Considering moving to the US or Canada?
Both countries offer excellent work and higher education opportunities, along with desirable amenities such as fast internet, digital nomad communities, industry events, cultural shows, and plenty of options for local travel.
If you’re finding it difficult to choose between the two, it’s worth comparing the average cost of living in Canada versus the US to determine which country can provide the quality of life you’re looking for within your expected salary range.
This article breaks down the living costs in the US and Canada, examining housing costs, healthcare systems, food prices, and other
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Is it cheaper to live in Canada or the US?
Both Canada and the US have cities with lower costs of living and others that are more expensive. It also depends on your income level and spending habits. However, most cities in the US tend to be pricier than their Canadian counterparts.
For instance, based on the cost of living index by Numbeo, here’s a comparison of living expenses in some of the two countries’ most expensive cities (excluding rent, as this can vary based on several factors):
- Living expenses in New York are over 40% higher than in Vancouver.
- Living expenses in Los Angeles are over 11% higher than in Toronto.
- Living expenses in San Francisco are over 40% higher than in Ottawa.
Overall, living in the US is roughly 10% more expensive than living in Canada.
Factors Affecting the Cost of Living in Canada vs the US
Several factors influence your living expenses in the US or Canada. Below is a detailed breakdown of major costs like housing, healthcare, education, food, and entertainment.
Housing
Housing costs are high in both the US and Canada, though rent is generally more expensive in many US cities.
Here are the average rental costs, based on Numbeo estimates (prices converted to GBP and rounded to the nearest £10):
US
- One-bedroom flat in the city centre: £1,360
- One-bedroom flat outside the city centre: £1,120
Canada
- One-bedroom flat in the city centre: £960
- One-bedroom flat outside the city centre: £800
It is cheaper to rent in Canada than in the US, with a difference of £320–£400 per month, equating to £3,840–£4,800 annually. If budget is a concern, moving to Canada might help you save significantly on housing.
Healthcare
Healthcare costs can significantly add to living expenses, especially if you don’t have insurance. Both countries offer various insurance options, with Canada providing universal healthcare.
Here’s a cost comparison for healthcare (prices converted to GBP):
US
- Healthcare costs are substantially higher than in most other countries, including Canada.
- The average annual healthcare cost is about £10,380 per person.
- Private insurance starts at over £400 per month for an individual.
Canada
- The average annual healthcare cost is about £5,000 per person—almost half the cost in the US.
- Private healthcare insurance starts at £2,320 per year for a family—again, roughly half of US rates.
Education
If you’re moving with your family or planning to have children, education costs are an important consideration.
Here are the estimated education costs in both countries (prices in GBP):
US
- Private school (ages 5–18): £9,900 per year
- Public university tuition: £7,530 per year
Canada
- Private school (ages 5–18): £2,380–£15,420 per year
- University tuition: £4,920 per year on average
Food
Food prices can have a significant impact on living expenses, particularly if you dine out frequently.
US
- Meal at a budget restaurant: £14
- Three-course meal at a mid-range restaurant: £55
- Cappuccino: £3.20–£4
- Milk (4.5 litres): £3.20
- Rice (500g): £1.60
- Tomatoes (500g): £1.60
Canada
- Meal at a budget restaurant: £11–£12
- Three-course meal at a mid-range restaurant: £51
- Cappuccino: £2.40–£3.20
- Milk (4.5 litres): £5.60
- Rice (500g): £1.10
- Tomatoes (500g): £1.30
While food prices in Canada are generally lower, milk costs nearly twice as much.
Entertainment
Entertainment costs vary depending on your lifestyle. Here are average costs for common activities (prices in GBP):
US
- Internet: £55 for 60 Mbps
- Cinema ticket: £9.50
- Gym membership: £33 per month
- Levi’s jeans: £37
Canada
- Internet: £47 for 60 Mbps
- Cinema ticket: £8.80
- Gym membership: £31 per month
- Levi’s jeans: £41
Entertainment and consumer goods are slightly cheaper in Canada than in the US, though the difference is minimal.
Average Salary in the US vs Canada
The cost of living in Canada versus the US will largely depend on your income. Here are the average monthly salaries after tax:
- US: £3,360
- Canada: £2,400
Jobs in higher-cost cities typically pay more. For instance, the average monthly salary after tax is over £5,040 in San Francisco and £3,360 in Toronto.
FAQ: Moving to the US or Canada
Is it cheaper to live in Canada or the US?
Generally, living in Canada is slightly more affordable than the US. On average, living costs in the US are around 10% higher, particularly in areas like healthcare, housing, and education. However, this can vary depending on your lifestyle, income level, and the city you choose to live in.
Do Canada and the US have universal healthcare?
Canada offers universal healthcare, which covers most essential medical services for residents through government-funded programmes. In contrast, the US does not have universal healthcare, and medical costs can be significantly higher unless you have insurance through an employer or private provider.
How does the quality of education compare in Canada and the US?
Both countries have high-quality education systems. However, education costs, particularly for private schools and universities, are generally lower in Canada. Public university tuition fees in Canada are often more affordable than in the US.
What are the main differences in average salaries between Canada and the US?
The average salary after tax in the US is higher, at approximately £3,360 per month compared to £2,400 in Canada. However, the overall cost of living is also higher in the US, which can offset the income difference. Additionally, salaries vary depending on your industry, job title, and location.
