Set a Daily Budget
Let me be straight with you: Taiwan is one of the most affordable destinations in Asia, and I say this after spending three weeks there on a genuinely tight budget.
Here is what a realistic daily budget looks like broken down by travel style.
Shoestring: NT$800-1,200 per day (roughly $25-38 USD). This covers a dorm bed in a solid Taipei hostel (NT$400-500), three meals from night markets and convenience stores (NT$200-300), and local transport (NT$100-150). You will not feel like you are roughing it. You will feel smart.
Mid-range: NT$1,500-2,500 per day ($47-78 USD). Private room in a guesthouse or budget hotel, sit-down meals at local restaurants, and day trips included. This is my personal sweet spot. I spent around NT$1,800 most days during my last trip and felt completely comfortable.
Comfort: NT$3,000-5,000 per day ($94-156 USD). Nice hotel, a few tourist activities with entry fees, and occasional taxi. Still cheap compared to Japan or South Korea for the same level.
A few things that will quietly eat your budget if you are not watching: convenience store snacks add up fast (yes, 7-Eleven, I am looking at you), entrance fees to some night-view spots like Jiufen or Elephant Mountain are free, but transport there is not, and tipping is not expected in Taiwan so you can skip that entirely.
The biggest budget trap I see travelers fall into is overspending on the first two days when everything feels exciting, then scrambling at the end. My fix: set a daily cap in NT$, not USD. Currency conversion math mid-trip is how you lose track.
Also, carry cash. Many local spots, especially night market vendors and small noodle shops, do not accept cards. ATMs at 7-Eleven accept foreign cards with a flat fee of around NT$100 per withdrawal, so withdraw larger amounts less often.
Budget Taiwan correctly, and NT$1,500 a day feels genuinely luxurious.
Cheap Transport Hacks
Getting around Taiwan cheaply is almost embarrassingly easy once you know the system.
Start with an EasyCard. Buy one at any MRT station for NT$100 deposit and load money onto it. You use it for Taipei MRT, city buses, YouBike rentals, some convenience store purchases, and even certain trains. The MRT in Taipei gives you a 20% discount just for using EasyCard instead of single-journey tickets. That adds up across a week.
Taipei MRT: Most journeys cost NT$20-65. The airport line from Taoyuan to central Taipei is NT$160 and takes 35 minutes. Compare that to a taxi (NT$1,200+) and the choice is obvious.
City buses: Flat rate of NT$15 in Taipei with EasyCard. Some routes are even free in the city center zone. I took the bus from Zhongxiao Fuxing to Shilin Night Market for NT$15. A taxi quote for the same trip was NT$180.
Taiwan High Speed Rail (HSR): Taipei to Kaohsiung in 90 minutes. Standard price is NT$1,490. Buy an “early bird” discount ticket 28+ days ahead and pay NT$980 or less. The HSR app lets you book in English. Do this instead of flying domestically.
Taiwan Railways (TRA): Slower but cheaper and more scenic. Taipei to Hualien on the east coast costs NT$340-440, depending on train type. Book ahead because popular routes sell out.
YouBike: NT$10 for the first 30 minutes, then NT$10 per 30 minutes after. Stations are everywhere in Taipei, Taichung, and Tainan. I used YouBike almost daily in Tainan and spent maybe NT$50 total across three days of cycling.
One thing I noticed: a lot of travelers sitting at the hostel in the evenings ended up killing time on their phones, whether scrolling Instagram or checking out things like 3377WIN. Nothing wrong with a low-key night in. But if you have already bought an EasyCard, a NT$15 bus ride can get you to a night market by 8 pm instead.
Rent a scooter outside Taipei (NT$300-500 per day) if you have a valid license. It changes how you experience rural areas completely.
Eat Well for Less
Taiwan might be the best country in the world for eating on a budget. I genuinely mean that.
Night markets are the obvious starting point. Shilin in Taipei is the most famous but also the most tourist-priced. Go to Raohe, Ningxia, or Tonghua instead. Scallion pancake: NT$30. Oyster vermicelli: NT$50. Stinky tofu (try it once): NT$40. Taro balls with shaved ice: NT$60. A full, satisfying meal for NT$150-200 is completely normal.
Lunch sets at local restaurants are the best value meal of the day. From roughly 11am to 1:30pm, most Taiwanese restaurants run a set lunch. You get a main dish, rice, soup, and sometimes a small side for NT$100-180. The same dishes ordered at dinner cost NT$180-280. I ate a braised pork rice set with soup and a pickled vegetable side at a Tainan local spot for NT$120. It was outstanding.
Convenience stores are legitimately good. This is not a backup option; it is a strategy. 7-Eleven and FamilyMart in Taiwan sell hot steamed buns, onigiri, hot dogs, instant noodles made in-store, oden (fish cakes and tofu in broth), sandwiches, and fresh fruit. A solid convenience store meal costs NT$60-100. The egg salad sandwiches are better than they have any right to be.
Drink cheap: Bubble tea from chain shops like 50 Lan or Coco starts at NT$35-55. Tourist areas charge NT$80-120 for the same drink. Always walk one block off the main tourist strip and prices drop noticeably.
My actual food spend: On a focused budget day in Taipei, I spent NT$95 on breakfast (FamilyMart rice ball + iced coffee), NT$150 on a lunch set near Dongmen MRT, and NT$180 at Ningxia Night Market for dinner. Total: NT$425 for all three meals. That is about $13 USD.
Avoid sit-down restaurants in heavily touristed areas like Ximending at dinner unless you check prices first. The food is not better, just more expensive.
Free and Low-Cost Things To Do
The truth: some of my best days in Taiwan cost under NT$20,0 including transport.
Temples are free. Every single one. Longshan Temple in Taipei, Xingtian Temple, the entire temple complex in Tainan’s old city, Fo Guang Shan Monastery in Kaohsiung. You can spend a full day just walking between temples in Tainan, and it costs nothing. These are active, living religious spaces, not tourist performances. Observe quietly and you are welcome.
City parks and riverside paths: Taipei has the Daan Forest Park (free, always busy, great for people-watching), the riverside cycling paths along the Tamsui River (free to walk, NT$10 for YouBike), and Elephant Mountain, which gives you the famous Taipei 101 skyline view.The Elephant Mountain hike takes 20-30 minutes and is completely free.
National Palace Museum: NT$350 entry. This is worth every cent, and I do not say that about many museums. It holds the largest collection of Chinese imperial artifacts in the world. Go on a weekday morning. Students and seniors pay less.
Jiufen Old Street: Free to walk around. The famous tea house with the view costs NT$180-220 for tea (but you can sit as long as you like). Transport from Taipei is NT$90-120 by bus.
Sun Moon Lake: The lake itself is free to see. One circuit by bike (rentals NT$200-300 for the day) gives you views that are genuinely hard to believe. Entry to some lakeside temples is free.
Taroko Gorge: Free national park. Getting there from Taipei costs NT$340-440 by train to Hualien, plus NT$300-400 for a local bus or scooter rental. One of the most dramatic landscapes I have ever seen, accessible on a backpacker budget.
My suggestion: do not buy a “Taipei day pass” that bundles tourist attractions unless you have specifically confirmed you will visit each place on the list. Most of what makes Taiwan remarkable is free.