That said, we should take a look at the whole story and see how much it costs to live here. Keep in mind, though, that the costs of living in Canada vary depending on where you live.
Average Cost of Living in Canada
While living costs in Canada vary by person, the average living expenses, according to the living index, are estimated at $1,440.90 per month for a single person and $5,189.90 per month for a family of 4. Monthly costs, including rent, are estimated at $1,922 per person, and for a family of four, the estimated monthly cost is $3,911.
This is the bare minimum needed to live. As a result, the average salary required for a single person is around $45,000 annually. However, if you live in places with lower housing costs, these amounts go down.
How Much Do You Need to Live Comfortably in Canada?
There’s a difference between having enough money to live and having enough to live comfortably. In Canada, these amounts will, on average, allow you to live comfortably.
| City | Single Person | Family of Two Adults and Two Children |
| Toronto | $3,551 | $6,144 |
| Vancouver | $3,445 | $5,955 |
| Ottawa | $2,822 | $5,329 |
| Montreal | $2,384 | $4,799 |
| Calgary | $2,449 | $5,110 |
| Halifax | $2,377 | $4,698 |
| Quebec City | $1,871 | $4,126 |
Cost of Living for a Couple
For a couple to live comfortably, it is recommended to have around $3,500 per month, or $50,000 per year. This can vary significantly depending on whether the couple is a one-income or two-income household and the size of the apartment/house you choose to live in.
Cost of Living for International Students
For an international student, the average monthly cost of living is between $600 and $800, including food and other expenses. Rent off campus can cost anywhere from $700 to $2,200 per month, and then there is tuition.
While tuition is lower in Canada than in many other countries, the average cost of an undergraduate degree is around $28,000 per year. Not to mention the cost of books, which can range anywhere from 100-$ 500 per semester, and dorms can cost anywhere from $550 to upwards of $2900.
There is also the cost of a vehicle or public transportation, as well as health insurance costs. While public transportation (public transit) costs range from $80 to $110, vehicle costs are much higher, and private health insurance can cost between $600 and $1000.
There are restrictions on how long you have been in Canada and on whether you are a permanent resident to qualify for Universal health care. Due to these costs, international students are allowed to work 20-40 hours/week.
Cost of Rent by Province in Canada
One of the biggest factors that contributes to the cost of living is rent/housing. The average monthly rent in Canada is $2730, but this all depends on the size of the rental and the location. Here’s a look at the average rent per province.
| Province | Rental Cost |
| British Columbia | $2034 |
| Alberta | $1669 |
| Saskatchewan | $1507 |
| Manitoba | $1523 |
| Quebec | $1602 |
| Newfoundland and Labrador | $1463 |
| Prince Edward Island | $1409 |
| Ontario | $1877 |
| New Brunswick | $1369 |
| Nova Scotia | $1595 |
While living in a major city will cost more in rent than in rural areas, it’s also important to keep in mind that transportation costs will likely be lower in large cities due to more accessible transit options.
What’s the Average Cost to Purchase a House in Canada?
While the rental prices per province correlate to the housing prices per province, how much does it really cost to purchase a house per province? Keep in mind, though, this doesn’t include the amounts you pay taxes on, such as property taxes and water costs.
| Province | Average Housing Costs |
| British Columbia | $928,826 |
| Alberta | $524,545 |
| Saskatchewan | $365,276 |
| Manitoba | $370,000 |
| Quebec | $565,212 |
| Newfoundland and Labrador | $369,165 |
| PEI | $420,819 |
| Ontario | $788,835 |
| New Brunswick | $354,688 |
| Nova Scotia | $467,585 |
Which Province in Canada has the Highest Cost of Living?
In Canada, the province with the highest cost of living is Ontario. Not only does it have some of the highest housing and rental prices in Canada, but estimated monthly costs for home insurance in Ontario are also around $215, and car insurance averages $155.
The cost of utilities and food doesn’t vary too much across Canada. If we exclude the cost of rent/mortgage payments, it is around $2,244.46 per month to live in Ontario. Because rent can be $1200 or more, you may need over $3500 per month just for one person.
Which Province in Canada has the Lowest Cost of Living?
The province with the lowest cost of living is New Brunswick. While the housing costs in New Brunswick are significantly lower than in the rest of Canada, so is everything else. Home insurance averages around $60 per month,h and car insurance is only around $72.25 per month. The average cost of living in New Brunswick, excluding housing, is $1,415.65 per month.
Cheapest Province to Live In
The cheapest province to live in is Newfoundland and Labrador. The food prices here are really the same as the rest of Canada, but the cost of rent and taxes is much lower. For many Canadians, there are also plenty of job opportunities, so it’s no surprise that we are seeing the population over there slowly increase.
