Are you thinking about moving across the Atlantic? The US and Canada are both popular choices, offering work opportunities, higher education, and lifestyle perks. But when it comes to everyday costs, the reality can vary significantly depending on where you decide to settle.
Understanding the cost of living in the United States vs Canada in 2026 can help you see which country offers better value for UK expats. In this Remitly guide, we’ll compare typical salaries, break down living costs, and provide practical insights to help you plan your move abroad.
The big picture: comparing the cost of living
Overall, Canada is slightly more affordable than the US, though this depends on where you live. Your monthly budget will be shaped by recurring costs such as food, housing, utilities, transport, healthcare, and taxes.
Living costs also vary within each country. Toronto is cheaper than Vancouver, for example, and New York City is far pricier than Austin.
| Single person | Family of four | |
| Toronto | £1,700 GBP | £3,300 GBP |
| Vancouver | £1,900 GBP | £4,100 GBP |
Monthly cost of living in Canadian cities
| Single person | Family of four | |
| Austin | £2,000 GBP | £4,200 GBP |
| New York City | £3,600 GBP | £7,500 GBP |
Monthly cost of living in US cities
Housing: your biggest monthly expense
If you’re like most people, housing will likely take up the largest portion of your monthly budget.
Renting in Canada and the US
Rent in Canada is generally lower than in most US cities, though it varies by location.
A one-bedroom flat in areas like Toronto will cost you around £1,274 GBP per month, but it drops to about £1,116 on the outskirts. Major cities such as Vancouver tend to be more expensive, with a central one-bedroom flat going for around £1,430 and £1,183 in the surrounding areas.
Meanwhile, rental costs are generally higher in the US. A New York City one-bedroom flat close to the central business districts costs about £2,982 GBP monthly, while one in the environs starts at £1,844. Smaller US cities are more affordable, with one-bedroom apartments in the city centre costing roughly £1,612 per month.
For families needing more space, three-bedroom flats in Toronto average £2,050 GBP, and in Vancouver, £2,539. Comparatively, the same space in New York City can exceed £5,808, while in Austin, it may be closer to £2,975.
Buying property
If you’re considering buying a home in the US or Canada, down payments, mortgage rates, and taxes will affect your total costs.
Canada
- Down payments start at 5% for first-time buyers and rise to 20% for higher-value properties.
- Five-year fixed mortgage rates are around 5–6%.
- Property taxes, condo fees, and maintenance costs can add several hundred pounds per month
US
- Down payments typically start at 3–5%, though putting down 20% can help you avoid Private Mortgage Insurance (PMI) costs.
- Fixed mortgage rates vary by state, but typically range from 6–7% for 30-year loans.
- Additional expenses include property taxes, insurance, and closing costs.
Property taxes differ by province or state, and service or maintenance fees can significantly increase your monthly costs. Additionally, UK buyers should factor in local equivalents to stamp duty, like land transfer taxes in Canada or closing costs in the US.
Utilities and tenant rights
In Canada, rent sometimes includes heating or water, but electricity, gas, and internet are often billed separately. Budget for an additional £110 GBP per month for a single-person household.
Similarly, in the US, tenants usually pay for all utilities separately, averaging £150 GBP monthly depending on the cost of heating, air conditioning, and internet.
However, tenant protections differ. Canada has strong tenant laws on notice and eviction, while US regulations vary by state.
Food and groceries: what you’ll pay at checkout
Food is another significant part of your monthly expenses, and prices depend on whether you’re shopping for groceries or dining out.
Grocery shopping
Weekly grocery bills fluctuate based on the store, brand, and whether items are local or imported.
| Item | Toronto | Vancouver | New York City | Austin |
| Chicken fillets (1kg) | £9.41 | £10.45 | £11.63 | £9.13 |
| Milk (1 liter) | £2.05 | £1.53 | £1.18 | £0.72 |
| Rice (1kg) | £2.73 | £2.80 | £6.10 | £2.44 |
| Tomatoes (1 kg) | £2.91 | £3.37 | £4.43 | £2.89 |
| Eggs (12) | £2.53 | £3.03 | £5.38 | £3.76 |
| Loaf of bread (500g) | £1.97 | £2.23 | £3.62 | £2.50 |
Dining out
Dining costs vary depending on the city and type of restaurant. A mid-range, three-course meal for two costs roughly:
- Toronto: £64 GBP
- Vancouver: £53 GBP
- New York City: £110 GBP
- Austin: £60 GBP
Tipping is customary in restaurants, and servers typically expect 15–20% of the total bill. Factoring this into your dining budget is crucial, as it can add a noticeable extra cost each time you eat out.
