Cost of Living in Canada vs the UK: What You Need to Budget For

Canada and the UK are more evenly matched on cost of living than most people expect, but the headline figure tells only part of the story. According to Numbeo’s 2025 data, Canada is broadly 4% cheaper than the UK overall. Look a little closer, however, and the picture becomes considerably more nuanced. Groceries are meaningfully more expensive. Heating a Canadian home through winter costs more than most UK arrivals anticipate. And the province you choose to live in has a significant bearing on your tax position, particularly if you are a higher earner.

This guide works through the cost of living in Canada category by category, with city-level data where it matters most, so that you can approach your move with a clear and accurate picture of what to expect.

Housing is the single biggest variable in the Canadian cost of living, both between cities and relative to UK equivalents. The national average house price in Canada currently sits at around $699,000 CAD (~£379,500), which is notably higher than the UK average of approximately £285,000. That national figure, however, is skewed heavily by Toronto and Vancouver. For those willing to look beyond those two cities, the picture changes considerably.

The table below draws on CREA / WOWA.ca data (March 2026), using an exchange rate of 1 CAD = £0.538.

A few things stand out from this data. Toronto and Vancouver, Canada’s two most internationally recognised cities, carry house prices that exceed the UK national average by a substantial margin. Calgary and Ottawa, by contrast, offer pricing broadly comparable to the UK average or below it.

Buying as a new arrival

For those planning to buy on arrival, Canada imposes a Non-Resident Speculation Tax in some provinces, including Ontario, which applies to buyers who are not yet permanent residents. Some new arrivals rent initially while their immigration status is confirmed and they take time to understand the neighbourhoods they are considering. This is a sensible approach in a market where city-level averages conceal enormous neighbourhood-level variation. In Toronto, for instance, the premium neighbourhoods of Rosedale, Forest Hill, and Lawrence Park carry prices that sit meaningfully above the city average; in Vancouver, West Vancouver and the North Shore command a similar premium.

Average Canadian salaries are broadly comparable to UK levels, though sector and province matter considerably. According to Statistics Canada’s Survey of Employment, Payrolls and Hours, average weekly earnings reached $1,316 CAD in December 2025, equating to approximately $68,400 CAD per year. The UK median full-time salary, per the ONS Annual Survey of Hours and Earnings 2025, sits at £39,039.

At face value, these figures are close. The more meaningful comparison, however, is at the sector and province level.

Alberta’s combination of strong average salaries and no provincial income tax (more on this below) makes it the most financially favourable province for many higher earners. Ontario and British Columbia offer higher salaries than the national average but temper this with elevated living costs, particularly for housing. Quebec offers competitive salaries alongside more affordable housing in cities like Montreal, though its income tax rates are among the highest in the country.

Where Canadian salaries outpace UK equivalents most clearly

Certain sectors see a particularly marked advantage in Canada over the UK. Healthcare is the clearest example: registered nurses in Canada typically earn $75,000 to $90,000 CAD against £28,000 to £35,000 in the UK, a gap that widens further when adjusted for purchasing power. Physicians earn $200,000 to $300,000 CAD or more compared to £70,000 to £100,000 for UK GPs. Skilled trades, engineering, and technology roles also tend to pay well, particularly in Alberta, Ontario, and British Columbia.

Families with children benefit from Canada’s Canada Child Benefit, which provides up to $7,437 CAD per child under six per year for eligible households. This is a meaningful supplement to household income that has no direct UK equivalent at scale.

Certain sectors see a particularly marked advantage in Canada over the UK. Healthcare is the clearest example: registered nurses in Canada typically earn $75,000 to $90,000 CAD against £28,000 to £35,000 in the UK, a gap that widens further when adjusted for purchasing power. Physicians earn $200,000 to $300,000 CAD or more compared to £70,000 to £100,000 for UK GPs. Skilled trades, engineering, and technology roles also tend to pay well, particularly in Alberta, Ontario, and British Columbia.

Families with children benefit from Canada’s Canada Child Benefit, which provides up to $7,437 CAD per child under six per year for eligible households. This is a meaningful supplement to household income that has no direct UK equivalent at scale.

