Cost of Living in Canada 2026: Rent, Wages, Prices and Tax
What Canada costs depends mostly on the city you rent in: the average two-bedroom apartment in Vancouver costs about 76% more than one in Montréal. This guide sets the official numbers side by side, rents, wages, prices and tax, from the Canada Mortgage and Housing Corporation (CMHC), Statistics Canada and the Canada Revenue Agency, as published on 13 October 2026.
Quick answer
The average two-bedroom purpose-built rental apartment in Canada's major centres cost CAD 1,550 a month in CMHC's 2025 Rental Market Report: CAD 2,363 in Vancouver, CAD 2,034 in the Greater Toronto Area, CAD 1,914 in Calgary and CAD 1,346 in Montréal. Rented condominium apartments cost more, CAD 2,305 on average. Consumer prices rose 3.0% in the 12 months to August 2026. Average hourly wages were CAD 37.64 in September 2026, and the unemployment rate was 6.5%. Federal income tax starts at 14% on the first CAD 58,523, with provincial tax on top. The federal minimum wage is CAD 18.15 an hour.
Rent: the cost that decides everything else
CMHC surveys the rental market every year. Its 2025 Rental Market Report, published on 11 December 2025, gives the average rent for a two-bedroom unit in purpose-built rental buildings, meaning privately initiated rental apartment buildings with three or more units.
| Market | Average 2-bedroom rent (CAD a month) | Change in a year | Vacancy rate |
|---|---|---|---|
| Canada, major centres | 1,550 | Up 5.1% | 3.1% |
| Vancouver | 2,363 | Up 2.2% | 3.7% |
| Victoria | 2,120 | Up 5.1% | 3.3% |
| Greater Toronto Area | 2,034 | Up 3.5% | 3.0% |
| Ottawa | 1,926 | Up 3.4% | 3.0% |
| Calgary | 1,914 | Not statistically significant | 5.0% |
| Waterloo | 1,832 | Up 3.3% | 4.1% |
| Halifax | 1,826 | Up 6.7% | 2.7% |
| Hamilton | 1,656 | Up 1.6% | 3.6% |
| Edmonton | 1,603 | Up 3.5% | 3.8% |
| Winnipeg | 1,571 | Up 1.9% | 2.8% |
| Saskatoon | 1,548 | Up 5.2% | 3.3% |
| Regina | 1,473 | Up 4.2% | 2.7% |
| Montréal | 1,346 | Up 7.2% | 2.9% |
| Quebec City | 1,277 | Up 6.1% | 2.4% |
Condominium rentals cost more
Many newcomers rent a condominium apartment from an individual owner instead of a unit in a purpose-built building. CMHC's condominium survey puts the average two-bedroom condo rent at CAD 2,305 across the 17 markets it covers, CAD 2,904 in the Greater Toronto Area and CAD 2,900 in Vancouver.
The market has turned in renters' favour
The vacancy rate for purpose-built apartments rose to 3.1% from 2.2% in 2024, above its 10-year average. In its mid-year update of 9 June 2026, CMHC reported that asking rents, the rents advertised for available units, were continuing to decline in Toronto, Vancouver and Calgary, and had been declining in Ottawa since the second quarter of 2025. Landlords were increasingly offering incentives such as free or discounted parking, move-in credits and, at the top end, several months of free rent. CMHC's summary is that renters now have more choice and some negotiating room. The average rent actually paid by all tenants was still rising.
Prices and inflation
| Measure, 12 months to August 2026 | Change |
|---|---|
| Consumer Price Index, all items | 3.0% |
| Consumer Price Index excluding gasoline | 2.4% |
| Food purchased from stores | 2.8% |
| Shelter | 1.5% |
| Rent | 2.8% |
| Transportation | 7.5% |
| Gasoline | 22.8% |
Statistics Canada's figures show where the pressure is. Gasoline, up 22.8% in a year, is why the headline rate sits above the 2.4% rate excluding gasoline, and it shows in transportation costs too. Grocery price growth has slowed below overall inflation for the first time since July 2024, although grocery prices are still 29.0% higher than in August 2021. Among the provinces, the Atlantic provinces had the highest inflation in August.
