Cost of Living in Canada vs US (Complete 2024 Comparison)

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If you’re considering relocating in North America, it’s crucial to be aware of the differences in the cost of living in Canada vs US.

I’ve spent most of my life living in Canada, so I understand the various living costs across provinces.

I’ve also asked myself, “Why is Canada so expensive?” more than once!

But recently, I took an extended road trip through the US and spent some time living in California.

This gave me an even deeper understanding of the differences between the countries.

On average, living in the US is more expensive than in Canada, but the median income is higher in the US, so it sort of evens out.

You should also consider which province/state is most appealing to you. Both countries are enormous, and the cost of living varies significantly between regions.

After living in both countries myself, I’ll give you a full breakdown of the cost of living in Canada vs. the US. We’ll look at typical incomes, housing costs, living costs, spending habits, etc.

A photo of a family of four barefoot in the sand while looking at the sea.

Expense Breakdown: Average Cost of Living in Canada vs. US

Let’s compare Canadian Prices vs US Prices for everyday expenses.

Category (Monthly Cost)	Canada	United States
Rent	$1,122 USD (studio) $1,414 USD (1 bedroom) $1,687 USD (2 bedroom) $1,848 USD (3 bedroom)	$1,691 USD (studio) $1,625 USD (1 bedroom) $1,878 USD (2 bedroom) $2,017 USD (3 bedroom)
Basic (Electricity, Heating, Cooling, Water, Garbage) for 85m2 Apartment	$151 USD	$211 USD
Mobile Phone Monthly Plan with Calls and 10GB+ Data	$43 USD	$50 USD
Internet (60 Mbps or More, Unlimited Data, Cable/ADSL)	$63 USD	$71 USD
Food	Meal, Inexpensive restaurant – $16.76 USD Meal for 2 People, Midrange Restaurant, Three Courses – $69.22 USD 1 Liter Milk – $2.07 USD Eggs – $3.23 USD 1kg Chicken Fillets – $11.34 USD	Meal, Inexpensive restaurant – $20 USD Meal for 2 People, Midrange Restaurant, Three Courses – $75 USD 1 Liter Milk – $1.04 USD Eggs – $4.29 USD 1kg Chicken Fillets – $12.18 USD
Car Insurance	$70 USD	$179 USD
Gas	$1.47 USD/liter	$0.88 USD/liter
Healthcare / Health Insurance	$101 USD	$278 USD
College Tuition	$5,000 USD/year	$32,100/year (private)
Fitness Club, Monthly Membership for 1 Adult	$41 USD	$51 USD
Childcare – Preschool (or Kindergarten), Full Day, Private, Monthly for 1 Child	$795 USD	$1,236 USD

Single Person Vs. Family of Four

The average monthly cost for a single-person household, without rent, is $1,005 in Canada and $1171 in the United States.

For a family of four, the estimated average monthly cost without rent is $3,593 in Canada and $4,160 in the United States.

Category (Monthly Cost of Living)	Canada	United States
Single Person (without rent)	$1,005 USD	$1,171 USD
Single Person + 1 Bedroom Apartment	$2,419 USD	$2,796 USD
Family of Four (without rent)	$3,593 USD	$4,160 USD
Family of Four + 2 Bedroom Apartment	$5,280 USD	$6,038 USD

These prices are pretty similar to what I’ve experienced, too.

My dog Theo and I always spend more than $1,000 USD each month, whether we are in the US or Canada!

But remember that these are estimated averages. Both countries are very big, and the cost of living varies dramatically from region to region. These costs would be much higher in Toronto or if you’re living in New York City.

Cost of Living in US vs. Canada

The US and Canada rank as some of the most expensive countries globally, with the US ranked 12th most expensive and Canada 24th.

Canada is known for its state welfare benefits, like universal healthcare, but some everyday items, such as milk and gas, are more expensive. On the other hand, The US labor market enjoys high wages, allowing people to have more disposable income to spend.

Let’s dig into more details for each category of expenses.

Housing Costs

One of the downsides of being a digital nomad is that I’m painfully reminded about how expensive housing is every few months.

The median home in the US price just reached $410,200 USD, with significant variations by state. California ($799,000 USD), Hawaii ($713,000 USD), and Massachusetts ($640,000 USD) topped the list.

Iowa has the cheapest average home cost ($239,000 USD), followed by Ohio ($249,000) and Oklahoma ($256,000 USD).

Rising mortgage rates, averaging 7.57%, are also impacting the housing market in the US.

Rent is also expensive. The national average in the US is $2,011, but again, this varies widely by location. You could pay an average of $4,316 for a studio in Playa Vista, CA, to $1,029 in Indiana.

On the Canadian front, the average home price in is $479,506 USD.