This is the area of the Canadian cost of living picture that receives the least attention in most guides, and it is arguably the most consequential for higher earners. Canada levies income tax at two levels: federal and provincial. Every Canadian pays federal tax; on top of that, the province you live in determines an additional layer of tax, and the variation between provinces is significant.

The table below shows the combined federal and provincial top marginal tax rates for 2025, sourced from PwC’s Canadian Tax Summaries:

The implications are substantial. A high earner living in Alberta pays a combined top rate of 48.0%, compared to 53.5% in Ontario, 53.1% in British Columbia, and 53.3% in Quebec. Alberta achieves this because it levies no provincial income tax at all, relying instead on resource revenues. For someone earning $200,000 CAD, the difference between living in Alberta and Ontario amounts to approximately $11,000 CAD per year in additional tax. Over a decade, this is a material financial consideration.

For context, the UK’s top marginal rate of 45% income tax plus 2% National Insurance on earnings above £50,270 produces an effective top rate of 47%, though between £100,000 and £125,140 the gradual removal of the personal allowance pushes the effective rate to 62%. For earners in that band, all four Canadian provinces are more favourable.

Anyone moving from the UK with a complex financial picture, including UK pension benefits, investment income, property retained in the UK, or ISAs (which lose their tax-exempt status in Canada), should take specialist cross-border tax advice well before departure. The UK-Canada Double Taxation Agreement prevents the same income from being taxed twice, but structuring finances correctly before you leave the UK can make a significant difference to your long-term position.

Grocery costs are the category most consistently cited as a genuine surprise by UK arrivals, and the data bears this out. Grocery prices in Canada are approximately 15 to 27% higher than in the UK, depending on the source and methodology. Moneycorp’s Numbeo-based comparison puts it at closer to 27%. The honest answer is that it depends heavily on what you buy and where.

The underlying reason is structural. Canada’s grocery market is dominated by three major chains, Loblaws, Metro, and Sobeys, with far less competition from the discount retailers that keep UK prices low. Aldi has only a limited presence in Canada, and the geography of food supply chains in a country of Canada’s size adds cost throughout the system. Many items are imported, particularly fresh produce in winter months.

The table below draws on price comparison data from Daily Hive (Tesco vs Loblaws, October 2025) to illustrate the gap on specific items:

To budget meaningfully: a single person should expect to spend around $80 to $120 CAD per week (~£43 to £65) on groceries, compared to roughly £40 to £60 in the UK. A family of four should budget for approximately $16,834 CAD in food costs for the year, according to projections from the Agri-Food Analytics Lab, up by around $800 from 2024.

There are practical ways to manage the gap. Buying seasonal Canadian produce, using warehouse retailers such as Costco, and shopping at No Frills or Food Basics (budget Loblaws-owned chains) can reduce the bill meaningfully. The gap is also less pronounced if you cook primarily with Canadian staples rather than imported goods.

One area where Canada has a clear advantage: dining out is approximately 5 to 10% cheaper than in the UK. A mid-range restaurant meal typically runs $20 to $35 CAD per person; a takeaway coffee averages $4 to $5 CAD. For those who eat out frequently, this partially offsets the higher grocery bill.

Basic utility costs in Canada are, on average, lower than in the UK. Numbeo data for 2025 puts monthly basic utilities (electricity, heating, water, and waste) for an 85m² apartment at around $208 CAD (~£113), compared to approximately £239 in the UK. For a standard household, this is a welcome saving. There is, however, an important caveat.

That caveat is winter heating. According to FurnacePrices.ca, heating accounts for approximately 63.6% of Canadian home energy bills, and natural gas prices rose 23.7% year-on-year in 2025. In provinces such as Alberta, Manitoba, Quebec, and Saskatchewan, monthly gas heating bills can reach $150 to $200 CAD in peak winter months. Anyone moving into a larger detached house in these provinces should model their annual heating costs carefully, as the total can comfortably exceed what they were paying for all utilities in the UK.

Internet is a further line item to note. Canada’s telecoms market is less competitive than the UK’s, and monthly internet packages typically run $80 to $100 CAD compared to £35 to £55 in the UK. This is a consistent frustration among UK arrivals.

For families with children in independent education, Canada offers a meaningful saving relative to the UK, particularly in the wake of the January 2025 imposition of VAT on UK private school fees.

