Settling in Canada: What budget should you plan?

Canada is well known for its high quality of life, which is one of the main reasons it attracts so many foreign nationals each year. However, this comes at a cost, which varies from one city to another!

HOW MUCH MONEY SHOULD YOU PLAN TO BRING TO CANADA?

Before heading to the land of the maple leaf, you need to ensure you have enough funds to support yourself before you start working and earning an income.

To estimate the amount needed, you can refer to the funds required by the Canadian government for certain immigration programs. For example, under the Express Entry program, as of July 7, 2025, a single person must show proof of at least CA$15,263. For a family of four, the minimum is CA$28,362.

DAILY EXPENSES

Before diving into the details of various expenses, it’s important to note that salaries and costs vary depending on the province and city where you plan to settle.

Canadian Salaries

The average annual salary in Canada in 2025 is around CA$67,000. For comparison, the average salary in Ontario is about CA$69,000, while in Quebec it’s around CA$64,000.

These figures are gross salaries, so they don’t reflect your actual take-home pay. In Canada, you must pay a federal tax of at least 15% of your income, plus a provincial tax that varies by province. In Ontario, the tax rate ranges from 5% to 13% depending on your taxable income and in Quebec, it ranges from 14% to nearly 26%.

Housing and utilities

Your housing budget will vary greatly depending on the size and location of the property.

The average rent for a one-bedroom apartment is CA$2,690 in Toronto versus approximately CA$1,930 in Montreal, as of the first quarter of 2025. Be aware that in popular neighborhoods, rent prices can rise quickly. Also, many apartments in Canada are condos, high-end buildings with amenities like a concierge, gym, and more, which naturally come with higher rent.

Monthly utilities such as water and electricity are usually included in the rent. If not, expect to pay around CA$100 per month.

Food

Food costs vary depending on the city, neighborhood, and your consumption habits. Generally, fresh produce and groceries are reasonably priced in supermarkets. You’ll also find local grocery stores or “convenience store” where some items may be cheaper. However, imported goods can be quite expensive.

The Canada’s Food Price Report 2025 estimates an annual food budget of approximately CA$16,900, or about CA$325 per week, for a family of two adults and two children.

Dining out can be pricey. Prices are listed before tax, so the final bill will be higher. You’ll also need to add a tip for your server. While tipping isn’t mandatory, it’s considered poor etiquette not to tip, as it’s a key part of servers’ income.

Transportation

A single public transit ride generally costs between CA$3 and CA$4. A monthly pass is around CA$156. In Toronto, a one-way ticket is CA$3.35 and a monthly pass is CA$156. In Montreal, a ride costs CA$5.00 and a monthly pass for the Island of Montreal is CA$164.50.

Discounted fares are available for youth, students, and seniors, and in some cases, transportation may even be free!

Healthcare and education

Canada’s social system allows access to free and public services like healthcare and education in most provinces and territories. In return, as in many countries, you pay taxes on purchases and income.

You can also benefit from a provincial health insurance plan, such as RAMQ in Quebec or Ontario Health Insurance Plan (OHIP), in addition to the federal system.

As a newcomer, you may not be eligible for your province’s health coverage during the first three months after arrival. In that case, it’s recommended to get private insurance until you’re covered.

Public school is free in Canada. However, for higher education, you may have to pay tuition fees depending on your status in Canada.

Leisure and activities

Clothing can be expensive in mainstream Canadian stores. However, thrift shops and second-hand stores are widespread, allowing you to dress affordably.

For the cinema, expect to pay at least CA$15 per ticket. Museums are free at certain times of the year, such as the first Sunday of each month. Again, discounts may apply for youth, students, and seniors.

Many activities are also free. In summer, numerous festivals and gatherings with free entry are organized in cities across Canada.

CONCLUSION

In conclusion, the cost of living in Canada depends heavily on the province and city you choose to settle in. Another important point: all prices are displayed before taxes, so be prepared for surprises at checkout.

Also note that the budgets mentioned in this article are averages for the year 2025 and may not apply depending on your lifestyle.

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Picture by Elyse Turton on Unsplash