Cost of Living Index shows how expensive is it to live in Toronto, Canada in 2020


MNI Media / Lowest Rates

Release Date

Wednesday, February 5, 2020


Today, financial rate comparison site released its 2020 Cost of Living Index, an annual report produced by the company which outlines how much it costs to live in Toronto. 

The index calculates transportation and housing spending for a number of different living circumstances. These include homeowners who commute versus homeowners who drive, as well as renters who drive versus those who commute. It also factors in spending on food, phone and internet, entertainment, health and fitness. The estimated costs in the index are tailored to employed people without dependents.  

"It's common knowledge that Toronto is a very expensive city to live in," says Justin Thouin, Co-Founder and CEO of "With this index, we crunched the numbers to actually determine what kind of salary the average individual in a number of different circumstances needs to earn to afford to live in Toronto." 

The results of the report determined that while living in Toronto:

  • Renters who take public transit will spend $3,541.24/month, or $42,494.88 annually 

  • Renters who drive will spend $3,840.23/month, or $46,082.76 annually 

  • Homeowners who take public transit will spend $5,415.73/month, or $64,988.76 annually 

  • Homeowners who drive will spend $5,714.72/month, or $68,576.64 annually

Based on the current tax rates in Canada and Ontario, in order to get by in Toronto:

  • Renters who take public transit will need to earn $55,500 before tax ($42,584 after tax) 

  • Renters who drive will need to earn $61,000 before tax ($46,376 after tax) 

  • Homeowners who take public transit will need to earn $88,000 before tax ($65,056 after tax) 

  • Homeowners who drive will need to earn $94,000 before tax ($68,971 after tax)

These figures are meant to serve as guideposts. It's possible to live in Toronto on less than this, especially with a partner or roommates. It's also important to keep in mind that there are other costs not accounted for in this index which could make living in Toronto more expensive. 

"This cost breakdown doesn't include things like debt repayments, the cost of pet ownership, clothes, haircuts or other one-time fees associated with moving to a new city," says Thouin. "It's clear that the high cost of living in this city should be of serious consideration to any person thinking about moving to Toronto." 

Some highlights from the report show that the average Torontonian can expect to budget the following amounts for key expenditures:

Homeowner housing costs average $4,223.56/month
Renter housing costs average $2,349.07/month
Public transit costs average $258.55/month 
Driver costs average $557.54/month
Food costs average $533.95/month
Cell Phone and Internet costs average $155.96/month
Entertainment costs average $178.96/month 
Health and fitness costs average $64.75/month

Homeowner housing costs: $4,223.56/month

The average selling price for homes in Toronto in 2019 was $883,520. Assuming a down payment of 15%, and including mortgage insurance, that would equal a total mortgage of $772,020. With a 25-year amortization period and a 5-year fixed rate term at an interest rate of 2.94%, mortgage payments for such a home in Toronto would cost $3,630. Furthermore, for a four-storey detached home in Toronto's Bloorcourt Village, home insurance would cost $140.92. For this Bloorcourt home, property tax would cost around $452.64 monthly. In total, monthly housing for the average Toronto homeowner costs $4,223.56.

Renter housing costs: 2019: $2,349.07/month

The average cost of a one-bedroom rental unit in Toronto was $2,314 per month as of November 2019. Most landlords now require renters to purchase tenant insurance, and insurance for a one-bedroom unit in Toronto's Bloorcourt neighbourhood would cost $35.07 per month. In total, the monthly housing costs for Toronto renters in 2020, including tenant insurance, comes to $2,349.07—up $269.32 from 2019.

Public Transit costs: $258.55/month 

Compared to 2019 fare options, Toronto Transit Commission (TTC) prices are higher across the board in 2020, with a 12-month adult Presto Pass costing $138.55 per month. The raised prices for fares can be attributed to the full implementation of the Presto system across the TTC. For those who rely on ridesharing services, there are many options to choose from in Toronto. Whether using taxis, Uber or Lyft, this method of transportation is extremely popular in the city—according to Statistics Canada, Torontonians aged 18 and over spent a collective $241 million on ridesharing services in 2016. A Torontonian who buys a 12-month adult Presto Pass, in addition to taking four $30 Uber trips per month, would spend a total of $258.55 a month in transportation costs. 

Driver costs: $557.54/month

The top-selling car in Toronto in 2019 was the Honda Civic Sedan. A 2020 four-door Honda Civic Sedan EX costs around $25,290, and on a seven-year 0%  finance plan with no money down, that would mean monthly payments of $340.21. Since auto insurance is mandatory in Canada, used its auto insurance quoter to run a test quote on a 30-year-old male with a clean driving record and G license, living in downtown Toronto, looking for comprehensive and collision coverage. The lowest rate he could get using the quoter with a Honda Civic EX was $217.33 per month. In addition to the cost of the car itself, Toronto drivers must also consider the following costs not included in the monthly cost for drivers in the index: license sticker renewal, parking permits, maintenance and gas. 

Food costs: $533.95/month

People today are increasingly relying on food delivery apps such as Skip the Dishes and Uber Eats, which has caused grocery costs to decrease for people in Toronto. The average Torontonian spends $251.95 a month on groceries. In addition to paying for groceries, estimates that Torontonians spend approximately $282.00 monthly on dining out and ordering takeout, for a combined monthly food total of $533.95. 

Cell Phone and Internet Costs: $155.96/month
Entertainment costs: $178.96/month 
Health and fitness costs: $64.75/month

The most common cell phone plan currently available from Bell, Rogers and Telus is 10GB of data at maximum speed. Each major provider charges $75 per month for this type of plan. Excluding one-time installation fees, calculated the average monthly cost of home internet to be $80.96. Overall, Torontonians are spending an average of $155.96 per month on cell phones and home internet. 

To determine how much people in Toronto are spending on entertainment, combined the monthly prices of three popular streaming services, the price of a popular music subscription, the estimated monthly cost of miscellaneous outings, and the costs of going out for drinks or entertaining at home or having drinks at a friend's house. The combined monthly cost of such entertainment adds up to $178.96 per month. 

Health and fitness costs in Toronto vary greatly depending on the discipline or program. Gym memberships range from $15 to $69.98 per month. For a year-long commitment to one of the city's more popular yoga or pilates studios, Torontonians can expect to pay $115 per month. On average, fitness memberships in Toronto cost $64.75. 

About is an online rate comparison site for insurance, mortgages, loans and credit card rates in Canada. The free, independent service connects consumers directly with financial institutions and providers from all over North America to offer Canadians a comprehensive list of rates.'s mission is to help Canadians become more financially literate, with the near-term goal of saving them $1 billion in interest and fees.

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