Housing affordability challenges persist, too, with cities like Toronto ($847,080 USD) and Vancouver ($883,592 USD) commanding high average home prices.

Winnipeg has the cheapest average home cost ($253,493 USD), followed by Edmonton ($273,870 USD) and Halifax ($386,894 USD).

Mortgage rates in both countries hover around 6-8%.

Healthcare

Healthcare costs in the United States are much higher than in Canada.

Canadians love to brag about their universal healthcare system, which covers doctor visits, surgery, and emergency medical treatment. But you should know that it doesn’t include prescriptions, dental care, or vision care.

This also leads to long wait times for healthcare in Canada, which are frustrating (especially for people with a chronic illness). The average time from referral by a general practitioner to specialist treatment was 27.4 weeks, compared to just over 14 weeks in Vermont in the US.

Some Canadians also opt for supplemental coverage so that they can see private doctors.

In the US, the majority rely on employer-sponsored healthcare, contributing a portion of their paycheck. The average annual premium cost for employees is $3,331.

Americans without health insurance risk facing hefty bills — like $6,000 or more – for an ER visit and hundreds of thousands for cancer treatment.

Food, Shopping, and Entertainment

Overall, food costs, including groceries and eating out at restaurants, are higher in the US than in Canada. I hate cooking and I eat out A LOT, so this is a big reason I love living in Canada.

The world is experiencing rising food prices, but US and Canadian food prices remain some of the lowest, with the US ranked as the country with the lowest food inflation rate and Canada as the second-lowest.

But like all expenses, food costs vary from one city/state/province to another.

In a Grocery Shopping Case Study, one Canadian couple actually shopped for everyday grocery items in Toronto, then the same exact items in Buffalo, NY, to compare the differences.

Surprisingly, some items were notably cheaper in the US. A loaf of bread in Buffalo was over a dollar cheaper than in Toronto, as were chicken and eggs. But other things, like coffee, were more expensive in Buffalo.

Canada has a lower overall cost of living than the US, but when it comes to entertainment, that’s one area where the US is cheaper. Canadians spend about 8% more on movie tickets and 20% more on clothes and shoes.

Universities

University costs are significantly higher in the US than Canada, so if you or your kids plan to attend university, this may be THE deciding factor!

In the US, the average cost for in-state students at public 4-year institutions is $26,027. It’s even higher if you want to study at a private university, where tuition and campus housing add up to an average of $55,840 per academic year!

On the Canadian front, it’s a lot more reasonable.

The average tuition for Canadian citizen students is around $4,707 USD per year for an undergraduate degree and $5,139 USD for a graduate degree.

Having personally experienced university in Canada, I can attest to the comparatively more affordable education system. Many of my American friends are still paying off their university debts, and this will continue for many more years to come.

Vehicles and Transportation

Many Canadians rely on public transportation, a trend less common in most American cities. So, we don’t spend as much on transportation. If you’re in the US, chances are you’ll need to buy a car and be driving all the time.

This is one of my least favorite things about living in the US!

However, driving in the US is cheaper because gas is just $0.88 USD/liter, compared to $1.47 USD/liter in Canada.

Regarding car insurance, it’s a toss-up. The cost varies across Canada, with British Columbia topping at $1,800 USD/year and Quebec ranking the lowest at $717 USD/year. In the US, drivers pay an average of $2,148 USD annually for car insurance.

That depends on where you live in the US, though (a common theme). One American expat said she went from paying $60 USD/month for car insurance to $131 USD/month upon moving to Ontario, Canada!

Additionally, car prices in Canada are generally 20% higher than in the US. Some of my friends in Canada actually saved money by purchasing cars south of the border and importing them into Canada.

Canadian Salaries vs US salaries

On average, the monthly net salary after tax in Canada is $2,942 USD; in the US, it is $4,675 USD.

This is a very significant difference.

Canada has the 24th best salaries globally, but Americans have the 12th best.

The average income in Canada vs US plays a significant role in the standard of living. But it’s very common for Americans also work way more hours and receive less time off than Canadians, so it’s not exactly apples to apples.

You should do what I do – get paid in USD and live in Canada 😉

A smartphone on the calculator application beside tax forms.

Taxes in Canada vs US

Salaries are higher in the US, but what about taxes?

Believe it or not, taxes tend to be higher in Canada.

Canada may be advantageous for lower-income earners, while higher-income earners might find the US more appealing, especially given access to significant tax deductions, such as mortgage interest deductions.

At the time of writing, Canada’s federal income tax ranged from 15% to 33%, with additional provincial and territorial taxes.

The US has a federal income tax range slightly lower at 10% to 37%.

