Last Updated on 9th July 2025
Living costs are always a consideration for prospective expatriates. Anybody intending a move to another country needs to know that their projected income and assets will comfortably cover their ongoing expenses, tax obligations, planned accommodation and everyday outgoings.
Canada has long been a desirable destination, known for its friendly, vibrant cities and communities, contrasting landscapes, progressive politics, and outstanding healthcare system, alongside ample career opportunities for professionals.
Whether you are thinking of relocating to Canada, wish to revise your budgets and plans in line with the most recent costs of living, or are comparing several locations, we’ll discuss all the major factors that might influence your decision-making.
Average Living Costs for Expatriates in Canada
Like every country, the costs of living in Canada will inevitably vary depending on where you intend to live and whether you’re moving as a retiree, have a confirmed job offer, are relocating or investing in a business, or are reliant on savings and investment income to sustain your living standards.
Naturally, the major cities command the highest living costs, with Vancouver and Toronto often regarded as the most expensive destinations in Canada.
However, in terms of like-for-like comparisons, living costs in London far surpass those in any Canadian city. The British capital is ranked the 8th most costly city worldwide, with Canada’s first entry, Toronto, at number 92 and Vancouver at number 101.
That means the real-world difference in your living costs will depend on where you live now, where you plan to relocate to, and whether you anticipate a change in your income streams following your move.
Comparing Costs of Living Between Canada and Britain
As a general overview for those moving to Canada from the UK:
- Overall living costs in Canada, excluding accommodation, are 0.8% lower than in the UK.
- Factoring housing into that comparison shows that Canada remains more affordable by 0.3%.
- The average monthly expenses for a family of four across all locations in Canada are $5,191 (£2,900) and $1,444 (£804) for a single person. In the UK, those averages are £2,792 and £820 respectively, showing minor variances each way.
Following recent announcements about tariffs, imported goods in Canada are potentially likely to become more expensive, although local produce should remain affordable or even become more accessible as part of proposed initiatives to protect domestic economies.
Likewise, some categories of living costs, including public transport, fuel, and childcare, are significantly lower in Canada than in the UK. For instance, expatriates can expect an almost 50% reduction in the average cost of a private nursery placement and a 38% contrast in the price of a litre of fuel.
The Average Costs of Buying or Renting a Home in Canada
Organising accommodation is often the first to-do task for any expatriate, not least because rent or property purchase costs are typically one of the largest items within your budget.
Below, we’ve summarised the average costs of renting and buying a home in some of the most popular locations.
Tax Obligations for Expatriate Canadian Residents
The Canadian tax authorities levy domestic taxes on residents against their worldwide income and assets, whereas non-residents are usually subject to Canadian tax only on their income arising within Canada – mirroring the tax treatment in other jurisdictions.
Most incomes, including employment benefits and salaries, are subject to income tax against the standard scales, although those working in Canada are exempt from paying tax on certain benefits, including contributions to Canadian pension schemes.
Currently, the federal income tax rates are as below.
Quebec is an exception because the province operates a separate income tax system. In recognition of the higher provincial income taxes, the basic federal income tax rates are reduced by 16.5%.
Double Tax Treaties for Expats Living in Canada
Depending on your circumstances, you may need to ensure you claim the appropriate foreign tax credits, which mitigate against double taxation.
Resident expatriates who receive income from overseas that has already been taxed at source can generally request foreign tax credit relief – although the maximum relief is equal to the tax payable in Canada.
Given that income taxes also vary between provinces, with a federal and provincial tax combined to arrive at the overall tax burden, expatriates might also need to claim separate provincial tax relief, usually applied as a credit.
However, there may be options to submit a tax return and pay the arising domestic tax in Canada against some income streams, including rental incomes, where this would be advantageous. Non-residents can also opt to pay Canadian tax at the prevailing rates on some incomes, including pensions, rather than paying a withholding tax rate.
Creating Accurate Budgets Before Relocating to Canada
We’ve touched on some of the major expense categories, such as buying or renting a home, general living costs, and taxation, but for most expatriates, a detailed, clear budget is essential to ensuring their international move is properly managed and without unexpected surprises.
Our advice is to ensure you create a detailed list of all anticipated incomes, expenditures, plans and relocation costs and review these with assistance from an experienced financial adviser or wealth manager.
This process is about checking that you have included all of the important aspects and have clarity about the right ways to handle investment assets, properties, income streams and pension plans as you settle into life as a Canadian resident.
If you would like more information about the cost of living in Canada in 2025 or tailored guidance when planning your move, please contact our Chase Buchanan team in Ontario or our UK Administration Centre.
All investments carry risk, including the potential loss of capital. You should carefully consider whether investing is suitable for you, taking into account your personal circumstances, financial situation, and risk tolerance.
*Information correct as at February 2025
