For many Canadians, the cost of living is a crucial factor in deciding where to settle. With rising home prices and increasing expenses in major cities, more individuals and families are considering moving to more affordable regions. In this post, we’ll break down the differences in home prices, taxes, and daily expenses between Alberta and Ontario, helping you determine how much more you can afford in Canada’s economic powerhouses.
Housing Prices: Alberta vs. Ontario
Ontario – Sky-High Housing Costs
Ontario, home to Canada’s largest city, Toronto, has some of the country’s most expensive real estate. As of early 2024, the average home price in Toronto hovers around $1.1 million, while in mid-sized cities like Ottawa, prices sit around $650,000. Even smaller cities such as London or Kitchener see home prices averaging $600,000-$750,000.
Alberta – Affordable Real Estate
Alberta offers a stark contrast. In Calgary, the average home price is $570,000, and in Edmonton, it’s even lower at $430,000. This means that, compared to Toronto, you could own a home in Calgary or Edmonton for nearly half the price while enjoying a high quality of life.
🏡 Key Takeaway: If you’re looking to maximize your housing budget, Alberta provides significantly more affordability in both major cities and surrounding areas.
Taxes: Alberta’s Big Advantage
Provincial Income Tax Rates
One of Alberta’s biggest advantages is its lower tax burden. Alberta has a flat provincial income tax rate that starts at 10% for earnings up to $142,292, while Ontario’s provincial tax rates start at 5.05% but rise sharply to 13.16% on incomes over $95,906.
Sales Tax: Saving on Everyday Purchases
Ontario: HST (Harmonized Sales Tax) = 13%
Alberta: No Provincial Sales Tax (PST) – Only 5% GST
💰 Key Takeaway: In Alberta, not only do you pay lower income taxes, but you also save 8% on every taxable purchase, from groceries to vehicles.
Daily Expenses: How Far Does Your Dollar Go?
Utilities and Transportation
Gasoline Prices: Alberta, a province rich in oil, generally has lower gas prices, with a litre costing $1.25-$1.40, compared to Ontario’s $1.50-$1.70.
Utilities: Alberta’s electricity prices fluctuate, but in many cases, they remain comparable to Ontario’s. However, home heating costs (natural gas) are often lower in Alberta due to local production.
Transit Costs: Public transportation in Toronto (TTC) is more expensive than Calgary’s CTrain and bus system, which also offers a free downtown transit zone.
Food and Groceries
While grocery costs are generally similar, some imported goods tend to be cheaper in Ontario due to proximity to major ports. However, restaurant and entertainment costs are lower in Alberta because of reduced tax rates and lower commercial lease costs.
🛒 Key Takeaway: Alberta offers lower fuel and tax costs, but grocery prices are comparable.
Job Market & Wages: Where Do You Earn More?
Alberta: The province has a strong energy sector, booming tech industries, and low corporate taxes, making it a great place for high salaries in engineering, IT, healthcare, and trades.
Ontario: Home to Canada's largest job market, but higher competition and a higher cost of living eat into wages.
💼 Key Takeaway: Salaries in Alberta remain competitive while benefiting from lower taxes and living costs.
Final Verdict: How Much More Can You Afford in Alberta?
If you moved from Toronto to Calgary, you could: ✅ Buy a home for half the price ✅ Save thousands per year in taxes ✅ Spend less on gas and everyday expenses ✅ Enjoy a high-income job market with less financial strain
For those seeking more affordability, financial freedom, and a strong economy, Alberta stands out as one of the best places to live in Canada. If you’re considering a move, Calgary offers an unbeatable balance of affordability, career growth, and lifestyle benefits.
Looking for More Insights?
Thinking about investing or moving to Calgary? Contact us at Why Buy Calgary to explore real estate opportunities that make financial sense.