So, you’re headed north. Maybe for the mountains, maybe for the poutine, or maybe you just want to see if people actually say "eh" as much as the movies claim. But before you cross that border, you’ve got to figure out the money situation.
The official currency for Canada is the Canadian Dollar. Most people just call it the "buck," but if you want to sound like a local, you’ll need to get used to some weirder names.
Why Is Everything a Bird or a Bear?
Honestly, Canadians have a funny relationship with their cash. We don't have a one-dollar bill. We don't have a two-dollar bill either. We replaced those with big, heavy coins years ago.
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The one-dollar coin is called a Loonie. Why? Because it has a loon—a classic Canadian water bird—on one side. It’s gold-colored, though it isn't actually made of gold (it’s mostly nickel and brass plated steel these days).
Then there’s the two-dollar coin. Following the logic of the Loonie, Canadians decided to call the two-dollar coin a Toonie. It’s a silver-colored ring with a gold-colored center, featuring a polar bear. If you try to pay for a coffee with a pocketful of these, just know that they get heavy fast.
The "Plastic" Money You Can't Tear
If you’re coming from the U.S. or the UK, the first thing you’ll notice about Canadian bills is that they feel weird. They aren't paper. They’re a polymer—basically a thin, high-tech plastic.
The Bank of Canada switched to these around 2011 because paper bills kept wearing out. These plastic ones last way longer. You can literally drop a $20 bill in a lake, wipe it off, and it’s fine. I’ve even heard of people accidentally putting them through the laundry with no issues.
Pro tip: Don't try to iron your Canadian money. It’s plastic. It will melt. You’ve been warned.
The Myth of the U.S. Dollar in Canada
A lot of tourists think they can just use U.S. dollars everywhere. Kinda true, but mostly a bad idea.
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In border towns like Niagara Falls or Windsor, many shops will take USD. But here’s the catch: they’ll give you a terrible exchange rate. If the official rate is 1.35, they might just take it at 1.10 or even 1:1. You’re essentially giving the store a 20% tip for the convenience of not exchanging your money.
Plus, any change you get back will be in Canadian coins. So you’ll end up with a pocket full of Loonies anyway.
Denominations You’ll Actually See
Canada uses a pretty standard set of bills, though the colors are much more vibrant than the "greenbacks" in the States. It makes it way easier to tell them apart in your wallet.
- $5 (Blue): Features Sir Wilfrid Laurier.
- $10 (Purple): Currently features Viola Desmond, a civil rights icon. This bill is unique because it’s vertical.
- $20 (Green): The most common bill you’ll get from an ATM.
- $50 (Red): Used for larger purchases.
- $100 (Brown): Sometimes hard to break at small "mom and pop" convenience stores.
Whatever Happened to the Penny?
Canada killed the penny back in 2013. We just don't use them.
If you go to a store and your total is $1.02, and you’re paying with cash, the cashier will round it down to $1.00. If it’s $1.03, they round it up to $1.05.
However, this only applies to cash. If you pay with a credit or debit card, you pay the exact amount down to the cent. It sounds complicated, but you get used to it in about five minutes.
Security Features That Are Actually Cool
The currency for Canada is incredibly hard to counterfeit. If you hold a bill up to the light, there’s a large transparent window. Inside that window, there’s a metallic portrait that matches the large portrait on the bill.
If you tilt the bill, the colors in that window shift. Also, if you run your fingers over the words "Bank of Canada," you’ll feel raised ink. If a bill feels totally smooth and flat like a regular piece of paper, it’s probably fake.
Is Canada Going Digital in 2026?
There’s been a lot of talk lately about a "Digital Loonie." The Bank of Canada has been researching a Central Bank Digital Currency (CBDC).
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Basically, it would be a digital version of the cash in your pocket. But don't worry—the government has been pretty clear that they aren't getting rid of physical cash anytime soon. As of early 2026, cash is still king for small purchases, though most Canadians tap their phones or cards for everything now.
Tipping Culture and Your Wallet
When you’re calculating how much the currency for Canada is worth to you, don’t forget the tip.
Tipping in Canada is pretty much the same as in the U.S. At a sit-down restaurant, 15% to 20% is the standard. Most card machines will prompt you for a percentage before you pay. It’s a bit annoying, but it’s how the service staff makes their living.
Actionable Steps for Your Trip
If you're planning to use the Canadian dollar soon, here is exactly what you should do to save money:
- Check with your bank first. See if they have a partnership with a Canadian bank like RBC, TD, or Scotiabank. This can save you those $5 ATM fees.
- Avoid airport kiosks. The exchange rates at Pearson or Vancouver International are usually daylight robbery. Use a local bank ATM once you get into the city.
- Use a "No Foreign Transaction Fee" card. If your credit card doesn't charge these fees, just "tap" your way through the country. It’s the easiest way to get the real-time exchange rate.
- Carry some "emergency" Loonies. Some parking meters or older vending machines in rural areas still only take coins. Having $10 in coins in your glove box is a lifesaver.
- Download a converter app. The exchange rate fluctuates daily. As of January 2026, the USD to CAD rate is hovering around 1.39, but that can change fast.
The Canadian dollar is a stable, colorful, and slightly quirky currency. Whether you're calling it a Loonie or just "monopoly money" (please don't say that to a local, they've heard it a million times), it's a solid currency that works seamlessly from coast to coast.