Toronto is one of the best places to live in Canada and the world. If you are looking for new career opportunities and an exciting lifestyle, this city is the right choice. Yet, before making any decision, you should consider how much salary is enough and how much is good for the Canadian economic center. Don’t forget that Toronto is one of the most expensive places in North America.
In Toronto, a monthly net salary between C$3,500 and C$4,500 is considered a good wage for a single person. This corresponds to an annual gross salary of above C$55,000. A good earner is everyone getting between C$55,000 and C$72,000 before taxes.
Understanding a good salary varies on your past experiences and position in life. Are you single, married, or have children? You will need a different amount of money to live a decent life in Toronto for all those situations. Read this article to learn about all nuances of a good salary to make in Toronto in 2022.
To learn about salaries in other Canadian cities, check out the article on wages in Montreal.
What is considered a good salary in Toronto in 2023?
In Toronto, a monthly net income between C$3,500 and C$4,500 is considered to be a good salary. For this, you will need to earn between C$55,000 and C$72,000 before taxes.
A salary of that range allows a single person to afford a decent life in Toronto. It includes all the costs necessary for food, housing, transportation, healthcare, and other expenses such as hobbies, traveling, etc. A family of four will need about C$100,000 in income to maintain a comfortable level of life.
Toronto is one of the best cities to live and work in the world. In fact, it ranked as the 25th best city to live in globally and 3rd in Canada. No wonders most expats prefer to work in Toronto. Yet, many get surprised by the high living costs.
If you interested to learn about salaries in other Canadian cities, read this article about wages in Montreal or Ottawa.
Make yourself aware and ready; figure out how much is a good salary in Canada’s megapolis so you can negotiate it to where it has to be!
Unfortunately, the current minimum wage, which is C$15.50 per hour (2022) in Ontario, is far below what you need to live a normal life there. Consequently, many people living in Toronto find this place too expensive and are forced to move further away.
Nonetheless, the constantly moving forward job market and career opportunities attract many new people to the city.
In the end, Toronto is Canada’s commercial hub, providing excellent opportunities in all the major industries in the city. Are you thinking of taking a job in Toronto? But what should you earn in Canada’s most expensive city to have a good life?
According to various sources, a gross salary of at least C$60,000 is what you want to strive for in Toronto. This translates to about C$3,750/month after tax.
While it’s a good salary for a single person, giving you a decent standard of living. A family will likely need two incomes to have a good standard of living. Furthermore, a salary of C$2,500 a month after tax is the minimum income for a basic lifestyle in Toronto (for a single person).
But, if you want to buy a house in Toronto, you need to opt for a gross salary of C$70,000 – C$100,000.
Toronto is an expensive city; hence, you will need a high enough salary to support yourself and your family if required. A couple with children both earning C$50,000 gross will have a very good life.
To sum up, if you would like to be more extravagant with spending, and have a modest (but still good) lifestyle, it’s enough to make about C$60,000 per year before taxes in Toronto.
Example of a good salary in Toronto
Base gross salary: C$60,000, which comes to C$3,750 monthly after tax.
What will your life look like with a good level of monthly income (around C$3,750 net) in Toronto, Ontario?
Expensive bills like food, drinks, car insurance, and utilities will cost you higher, unlike in other cities in Canada. With local taxes going up, living conditions continue to rise, making everything expensive in the city.
Example of some monthly expenses in Toronto:
- Housing: You can rent a 1 bedroom apartment in the city center (C$1,800), utilities will cost you another C$200 and C$70 for the internet.
- Groceries and food: C$500.
- Transportation: C$180.
- Health insurance: C$80.
- Disposal income per month: C$545 for closing and shoes, personal items, eating out, entertainment, weekend trips, yearly holidays, etc.
- You can go on vacation 1-2 times a year.
- You also can spend some weekends away.
- Saving: you might be able to put away a few hundred C$.
