Cost of Living in Canada: What to Expect if You’re Moving North

Moving to Canada sounds like a dream—until your first grocery run reminds you that avocados are $2.49 each. In 2025, the cost of living in Canada remains high by global standards, and for Americans making the move, sticker shock is real.

From housing to healthcare, utilities to university tuition, Canada’s expenses don’t always align with expectations—especially if you’re coming from cities like New York or Austin. While some costs are lower (prescriptions! childcare in Quebec!), others—like gas or imported goods—may surprise you.

Whether you’re heading to cosmopolitan Toronto, creative Montréal, or family-friendly Calgary, understanding the financial landscape upfront will make your transition smoother—and your bank account happier.

Cost of housing: Rent, real estate, and regional variations

Housing is one of the biggest costs you’ll face in Canada, and where you live makes a major difference. Toronto and Vancouver continue to lead the pack in price, while cities like Winnipeg and Halifax offer more breathing room—for both your square footage and your budget.

In 2025, here’s what you can expect for monthly rent on a one-bedroom apartment in the city center:

• Toronto or Vancouver: ~CAD $2,500
• Montreal: CAD $1,200–$1,500
• Ottawa or Winnipeg: CAD $1,400–$1,800

Real estate prices follow a similar pattern. Buying property in Toronto or Vancouver often means stretching your budget. Meanwhile, Alberta and Atlantic Canada remain more accessible for buyers—especially those open to suburban life.

And while interest rates have cooled housing demand slightly, they’ve also driven up monthly mortgage costs. If you’re considering buying, make sure you factor in how the Bank of Canada’s rate hikes are affecting affordability in your region.

Transportation costs: From cars to public transit

Getting around in Canada can be relatively affordable—or surprisingly pricey—depending on where you live and how you travel.

In large cities like Montreal, Toronto, and Calgary, public transportation is widely used and reasonably priced:

Monthly pass:

• Montreal: ~$104.50 CAD
• Calgary: ~$118 CAD
• Toronto (TTC): ~$156 CAD

Most Canadian cities offer well-maintained buses and rail systems, but smaller towns may leave you car-dependent.

If you do drive, factor in the full cost of car ownership:

• Gasoline: ~CAD $1.35–$1.85/litre in 2025
• Car insurance: Varies widely—expect $2,000+ annually depending on province and driving history
• Maintenance and registration: Plan for $500–$800/year, depending on usage and location

Commuting costs also depend on your lifestyle:

Urban dwellers may save with public transit, while suburban life can bring longer drives and higher fuel bills. Either way, budgeting realistically for transportation can save you a lot of unexpected costs down the road.

Food and grocery prices: What’s on your plate?

Grocery shopping in Canada might look familiar—but the total at checkout often isn’t. Most expats spend between $100–$200 CAD per week on groceries, depending on location and dietary habits.

Provinces like Quebec tend to offer better value, while British Columbia and Alberta see higher prices—especially on everyday staples like fresh produce and chicken breast. Bulk buying at Costco or other big-box stores can help, but the savings aren’t always as dramatic as in the U.S.

Imported or specialty items—particularly American brands—often carry a premium. If you’re used to filling your cart with organic almond butter and niche protein powders, brace yourself.

Dining out adds up quickly, too:

• Casual lunch: ~$20–25 CAD
• Dinner for two: ~$100 CAD
• Daily coffee: Slightly more than U.S. prices (unless you’re a Tim Hortons loyalist)

Healthcare and health insurance: What’s covered?

Canada’s healthcare system is famously public—but don’t mistake that for all-inclusive or immediate.

Newcomers, including permanent residents, often face a waiting period of up to three months before they’re eligible for provincial healthcare. During that time, private insurance is essential to avoid unexpected out-of-pocket expenses.

Once enrolled, you’re covered for the basics:

• Doctor visits
• Hospital care
• Emergency diagnostics

But most “extras”—dental, vision, prescriptions, and mental health services—aren’t covered under the public system. These costs can add up quickly if you don’t have supplemental insurance.

