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Money & Tax Benefits

Currency & Exchange

The currency system in Canada uses dollars and cents similar to the U.S. system. In the past decade, the US$ has been very strong compared to the CDN$, giving American visitors a most favorable exchange value for their money.

It is always best to change your money at a recognized financial institution, bank, trust company or currency exchange. Stores, hotels and restaurants will also exchange currency but the rate will not be as good as a financial institution. And always convert some of your money prior to leaving home.

It is best to pay with a credit card, so that you can receive the very best exchange rate, as the credit card companies use the bank exchange rate. If you use U.S. cash in Canada, it is at the vendor's discretion what (if any) exchange they will offer. If the traveler prefers to use cash, exchange the money at a bank prior to leaving for Canada, or at any branches of Canadian banks. Travelers can also access Canadian cash through ATM's, although they will pay the standard user's fee, as they do in the U.S. Other services add in processing fees, reducing the actual rate of exchange.

Canada now has one- and two-dollar coins, affectionately called the "loonie" and the "toonie", in addition to 1 cent, 5 cent, and 25 cent coins. The paper money comes in different colors and designs. The most common are $5 bills (blue), $10 bills (purple), $20 bills (green), $50 bills (red), $100 bills (brown), and $1000 bills (purple). You may still see some old red $2 bills, which remain valid currency.

For additional information regarding currency exchange rates, please visit our Currency Converter.

Sales taxes in Canada

The GST, or "goods and services tax", is a 6% federal tax which applies to most foods and services provided in Canada. As of April 1, 1997 the HST or "harmonized sales tax" is a 15% tax that replaces the provincial sales tax (PST) and GST in the provinces of Newfoundland & Labrador, Nova Scotia, and New Brunswick.

Visitor Tax Rebates

Non-resident visitors to Canada are entitled to a rebate of GST/ HST on certain goods they take out of Canada as well as short-term accommodations.

Keep your receipts if you wish to apply for a GST / HST rebate. Simply pick up a copy of the Tax Refund Application for Visitors at any Customs office or most tourism information centers, duty-free shops, department stores and some hotels.

In addition, Quebec and Manitoba allow you to apply for a rebate on provincial taxes as well. Check with the appropriate tourism information office.

Visit Canada Revenue Agency for further information on tax rebates.

Credit Cards / Bank Machines

Major cards such as American Express, Diners Club, MasterCard and Visa are widely accepted in Canada. Keep in mind your financial institution at home will automatically make the currency exchange before you receive your monthly statement.

You can use any bank card for the Interac system with just about every automatic banking machine in Canada, conveniently located at banks and other locations throughout most cities and at airports.

Accommodations and Cost Comparisons

Canada has a full range of accommodation choices equivalent to what you would find throughout the United States, ranging from first-class luxury hotels to rustic family camping, exclusive golf resort vacation packages to bed-and-breakfast with a family home atmosphere.

Wherever and whenever you travel, especially during peak seasons, it's best to book in advance. The following listing is a basic guide for accommodations (prices listed in CDN dollars):

• Luxury hotels (4 & 5 star) from $150CDN per day and up.
• First-class hotels (3 star) from $100 per day.
• Mid-range hotels (2 star) from $75 per day.
• Economy hotels (clean & comfortable) from $50 per day.
• Budget-minded travelers should check with the system of hostel across the country. Contact:
  Hostelling International - Canada
  205 Catherine Street
  Ottawa, Ontario, Canada
  K2P 1C3
  Telephone: (613) 237-7884

Most universities also offer budget-price accommodations during the summer months. Contact your CTC representative for more information.

Tipping

Tips or service charges are not usually added to restaurant bills in Canada. As well, salary levels in many restaurants are based on the assumption that staff will receive a significant proportion of their income in tips.

If you are satisfied with the service received, a tip of 15-20 percent is customary. Following the introduction of the federal goods and services tax (GST), many Canadians have begun to tip on the pretax amount.

Some restaurants will place a mandatory service charge on a bill for a large party. Your waiter or waitress should explain this to you before you order.

Barbers, hairdressers and taxi drivers are also usually tipped at 15 percent.

It's up to the individual how much to tip bellhops, doormen, redcaps (porters) and similar staff at hotels, airports and railway stations. A general guideline is CDN$1 and up per item of luggage carried.