Average private day school fees in Canada run $15,000 to $25,000 CAD per year (~£8,100 to £13,600), according to OurKids.net. UK independent day school fees, following the application of 20% VAT, now average approximately £19,000 to £22,000 per year, according to the Good Schools Guide 2026. For a family with two children in private education, the annual saving of moving to Canada can be substantial.

At the premium end, schools such as Upper Canada College, Havergal College in Toronto, and Shawnigan Lake School in British Columbia charge $31,000 to $62,000 CAD per year. These are broadly comparable to top UK independent schools pre-VAT and remain less expensive post-VAT. Boarding fees in both countries are broadly equivalent, running £30,000 to £45,000 or more annually.

Public schooling in Canada is free for permanent residents and is generally of a high standard. The system is provincially administered, and quality varies by area, but in the major cities the state school system is a credible alternative to independent education that most expat families find provides continuity without compromise.

Childcare

For families with younger children, childcare costs are a genuine financial pressure. Canada’s federal $10-a-day childcare programme is being rolled out nationally and has already significantly reduced costs in participating provinces, but wait lists for regulated spaces are long and availability varies considerably by city.

Private nursery fees in the meantime remain high: $1,500 to $2,500 CAD per month in Toronto and Vancouver, and somewhat lower in Calgary and Ottawa. This is a line item worth researching carefully for the specific area you are considering before committing to a location.

Provincial Medicare covers doctor visits and hospital care at no direct cost to the patient. What it does not cover is where the financial surprise lies for UK arrivals accustomed to the NHS’s broader scope.

Dental care, prescription drugs, vision care, and mental health therapy are all outside Medicare and must be covered either through employer benefit packages or private supplementary insurance. Comprehensive private health insurance for an adult in Ontario costs approximately $134 to $221 CAD per month, according to PolicyMe’s November 2025 data. For reference, a routine dental cleaning costs $150 to $400 CAD and a crown can reach $1,350 to $1,450 CAD.

Most employer benefit packages in Canada include supplementary health cover, and securing a role with good benefits is the most practical route to managing these costs. For those arriving without an employer package, budgeting $150 to $250 CAD per month per adult for supplementary cover is a sensible baseline.

The moving to Canada hub guide covers provincial healthcare waiting periods in detail, including which provinces impose a waiting period before Medicare begins and how to bridge that gap with interim insurance.

Canada is a car-dependent country outside the centres of its major cities. This is a meaningful difference for some UK arrivals who are accustomed to a well-developed national public transport network, and it has a direct bearing on household costs.

Public transport within city limits is functional: a monthly transit pass in Toronto costs $156 CAD; Vancouver charges $120 to $140 CAD; Ottawa $120 CAD. Beyond city boundaries, however, public transport options thin out quickly. Families moving to suburban areas, or to smaller cities such as London, Ontario, Kelowna, or Victoria, should plan for car ownership from the outset.

Car costs add up materially. Insurance runs $150 to $200 CAD per month on average, and typically more for new arrivals who have no Canadian insurance history (UK no-claims records are not automatically recognised, though some insurers will consider them). Fuel averages approximately $1.60 to $1.80 CAD per litre nationally. A family expecting to run two vehicles should budget $600 to $800 CAD per month for insurance and fuel combined before factoring in maintenance.

UK driving licences can be exchanged directly for a provincial licence in some provinces, including British Columbia, Ontario, and Alberta, without requiring a road test. In others, a test is required. It is worth confirming the rules for your destination province before you arrive.

One significant cost that is absent from almost every cost of living comparison guide is the move itself. Shipping a full household from the UK to Canada is a substantial expense, and one that deserves careful planning.

The most important financial planning point here is Canada’s settler’s effects concession. Under CBSA Memorandum D2-2-1, goods that were owned and used before arriving in Canada can be imported completely free of duty and tax, provided they are declared correctly on Form BSF186 at the first point of entry. For a household moving a lifetime of belongings, this is a meaningful financial benefit that a specialist international removals company will guide you through as a matter of course.

For households moving fine art, antiques, wine collections, or bespoke furniture, the move cost will include specialist packing, custom crating, and appropriate transit insurance, all of which should be factored into the overall budget. These are not optional extras for items of genuine value; they are the standard of care those items require.