You also have to account for province/state taxes, too. Canadian provincial tax rates tend to be lower than their US state counterparts, with the highest Canadian provincial rate at 15%, compared to the highest US state rate of 13.3%.

That said, you’ll find some US states don’t even have any income tax, such as Florida, Texas, Tennessee, Washington, and New Hampshire.

Sales tax also differs, with Canada setting a national 5% rate and the US having an average of 7.25% (and some states reaching 9.75%).

Nina wearing a grey sweater leaning on a a fence during winter.

Quality of Life in Canada vs US

When you compare living in Canada to the US, both places have their benefits, but there are some major differences.

Take healthcare, for instance. In Canada, taxes cover your healthcare, so you don’t need to break the bank to stay healthy.

On the flip side, you have a lot more options in the US and access to holistic medicine that you can’t always find in Canada. It’s also much easier to see a doctor when you’re feeling ill.

Then there’s the parental leave. Canada’s mandated leave for new parents gives them a chance to breathe and enjoy being parents before starting work again. In the US, it depends on your employer since the Family and Medical Leave Act only guarantees 12 weeks of unpaid leave.

One notable area where the US takes the spotlight is the sheer diversity of landscapes and climates. Canada is so cold in the winter, no matter where you go. I love that you can find sunny beaches year-round in the United States. That’s my kind of winter!

Sure, the cost of living is a big deal. But at the end of the day, I think a high quality of life is more important than saving a few dollars each month.

Most Expensive Places to Live

Toronto has been the most expensive city in Canada for two consecutive years, ranking 90th globally. Vancouver follows at 116th, and Montreal at 135th.

Meanwhile, the most lavish lifestyle comes with a New York City address. NYC has the most expensive overall cost of living in the US and 6th most expensive globally, followed closely by Los Angeles (11th most expensive globally) and San Francisco (14th).

Cheapest Places to Live

If you’re searching for a place where your dollar stretches further, the US and Canada each have hidden gems.

For example, if you move to Albuquerque, New Mexico, you’ll find it’s the most affordable city for single renters in the US.

Denver and Pittsburgh are other popular low-cost cities.

In Canada, Quebec is very affordable despite high taxes. The Canadian maritime provinces, like Prince Edward Island, New Brunswick, and Nova Scotia, also stand out as cheap places to live.

Wrap Up

Choosing a new home is a huge decision, and the cost of living is one of the most significant factors.

When comparing Canada’s cost of living vs the US, be diligent to consider everything from housing to taxes, healthcare, food, transportation, and salaries.

Some things might be cheaper in the US, like gas, movie theater tickets, cars, and clothes, but Canada is more affordable overall. Healthcare in Canada is also very inexpensive, and the tax system can really benefit lower-income earners.

As someone who has lived in both countries and experienced the nuances of different regions firsthand, I’ve seen how much the cost of living changes from city to city, state to state, and province to province.

I ultimately decided to settle in Canada, but the right choice is different for everyone!

No matter which country and city you choose, I hope this helps you make a more informed decision and you can find a place that feels perfect for you and your budget.

Ready to relocate? Check out my Moving Abroad Checklist!

Canada Travel Planning Guide

🚑 Should I buy Canada travel insurance?

100% YES! — Canada has “free” healthcare but it’s only for citizens! Foreigners visiting need travel insurance in case anything happens on their visit. I recommend World Nomads – starting at just $5 a day!

💧Can you drink the water in Canada?

Yes — In all major cities in Canada, you can drink the tap water. There are very few, rural areas that you can’t. However, you should never drink river or lake water anywhere in the country! I recommend a Brita Water Bottle for long hikes and backcountry camping to stay safe and hydrated.

🚙💨 Is it safe to rent a car in Canada?

Yes — Renting a car is a necessity in most of Canada! If you want to go on road trips or adventures outside of the major cities, you’ll need to rent a car. (Read more)

📲 Will my phone work in Canada?

Maybe — Some American companies work in Canada, but many will not. If your phone doesn’t work in Canada, I recommend getting a Canadian SIM card so you can get around and stay in contact with loved ones. We don’t have a lot of free WIFI in Canada, so you’ll need your phone for maps.

🏩 What’s the best way to book my Canada accommodations?

My go-to for Canadian hotels is Booking.com. For hostels, I use Hostel World. If you want a home-y feeling, check out VRBO (which is cheaper and safer than Airbnb).

Or get free accommodations with Trusted Housesitters!

✈️ What’s the best site to buy Canada flights?

For finding cheap Canadian flights, I recommend Skyscanner.

🎫 Do I need a visa for Canada?

Likely Not — US, UK, and EU passport holders don’t need Canadian visas. However, some other countries do (check here!). And if you plan to stay for more than 4 weeks (an average tourist visa length), you will need to look into visas to live in Canada.