust plans if a snowstorm or heat wave changes your itinerary.

Grocery Savings

No Frills, Food Basics, and FreshCo are budget grocery chains. Costco is available if you have a membership. Buying groceries saves 60-70% over eating out.

Provincial Liquor Stores

Alcohol in Canada is sold through government-regulated stores (LCBO in Ontario, SAQ in Quebec, BC Liquor Stores) or licensed private retailers. Prices are higher than in the US due to taxes.

Timmies Culture

Tim Hortons (affectionately called "Timmies") is Canada's ubiquitous coffee chain, offering affordable coffee ($1.70-3.50) and meals. It is a genuinely useful budget option found on virtually every major street.

Key Takeaways

Canada is a card-friendly country where a travel debit card will handle the majority of your expenses. Remember to budget for tipping (15-20% at restaurants), account for sales tax on top of displayed prices, and book transportation and accommodation in advance during peak seasons for the best rates. The shoulder seasons of May and September-October offer the best combination of reasonable weather and lower prices.

For the latest CAD exchange rates, use the currency converter at hwanyul.com to plan your Canadian adventure.

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