The total cost is around C$3,375 per month; you will have around C$375 left to save or spend on leisure.
Read more on salaries in Canada in the articles about wages in Calgary.
Gross vs net salary
Figuring out how much you will pay in taxes is crucial when accepting a job offer in Canada. As we know, employers always post a salary before tax. For example, the tax rate on a C$100,000 salary in Ontario is 11.6% for provincial tax and 26% for federal tax.
Overall, taxes and social security contributions are around 30% of the employee’s gross salary in Canada.
The average tax rate for residents of Ontario earning C$100k is 30%, while the marginal tax rate is 43.2%. Based on these rates, the take-home pay on a 100,000 salary will be around C$70,000.
While this amount might sustain a single person living in Toronto, it’s unlikely to be enough for a family of 4. Thus, it makes a lot of difference to know whether the salary is before or after tax.
Here is a tax overview in Ontario province for a gross annual salary of C$87,552 for a single with no kids:
- Federal tax: C$12,368
- Provincial tax: C$6,248
- CPP/EI Premiums: C$4,056
- Total tax: C$22,672
- Average tax rate: 21.33%
- Marginal tax rate: 31.48%
- Net Salary: C$64,880
Federal tax rates in Canada:
- 15% on the first C$45,916 of taxable income, +
- 20.5% on the next C$45,915 of taxable income (on the portion of taxable income over $45,916 up to $91,831), +
- 26% on the next C$50,522 of taxable income (on the portion of taxable income over $91,831 up to $142,353), +
- 29% on the next C$60,447 of taxable income (on the portion of taxable income over $142,353 up to $202,800), +
- 33% of taxable income over C$202,800
Additionally, employees have to pay a provincial tax.
- 5.05% on the first C$45,142 of taxable income.
- 9.15% on the next C$45,145 and over.
- 11.16% on the next C$59,713 and over.
- 12.16% on the next C$70,000 and over.
- 13.16 % on the amount over C$220,000.
Besides these income taxes, employees pay social security contributions from their salaries, such as pension and unemployment insurance. It eats up around 6,7% of your gross wage in Canada.
With an average annual income of C$$54,630, you will pay C$12,335 or 22,58% in tax in Toronto. This will leave you C$$42,295 or C$$3,524 net per month.
You just have paid:
- Federal tax – C$5,682
- Provincial tax – C$3,004
- CPP/EI Premiums e.g. social security – C$3,650
Bonuses, holiday pay and remuneration packages
In Canada, employees receive employment insurance, family benefits, pension insurance, education and training, housing, maternity, and paternity leave.
There are no obligatory yearly bonuses for workers, yet they are entitled to two weeks of paid annual leave.
Salaries in Toronto
In Toronto, an average employee earns between C$50,000 – C$70,000 per year before taxes. Salary for entry-level positions starts at C$31,931 per year, while most experienced workers make up to C$93,510 annually before tax.
Highly skilled workers will find many job opportunities in Canada. With over 41,500 tech companies, IT specialists have the best chances of employment. Apart from IT, manufacturing, service, real estate, and communications are all essential sectors in Canada and have been growing continuously over the years.
