This Is What The Real Cost of Living in Toronto Looks Like

This article digs into what the real cost of living in Toronto looks like, by going through the budgets of (fictional) Torontonians. We dig into finances for individuals and families, and then finish with some tips for saving money while living in Toronto. Let’s go!

How Much Should You Budget for Living in Toronto? 

This, of course, depends. Your wants and needs play a major role in how much money you’ll need to get by or thrive in Toronto. If you’re willing to sacrifice a few things for the sake of living in Canada’s biggest city, then you’ll be able to get by on less. Sounds good right? Turns out the things you may need to sacrifice are having a place to yourself (you’ll likely need to share a home) and owning a car.  

For families, you might need to compromise on location if you want to live in Toronto on one income – and making the decision to not have a car can offer major savings for you too. 

We’ll dig into the average cost stats for Toronto housing and cars later in this blog post. 

Quick Budgeting Overview 

Before we do, we want to point to some advice from personal finance expert, Ramit Sethi, from a 2023 interview with CNBC: 

“Sethi said, people should aim to spend no more than 28% of their gross income on their rent costs. (These include, he added, utilities, furniture, repairs, etc.) 

“If you have no debt, you can stretch the number a bit,” he said. In certain expensive cities, Sethi added, “they might spend 30%, 32%, even 35%.” 

However, he cautioned, “above that, you’re exposing yourself to serious risk” in the event you lose your job or experience another setback.” 

Despite this, figures from the City of Toronto indicate that 23% of renters pay more than 50% of their income on housing.  

In other words, we want to be very clear that the decisions you make when it comes to housing in Toronto are likely to play the biggest role in your financial future in Canada. 

We really suggest running the numbers to work out what your budget and lifestyle would look like at certain rental price points before committing to a lease. Other than that, you’ll need to know what your income is (take home, not gross), and make a list of everything else you need to pay for (utilities, transport, and food), before digging into what you’d ideally want to buy in Toronto too (gym membership, dining out, holidays, entertainment, hobbies for yourself or your family).  

And when you’re choosing where you live in Toronto, the usual wisdom says 50% of your income should go to ‘needs’, 30% to ‘wants’, and 20% to savings or debt. So you might need to adjust your expectations accordingly.  

What is the monthly budget for an average individual in Toronto? 

For a single newcomer renting in Toronto’s suburbs, a typical monthly budget might range from about CAD 2,200 to CAD 3,000, with rent often taking CAD 1,000 for a shared house with multiple roommates (using data from Sparrow Share) to CAD 2,300 for a modest one-bedroom or bachelor unit (based on the February 2025 Rentals.ca Rent Report). 

We chose $1560 as the price for housing based on a Sparrow Share listing just outside Toronto’s downtown area, but sharing with just one other person. This felt like a happy-medium for this blog post. We recommend checking out the Sparrow Share and Rentals.ca platforms to see your accommodation options across a range of price points.  

Plus, CAD 80 to CAD 120 for utilities (depending on usage and season), and around CAD 100 for combined phone and internet, while groceries can hit CAD 375 to CAD 500 if you cook at home frequently and rely on weekly sales or discount grocery stores to keep costs manageable.

Transportation is another key factor; a TTC monthly pass sits at CAD 156, but if you occasionally use ride-hailing services, Go Transit trains to visit downtown, or taxis late at night, this can easily push your transit spend higher, so you need to be realistic about how often you’ll use these services and whether you can carpool to split the cost with friends or colleagues.

Want the highlights in video form? Check out this reel breaking down the cost of living for a single person:

So, assuming a budget of $2,510 for ‘needs’, here’s how far your salary will go in Toronto:  

What are the monthly expenses to consider? 

Despite the advantages of living in a place known for its inclusivity and multiculturalism, newcomers often find themselves juggling not just obvious expenses like rent and groceries, but also smaller costs that add up quickly, such as mobile phone bills, winter-appropriate clothing, child-related expenses, and any fees related to building up a Canadian credit history.  

