Cost Of Living in USA VS Canada - Which Is Better in 2025?

If you're getting ready to study abroad, your budget is more than just tuition—it's also rent, groceries, transportation, and health insurance. So, which country actually provides the most value for students?

Whether you're looking to work in Toronto, a tech job in Austin, or just wondering if your pay stretches farther north, this guide thoroughly compares the cost of living US vs Canada.

Let's get into which nation gets you more bang for your buck—and where those pesky added expenses could be lurking.

To get started, let's take a particular example of two major cities from both countries.

Cost of Living Comparison: Toronto vs New York, NY

For example, when you compare Toronto and New York, NY, costs of living, it's fairly evident that New York is significantly more expensive. Here are the two cities being compared:

Cost of Living: New York vs Toronto

• Living Costs (Excluding Rent):
  Everyday expenses in New York are about 53% higher than in Toronto. From transportation to utilities and basic services, the difference adds up quickly, especially for students and young professionals trying to manage a budget.
• Overall Cost of Living (Including Rent):
  Once rent is factored in, the gap widens dramatically. New York is nearly 80% more expensive overall than Toronto. Unsurprisingly, rent is the biggest contributor to this difference.
• Rent Prices:
  Planning to rent an apartment in New York? Prepare for a shock: rent is 131.5% more expensive than in Toronto. That’s more than double, especially steep if you want to live in central areas of the city.
• Restaurant Prices:
  Love dining out? That’ll cost you. Restaurants in New York charge 54.5% more on average compared to those in Toronto. Frequent foodies might need to curb their habits or budget accordingly.
• Grocery Prices:
  Even grocery bills pack a punch in New York, with prices about 38.5% higher than Toronto’s. Over time, that difference can make a big dent in your monthly expenses.
• Local Purchasing Power:
  Here’s the twist—despite higher wages, New Yorkers actually have 6.5% less purchasing power than Torontonians. In other words, your money doesn’t stretch quite as far in NYC, even if you earn more.

So, how much more do you need in New York to live the same way?

• To maintain the same standard of living in New York, NY, you’d need around $11,550.30 USD a month.
  
  
• In Toronto, you’d only need about $6,430.00 USD (which is roughly $8,900.00 CAD).
  

When you compare New York to Toronto, it’s clear that New York is much more expensive, especially when you factor in rent and daily living expenses. So, if affordability is a top priority, Toronto might be the better choice for you.

Transportation Costs Comparison: US vs Canada

When it comes to getting around, transportation costs in the US vs Canada can vary quite a bit. It depends on where you live and how you commute, especially if you’re a student on a budget.

Transport in the United States:

• Public transportation is great in cities like New York, San Francisco, and Chicago, where subways, buses, and trains are widely available.
  
  
• In smaller cities and suburban areas, you may need a car, which adds extra costs—insurance, gas, maintenance, and parking can quickly increase monthly expenses.
  
  
• Average transit fare: $2–$3 per ride.
  
  
• Monthly passes are available, and student discounts often apply.
  

Transport in Canada:

• Major Canadian cities like Toronto, Vancouver, and Montreal have reliable and efficient public transportation systems.
  
  
• Transit fare is usually between $3–$4 per ride, with discounted passes available for students and frequent commuters.
  
  
• In smaller towns or rural areas, public transit might be less frequent, but still functional for daily travel needs.
  
  
• Owning a car in Canada is less necessary in urban centers, helping students save more.
  

Key Takeaway for Students: Transportation Costs US vs Canada

If you’re a student trying to manage your budget, transportation costs in the US vs Canada can really impact your monthly spending. Both countries offer reliable and affordable public transit in big cities, which is a plus if you're living in urban areas.

But here's the catch—in the U.S., many campuses and student housing options are located in suburbs or smaller towns, where public transportation might not be as accessible. That means you might need to own a car, which adds up fast with fuel, insurance, and maintenance costs.

In contrast, most top Canadian universities are in cities like Toronto, Vancouver, and Montreal, where public transit is not only student-friendly but also well-connected. You’ll likely be able to rely on discounted student passes to get around without needing a car.

For students planning to study abroad in Canada, this could be a big plus—lower commuting costs mean more budget flexibility for things like housing, food, and leisure.

Looking for tips on [how to save on transportation as a student in Canada]? Or curious about [the most student-friendly cities in the US]? We’ve got you covered.

Healthcare Costs: Canada vs US – What Students Need to Know

Wondering how healthcare costs US vs Canada stack up? Here’s a quick breakdown that covers everything students and expats should know:

1. Public vs Private: Two Very Different Systems

• Canada has public healthcare, funded by taxes—basic medical care is free for citizens and often discounted or covered for students through provincial or school plans.
  
  
• The US runs mostly on private insurance—without coverage, even a simple ER visit can cost thousands.
  

2. Average Insurance Costs

• Canada: Student health insurance is about $75–$120 CAD/month, depending on the province.
  
  
• US: Expect to pay $200–$600 USD/month for university or private plans.
  

3. Treatment & Prescription Prices

• Canada keeps medication costs low thanks to government price control.
  
  
• In the US, even with insurance, prescriptions and co-pays can be pricey.
  
  
• Without insurance in the US? You’ll pay a lot more out-of-pocket.
  