Toronto’s salaries for some common occupations as of November 2022 (C$):
| Job | Lowest wage/hr | Median wage/hr | High wage/hr |
|---|---|---|---|
| Cashiers | 15.50 | 15.50 | 17.50 |
| Plumbers | 17.50 | 30.00 | 50.00 |
| Bus drivers, subway operators and other transit operators | 16.50 | 30.00 | 36.15 |
| Senior managers – construction, transportation, production and utilities | 15.00 | 57.03 | 190.41 |
| Human resources managers | 28.85 | 46.15 | 70.19 |
| Advertising, marketing and public relations managers | 24.04 | 40.87 | 70.26 |
| Computer and information systems managers | 34.52 | 52.66 | 72.12 |
| Restaurant and food service managers | 15.50 | 19.23 | 38.46 |
| Financial and investment analysts | 24.04 | 35.90 | 51.28 |
| Financial auditors and accountants | 22.00 | 36.06 | 66.67 |
| Receptionists | 15.00 | 17.50 | 25.00 |
| Banking, insurance and other financial clerks | 17.45 | 21.28 | 38.46 |
| Dispatchers | 16.50 | 21.02 | 33.00 |
| Civil engineers | 26.44 | 37.44 | 61.27 |
| Mechanical engineers | 22.88 | 36.92 | 60.00 |
| Electrical and electronics engineers | 25.00 | 40.00 | 66.15 |
| Computer engineers (except software engineers and designers) | 24.00 | 44.10 | 67.02 |
At the same time, in 2020 average earnings in Canada were as follows:
| Classification | Hourly wage (CAD) |
| Males | $32.47 |
| Females | $28.90 |
| Full-Time Employees | $32.63 |
| Part-Time Employees | $22.42 |
With a rapidly growing tech sector, software developers can enjoy above-average wages in Toronto. With 2-3 years of experience as a backend developer, you can get a salary of C$70,000-80,000 a year.
Keep in mind that managing living expenses while earning below 35,000 in Toronto will be difficult.
Read more about part-time salaries in Canada.
Minimum wage in Toronto in 2023
According to Ontario.ca, the general minimum wage rate from October 1, 2022, is C$15.50 per hour. Read more about Toronto’s salaries.
Also read: Living in Toronto vs London
Average salary in Toronto in 2022
According to PayScale, the average base salary in Toronto was C$68,000 in Q3 of 2022. This doesn’t include other attached benefits and bonuses.
In 2022, the average salary in Canada was C$68,000 per year or C$1,416 per week for full-time employees. At the same time, the most typical wage in 2021 was C$59,769 before tax.
For Toronto, salaries vary significantly. For instance, the lowest average wage is C$33,900, and the highest average is C$599,000.
The average salary continues to increase year over year. Overall, wages in Toronto are slightly higher than the average Canadian wage. The real-world average salary in Toronto is between C$55,000 and C$60,000 or C$42,535 and C$45,820 after tax.
This will give you between C$3,500 and C$3,750 in net income every month. As a single, you can live pretty comfortably.
What jobs pay what in Toronto?
The most popular occupations in Toronto are software developer, project manager, and software engineer, making between C$42,000 and C$117,000 per year.
Some of the best-paid fields to work in Toronto are tech, finance, science & research, and healthcare. In fact, jobs in areas of management & business pay an average salary of C$124,287 and C$116,408 in healthcare & medicine.
Some typical jobs and salaries you will see in Toronto:
| COO | C$100,000 |
| Software engineer | C$81,000 |
| Software developer | C$71,000 |
| Project managers | C$78,000 |
| Accountant | C$71,134 |
| Biomedical engineer | C$59,406 |
| Investment manager | C$95,915 |
| Consultant | C$64,879 |
| Store manager | C$48,520 |
| Truck driver | C$42,889 |
| Administrative assistant | C$41,427 |
| Driver | C$38,022 |
Average expenses with an average salary in Toronto
Your average expenses as a single with an income of C$68,000 before and C$51,294 after tax:
- Monthly after-tax income: C$4,160
- Rent and utilities: C$1,800
- Food: C$500
- Health insurance: C$100
- Other insurances: C$50
- Telecommunications: C$150
- Transportation: C$160
- Shoes and clothing: C$250
- Household, hygiene articles: C$100
- Entertainment, recreation, culture: C$300
- Total: C$3,410
You can spend the rest of your income on leisure or put it aside.
Housing
Toronto has the most expensive real estate market in the country. Expect to pay a big junk of your salary for accommodations. A one-bedroom apartment’s average rent is about C$1,850 – 2,000. A two-bedroom flat will cost you between C$2,500 – 3,500, depending on the area.
