Cost of Living Calculator for Canadian Cities 2025
What is “cost of living” and how does it affect where you live?
Your cost of living is how much income you would need to sustain your standard of living and cover basic living expenses in another city. Although the cost of living across Canada will be different for an individual, a couple, or a family based on lifestyle choices and their needs, the most common components of cost of living will include housing, food, transportation, and childcare.
The cost of living in a city compared with the average or median income in that region can also be one of the key factors that influence where you decide to live. If you're living in a city with a very high cost of living but are not benefiting from a higher income, you may have a lower standard of living compared to living somewhere cheaper. This cost of living calculator helps you to determine how much more you would need to earn to have the same standard of living in other Canadian cities, which can help you to make a more informed decision on where to live.
Key components in your cost of living
Did you know that even though the city of Gatineau is a few minutes drive away from Ottawa, the cost of living in Gatineau for a family of 3 with a small child is 37% lower! Although the income tax rate in Quebec is higher, subsidized child care in Quebec and lower rents in Gatineau still make the cost of living much cheaper than in Ottawa.
Cost of housing
You can expect to need a higher income to maintain your standard of living in larger and more dense cities like Toronto, Vancouver, Montreal or Ottawa, with the following rental rates as of October 2023, according to the Canadian Mortgage and Housing Corporation:
| Type of Home | Toronto | Vancouver | Montreal | Ottawa |
|---|---|---|---|---|
| Bachelor Apartment | $1,414 | $1,489 | $810 | $1,173 |
| 1 Bedroom Apartment / Row | $1,691 | $1,697 | $960 | $1,409 |
| 2 Bedroom Apartment / Row | $1,958 | $2,187 | $1,096 | $1,693 |
This compares to smaller and more spread out cities like Winnipeg, Halifax, and London, where rental costs can be much lower:
| Type of Home | Winnipeg | Halifax | London |
|---|---|---|---|
| Bachelor Apartment | $816 | $1,112 | $959 |
| 1 Bedroom Apartment / Row | $1,102 | $1,322 | $1,186 |
| 2 Bedroom Apartment / Row | $1,429 | $1,626 | $1,473 |
Major cities with more employment opportunities tend to have more population and, in turn, demand for housing. A higher demand leads to elevated home prices and rents. The cost of housing in the calculator above includes the cost of rent and utilities such as electricity and telecommunication services. If you are living alone, your housing costs may be much lower because you may only need a bachelor apartment or 1 bedroom apartment. If you have a family, the cost of renting a single-family home or a 3-bedroom apartment will be much higher in not only rent but also electricity costs.
When calculating Canada’s CPI, Statistics Canada considers the cost of owning and living in a home rather than the cost of purchasing a home. This means that mortgage rates in Canada will affect Canada’s inflation rate, as higher mortgage rates result in higher mortgage interest costs, which affects the Canada Consumer Price Index (CPI).
Cost of food
How much you spend on food in a month depends not only on how many people there are to feed, but also on specific diets and eating habits. Even if you are living alone but eat out every day, it will greatly affect how much your overall cost of food will be. Grocery prices within Canadian cities are fairly consistent, however restaurant prices will vary much more depending on local minimum wages, commercial rental rates, and where in the city the restaurant is located. Although the cost of living calculator does include the cost of eating out for the average Canadian, budgeting for how much you personally spend per month eating out can help you to get a clearer picture on your overall food costs.
Cost of transportation
How you choose to commute in each city will not only depend on the cost of commuting by car, but also the availability and quality of public transportation. This cost of living calculator includes the cost of commuting by car, which includes the cost of gas, car insurance, maintenance, and repairs. This means that especially for those living in cities that are denser and with strong public transit such as Toronto and Montreal, you will be able to save on your transportation costs by using public transit.
Cost of childcare
Depending on your circumstances and if you have a young child or plan to have a child at some time in your life, childcare costs can be a major expense. According to data from a 2023 report from the Canadian Centre for Policy Alternatives (CCPA), the median childcare cost for preschoolers ranges from $810 per month in Calgary down to $192 per month throughout all Quebec cities. Childcare costs in your city can have a large impact on your standard of living, especially if costs are so high that you need to have a parent stay home to care for your child. Childcare costs depend on a city's rental rates, minimum wage, and if there are any provincial subsidies for childcare.
