Is Canada Expensive

Living costs are one decisive factor for those planning an extended stay or a move to another country. So, is Canada expensive, and does its high quality of life balance out its costs?

The answer hinges on several factors, including housing costs, everyday living expenses, healthcare and education costs, taxes, and your choice of location. We will share statistics on all these factors using the Canadian dollar (for reference, it’s about three-thirds of the US dollar).

Canada Cost of Housing

Housing costs are among the most critical influences on every family’s finances. In this section, we’ll examine the cost of renting and owning a home in Canada, housing prices across provinces, and other homeowner expenses that can eat into your budget.

Rent vs. Own

The average monthly rent in Canada is $1,929 for a one-bedroom apartment in 2024, or 9.7% more than in 2023. However, the overall growth of rent prices has slowed down in 2024, encouraging renters in the country. According to the Rentals.ca & Urbanation Rent Report, this is the average rent in major cities:

• Toronto—The average rent for all apartment types is $2,715, and it has dropped by 3% year over year.
• Vancouver—Vancouver has the highest prices, at an average of $3,042. Luckily, they have decreased by 8% during the last year.
• Montreal—The total average is more affordable at $2,013. However, prices have increased by 4%.
• Calgary – On average, Calgary residents pay $2,092 for all apartments, 4% more than in 2023.

Decreases in rent happened in Ontario only. However, the province is generally more expensive to live in. In contrast, rents spiked in Saskatchewan, but the province still has some of the lowest rents in the country. Here is an overview with data provided by the same source:

Province	Average Monthly Rent	Year-Over-Year Growth
Alberta	$1,798	16%
Atlantic Canada	$2,145	16%
British Columbia	$2,550	9%
Manitoba	$1,646	2%
Northwest Territories	$1,844	4%
Ontario	$2,382	-1%
Quebec	$1,979	5%
Saskatchewan	$1,339	22%

Renting is generally cheaper than setting aside funds for mortgage payments. At the same time, due to the cost of living crisis, most younger generations struggle to afford a down payment and purchase their own place.

According to a Zoocasa report based on December 2023 data, the average rent and mortgage payment difference (with 20% down) was the smallest for condos and the largest for townhouses. Also, Winnipeg, Regina, and Quebec City were the most affordable markets for homeownership.

This report is not surprising, given that real estate prices in Canada surpass those in the rest of the continent. Mid-2024 the average home cost about $699,117, while the “typical” home cost around $733,300.

Given the benchmark prices for Canadian provinces (below) and the above-mentioned rental report, living in smaller cities and less popular provinces is much more affordable. Of course, that is if they have satisfactory job opportunities. It is also cheaper to rent than buy.

• British Columbia – $985,200
• Ontario – $890,600
• Alberta – $514,200
• Quebec – $483,700
• Nova Scotia – $410,400
• Prince Edward Island– $364,800
• Saskatchewan – $340,400
• New Brunswick – $306,600
• Newfoundland – $291,100

Costs of Homeownership

Municipal governments determine property taxes in Canada and vary widely by province and city. Higher taxes automatically increase each owner’s housing costs, so you must consider them before you decide to live in Canada. Here are the tax rates for central locations in Canada:

Toronto	0.67%
Calgary	0.66%
Edmonton	0.94%
Vancouver	0.28%
Winnipeg	2.64%
Regina	1.56%
Montreal	0.53%
Charlottetown	1.67%
St. John’s	0.83%
Fredericton	1.34%

Another significant expense for homeowners is home insurance. In Canada, the average home insurance grew by 7.66% in 2024 to an annual premium of $960. Ontario and Saskatchewan are more expensive at $1,250 on average, while it’s cheapest in Nova Scotia, Newfoundland and Labrador, New Brunswick, and Prince Edward Island at around $781.

Your premium is influenced by several factors, including your claims history, the type and structure of your residence, and the value of your home and its contents. Local crime rates also play a role, as does the amount of your deductible and the level of coverage you need. The final factor is the cost of replacing your home in case of its destruction.

Another cost you must budget for is maintenance and repairs. According to the Canadian Census, Canadians spent CAD 3,570 on household furnishings and equipment in 2021 and CAD 5,587 on household operations, including cooking and cleaning. The total was $9,157.

But what is recommended for your potential home?

Economists suggest keeping at least 1% of your home’s value aside for yearly maintenance and repairs, which would be $7,333 for the benchmark Canadian home.

Everyday Expenses

Living expenses in Canada encompass a range of costs, mainly food, groceries, transportation, and utilities. A family of four needs at least $5,205.80 monthly for all their living costs without rent. Each of these costs varies across regions, with food prices potentially higher in Northern and remote areas.