One reality worth considering is that if you’re earning less than $85,000 in Toronto and considering buying a car, money will likely be tight – whether you’re an individual or a household. While the payment plan might seem affordable (it’s only $500 per month after all, right?), remember that adding insurance, gas, storage, parking, parking fines, and maintenance quickly add to the costs of owning a car.  

If you’re a newcomer and considering buying a car, it’s worthwhile considering whether rentals could fill that need. Car subscriptions, through companies like our partner, Roam, allow you greater flexibility when it comes to ongoing transport costs without sacrificing on convenience or the quality of your vehicle.  

Plus, the Moving2Canada community enjoys $50 off weekly plans, $100 off monthly plans, and $150 off long-term plans. Use coupon code M2CR25 at checkout. 

How do entertainment costs affect your budget in Toronto? 

Entertainment can be the hidden budget-buster: a simple night out at a mid-range restaurant can cost CAD 25 to CAD 40 per person, movie tickets average around CAD 15, and a bar tab can climb quickly if you’re not careful, so a good guideline is to designate a fixed amount (like 5-10% of your income) for “fun” spending, which ensures you can still enjoy Toronto’s incredible nightlife, cuisine, and multicultural festivals without feeling guilty or pulling money from more critical areas of your budget. (Bear in mind that this is only if you don’t overspend on accommodation.) 

What is the average cost of living for a family in Toronto? 

For a family of three renting in Toronto’s suburbs, a typical monthly budget can range from about CAD 4,500 to CAD 7,000 for necessities. In our example, we’ve used a combined CAD 5,620 for ‘needs’, which includes CAD 3,380 for housing, CAD 1,200 for food, CAD 520 for transportation, CAD 50 for healthcare, CAD 240 for insurance, CAD 150 for debt repayments, and CAD 80 for communications. We arrived at CAD 3,380 for housing based on two- to three-bedroom listings in the suburbs, and recommend checking platforms like Rentals.ca  to compare additional options.

Groceries are higher for a family than for a single person, so CAD 1,200 reflects the costs for a family that eats most meals at home. Meanwhile, CAD 520 for transportation is based multiple TTC passes for the month. That’s right – this is another no-car family.

How inconvenient, or possible, is it to be “car-free” where you live?
byu/Vagabond_Tea inAskACanadian

More on why we’re choosing car-free budgets in Toronto below.  

We also include CAD 50 for healthcare (very bare bones), which covers out-of-pocket expenses not covered by OHIP or private insurance (e.g., some prescriptions), plus $240 for broader insurance which could include tenant’s insurance, life and disability insurance. Finally, $150 for debt repayments and $80 for cell phones round out this family’s essential monthly spending.

So, assuming a budget of CAD 5,620 for ‘needs’, here is a sample look at how different salaries might shake out (approximate 2025 after-tax monthly incomes for Ontario). We’ll use four examples to show how income levels affect what’s left for “wants” and savings: 

We left the $85,000 income range to show you what a difference being an individual living in a shared house makes when it comes to budgeting in Toronto. At that rate, this family could not afford to live in a standard 2-bedroom apartment within Toronto. They would likely need to look further afield, around a 1 hour 20+ commute to the downtown core, to live within their means.  

What Are Transport Costs in Toronto?  

The costs of transport in Toronto are extremely variable. You can get by for free if you walk, or for quite cheap if you cycle. Then, there’s public transport, which is reliable and relatively affordable. Rideshares and taxis are also available and are generally more affordable than owning a car, if you use them occasionally. Long-term vehicle rentals are also becoming more popular in Toronto, with companies like Roam offering quality vehicles via a subscription on a weekly, monthly, or even longer basis. 

Finally, there’s the option of buying a car in Toronto.  A car can offer convenience, especially in Toronto’s suburbs. But given that Toronto is a high-cost of living area and has decent public transit, it’s worth running the numbers and considering whether it’s worth owning a car. Keep in mind that fuel and parking can quickly add up if you rely heavily on a vehicle or frequently commute downtown. 

What is the cost of public transit for families? 

