Cost of Living in Canada: A Complete Overview

Thinking of moving to Canada? From quiet, remote areas to bustling cities, Canada is known for its high standards and real estate prices. Many entrepreneurs, investors, digital nomads, and retirees choose to settle in urban and suburban areas.

The cost of living in Canada varies based on location and consumption habits, whether you are buying a house, renting an apartment, or getting groceries. This article breaks down everything you need to know, including housing costs, food prices, public transit, and more.

Keep reading to learn about:

• Cost of housing
• Healthcare costs
• Transportation costs

What is the cost of living in Canada?

Most Canadians dedicate 35 to 50 percent of their income to monthly rent, housing costs, and utilities. The average costs of living in Canada range from $1,980 to $2,330 per month.

The estimated monthly costs vary depending on the location. Rent prices in major Canadian cities are higher, especially in the Greater Toronto Area. Toronto is the most expensive city in Canada, followed by Vancouver, Montreal, Ottawa, and Calgary. Residents often enjoy a higher median income with diverse employment options.

Based on our Retirement Index Report, Canada is the ninth best place for American citizens to retire. The country provides affordable healthcare, a stable economy, and a high quality of life.

Many Canadians live comfortably in the countryside of Nova Scotia, New Brunswick, and Manitoba. These locations offer affordable rent and lower monthly costs. The average wage after taxes covers about 1.4 months’ worth of basic living expenses, such as food, rent, and utilities.

Source: Numbeo

Is Canada expensive?

Canada is one of the most expensive countries to live in. Canada ranks 15^th due to the high cost of living, whereas the United States ranks 7^th. Canada is notably more affordable than the United States, with estimated monthly costs of $1,980.

Rental accommodations and housing costs are relatively high in large cities like Toronto, Vancouver, and Victoria. However, these cities in Canada have a developed economy, a stable start-up ecosystem, and a higher median income.

Many Canadians prefer to settle in small towns and rural locations to mitigate the higher costs and consumer prices. Canadian cities like Sydney (Nova Scotia), Regina (Saskatchewan), and Edmonton (Alberta), offer lower living costs.

Monthly costs breakdown in Canadian dollars (excluding rent):

• Single person: $1,342
• Family of four: $4,797

Cost of Housing in Canada

Before you can start living in Canada, it’s important to take a look at the housing costs. The amount you spend varies based on the regional cost, city size, and spending habits. The average person in Canada spends about half their income on housing, rent, and utilities. According to Statista, in 2023, the average housing costs were about $678,282, which are expected to reach $746,379 by 2026.

Larger cities like Toronto and Vancouver come with higher monthly costs, often exceeding $2,500 per month for a one-bedroom apartment. Rural properties outside large Canadian cities cost less per square meter. Still, many people choose to live in Vancouver due to better career opportunities and global market access.

The cost of renting and housing varies based on the province. Monthly rent and real estate prices are often lower in Newfoundland and Labrador, Saskatchewan, and Nova Scotia. The four estimated monthly costs are significantly higher in British Columbia and Ontario.

Healthcare Costs in Canada

Living in Canada comes with many advantages, but the main one is healthcare coverage. Healthcare costs in Canada (public and private) are significantly cheaper than those in the United States.

The estimated monthly cost for healthcare is $542 for the average Canadian, compared to $1,076 per month in the United States.

Canada’s healthcare system covers all legal Canadian residents, while the U.S. only covers those who pay premiums. Most healthcare costs are publicly funded through general tax revenues, which provide free or low-cost services.

Health insurance

Health insurance in Canada is relatively affordable. The cost varies based on the type of coverage, medical history, age, and other factors. The monthly costs for premiums range from $60 to $200. Starting premiums have the lowest coverage, while higher coverage for pre-existing conditions leads to higher costs.

Dental visits

The average Canadian spends about $139 to $430 on basic dental procedures. The monthly costs can vary for extensive treatments. Dental visits in major Canadian cities come at a higher cost, especially in Vancouver and Toronto. Living in Canada is more expensive in city centers and popular tourist destinations, with high rent prices.

Transportation Costs in Canada

Public transportation in Canada is reliable, especially in major cities like Toronto and Vancouver. The monthly costs vary based on the type of transport you use. For example, living in Canada is relatively expensive in Toronto.

For public transportation, the costs include:

• One-way ticket (local transport): $3.35
• Monthly pass (regular price): $156
• Taxi start (normal tariff): $5
• Taxi (one hour waiting): $35

If you plan to drive:

• Gas prices: $1.53
• Car insurance: $1,505 to $1,528 or over

When it comes to car ownership, the average Canadian spends about $458 per month on a vehicle. Ontario has the highest monthly costs for vehicle registration, car insurance premiums, and licensing fees.

Cost of Food in Canada

Food prices are relatively high, mainly for people living in Canada’s capital cities. The average monthly costs for groceries range from $297 to $400 for a single person, and $800 or over for a family of four. The table provides a quick look at the living costs in Toronto in Canadian dollars.