In 2021, the federal budget set out a target to reduce average childcare fees by 50% by the end of 2022 and to an average cost of $10 per day by 2025-26. The provinces and territories of Canada implemented different approaches to meet this target. Based on the latest report by CCPA, Alberta, Ontario, and B.C. are the most expensive provinces in terms of childcare costs.
Taxes
Although Canadian federal income taxes will remain the same throughout all major cities, provincial income taxes will vary depending on the province. Higher income-tax rates reduce your disposable income levels, which lowers how much you have to spend on necessities and other purchases that improve your standard of living. The table below shows the median after-tax income of Canadian families and unattached individuals for provinces from the 2022 Canadian Income Survey, released in April 2024:
Median After-Tax Income of Canadian Provinces
Aside from different provincial income tax rates, Canadian sales tax rates will differ by province. For example, Alberta, British Columbia, Ontario, Quebec, Manitoba, and Nova Scotia have the following sales tax rates as of 2024:
| Province | Provincial Sales Tax | Total Sales Tax |
|---|---|---|
| Alberta | 0% | 5% |
| British Columbia | 7% | 12% |
| Ontario | 8% | 13% |
| Quebec | 9.975% | 14.975% |
| Manitoba | 7% | 12% |
| Nova Scotia | 10% | 15% |
The higher the sales tax rate is in each province, the higher the cost of goods and services will be in each city with sales tax added to the purchase price. Even if the same goods cost the same price in Calgary, Alberta and London, Ontario, before tax, the item would be cheaper in Calgary because of the lower sales tax rate than in London.
Other considerations when deciding where to live
Although living in a city where you can have a higher standard of living to cover your needs and wants is very important, there are other factors that are important in choosing where to live. These factors can include:
Activities in the city
All major cities across Canada offer different amenities and activities that are unique to the city. This can include the opportunity to be closer to nature in Vancouver, or being able to see a live sports game in Toronto or Montreal. For a general rule, bigger cities in Canada usually have more activities and amenities than smaller cities, however these activities may come at a higher price.
Your career ambitions
Depending on what your career plans are, living in a certain city or region may be a requirement to meet your career goals. For example, someone who wants to be in banking will need to live in Toronto or Calgary, while someone who wants to work for the government will need to live in Ottawa. Your ability to reach your career goals will be influenced by your location, meaning that you may not have a choice in where you live depending on what these goals are.
Proximity to family & friends
For many people, living somewhere that is close to their friends and family is one of the most important factors in choosing where to live. Especially if you do not own a car for transportation, being close to your friends and family makes it much easier to spend time with them and see them often.
Cost of inflation
The effects of inflation are felt across Canada, no matter where you live. With COVID-19 restrictions starting to lift and consumers feeling good about their economic future, many industries are seeing record demand. This comes at the same time as these same industries are struggling with supply, which leads to the potential for prices to rise across Canada. People living in high cost cities will feel the effects of inflation on their standard of living the most, with rising prices on already higher costs further reducing what they can afford and their standard of living in that city.
Housing affordability
Many young Canadians want to purchase a home, so housing affordability in your city will be an important long-term factor when choosing where to live. Home prices in many areas across high-cost housing markets, such as the Greater Toronto and Metro Vancouver housing markets, have more than doubled over the last 10 years. On the other hand,Canada’s benchmark home prices in terms of gold were the same in Q2, 2024 as in 1988, which indicates that the purchasing power of Canadian wages has reduced significantly.
According to data from CMHC, the average monthly mortgage payment for new loans has increased from $1,442 in Q1 of 2020 to $2,135 in Q1 2024 in Canada. This is an increase of 48%. Meanwhile, data from the Labour Force Survey (LFS) suggests that the average wages have increased by about 20% from February 2020 to February 2024. There is a clear disconnect between the rate of increase in mortgage payments and the rate of increase in income, highlighting the plunge in affordability in Canadian cities. While many Canadians wish to buy a home, the desire to own a home but the inability to afford one will play a key part in where many Canadians choose to live.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
- Financial institutions and brokerages may compensate us for connecting customers to them through payments for advertisements, clicks, and leads.
- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.