Healthcare: understanding your new system
When moving from the UK to North America, one of the biggest differences you’ll notice is in healthcare, and it can eat significantly into your budget.
Canada: public healthcare with optional private coverage
Canada’s public healthcare system is known as Medicare. It covers most essential medical services, including doctor’s visits, specialist appointments, hospital stays, surgeries, and diagnostic tests.
- What it doesn’t cover: Prescription drugs, dental care, vision care, and some therapies such as physiotherapy or chiropractic treatments.
- Eligibility: Most expats can access provincial healthcare even without permanent residency status. All you need is to hold specific work permits, or be a dependent of Canadian citizens or permanent residents.
Private health insurance is commonly used to fill gaps in coverage, help patients gain faster access to care, and maintain coverage while travelling. Average monthly costs are as follows:
- £35–£40 GBP per month for single adults
- £65–£70 GBP per month for couples
- £105–£110 GBP per month for a family of four
The US: private healthcare and expat considerations
In the US, healthcare is primarily private, and most newcomers don’t automatically qualify for government programs such as Medicare or Medicaid. Some visas, like the J-1 student visa, require proof of insurance, but most non-residents are not legally required to have coverage.
However, since medical costs in the US are among the highest in the world, it’s a good idea to obtain insurance for peace of mind.
- Routine doctor visit: £125–£150 GBP, but co-payments with insurance can be £10–£15
- Emergency visit: £160–£200 GBP
- Hospital stays or serious conditions: Tens of thousands of pounds without insurance
- Monthly travel/expat insurance: £15–£130 GBP, depending on coverage and age
Transport: getting around your new city
Transportation is an essential part of daily life, and how you get around can significantly affect your cost of living and lifestyle.
Public transportation
Public transit is common in Canadian cities, but infrastructure networks and costs vary. In cities like Toronto, a monthly adult transit pass costs about £83 GBP, covering buses, streetcars, and the subway. But in Vancouver, costs can start at £60 for unlimited access to buses, the SkyTrain, and the SeaBus within the 1-Zone.
In the US, public transport is less comprehensive in many cities, particularly outside large urban centres. New York City has one of the most extensive systems, with a 30-day MetroCard costing around £98 for unlimited subway and bus rides. In Austin, a CapMetro monthly pass will set you back only £31, but it covers a less extensive network, making car ownership almost essential.
Car ownership
Owning a car is often necessary outside major city centres, but costs differ between Canada and the US:
Canada
- Average annual insurance premiums in Toronto are £1,224 GBP, compared to £945 in Vancouver.
- Fuel prices in Canada are generally higher than in the US, averaging around £0.83 GBP per litre.
- Parking costs also vary. In downtown Toronto, monthly parking averages £185 GBP per month, while it’s cheaper in suburban areas.
US
- Insurance costs differ widely by state, but the average price for annual full coverage is £1,996 GBP, though you can get minimum coverage for as little as £602 per year.
- Gas prices are generally lower than in Canada, averaging around £0.67 GBP per litre, though this fluctuates by region.
- Parking can be a major expense in urban centres; in New York City, monthly parking is about £425 GBP, while it may be free or significantly cheaper in suburban or smaller cities.
Additional car ownership costs to consider include vehicle registration, maintenance, and occasional tolls.
Taxes: what you’ll actually take home
Both the US and Canada have layered tax systems that include federal, state, provincial, and sometimes local rates, as well as contributions toward pensions and unemployment benefits.
US taxes: federal, state, and social contributions
In the US, income taxes vary significantly depending on where you live and how much you earn.
- Federal income tax rates range from 10% to 37%, depending on income level.
- State taxes can add anywhere from 0% to over 10%. Some, like Texas and Florida, have no income tax, while New York and California levy some of the highest rates.
- Social Security and Medicare contributions together reduce take-home pay by 7.65%, split between employees and employers.