Cost of Living in Major Canadian Cities
While, on average, B.C. has the highest rent cost in Canada, what about if you live in the city center of one of Canada’s largest cities? Do they reflect on the provincial averages? Let’s take a look.
| Major Canadian City | 1-bedroom apartment rental | Cost of a detached home |
| Vancouver | $2,602 | $1,250,329 |
| Calgary | $1,840 | $446,000 |
| Regina | $1,249 | $307,214 |
| Winnipeg | $956 | $427,000 |
| Ottawa | $2,045 | $759,141 |
| Toronto | $2,321 | $1,165,600 |
| Hamilton | $1,712 | $821,512 |
| Montreal | $916 | $630,063 |
| Quebec City | $731 | $494,000 |
| Moncton | $1,632 | $333,496 |
| Halifax | $2,062 | $578,675 |
| Charlottetown | $1,162 | $490,468 |
| St. John’s | $898 | $387,500 |
The Average Canadian Salary vs. Cost of Living
Where you live in Canada can also affect the average annual salary. Overall, the average annual salary in Canada is $61,600. This average has gradually increased over the years, helping Canadians keep up with the cost of living.
| City | Average Annual Income |
| Toronto | $82,500 |
| Vancouver | $70,650 |
| Ottawa | $64,995 |
| Montreal | $59,535 |
| Calgary | $74,650 |
| Halifax | $59,447 |
| Quebec City | $68,056 |
Cost of Food in Canada
Another factor that affects the cost of living in Canada is food. Prices in some Canadian provinces, like B.C. and Ontario, tend to have much higher grocery costs than the rest of Canada; it ultimately depends on where in those provinces you live. The rural areas are even more costly than the city. In Canada, while there are plenty of groceries available, many people tend to eat out more due to rising grocery prices.
Is Living in Canada Expensive?
While Canada is not the cheapest country to live in, it is also not the most expensive. Things like free health care make it a lot cheaper than other countries; the difference is that we tend to have higher taxes. These taxes help to keep Canada one of the most sustainable economies. However, some things like car insurance are much more expensive in Canada than in other countries.
Food prices and fuel prices in Canada are higher than in places like the US and the UK. Even though these costs are higher in Canada than in many other countries, Universal Healthcare, a higher-than-average median wage, and the housing market do make Canada less expensive than many other countries. Out of 252 different countries, Canada is ranked as the 24th most expensive country in the world to live in.
Canadian Taxes
While Canada does have some higher taxes than most other countries, there are reasons for this. As mentioned above, it helps keep Canada’s economy stable and allows for things that distinguish us from countries such as the US.
An example would be universal health care. Unlike most countries, Canada does not charge tax on the first $12,298 of your income. The rest of your income is taxed by the province you are in and the amount of income you bring in. It can range from 4% to 13%. In Canada, there are also 3 types of sales taxes.
PST, GST and HST. PST, or Provincial Sales Tax, is only charged in some provinces. In BC and Manitoba, it is 7%; in Saskatchewan, 6%; and in Quebec, 9.975%. Goods and Services Tax (GST) is 5% and is not charged in New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, PEI, and the Yukon, unlike in other provinces. These Provinces instead charge the Harmonized Sales Tax (HST), which ranges from 13% to 15%.
These 3 taxes are charged on most goods and services across Canada. These include property, vehicles, clothing, and other material items. Necessities like groceries and prescriptions are exempt from most of these taxes. In total, Canada does have higher taxes than other countries, such as the US. Tax revenue accounts for 38.4% of GDP (Gross Domestic Product), compared with 28.2% in the US.
How Much Has Inflation Increased the Cost of Living?
While the rate of inflation in Canada is currently around 3%, that hasn’t been the year-over-year inflation rate. In fact, the inflation rate has fluctuated significantly over the last few years. In terms of how this affects the consumer price index basket, prices have risen by more than 19.9% over the last 5 years.
When it comes to inflation, we see a moderate 1.4% rise over the last year, but much higher increases in recent years buoy this. Grocery inflation has been rising about 3.1% year over year. Other market-based measures, such as transportation, have also increased most recently, up 7.8%, largely due to higher fuel costs.
What is a Living Wage in Canada?
In Canada, there is no defined living wage, since these costs are calculated regionally. This is calculated by using the cost of housing, shelter, and food. When you’re considering the living wage by city, you do need to account for the fact that minimum wage rates usually fall well below this rate and are considered to be below the low-income cut-off.
That said, in Canada, the average after-tax median income is considered to be $,75,000, which is a living wage in most regions. However, your lifestyle can also dictate what an appropriate living wage is. This is also why it’s important to negotiate salaries by city, since it can help accommodate regional differences, such as downtown parking costs.
The Cost of Childcare By Province
Since Canada rolled out the Canada-Wide Early Learning and Child Care agreement, which has set a target fee of only $10 per day, daycare costs in Canada have dropped. Here’s a look at average monthly prices at the start of the implementation of ten-dollar-a-day childcare. This includes both before- and after-school care.
| Province | Average Monthly Cost |
| Quebec | $192-$348 |
| PEI | $206 |
| Newfoundland and Labrador | $242 |
| Saskatchewan | $260 |
| Manitoba | $264 |
| Alberta | $452 |
| Ontario | $542 |
| British Columbia | $571 |
| Nova Scotia | $383 |
| New Brunswick | $386 |
The Cost of Living in the Territories
When it comes to finding out the cost of living in the territories, the most accurate way is to look at a household spending survey. In this case, the Survey of Household Spending shows that average household spending is among the highest in the country, leaving less disposable income.