Public transit in Toronto is generally considered reliable, and a single monthly TTC pass costs about CAD 156, which covers subways, streetcars, and buses across the city, but if you have multiple working adults in your household, that cost doubles or triples quickly, and while children under 12 ride free, teenagers pay a lower youth fare that still adds up if they commute daily to school or extracurricular activities. If you live in the suburbs and frequently need to go downtown or into neighboring municipalities, you may use GO Transit or other regional systems, which can tack on additional fares per trip, so a family of three or four could find themselves spending CAD 300 to CAD 500 monthly just on transportation if everyone relies on public transit, and the key to keeping that in check is looking into discounted passes or planning your home location around major transit hubs to minimize expensive connections. 

How much does it cost to own a car in Toronto? 

Owning a car in Toronto is a different level of financial commitment, as insurance rates in the Greater Toronto Area are some of the highest in Canada, often landing above CAD 200 per month for a single driver with a clean record, and when combined with gas cost, parking fees, maintenance, and occasional toll routes (like Highway 407), you can easily spend CAD 600 to CAD 1,000 or more per month on a single vehicle.  

How to Live Comfortably in Toronto? 

Many people do manage to thrive in Toronto by crafting realistic budgets and making strategic lifestyle choices—like looking for cheaper suburbs rather than the downtown core, shopping smart for groceries, taking advantage of free cultural events, and prioritizing job opportunities in sectors that offer competitive pay. 

It’s important to understand that although the cost of living may be high, Toronto also comes with significant rewards: a dynamic social scene, career advancement potential, and an environment that helps newcomers grow both personally and professionally if they manage their money and resources wisely. 

What is the secret to managing living costs effectively? 

The reality is that your finances will always be a maths problem – no matter what you feel about money.  

You might want to live in the shiny new apartment with the gym facilities on-site. You might even tell yourself that you’re saving money in reality because you don’t have to pay for a gym membership. But if the numbers don’t line up for your accommodation costs, you’re robbing yourself of a stronger financial future by signing that lease.  

The secret to budgeting in Toronto is to run the numbers, realistically, and understand what impact your choices will have on your lifestyle.

Remember, the 50/30/20 rule can help!

What jobs can help sustain a high standard of living in Toronto? 

Ultimately, income is a big factor in how comfortable you’ll be in Toronto. The higher your earnings, the easier it is to handle the city’s costs. So, what kind of jobs or careers put you in a good position to live well here?

Toronto is Canada’s largest job market, with opportunities in many industries. Some sectors tend to offer higher salaries that can sustain a higher standard of living: 

• Technology (IT jobs): Toronto has a booming tech sector (sometimes nicknamed “Silicon Valley North”). Jobs like software developers, data scientists, IT project managers, etc., are in demand and often pay well above the city’s average salary. For example, a software developer with a few years’ experience can earn $80,000-$100,000+. These incomes allow one to comfortably rent (though, they’ll do better to share a home) and still have money for savings and leisure. 

• Financial Services: As home to the Toronto Stock Exchange and many banks, Toronto’s finance sector is big. Jobs in banking, investment, accounting, and fintech can provide solid incomes. A financial analyst or accountant might earn $60k-$80k, while more senior roles or specialized fields (like investment banking) can be six-figures. Finance and accounting professionals with certifications (CPA, CFA, etc.) are well-compensated. 

• Healthcare and Life Sciences: Healthcare jobs (nurses, radiologists, pharmacists, etc.) offer stable, good incomes. A registered nurse in Toronto, for instance, can earn around $75k annually. Doctors and dentists, once established, earn well into six figures (though it takes many years and expenses to get there). The biotech and pharmaceutical industries also have roles in Toronto (especially with many hospitals and research institutions) that pay competitively. 

• Engineering and Skilled Trades: Professional engineers (in civil, electrical, mechanical fields) are in demand for Toronto’s constant development and infrastructure projects. An engineer might start around $70k and go up from there with experience and P.Eng licensure. Don’t overlook skilled trades either: electricians, plumbers, HVAC technicians, elevator mechanics – these tradespeople are needed and can earn a strong income, often in the $60k-$100k range after a few years, and with less student debt than white-collar paths. The city has a shortage of some trades, pushing wages up. 

