Cost of Living in Toronto, Canada

Cost of Living in Toronto, Canada

Toronto, Canada, is celebrated for its diverse culture, thriving economy, and status as the financial capital of the country. As one of the most populous and vibrant cities in Canada, Toronto offers a high quality of life with numerous opportunities for both personal and professional growth. However, this comes with a relatively high cost of living compared to other Canadian cities. Whether you’re relocating for career advancement or to experience the dynamic urban lifestyle, understanding the cost of living in Toronto is essential for effective financial planning.

In this guide, we’ll break down the cost of living in Toronto, covering housing, utilities, transportation, groceries, and more. We’ll also explore how you can invest your savings in real estate through mogul, where you can earn monthly dividends and benefit from property appreciation.

Additional reading: Real Estate Financing Options

Housing Costs in Toronto

Housing is one of the most significant expenses in Toronto, with rent and property prices reflecting the city’s global desirability and limited space.

Rent: The average rent for a one-bedroom apartment in Toronto’s central areas, such as Downtown or Midtown, is about CAD 2,300 per month, while a two-bedroom apartment typically costs around CAD 3,200. Prices can vary significantly depending on the neighborhood, with areas like Yorkville and The Annex commanding higher rents than more suburban areas like Scarborough or Etobicoke.

Home Prices: As of 2023, the median home price in Toronto is approximately CAD 1,100,000, with prices soaring in prime areas such as Rosedale and Forest Hill. More affordable options can be found in neighborhoods like East York or North York.

Property Taxes: The property tax rate in Toronto is about 0.7% of a home’s assessed value, which is relatively moderate compared to other major Canadian cities. However, rising property values can still result in substantial tax bills.

Utility Costs

Toronto’s temperate climate ensures that utility costs can vary throughout the year, with heating impacting electricity usage during cold winters.

Electricity: The average electricity bill in Toronto is around CAD 100-150 per month, depending on the size of your home and energy usage.

Water: Water bills in Toronto average about CAD 60-100 per month, reflecting the city’s efficient water management systems.

Internet: High-speed internet services in Toronto typically cost between CAD 70 and CAD 120 per month, depending on the provider and plan.

Heating and Cooling: Toronto experiences cold winters and warm summers, which can increase electricity or gas usage for heating and cooling. However, efficient systems help manage utility bills effectively.

Transportation Costs

Toronto boasts an extensive and efficient public transportation system, making commuting convenient and relatively affordable.

Public Transport: The Toronto Transit Commission (TTC) provides buses, streetcars, and subways throughout the city. A monthly transit pass costs around CAD 156, providing unlimited travel within designated zones.

Presto Card: Using a Presto card offers discounted fares compared to single tickets. Daily caps ensure you never pay more than a certain amount each day.

Taxis and Rideshares: Taxis in Toronto are readily available but can be expensive, especially during peak hours or late at night. A typical taxi ride starts at around CAD 4.25 and increases based on distance and time.

Parking: Owning a car in Toronto can be costly due to high parking fees and limited availability. Monthly parking can range from CAD 200 to CAD 400 in central areas, with more affordable options in suburban neighborhoods.

Biking and Walking: Toronto is increasingly bike-friendly, with numerous bike lanes and trails. Many residents also enjoy walking, especially in vibrant neighborhoods like Kensington Market and Queen West.

Grocery Costs

Grocery prices in Toronto are generally higher than the national average, though there are ways to manage costs effectively.

Milk: A liter of milk costs around CAD 2.50.

Eggs: A dozen eggs typically cost about CAD 3.50.

Bread: A loaf of bread is priced at around CAD 3.00.

Chicken: A kilogram of boneless chicken breasts costs approximately CAD 12.00.

Fruits and Vegetables: Fresh produce prices vary, with a kilogram of apples costing about CAD 4.00 and potatoes about CAD 2.50 per kilogram.

Shopping at grocery chains like Loblaws, Metro, or No Frills can help keep your grocery costs manageable. Additionally, visiting local markets such as St. Lawrence Market or Kensington Market can offer fresh produce at competitive prices.

