You’re standing at a small soda in La Fortuna, the smell of sizzling Lizano sauce hitting your nose, and you’re staring at a bill for a plate of gallo pinto. The total says 4,500. For a split second, your brain short-circuits. Then you remember: you aren’t in Kansas anymore. You’re in the land of the Costa Rican colón.
Understanding what money does Costa Rica use is honestly one of those things that sounds simple until you’re actually there trying to pay a taxi driver in the middle of a rainstorm. Most travelers think they can just coast on US dollars. And sure, you can, but you’ll probably end up paying a "clueless tourist tax" without even realizing it.
The official currency is the colón (CRC). Its symbol looks like a C with two vertical slashes: ₡. It’s named after Christopher Columbus (Cristóbal Colón in Spanish), which is a fun bit of trivia to pull out at dinner. But in 2026, the reality of money in Costa Rica is a weird, dual-currency dance between the colón and the US dollar.
The Reality of Using Dollars vs. Colones
Let’s be real. Costa Rica is basically the 51st state when it comes to the Greenback. You can walk into almost any tour operator, high-end hotel, or souvenir shop in Manuel Antonio and pay with USD. They won’t blink.
But here is the catch.
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If you pay in dollars at a local grocery store or a small-town cafe, they’ll give you change in colones. And they’ll usually use an exchange rate that favors the house. While the official rate in early 2026 hovers around ₡498 to $1, a local shop might just "round it" to ₡450 or ₡480 to save themselves the math. Over a week, those missing colones add up to a few extra Imperial beers you could’ve had.
When to stick to USD:
- Big-ticket items: Hotels, rental cars, and zip-line tours are almost always priced in dollars. If the price tag is in USD, pay in USD.
- Tipping: Tour guides and hotel staff are perfectly happy with dollars. It’s easier for them to save.
When you definitely need Colones:
- Public buses: They won’t take your $20 bill.
- Tolls: If you’re driving from San José to the coast, you’ll hit toll booths. They take cards now, but cash colones are faster.
- Street food: That roadside mango with lime and salt? Colones only, please.
- Small towns: The further you get from the tourist bubble, the less "dollar-friendly" things become.
Those "Sloth" Bills Are Actually Gorgeous
Costa Rica’s money is legendary among currency nerds. Honestly, it’s some of the most beautiful physical cash in the world. Since 2022, the country has fully transitioned to polymer (plastic) bills. They don't tear, they don't get soggy in the humidity, and they won't be ruined if you accidentally go surfing with one in your pocket.
The colors are wild. Each bill represents a different ecosystem and a specific animal.
- 1,000 colones (The Red One): Features a white-tailed deer. Locals call this "un rojo" or "un mil."
- 2,000 colones (The Blue One): Features a shark and a coral reef.
- 5,000 colones (The Yellow One): Features a white-faced monkey.
- 10,000 colones (The Green One): The famous "sloth bill." It’s so pretty people often keep them as souvenirs.
- 20,000 colones (The Orange One): Features a hummingbird.
There used to be a 50,000 bill with a butterfly, but those are basically extinct in daily circulation now. If someone tries to hand you a paper (cotton) bill instead of the plastic-feeling polymer ones, be careful—the old paper versions aren't legal tender for shopping anymore.
Plastic is King (Mostly)
In 2026, you really don't need to carry huge wads of cash. Costa Rica has jumped headfirst into digital payments. Even the guy selling coconuts on the beach might have a "Tap to Pay" terminal or use SINPE Móvil, which is a local phone-to-phone transfer system.
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Visa and Mastercard are accepted everywhere from San José to Puerto Viejo. American Express? It’s hit or miss. Discover? Forget about it.
Pro tip: Always choose to be charged in colones if the card machine asks you. This is a classic "dynamic currency conversion" trap. If you choose USD at the terminal, the local bank sets the rate, and it’s always terrible. Let your home bank do the conversion; they’ll give you a much better deal.
Getting Cash Without Getting Ripped Off
Whatever you do, do not exchange money at the San José (SJO) or Liberia (LIR) airports. Those kiosks are notorious for rates that are essentially highway robbery.
The best way to get colones is to just use a local ATM (called a cajero automático). Look for banks like BAC Credomatic, Banco Nacional (BN), or BCR. They usually allow you to withdraw both USD and Colones.
Be aware that most ATMs have a daily limit, and your home bank will probably hit you with a $5 fee plus a 3% "foreign transaction fee." If you travel a lot, getting a Charles Schwab or Fidelity debit card that refunds those fees is a total game-changer.
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The "Math Hack" for Quick Conversions
Since the exchange rate fluctuates, doing the mental math can be a headache. In 2026, with the rate near 500:1, the "Double and Drop" trick is your best friend.
Take the colón amount, double the first number, and that’s roughly your dollar amount.
- ₡1,000: Double the 1 = $2.
- ₡5,000: Double the 5 = $10.
- ₡10,000: Double the 10 = $20.
It’s not perfect, especially as the rate shifts toward 510 or 520, but it keeps you from accidentally spending $50 on a pineapple.
Actionable Next Steps for Your Trip:
- Check your cards: Call your bank and make sure you have "No Foreign Transaction Fees" on at least one credit card.
- Carry $20s and $10s: If you bring USD cash, keep the bills small. Most places won't accept $50 or $100 bills because of counterfeit fears.
- Check for rips: Costa Ricans are incredibly picky about US cash. If your dollar bill has even a tiny tear or a stray pen mark, they will likely reject it.
- Download an offline converter: Apps like XE Currency work without data and are great for double-checking the "soda" math before you pay.
- Keep your coins: The 500-colón coin is heavy and annoying, but it’s worth about a dollar. It’s perfect for bus fares or small tips for parking attendants (known as guachimanes).
Understanding the money situation takes about ten minutes of focus, but it saves you a ton of stress once you land. Stick to colones for the small stuff, use your card for the big stuff, and always keep a "sloth" in your pocket for emergencies.