In addition, you can expect to pay an average of C$200 per month for utilities and C$70 for the internet.
Food
Groceries, overall, aren’t cheap in Canada. You should budget at least C$400 for a month.
Going out is pricey in Toronto. Here are some typical expenses: a meal in the average restaurant is C$21, a dinner for two – C$65, a cocktail – C$15, a beer – C$8, cappuccino can be as high as C$5.
Free time
Considering the average cost, if you have had 4 beers, 1 restaurant visit with friends, visited the cinema 2 times, and had 4 regular restaurant meals per month, you can entertain yourself for approximately C$230.
Public transport
In Toronto, a monthly public transport pass ranges from C$156 and C$201.
Healthcare
In Canada, public health insurance is covered by monthly taxes deducted from your salary. Costs are pretty low: between C$50 to C$100 per month. For additional services, you can take out private coverage; Cigna Global is the recommended provider.
Highest paying jobs in Toronto
Some of the highest-paying jobs in Toronto are:
- Software architect
- Dentist
- Senior software engineer
- Physiotherapist
- Senior devOps engineer
- Registered nurse
- Investment manager
- Construction manager
Is C$75,000 before taxes a good salary in Toronto for a couple with one child?
In Toronto, the salary of C$75,000 is above the average but might not be enough for two people with a child.
With an income of C$75,000 a year, you will have only C$56,050 after tax in Ontario. This translates to a monthly pay of C$4,671. The average expenses for a family with two kids in Toronto are about C$6,000. It’s still will be hard to maintain a good quality of life on C$4,600 with one child.
Generally, a family with a child will be around C$4,000 – C$5,000 a month in Toronto.
What can you afford with a C$75,000 gross salary?
Rent will eat up a significant amount of your income – unlikely you can find something below C$1,500. We suggest counting on around C$2,000 per month for rent. This leaves around C$2,600 to spend on other necessities.
Other average monthly expenses you can expect while living in Toronto as a family:
- Utilities – C$200
- Internet – C$70
- Groceries – at least C$500
- Public transport a monthly pass for one person – C$155
- Alternatively to the public transport – car insurance – C$250
- Clothing – C$200 to C$300
- Entertainment – C$200 – C$300
If you decide to get a car in Toronto, it doesn’t have to be expensive. There are many used cars on the market that are priced as low as C$8k.
Total expenses are about C$1,7. However, this number doesn’t include any costs for a child, e.g., child care. From that point, costs can skyrocket, depending on your choices for your child. You will have C$900 left after all necessary expenses to spend on your kid, savings, and leisure. It’s a very tight budget.
Despite all these numbers, you can make it work even with C$75K in Toronto. There are thousands of people who live on that money comfortably. In the end, it all depends on your choices and willingness to commute to sacrifice on high rents of Toronto’s downtown.
Keep your expenses moderate, live a decent lifestyle, and get your partner to work. It will double the income and significantly improve your family’s quality of life.
Is C$100k a good salary in Toronto?
A salary of C$100,000 is considered to be very good in Toronto. It’s much higher than the average salary and will put you in 5% of earners in Toronto. You will have about C$72,000 annually or C$6,000 monthly after tax.
It’s the average cost of living for a family of four. Thus, for a single, C$100,000 is an amazing salary to have in Toronto.
Most Canadians would consider it an excellent salary. Even in the expensive Toronto, it would be regarded as exceptionally good income, allowing a very decent lifestyle.
What can you afford with a C$100,000 salary in Toronto?
- C$1,000 – C$3,000 for rent in Toronto downtown. You can choose between a studio, one, two or three-bedroom apartment. Everything will suit your budget.
- C$600 for groceries and eating out
- C$200 – 500 for clothing
- C$500 for miscellaneous and leisure expenses
Your total expenses will come to C$2,400 or C$4,600 if you decide to live more extravagantly. Consequently, as a single with a salary of C$100,000, you can afford a lot in Toronto. Yet, couples and families will need to watch out for their expenses.