Groceries and Food

According to Canada’s Food Price Report 2024, the average family of four will spend $16,297.20 on food in 2024, $701.79 more than in 2023. Food costs increased in all provinces, especially bakery, meat, and vegetables (5% to 7%).

In the following table, we’ll look at recent food costs in grocery stores, including staple foods such as bread and fresh produce.

Milk, 2 liters	$5.20
White bread, 675 grams	$3.38
White rice, 2 kilograms	$7.67
Ground beef per kilogram	$12.55
Chicken breast per kilogram	$13.82
Eggs, one dozen	$4.45
Apples per kilogram	$5.47
Bananas, per kilogram	$1.65
Potatoes per kilogram	$4.98
Tomatoes per kilogram	$4.30
Vegetable oil, 3 liters	$9.97

When it comes to essential hygiene consumer goods, the average prices are:

Laundry Detergent, 4.43 Liters	$13.35
Shampoo, 400 milliliters	$6.79
Toothpaste, 100 milliliters	$4.21
Deodorant, 85 grams	$7.43

But is Canada expensive when it comes to dining out? This is what crowd-sourced Numbeo data say about restaurant prices in Canada:

Meal for Two People, Mid-range Restaurant, Three-course	$100.00
Meal, Inexpensive Restaurant	$25.00
McMeal at McDonalds (or Equivalent Meal)	$15.00
Domestic Beer (0.5 liter draught)	$8.00
Cappuccino (regular)	$5.17
Coke or Pepsi (0.33 liter bottle)	$2.88

Of course, there are significant regional cost differences, especially between rural and urban areas. For example, in the most expensive cities, Vancouver and Toronto, the monthly living costs are $5,644.20 and $5,518.40, respectively. In smaller cities such as London, a family of four would need 15.3% less a month than in Toronto.

Transportation

Transportation costs in Canada vary widely by mode of transport and region. This section briefly overviews costs associated with public transport, car ownership, and intercity travel.

Public Transport Costs
City	Vancouver (1-ZONE)	Toronto	Montreal	Calgary
Fare	$3.20	$3.35	$3.75	$3.70
Monthly	$107.30	$156.00	$100.00	$115.00

Car ownership is considered expensive in Canada, as gas prices are higher than in the rest of the continent. Furthermore, repairs and maintenance cost a pretty penny each year, and auto parts have high import tariffs.

Car Ownership Costs in Canada
Gasoline prices	$1.62 per liter
Car insurance	$1,655 per year
Car repairs and maintenance	$500 to $700 a year

Regarding intercity travel, the most affordable way to travel within Canada is by bus. There are several private bus companies, so the price depends on the company.

VIA Rail offers fast and comfortable train transport across the country. For example, the Canadian Train between Vancouver and Toronto (4,441 kilometers) costs around $529.

For large distances such as this, flying is not only a faster and more comfortable option but may also be cheaper. Depending on how early you book, the airfare between Toronto and Vancouver could cost as little as $72.

Utilities

Utilities have a significant effect on our cost of living. So, while natural gas isn’t the cheapest in Canada, most utility companies are government-controlled, so they cannot raise their prices however they wish.

This makes utilities in Canada relatively affordable, reducing total housing costs. Here is what the average bill looks like for a family of four.

Basic utilities (electricity, water, heating, cooling, water, garbage) for an 85m2 (915 sq.ft.) apartment	$207.78
Mobile Phone Monthly Plan with Calls and 10GB+ Data	$64.60
Internet (60 Mbps or More, Unlimited Data, Cable, or ADSL)	$85.09

EnergyHub says electricity is cheapest in Québec ($0.078/kWh) and the most expensive in the Northwest Territories ($0.41/kWh).

While cold Canadian winters require more electricity for heating, increasingly hot summers also show increased demand. That’s why your bill may be higher in summer and winter. However, much of the cost will depend on the supplier, your province, and how you spend electricity.

Healthcare and Education

Canada’s publicly funded, universal healthcare system makes a huge difference for people from countries like the US.

Similarly, while education in Canada can be expensive depending on where you come from, it is still one of the top ten education systems in the world.

Have a look at what the numbers show.

Health Insurance and Healthcare Costs

Canada’s universal healthcare system, commonly known as Medicare, is publicly funded and administered by each of the 13 provinces and territories. It includes comprehensive coverage for medically necessary physician, diagnostic, and hospital services.