Healthcare access and coverage also vary by province. Quebec has its own prescription drug program, while Ontario and British Columbia differ in how they handle things like ambulance services or out-of-country emergencies.

Expect to spend around $50–$200 CAD per adult per month on private health insurance, depending on your age, province, and coverage needs.

Taxes and income: How much do you keep?

Your Canadian salary might look generous on paper—but between taxes, healthcare costs, and the exchange rate, your take-home pay can shrink faster than you expect.

Federal and provincial income taxes are calculated using a progressive system, with combined rates typically ranging from 20% to 50% depending on where you live and how much you earn. Alberta has some of the lowest tax rates, while Quebec’s are among the highest—and Ontario sits somewhere in between.

On top of income tax, Canadians also pay sales tax on most goods and services. This varies by province:

• Alberta: 5% GST (no provincial sales tax)
• Ontario: 13% HST
• Quebec: 14.975% combined GST + QST

Even essentials like clothing, electronics, and restaurant meals are subject to these taxes, so it’s something expats feel in everyday spending.

Exchange rates matter, too. If you’re earning in U.S. dollars and spending in Canadian ones, the favorable rate might stretch your money further—for now. But if your income is Canadian-based, don’t assume you’ll save as easily as you did in the States.

All in, a single person living in a Canadian city can expect to spend $2,500–$4,000 CAD per month, depending on location and lifestyle. And yes—much of that goes to the government in one form or another.

Comparing Canada and the USA: Where does the money go?

Let’s talk trade-offs. You might pay more in Canada for groceries, rent, and phone plans—but the ambulance ride won’t cost you $3,000, and your kid’s school might just be walkable and free.

• Housing: Rent in cities like Toronto and Vancouver rivals New York or San Francisco. But in mid-range metros like Ottawa or Montreal, your dollar stretches further—especially if you’re earning in USD.
• Food and essentials: Expect to pay more for groceries, especially imported goods. Even staples like milk and bread carry higher price tags. That said, healthcare won’t eat into your savings, and you won’t get blindsided by surprise bills.
• Transportation: Canada’s public transit is generally reliable, and insurance costs for cars can be lower—unless you’re under 25 or living in B.C.

So is $5,000/month enough to live comfortably in Canada? In Ottawa or Halifax, yes—with room for a weekend getaway. In downtown Vancouver? You’ll feel the pinch.

But the real difference often isn’t money—it’s lifestyle. Many expats happily trade lower costs for cleaner cities, universal healthcare, and a slower pace of life. Just know where your money goes, so you’re not caught off guard when it gets there.

Tips for managing the higher cost of living

The cost of living in Canada can feel steep—especially in its most expensive cities—but a few smart moves can make a big difference.

• Choose your province wisely: Living expenses vary dramatically. Alberta has no provincial sales tax, while Quebec offers lower rents (but higher income tax). British Columbia and Ontario? Gorgeous—but pricey.
• Rethink your big buys: Planning to furnish a home or replace electronics? Consider shopping during seasonal sales to offset high tariffs and taxes, which can add 10–15% or more at checkout.
• Go car-lite if you can: Monthly cost of insurance, fuel, and maintenance can quickly outweigh the convenience of driving—especially in urban centers with strong public transit.
• Food hacks matter: Farmers markets, budget grocery chains, and meal planning can help bring food costs down, even in cities where “cheap” chicken breast is a myth.
• Rent smarter, not bigger: Downsizing or living just outside the city core can mean hundreds in monthly savings—without sacrificing your quality of life.

A little local know-how goes a long way when it comes to stretching your CAD.

Should you move north?

Moving to Canada isn’t just a change of address—it’s a financial reset. The cost of living can be higher, but so can the rewards: universal healthcare, clean cities, and a different pace of life.

The key is going in with your eyes open—and your taxes in order. Bright!Tax works with Americans abroad to make sure the IRS doesn’t crash your maple-syrup-scented dreams. When you’re ready to cross the border, we’ll help you do it smart.

Need help sorting out your U.S. tax situation before or after the move? Reach out to Bright!Tax and stay compliant from wherever you call home.

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