What people earn
| Measure | Figure |
|---|---|
| Average hourly wages among employees, September 2026 | CAD 37.64, up 2.3% in a year |
| Unemployment rate, Canada | 6.5% |
| Unemployment rate, Ontario | 7.0% |
| Unemployment rate, British Columbia | 6.4% |
| Unemployment rate, Quebec | 6.0% |
| Youth unemployment rate | 13.0% |
| Federal minimum wage, from 1 April 2026 | CAD 18.15 an hour |
Wages rose 2.3% in the year to September while prices rose 3.0% in the year to August, so on these two figures average pay has been rising more slowly than prices. The federal minimum wage applies to federally regulated private sectors and is adjusted every 1 April in line with inflation. Each province and territory sets its own minimum wage, and where that is higher, federally regulated employers must pay the higher of the two.
Income tax
| Portion of taxable income (2026) | Federal rate |
|---|---|
| Up to CAD 58,523 | 14% |
| CAD 58,523.01 to 117,045 | 20.5% |
| CAD 117,045.01 to 181,440 | 26% |
| CAD 181,440.01 to 258,482 | 29% |
| Over CAD 258,482 | 33% |
Each rate applies only to the income in its bracket, not to all your income. Provincial or territorial income tax applies in addition, at rates set by the province or territory where you live on 31 December. The thresholds rise each year with inflation.
Two official benchmarks for a year's living costs
Canada's immigration department publishes two figures that are useful as a floor when you budget.
- For students: a single study permit applicant outside Quebec who applies on or after 1 September 2026 must show CAD 23,448 for a year, excluding tuition and transportation, and CAD 29,192 for two people.
- For skilled immigrants: a single Express Entry applicant who needs proof of funds must show CAD 15,263, and a family of four CAD 28,362.
Neither is an estimate of what you will spend; they are the minimum the government requires you to have. Compare them with twelve months of rent in the city you are choosing.
How to estimate your own budget
- Pick the city first. Use the CMHC table for the rent, and expect to pay more for a condominium apartment.
- Negotiate. With vacancies up and asking rents falling in the largest markets, ask about incentives before you sign.
- Work out take-home pay from the federal brackets plus your province's rates.
- Budget transport carefully. Transportation prices rose 7.5% in a year, far faster than shelter or groceries.
- Check your province's minimum wage and health coverage rules, which are set provincially.
For the one-off costs of arriving, see our guide to the cost of moving to Canada.
Frequently asked questions
What is the average rent in Canada in 2026?
CMHC's latest annual report gives CAD 1,550 a month for a two-bedroom purpose-built rental apartment across major centres, up 5.1% in a year, and CAD 2,305 for a two-bedroom rented condominium apartment.
Which Canadian city has the highest rent?
Among the major markets in CMHC's report, Vancouver, at CAD 2,363 a month for a two-bedroom purpose-built apartment, followed by Victoria at CAD 2,120 and the Greater Toronto Area at CAD 2,034.
Which major Canadian city is cheapest to rent in?
Of the markets listed above, Quebec City at CAD 1,277 a month and Montréal at CAD 1,346 for a two-bedroom purpose-built apartment.
Are rents falling in Canada?
Asking rents for available units were declining in Toronto, Vancouver, Calgary and Ottawa, according to CMHC's June 2026 update, and landlords were offering more incentives. The average rent paid by all tenants was still rising.
What is the inflation rate in Canada?
The Consumer Price Index rose 3.0% in the 12 months to August 2026, or 2.4% excluding gasoline. Statistics Canada publishes the September figure on 19 October 2026.
What is the average wage in Canada?
Average hourly wages among employees were CAD 37.64 in September 2026, up 2.3% from a year earlier, according to Statistics Canada's Labour Force Survey.
What is the minimum wage in Canada?
The federal minimum wage is CAD 18.15 an hour from 1 April 2026, for federally regulated private sectors. Provinces and territories set their own rates for everyone else.
How much income tax do you pay in Canada?
Federal tax for 2026 is 14% on the first CAD 58,523 of taxable income, rising in steps to 33% above CAD 258,482. Provincial or territorial income tax is charged in addition.
Sources (official only)
- CMHC — 2025 Rental Market Report
- CMHC — 2026 Mid-Year Rental Market Update
- Statistics Canada — Consumer Price Index, August 2026
- Statistics Canada — Labour Force Survey, September 2026
- Canada Revenue Agency — Tax rates and income brackets, 2026
- Employment and Social Development Canada — Federal minimum wage
- IRCC — Proof of funds
All figures verified against the official pages above on 13 October 2026. Statistics Canada updates prices and wages monthly, so check the latest release. Information, not financial advice.