IRS CAD→USD Exchange Rate
Convert your Canadian rental income to US dollars for Schedule E using the IRS's own yearly average exchange rate for the Canadian dollar. Built for US persons who own rental property in Canada and report it on Form 1040.
The IRS instruction is to dividethe foreign-currency amount by the yearly average rate (CAD per USD). This tool applies the IRS's own published Canada rate — not the Bank of Canada number inverted.
Three different rates for three different jobs — don't mix them up:
- Rental income (Schedule E): IRS yearly average — the table below — or the spot rate.
- FBAR (FinCEN 114) account value: the US Treasury Reporting Rate as of December 31.
- A one-time sale or single invoice: the spot rate on that date.
IRS yearly average rates — Canadian dollar
| Tax Year | 1 USD = CAD | 1 CAD = USD |
|---|---|---|
| 2025 | 1.398 | 0.7153 |
| 2024 | 1.37 | 0.7299 |
| 2023 | 1.35 | 0.7407 |
| 2022 | 1.301 | 0.7686 |
| 2021 | 1.254 | 0.7974 |
Source: IRS — Yearly Average Currency Exchange Rates. The IRS instruction: divide the foreign-currency amount by the yearly average rate. For years not listed, or for spot rates, use the IRS page or the Bank of Canada daily rates.
Frequently Asked Questions
What exchange rate does the IRS want for my Canadian rental income?
For recurring income like rent received throughout the year, the IRS accepts its own published yearly average exchange rate. You convert Canadian dollars to US dollars by dividing the CAD amount by the yearly average rate (expressed as CAD per USD). You may also use the spot rate on each date, but the yearly average is simpler for a full year of rent and is what most US filers use on Schedule E.
Is the IRS rate the same as the Bank of Canada rate?
No — they are close but not identical, and they serve different sides of the border. The Bank of Canada annual average is what the CRA expects on your Canadian (Section 216) return; the IRS publishes its own yearly average table for your US return. The IRS has no single 'official' rate and generally accepts any posted rate used consistently, but its published yearly average is the safest choice for your 1040. This tool uses the IRS's own Canada figures, not the Bank of Canada number inverted.
Which rate do I use for FBAR (FinCEN 114)?
Not this one. For the FBAR maximum-account-value report, you must use the US Treasury Reporting Rate of Exchange as of December 31 of the year being reported — a different rate from the IRS yearly average used for income. Using the IRS income rate on an FBAR is a common mistake.
What rate do I use for a one-time transaction, like selling the property?
Use the spot rate on the date of the transaction, not the yearly average. The yearly average is intended for income and expenses that recur through the year (rent, mortgage interest, management fees). A sale, a large repair invoice, or any single dated event should be converted at that day's rate.
Where do these rates come from?
They are the IRS's own published yearly average currency exchange rates for the Canadian dollar, from the IRS Yearly Average Currency Exchange Rates page. The IRS updates the table once a year after the tax year closes. For years not shown here, or for spot rates, use the IRS page or the Bank of Canada daily rates.
⚠️ Important Disclaimer
This content is for informational purposes only and does not constitute legal, tax, accounting, or financial advice. Tax laws change frequently — always verify with the CRA and IRS or consult a qualified cross-border tax accountant before making decisions.
BorderBird is a rental-management and record-keeping tool. It is not an accountant and does not provide accounting, tax, or legal advice.
Rates and rules reviewed against IRS guidance — last reviewed August 2026. Tax rules change; confirm against the source before filing.
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