Consequently, you and your partner can live a comfortable but not extravagant lifestyle with that income. For a family with kids, it’s still a solid income but doesn’t leave you much room for saving and leisure.
Moreover, for couples with children, childcare and education are particularly important when budgeting in Toronto. You will need to invest a significant amount into decent education in Canada. Also, monthly mortgage payments must be considered.
The salary you need to live comfortably in Toronto
Toronto is the most expensive city to live in in Canada. Your monthly expenses will be significantly lower in other cities and provinces.
The salary needed to live in Toronto in 2022 heavily depends on your lifestyle. One is clear, you need at least C$2,000 per month to have a most basic life.
The average cost of living in Toronto is about C$3,990 for a single person per month. A family of four will need C$6,728 on average.
In fact, the cost of living in Toronto is more expensive than in 71% of cities in North America. But you will need to make 21% more to live in London vs Toronto.
Ultimately, you want to have at least C$2,500 to live a decent life in Toronto as a single. Moreover, Toronto’s livable wage is about $22.08 per hour, $2,867 per month, or $42,900 annually.
This amount won’t allow you to rent something beyond the studio if you want to be centrally located. You want to have at least C$3,000 in Toronto for better living conditions. This translates to an annual salary of at least C$46,000 before tax. Fortunately, many jobs provide that level of income.
According to various sources, having a monthly budget of C$2,901 is recommended for a single person living in Toronto. Here are the approximate expenses:
| Rent for a 1-bedroom apartment + Insurance + Average utilities cost | C$1695 +C$25 + C$190 |
| Groceries | C$300 |
| Health insurance | C$100 |
| Public transport | C$156 |
| Internet | C$70 |
| Phone – Unlimited mobile plan | C$80 |
| Entertainment | C$230 |
| Gym | C$55 |
| Total | C$2,901 |
With that said, the average Canadian household spends about C$7,400 per month. Where C$1,600 is going to housing, C$730 to food, C$1,300 to taxes, C$1,030 to private transportation, and C$188 to education.
Yes, Toronto is an expensive city to live in if you are considering moving to Canada. Here is a list of the most expensive cities to live in Canada looks like:
- Toronto
- Vancouver
- Victoria
- Hamilton-Burlington
- Calgary
Rent
Toronto has the most expensive real estate market in the country, where living in Toronto’s downtown is particularly costly. You can save a significant amount of cash by renting a place outside of central areas and commuting every day instead.
For example, downtown Toronto is especially expensive, with neighborhoods like Bay Street Corridor and Entertainment District costing an average of C$2,250 and C$2,100, respectively. But you can also find more affordable locations.
For example, rent in Saint James Town costs C$1,450, and in Long Branch is around C$1,495.
At the same time, the average rent of a one-bedroom apartment in all areas combined is C$1,800.
Don’t forget about the utilities. In 2019, Ontario’s cost of telecommunication services, including internet, phone, and TV, was C$168.
A three-bedroom apartment in Toronto will cost you about C$2,700 – 3,500 per month.
Food
Generally, Toronto has slightly higher prices on food and groceries than other cities. A typical shopping basket will cost you about C$95. Yet, there are some discounters, such as Aldi and Lidl, where you can save a significant amount of cash.
According to statistics, a single male living in Toronto spends around C$269 on groceries and other miscellaneous food expenses monthly, while a woman spends about C$218.
These bills don’t include the cost of dining out, which can be over C$10 for lunch and above C$25 for a cheap dinner or takeout. Thus, a single person could be spending around C$500 on eating expenses monthly.
Transportation
If you’re living on the outskirts of Toronto, expect to spend a significant amount of time and money on commuting. While public transport is still pretty affordable, driving your own car and using Uber and Lyft can be pricey.
With that said, on average, a single person in Toronto will spend C$176 on transportation every month.
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