The rest is paid either out-of-pocket or through private health insurance. For example, the most recent statistics show that 15% of all healthcare spending was out-of-pocket.

Many Canadians use private health insurance to cover additional services (around $80 to $90 a month for people 18 to 35), such as ambulance rides, prescription medication, and most dental and vision care, which often come at high costs.

However, the government has worked to expand its oral health coverage through the Canadian Dental Plan Care for children, older adults, and people with disabilities.

Education

Canadian public education is free for K-12 students as long as they’re residents. It ranks better than the systems in Australia, the UK, and the US, and 91.1% of children attend public schools.

After high school, Canadian and international students can attend one of the country’s 100 public universities or one of nine that rank in the world’s top 200. However, the average cost of tuition increased in 2023, reaching $7,076 a year for Canadian students.

The costs are higher for international students, at $36,100 per year for undergraduate studies and $21,100 per year for graduate studies. In addition, university students need about $15,000 per year for living expenses.

These amounts are challenging, so many students need loans for their education. At graduation, the average student owes:

• $16,700 (College)
• $30,600 (Bachelor’s)
• $33,300 (Master’s)
• $38,200 (Doctorate)

To help students pay for their education, Canada offers student loans, grants, and bursaries, with over 660,000 recipients as of 2022. The country also offers various scholarships based on students’ performance, military status, and other factors.

Taxes and Social Benefits

Canada has a progressive tax system with five federal tax brackets and provincial and local taxes. While income taxes affect the cost of living, and the sales tax does raise consumer goods prices, they are used to fund social programs that improve the quality of life for most Canadians.

Income Taxes

Canadians have a progressive tax system, paying between 15% and 33% in federal taxes on their worldwide income, plus provincial and territorial taxes. People in the lower tax brackets have lower rates, while those earning more get increasingly high rates.

Taxable income is divided into five federal tax brackets.

Tax Rates	Income Threshold
15%	$55,867 or less
20.5%	$55,867 up to $111,733
26%	$111,733 up to $173,205
29%	$173,205 up to $246,752
33%	$246,752

So, how much will you pay in federal taxes if you earn $120,000 a year and live in Newfoundland?

You will pay 15% on everything up to $55,867, 20.5% on your income between $55,867 and $111,733, and 26% on everything between $111,733 and $120,000.

Furthermore, provinces and territories have their own income tax rates and income brackets. For example, in Newfoundland and Labrador, you’d pay another 8.7% on anything under $43,198, 14.5% on anything between $43,198 up to $86,395, and 15.8% between $86,395 and $120,000.

Sales Taxes (GST/HST and PST)

The Goods and Services Tax (GST) and the Harmonized Sales Tax (HST) are a type of Value-Added Taxes.

GST is a federal sales tax levied at 5%, which is combined with provincial sales tax rates (PST) to affect the prices of goods and services.

To simplify things, five provinces have combined the GST with their own rates and created the HST:

New Brunswick	15%
Newfoundland and Labrador	15%
Nova Scotia	15%
Ontario	13%
Prince Edward Island	15%

Saskatchewan, Manitoba, and British Columbia have PST rates of 6%, 7%, and 7%, respectively, and these taxes are not recoverable. Quebec has its own version of PST, which is recoverable and amounts to 9.975%. All these tax rates are added to the existing 5% GST, increasing the prices of goods and services.

However, there are products that these taxes do not apply to, also known as zero-rated supplies. They include:

• basic groceries
• agricultural products
• most farm livestock
• most fishery products
• prescription drugs and drug-dispensing services
• specific medical devices such as hearing aids and artificial teeth
• feminine hygiene products

Hidden Costs

Canada has a high excise duty on consumer goods that are considered harmful to society, including cannabis, spirits, tobacco products, vaping products, beer, and wine. The rates vary by province and product type.

The country also has import tariffs on various goods. For example, clothing has an exceptionally high duty rate of 16% to 18%, as do cookware, auto parts, and furniture, increasing the prices of products. In most cases, importers must also pay sales tax on imports.

Hidden Savings

There are some critical hidden savings in Canada. Notably, the country’s universal healthcare covers an average of 70% of healthcare costs people need yearly, saving them substantial money. This is especially true for people undergoing more expensive procedures or treatments.