4. How It Affects Students & Expats?

• In Canada, you're less likely to get hit with surprise bills.
  
  
• In the US, if you don’t have solid insurance, the cost of healthcare can seriously impact your budget.
  

Quick Takeaway: If you’re comparing the cost of healthcare in the US and Canada, Canada wins for affordability and peace of mind. The public healthcare in Canada vs the private system in the US difference is huge, especially when you're managing tuition, rent, and daily expenses.

Taxes and Take-Home Pay: Tax Rates US vs Canada

One of the biggest differences in the cost of living comparison US vs Canada comes down to what’s taken out of your paycheck. Whether you’re planning to study abroad, accept a job offer, or move permanently, understanding the tax rates US vs Canada is crucial to estimating your real take-home pay.

In both countries, your gross salary may look impressive, but taxes can significantly affect how much you actually get to keep each month. From income taxes (federal and provincial/state) to sales tax, property tax, and mandatory deductions like healthcare contributions, it all adds up. These hidden costs can especially impact students, recent graduates, and international expats trying to budget their lives in a new country.

 Income Tax: Federal & State (or Provincial)

• Canada: Federal rates start at 15%, and each province adds more (Ontario adds ~5–13%).
  
  
• US: Federal tax rates start at 10%, and some states (like Texas or Florida) have no state income tax—others, like California or New York, add up to 13.3% more.
  

Winner? Canada for simplicity. The US can be cheaper if you’re in a low- or no-tax state.

2. Sales Tax & Property Tax

• Canada: Sales tax ranges from 5% (GST) to 15%, depending on the province. Property taxes are moderate and vary by city.
  
  
• US: Sales tax varies (0% to 10%), and property taxes can be much higher, especially in states like New Jersey or Illinois.
  

Heads up: In both countries, students renting don’t usually pay property tax directly, but it’s baked into rent.

3. Common Deductions

• Canada: Deductions for tuition, student loan interest, and even textbook amounts.
  
  
• US: You can deduct tuition and some education-related expenses too, but the forms are trickier.
  

4. What It All Means for Your Net Income

Your take-home pay—what you actually get after taxes—depends on more than just salary.

• In Canada, taxes are generally higher, but services like healthcare are included.
  
  
• In the US, you might keep more of your paycheck,  but may have to spend more on health insurance and out-of-pocket costs.

Student Visa & Work Permit Differences: Canada vs USA

If you're weighing your options for studying abroad, how each country handles student visas and post-study work permits can be a game-changer. Here's a head-to-head breakdown of how Canada and the USA compare when it comes to letting international students stay and work after graduation.

1. Post-Study Work Permit Type

• Canada: Post-Graduation Work Permit (PGWP)
  
  
• USA: Optional Practical Training (OPT)
  

2. Duration of Work Authorization

• Canada: Up to 3 years, depending on the length of your study program
  
  
• USA: 12 months standard, with a 24-month STEM extension (total of 3 years for STEM grads only)
  

3. Eligibility Criteria

• Canada: Must graduate from a Designated Learning Institution (DLI) and have studied full-time for at least 8 months
  
  
• USA: Must hold an F-1 visa and apply for OPT in a field directly related to your major
  

4. Work Flexibility

• Canada: No employer restrictions — you can work for any company, in any role
  
  
• USA: Must work in a job related to your field of study; self-employment and freelance work have strict limitations
  

5. Path to Permanent Residency

• Canada: PGWP holders can transition smoothly into immigration streams like Express Entry or Provincial Nominee Programs (PNPs)
  
  
• USA: After OPT, students need an employer-sponsored H-1B visa, which is subject to an annual lottery system

Final Verdict?

If you're looking for long-term stability, easier immigration routes, and fewer restrictions, Canada clearly edges out the USA. But if you're entering a STEM field and aiming for top U.S. companies, the USA can still be a strong contender—just expect more hoops to jump through.

Tuition Fees: US vs Canada

When it comes to affordability, Canada has a clear edge over the United States for international students. While both countries offer world-class education, tuition fees in the U.S. are significantly higher, especially for undergraduate degrees at private institutions.

Let’s break down how tuition costs compare on average

That said, students can opt for various scholarships for international students in the USA and Canada. Each of these scholarships includes various factors of the fees and might also offer a full-ride.

Cost of Living US vs Canada: Permanent Residency

When it comes to permanent residency in Canada or the USA, students looking to settle in either country will find distinct paths shaped by different timelines and complexities. In the US, the process often involves navigating a lengthy wait for a Green Card, with limited options for international graduates and a reliance on employer sponsorship. 

Conversely, Canada’s approach is more student-friendly, with faster pathways such as the Canadian Experience Class, which allows graduates to apply for permanent residency after just one year of skilled work. While both countries offer opportunities, Canada’s more straightforward and quicker routes make it a compelling option for international students seeking long-term stability. 

Ultimately, the choice between the two will depend on your priorities—whether you value speed and predictability (Canada) or are willing to navigate a more complex, but potentially rewarding, system (US).

Generally, the cost of living in the US tends to be higher than in Canada, although this can vary significantly depending on the specific location and lifestyle. While the U.S. might offer higher salaries and purchasing power for some, the overall cost of living in Canada can be more affordable.