Healthcare Costs

Healthcare in Toronto is comprehensive and highly efficient, though out-of-pocket expenses and insurance premiums can vary based on your coverage.

Doctor’s Visit: A routine doctor’s visit without insurance typically costs around CAD 100-200.

Health Insurance: Private health insurance in Toronto varies based on coverage, with average costs ranging from CAD 200 to CAD 500 per month.

Prescription Drugs: Prescription medications are subsidized by the provincial healthcare system, typically costing around CAD 10-30 per month for ongoing prescriptions. Private prescriptions can be more expensive.

Toronto is home to some of Canada’s top hospitals and healthcare providers, including Toronto General Hospital and Sunnybrook Health Sciences Centre, offering a wide range of services for residents.

Entertainment and Lifestyle

Toronto offers a vibrant entertainment scene with plenty of options for dining, fitness, and outdoor activities, catering to an active and diverse population.

Dining Out: A meal at a mid-range restaurant typically costs around CAD 30-60 per person, while fast-food meals are closer to CAD 10-15.

Fitness Memberships: Gym memberships in Toronto range from CAD 60 to CAD 200 per month, depending on the facility and amenities.

Movie Tickets: A movie ticket generally costs about CAD 15-20.

Outdoor Activities: Toronto boasts numerous free or low-cost outdoor activities, including hiking in High Park, exploring the Toronto Islands, or enjoying outdoor concerts and festivals like the Toronto International Film Festival.

With so many entertainment options available, it’s easy to enjoy the Toronto lifestyle without overspending on leisure activities.

Taxes

Canada has its own tax structure, making the overall tax burden something to consider when living in Toronto.

Income Tax: Canada’s personal income tax rates for the 2023 tax year range from 15% to 33%, depending on your income level. Ontario has its own provincial income tax rates ranging from 5.05% to 13.16%.

Sales Tax: The combined sales tax rate in Toronto is 13%, which includes the federal Goods and Services Tax (GST) of 5% and the provincial Harmonized Sales Tax (HST) of 8%.

Property Tax: As mentioned earlier, the property tax rate is about 0.7%, which can result in substantial tax bills due to high property values.

Capital Gains Tax: Canada taxes capital gains, but only 50% of the gains are taxable, making it somewhat advantageous for investors.

How to Make the Most of Your Money in Toronto

Living in Toronto can be expensive, especially when it comes to housing and transportation. However, by managing your expenses and taking advantage of the city’s many free and low-cost activities, you can make the most of your money.

One smart way to put your savings to work is by investing in real estate through mogul, where you can earn monthly dividends and benefit from property appreciation.

Invest with mogul and Grow Your Wealth

Here’s why mogul is an excellent option for putting your savings to work:

  • Low minimum investment: Start investing in real estate with just $250, making it accessible for investors at all levels.
  • Monthly dividends: Enjoy consistent income from rental properties, helping you grow your savings steadily over time.
  • Property appreciation: As real estate values increase, your investment grows, providing long-term financial benefits.
  • Hassle-free investing: All properties are professionally managed by mogul, so you don’t have to worry about day-to-day property management.

By investing through mogul, you can turn your savings into a profitable investment that helps build wealth over time.

The Bottom Line

Toronto is a dynamic and exciting place to live, offering unparalleled opportunities and a vibrant lifestyle. While the cost of living is high, with proper budgeting and financial planning, it’s possible to enjoy everything the city has to offer while keeping your expenses in check. Whether you’re saving on housing by choosing the right neighborhood, taking advantage of the extensive public transportation system, or utilizing the city’s abundant free activities, there are plenty of ways to make your money go further.

Once you’ve saved on living costs, consider investing those savings through mogul to take advantage of monthly dividends and property appreciation from real estate investments. With a low minimum investment of $250, mogul makes real estate investing simple and accessible.

Ready to make your money work for you? Join mogul today and start investing in real estate for long-term financial success.

Learn more: 
Real Estate Crowdfunding for Retirement

Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.