• Business Management and Sales: Climbing the ladder in corporate roles or excelling in sales can yield high pay. For example, an experienced sales manager or a business development executive in a large company might earn a base salary plus commission/bonus that puts them well over $100k if they perform well. Similarly, project managers or consultants in high-demand fields can do very well. 

• Creative and Specialized Professions: Toronto is a hub for media, film, and design in Canada. Some of these jobs (e.g., UX designer, marketing director, film production manager) can pay decently, though creative fields often have more variance. There are also lots of public sector and education jobs (government, universities) which may not pay sky-high but have good benefits and stability, which contributes to living comfortably in a different way. 

• Entrepreneurship: Some newcomers start their own businesses – from restaurants to tech startups. Income here can be very high or very low depending on success. It’s higher risk/higher reward. But Toronto’s large market can be lucrative for entrepreneurs who find a niche. 

While precise data is hard to find, anecdotally, the average salary in Toronto is around $62,000/year.  So jobs that pay at or above the city average will obviously make life easier. Many of the fields above have average salaries that meet or exceed that. For instance, many tech and finance jobs start at or quickly reach the $60k+ range, whereas in retail or hospitality you might earn much less. 

How much do you need to earn for a higher standard of living in Toronto?  

Now, what is considered a “high standard of living” income-wise? As a rough guide, an individual probably would start to feel more comfortable in Toronto on anything above $75,000 per year (which after tax might be around $50k-$55k take-home, or about $4,500/month). With that, you could rent a decent place and still save or travel occasionally. Though, some data says that you’d want to be earning $85,000 as an individual before buying a car in Toronto.  

A household with two earners making say $60k each (so $120k combined) would be in a solid position to maybe start saving for future goals, especially if they’re in a one-bedroom apartment. At 2-bedrooms with a child, a couple earning $120,000 still has some breathing room, but may find it harder to save for their future.  

If you’re just starting out or your profession isn’t in a high-paying field, don’t be discouraged. Many newcomers begin with survival jobs (e.g., working in a cafe or store) which might pay nearer to minimum wage. It can be tough to save or get ahead at ~$30k/year in Toronto; in those cases utilizing all the cost-saving tips we discussed is crucial. But Toronto also offers lots of opportunities for upskilling: you can take courses, attend networking events, and gradually move into better-paying roles. Even moving from a low-wage job to a middle-wage job (say, $40k to $50k) can significantly improve your comfort level.

Cost of Living in Toronto as a Couple 

Dual-income advantage: two incomes make a huge difference. For example, two people each earning $45k (a pretty average wage) together bring in $90k, which usually is enough to rent a moderate apartment, run a modest car, and raise a child with careful budgeting. Many families in Toronto rely on dual incomes to afford their lifestyle. If only one partner works, a single income often needs to be quite high to maintain the same standard. 

Managing the Cost of Living in Toronto 

Moving to a new city like Toronto is exciting, and while the cost of living can be daunting, proper planning goes a long way. To recap,

1. Budget generously for housing because rent is the single biggest expense (consider sharing or living a bit outside the core to save money).
2. Keep an eye on transportation costs – the TTC is your wallet’s friend, and cars are a luxury.
3. Food and entertainment are within your control: cook often and enjoy Toronto’s free or low-cost attractions to keep those in check.
4. Healthcare, thankfully, won’t break the bank thanks to Canada’s system, but remember to plan for what it doesn’t cover.
5. Work to stretch your dollars further whenever you can.

So, can you afford to live in Toronto as a newcomer?

Toronto is a city of opportunity. Many newcomers arrive with limited funds, yet within a few years, they find their footing, often improving their financial situation through better jobs or adjusted lifestyles. It’s important to give yourself time to adjust – your first year might be mostly about getting established and being frugal. As you gain Canadian experience and perhaps a higher income, you’ll be able to afford more comforts.

Living in Toronto isn’t cheap, but it comes with great benefits: a dynamic job market, safety, excellent public services, and a rich cultural life. By knowing the real costs and managing your budget wisely, you can enjoy all that the city offers without constantly worrying about money. Many immigrants before you have succeeded in making Toronto their comfortable new home – and with the information and tips from this guide, we hope you will too!