And even though taxes are somewhat high, they support various social programs to improve the citizens’ health, education, and family life. These programs include:

• Employment Insurance benefits and leave
• Canadian Dental Care Plan
• Public pensions
• Housing benefits
• Disability benefits
• Student aid

Family benefits deserve a particular section, as they help Canadians in many crucial situations. They include:

• Child benefits
• Dental benefits
• GST or HST credit (tax deductions)
• Maternity, parental, and caregiving benefits and leave
• Help for the costs of raising people with disabilities

The Cost of Living in Different Regions of Canada

The cost of living in Canada is highly location-dependent. Your expenses and opportunities will vary significantly from large, expensive cities to more affordable, smaller towns and rural life. Here’s what to expect from the cost of living in each part of the country.

Major Cities: Toronto, Vancouver, Montreal

Almost 82% of Canadians live in cities. This is particularly true for immigrants, who are likelier to have friends and family in a big city like Toronto. However, these cities are known for their huge costs (although not as terrible as New York and San Francisco).

The cost of living is primarily affected by high rents, although overall expenses aren’t that far off either.

For example, in Montreal, a family of four needs $5,108 a month or $1,385 if they live alone—without rental prices, which can go as high as $1,773 for a one-bedroom.

However, just your apartment in Montreal would cost you 8% less than the national average, let alone cities like Vancouver. This city is 23.2% more expensive than Montreal and requires $5,644 for a family of four without rent.

Toronto is around 5.8% cheaper than Vancouver overall, with 14.3% cheaper groceries and more purchasing power in general. Still, a three-bedroom apartment would cost you $3,673, and you’d need an additional $5,518.1 for other expenses.

However, the redeeming quality of most major cities is their economic development and job availability. In addition to economic factors, people continue to flock to cities to access more education, entertainment, and even medical treatment options.

Smaller Cities: Halifax, Winnipeg, Quebec City

Your Canadian dollar will take you farther in smaller cities such as Halifax, Winnipeg, and Quebec City. Not only are they cheaper, but they still have plenty of job opportunities and amenities. Still, it’s vital to research each city and its expenses before deciding.

Let’s look at these three as examples.

Halifax is a calm city next to Russell Lake. It is walkable, quiet, and family-friendly. Although its prices are generally lower than in cities like Vancouver and Toronto, it’s still considered expensive for a city of its size. For example, the average rent for a one-bedroom is $2,129.

Winnipeg is one of the rare cities in Canada where renting and buying have a similar effect on your monthly budget. A family of four needs $5,040 a month on average (without rent), while the median rent ($1,589) is 21% lower than in the rest of the country.

To live in Quebec City with three other family members, you would need $5,152.8 without rent and pay $2,440 for a three-bedroom. The city is about 1% more expensive than Winnipeg if you include renting prices.

Rural Areas: Atlantic Canada, Prairies, Northern Territories

The most affordable places in Canada are rural areas of Atlantic Canada, the Prairies, and the Northern Territories. However, depending on location, you must cross long distances to get to nearby cities. Let’s look at the average cost of living in Canadian rural regions:

Newfoundland	$2,845 a month
Quebec	$2,625 a month
Saskatchewan	$3,091 a month
Manitoba	$3,324 a month

Despite having the lowest cost of living, rural areas have limited job opportunities, and food costs may be higher in remote areas due to added transportation costs.

Tips for Managing the Cost of Living in Canada

While it isn’t always easy to save money, everyone can improve how they use their budget with practice. Here are some tips on battling the rising cost of living in Canada:

• Budgeting and Tracking Expenses—Depending on what’s available in your area, find apps that let you scan receipts and track and analyze your monthly expenses.
• Choosing Affordable Housing Options—This includes finding affordable places that don’t require too many repairs and maintenance.
• Utilizing Public Transportation—Public transport in Canada is estimated to cost around 10% of yearly car expenses.
• Cooking at Home and Meal Planning – Delivery and eating out is about five times more expensive than being your own chef.
• Taking Advantage of Free Activities and Events—One way to do this is to use sites like EventBrite, which has a list of free events in your area.
• Shopping Smart and Looking for Deals – Some ways to do this are ordering online to prevent impulsive shopping, thrifting, and adjusting your shopping habits to fit seasonal sales.

Conclusion

The cost of living in Canada is high, with $5,205 a month for a four-member family, high real estate prices, and hefty import tariffs on many consumer goods. However, the quality of life in Canada is one of the highest in the world, with excellent education, healthcare, and social programs.

On the other hand, the cost of living isn’t the same across the country. If you avoid the most expensive cities of Vancouver and Toronto and opt for smaller towns, you can achieve a balance between amenities and affordability.

Finally, living relatively comfortably in Canada is possible with a median salary of $43,090 per person and $70,500 per family. You can also enjoy its culture, diversity, stunning natural wonders, and solid social safety net.