Top 5 Cost of Living Differences Between US and Canada [2025-2026 Guide]

TL;DR: Canada generally has a lower cost of living than the US, but key expenses like housing, healthcare, and taxes vary significantly. For example, while healthcare is free in Canada, housing in major cities like Toronto and Vancouver rivals US hotspots like New York and San Francisco. Use Evola’s Immigration Success Predictor to estimate your budget before moving.

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1. Is housing cheaper in Canada or the US?

Housing costs are comparable in major cities but generally lower in Canadian suburbs.

While Toronto and Vancouver have similar rents to New York or Los Angeles, smaller Canadian cities like Halifax or Winnipeg offer significantly cheaper options. According to Canada Mortgage and Housing Corporation (CMHC), the average rent for a 2-bedroom apartment in Canada is CAD $1,300 (≈USD $950), versus $1,800 in the US.

Key differences:

• Property taxes: Higher in Canada (0.5–1.5% vs. 0.2–1.2% in the US).
• Down payments: Minimum 5% in Canada vs. 3–3.5% for US FHA loans.
• Utilities: 10–15% cheaper in Canada due to regulated energy markets.

Evola’s CRS Calculator includes regional cost adjustments to help you plan your relocation budget.

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2. How do healthcare costs compare?

Canada offers free public healthcare, while the US relies on private insurance.

According to IRCC’s healthcare guidelines, permanent residents qualify for provincial health coverage with no premiums. In contrast, the average US employer health plan costs $7,911/year for single coverage.

Consider:

• Prescription drugs: 30–50% cheaper in Canada due to price controls.
• Dental/vision: Not covered in Canada (out-of-pocket or employer plans).
• Wait times: Longer for specialists in Canada (e.g., 3–6 months for MRIs).

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3. Are groceries and daily expenses higher in Canada?

Yes, groceries cost 15–20% more in Canada due to supply chain factors.

A Statistics Canada report shows the average family spends CAD $1,000/month on food, versus $850 in the US. Notable differences:

• Dairy products: 30% more expensive in Canada (supply management system).
• Alcohol: Pricier due to provincial taxes (e.g., $18 for a 6-pack of beer).
• Gasoline: CAD $1.70/liter (≈USD $4.50/gallon) vs. US average of $3.50/gallon.

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4. Which country has higher taxes?

Canada’s progressive tax system results in higher rates for middle-to-high earners.

Federal income tax peaks at 33% in Canada vs. 37% in the US, but provinces add 10–15%. For example, a $100,000 salary in Ontario pays ~CAD $29,000 in taxes, versus ~USD $24,000 in Texas.

Key notes:

• Sales tax: 13–15% HST in Canada vs. 0–10% in US states.
• Capital gains: Only 50% taxed in Canada vs. up to 20% in the US.
• Child benefits: Canada’s tax-free CCB pays up to CAD $7,437/year per child.

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5. How do education costs compare?

Canada offers significantly cheaper higher education, especially for international students.

Undergraduate tuition averages CAD $7,000/year for Canadians vs. $25,000 in the US. According to IRCC’s study permit requirements, international students must prove CAD $20,635/year for living expenses—still lower than many US colleges.

Key contrasts:

• Public schools: Free K–12 in both countries (funding varies by district).
• Student loans: Canada’s interest-free federal loans cap at 7.5% APR.
• PR pathways: Canada offers Post-Graduation Work Permits (PGWP), while US OPT visas are lottery-based.

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Conclusion: Plan Your Move Strategically

While Canada wins on healthcare and education, the US may offer higher salaries and lower consumer costs. Use Evola’s CLB Converter to benchmark your language scores and explore provincial nominee programs with lower living costs.

Ready to compare your options? Start your personalized immigration plan today.