Canadian taxes: federal, provincial, and payroll deductions
Canada’s system looks similar on the surface, but it operates differently in practice:
- Federal income tax ranges from 15% to 33%.
- Provincial taxes add roughly 5% to 25%, depending on where you live.
- Employees also contribute to the Canada Pension Plan (CPP) and Employment Insurance (EI), which together typically reduce income by around 6% to 7%.
Unlike the US, Canadians pay these taxes in exchange for public healthcare and other social benefits, such as paid parental leave, unemployment support, and retirement pensions. These programs can significantly offset out-of-pocket costs for families.
Tax treaties and double taxation
The UK has tax treaties with both countries, ensuring you’ll avoid double taxation on income such as wages, pensions, and dividends. You may still need to file taxes in the US and Canada, but credits and exemptions generally protect you from paying twice on the same income.
Take-home pay in context
Canada’s taxes may seem higher, but public services like health and family benefits offset the cost. In the US, lower tax rates often come with higher out-of-pocket costs for healthcare and insurance.
This means that a slightly lower Canadian salary can sometimes provide similar—or even more—disposable income than a higher US salary, depending on your location and lifestyle.
Salary expectations: what UK skills are worth
When relocating to Canada or the US, understanding how your skills translate into local salaries is just as important as knowing living costs. While pay scales may look higher at first glance, factors like taxes, healthcare, and housing can quickly change the equation.
Here are the average monthly salaries after tax across major cities:
- Toronto: £2,502 GBP
- Vancouver: £2,427 GBP
- New York: £4,160 GBP
- Austin: £3,635 GBP
Salaries in major US cities often match higher living costs, while Canadian cities offer slightly lower salaries but more manageable expenses.
In-demand skills and visa considerations
Technology, healthcare, and finance professionals remain highly sought after on both sides of the border. However, your visa type can influence both your job options and salary potential:
- In the US, H-1B visa holders may face restrictions on job changes or salary negotiation.
- In Canada, permanent residents and work permit holders typically enjoy greater flexibility.
Keep in mind that regulated professions like law, medicine, or engineering may require local certification, which can delay full earning potential.
Cost-of-living adjusted salaries
A higher salary doesn’t always mean more take-home pay once rent, healthcare, and taxes are factored in. Using cost-of-living calculators can help you compare adjusted salaries and better plan your move.
Use this calculator to compare costs between US cities, and this free tool for those in Canada.
The hidden costs no one tells you about
Even with careful budgeting, relocation costs can be high and include many hidden charges beyond rent, groceries, and utilities.
- Banking: Monthly account maintenance fees, ATM withdrawal charges, and international money transfer costs.
- Professional re-certification: Certain professions, such as healthcare, engineering, teaching, or finance, may require local certifications.
- International shipping: Shipping household goods overseas can cost thousands of pounds, depending on the size and method used.
- Lifestyle expenses: Joining clubs, gyms, sports leagues, professional networks, or community groups often requires membership fees.
Other miscellaneous costs include mobile phone setup, internet installation, and vehicle registration. While these fees are small individually, they can collectively add a few hundred pounds to your monthly budget.
Making the right choice for your situation
Canada generally offers slightly lower living costs and public healthcare benefits. But in the US, you could enjoy higher salaries, just with similarly higher housing and healthcare costs. When deciding where to relocate, consider your career stage, family situation, lifestyle preferences, and long-term plans. Online cost-of-living calculators and expat communities can provide valuable, up-to-date insights.
FAQs
Is it cheaper to live in Canada or the US in 2026?
On average, Canada is slightly more affordable, especially when it comes to healthcare and housing. However, salaries and taxes vary by region.
Do Canada and the US have universal healthcare?
Canada does, though coverage varies by province. The US does not have a universal system, and most residents rely on private insurance.
What are the main differences in average salaries between Canada and the US?
US salaries are often higher, but healthcare and tax costs can offset some of that advantage. Canada generally offers more predictable take-home pay and benefits.
What’s the cost difference between the UK and North America?
On average, living costs in major North American cities are 15–40% higher than in London, though it depends on the city and lifestyle choices. Your UK salary may stretch further in some Canadian cities than in major US centres, mainly because public healthcare in Canada can help offset medical expenses.