The key factors that influence these costs include:
- Home heating oil
- Natural gas rates
- Electricity rates per province
- Food costs
Because this part of Canada is colder and more remote, these costs will be much higher than in the rest of the country. Plus, this is on top of standard costs like:
- Vehicle ownership costs
- Water and sewer bills
- Condo fees
- Strata fees
Due to the differences between rural and urban living costs, there is the Northern Living Allowance, which helps with the cost of living in the Yukon and Nunavut.
How Much Should Newcomers Have to Settle in Canada?
When it comes to moving to Canada, newcomers’ settlement costs will vary. However, immigration Proof of Funds requires a minimum of $15,263 CAD. However, it’s often recommended to have at least $30,000.
Here are other legal minimum amounts based on the size of your family:
- 2 people – $19,001 CAD
- 3 people – $23,360 CAD
- 4 people – $28,362 CAD
When considering these amounts, though, they are just the bare minimum. It’s necessary for both temporary foreign workers and those seeking remote-work relocation to be prepared for all cost-of-living adjustments. Many landlords may require more than just first and last month’s rent to approve your lease. Plus, this is all on top of your standard moving costs.
Rent Increase Limits and Rent Control Rules
When it comes to rent control and rent increase limits, the amounts are based on provincial rules and not federal ones. With rent control by province, landlords must follow not only these rent-increase guidelines but also the damage-deposit rules.
| Province/Territory | Increase Cap | Required Notice Period | Frequency |
| BC | 2.3% | 3 months | Once every 12 months |
| Ontario | 2.1% | 3 months | Once every 12 months |
| Manitoba | 1.8% | 3 months | Once every 12 months |
| PEI | 2.0%-5.01% | 3 months | Once every 12 months |
| Nova Scotia | 5.0% | 3 months | Once every 12 months |
| The rest of Canada | No cap | 3 months | Once every 12 months |
The Cost of Living for Fixed Income Seniors
Fixed-income seniors who rely solely on government benefits will have incomes of around $2,432. This falls short of covering your average monthly expenses. The cost of independent senior living ranges from $2,750 to $3,000 per month. This doesn’t include other costs like:
- Auto insurance by province
- Renters insurance costs
- Grocery budgets per person
Seniors on a fixed income often have to find other ways to supplement their income just to make ends meet. Many also have to relocate or look into low-income housing.
Budget Breakdowns Using the 50/30/20 Rule
No matter how much you make, the best way to set yourself up for success is by creating a budget using the budget percentage guidelines. This is often known as 50.30.20 budgeting. It’s broken down as 50% for needs, 30% for wants, and 20% for savings.
Needs: This includes costs such as housing and utilities (including rental costs), groceries, transportation, tenant insurance, and minimum debt payments.
Wants: Included in this category are travel, eating out, hobbies, entertainment and subscriptions.
Savings: This includes saving for retirement, meeting your emergency fund target, and extra debt payments.
No matter what stage of life you’re in, these tips can help you get your finances in order. When it comes to student budgeting tips, many people recommend taking advantage of meal planning savings and making roommate arrangements.
Average Canadian Debt by Household
While we do talk about debt and how much the national average payment is per month, how much does this really contribute to a Canadian’s overall cost of living? Well, the average person in Canada has about $20,739 in non-mortgage debt. This varies from person to person, but it shows the importance of the difference between earning a living wage in Canada and a wage that allows you to live comfortably.
Is it Cheaper to Live in Canada or the US?
When talking about whether it is cheaper to live in the US or Canada, it is a close call. The cost of living in each country really depends on whether you live in a city or in a small town. In a large city like New York or L.A., the prices for monthly rent and groceries are higher than in a large Canadian city like Toronto or Vancouver. It also depends on whether you rent or own. In larger American cities, rent is often much higher than the cost of purchasing a home.
For example, Canada’s real estate market is currently hotter than the US’s, so average house prices are much higher in Canada. However, this does not factor in interest rates, so it is hard to tell if a Canadian or a US mortgage is more. Another large factor in determining which country is cheaper is the cost of medical care.
While Canadians pay roughly $ 4,000 per year in extended medical premiums, the American average is $7,392 per year (in Canadian dollars). Canadians also have free healthcare, which significantly lowers the yearly medical premiums they pay. On average, Americans earn a higher living wage than Canadians, but Canadians have lower education costs than in the US. If you put all the factors together, it is still cheaper to live in Canada than in the US.
Is it Cheaper to live in Canada or the UK?
Now that we know living in Canada is cheaper than in the U.S., is it cheaper than living in the UK? Well, in a ranking of the more expensive places in the world to live, Canada ranks 24th, while the UK ranks 33rd. While it is cheaper to purchase property in Canada than in the UK, purchasing power is lower there than in Canada.
While renting in the UK is technically cheaper than in Canada, when you factor in consumer prices, it is generally 0.06% higher. For this reason, Canadians often have more expendable income. Given that the general wages and household bills in Canada are similar to those in the UK, there isn’t a massive difference in cost, but there is one.