Despite the high food costs, many foreigners choose to immigrate to Canada due to its stable economy and investment potential. The Canadian citizenship by investment offers various immigration programs for entrepreneurs, investors, and business moguls.

Cost of Education in Canada

Public schools in Canada are free for Canadian citizens and legal residents. Each territory and province manages its own government-funded education system. Private schools often come with tuition fees, which can be affordable for those living in Canada.

The cost of living in Canada for international students varies based on the school and program you select. The average tuition fees are around:

• $3,008 per month for foreign undergraduate students
• $1,758 per month for foreign graduate students

The average living costs are $1,250 per month for university students. The monthly costs vary based on the province. Many trains, buses, and airlines provide discounts for students, which can make living in Canada more comfortable for those on a study visa.

Cost of Childcare in Canada

Families living in Canada have access to reliable and inclusive childcare services. Child care providers charge between $575 and $701 per month, varying based on regional cost and age. Living costs are often higher in capital cities, reaching over $1,276 per month. Nevertheless, Canada is a safe country for raising children, making it a top destination for immigrants around the world.

Cost of Living in Canada vs US

Living in Canada is less expensive than in the United States. The monthly costs in Canada for a family of four, excluding rent, are CAD$ 4,797. The estimated monthly costs for a single person are CAD$ 1,342 without rent. New York City has a higher average monthly rent than Toronto.

If you’re moving from the US to Canada, you’ll need at least USD$ 15,300. For a family of four, the total cost to move, including immigration and moving expenses, can be around USD$ 27,600.

The cost of healthcare goods and services is almost double in the U.S. The average person spends about CAD$ 9,053 in Canada yearly, compared to USD$ 12,297 in the US. The living index shows that Canada’s public healthcare system reduces the overall living costs, which is one of the many reasons why Americans are moving to Canada.

However, some grocery prices can be higher in Canada than in the USA, especially for fresh vegetables and meat. The high living index is partly due to import costs, transportation expenses, and weaker market competition.

Cost of Living in Canada vs UK

The United Kingdom has a higher cost of living than Canada. It also has higher purchasing power and lower grocery costs. Based on the living index, the average rent is lower in Toronto compared to London.

Housing is often more expensive in the UK, whereas the cost of food, utilities, and other expenses can vary based on the location. Taxes in Canada are relatively affordable, with excellent tax deductions for running a business.

The cost of renting in Canada is lower in smaller towns and rural locations. The two countries offer universal healthcare for legal citizens and residents. Healthcare coverage in both countries significantly reduces monthly costs.

The table below provides the average cost of living in Canada vs UK in Canadian dollars.

Frequently Asked Questions About the Cost of Living in Canada

What is the cost of living in Canada?

The living cost in Canada varies depending on the region and city. Generally, it encompasses housing, food, transportation, healthcare, and other expenses. Larger cities tend to have higher costs, while smaller towns and rural areas can be more affordable.

What is the cost of living in Vancouver, Canada?

Living expenses in Vancouver, Canada, are relatively high compared to other cities. Housing expenses, in particular, contribute to the elevated cost of living, making it one of the most expensive cities in the country.

What is the cost of living in Toronto, Canada?

The cost of living in Toronto, Canada, is also considered high. Housing costs, transportation expenses, and urban amenities contribute to the elevated overall cost of living in the city, reflecting its status as a major economic and cultural hub.

What are the most expensive places to live in Canada?

The places with the highest cost of living in Canada per month are the most populated cities. These include: Vancouver, Toronto, Victoria, Hamilton, and Ottawa. These are some of the best places to live in Canada, with higher median income and better investment potential.

What are the cheapest places to live in Canada?

The cities with the lowest cost of living in Canada are usually less populated. They include: Sept-Iles, Bécancour, Quesnel, Cornwall, and Timmins. Here, the cost of renting tends to be lower, and the cities provide excellent social services.

Is it expensive to live in Canada?

Living in Canada can be very expensive, especially if you settle in major cities like Toronto, Vancouver, or Victoria. But the cost of living is about 6.8 percent cheaper than in the USA, excluding rent. Compared to their Canadian counterparts, Americans might face lower income tax rates, but often pay more out-of-pocket costs for healthcare.

Is $5,000 dollars a month good in Canada?

If you earn $5,000 per month, which is about $60,000 per year, you are in the middle class. You can live comfortably in Canada and afford the necessities. Depending on your location, this is a good starting wage for a family of two.  Canadian citizens and legal residents spend less on monthly rent outside the city center and in rural areas.

How much money do I need to live in Canada?

A single person in Canada spends about $1,342, or $4,797 for a family of four. The cost of living increases in downtown areas and varies depending on whether you are renting an apartment or paying your mortgage. In provinces like Alberta, residents enjoy slightly less tax, which can ease the cost of living for middle-income families.

Can you live off $3,000 a month in Canada?

Yes, $3,000 in Canada is usually enough to afford groceries, rent, utilities, and affordable restaurants. However, if you live alone in larger cities with high rent, $3,000 may not be enough. Although Canadians may pay more upfront in taxes, they benefit from strong social services like universal healthcare and tax-funded education.