Life in Canada affects our wallets in ways that Americans may not expect. A lot of our everyday stuff costs noticeably more & these costs get quite expensive for us.
Here are nine expenses that Canadians pay more for than Americans, as well as some ways that people try to save. Which of these costs do you think is the worst?
Groceries
Higher grocery bills aren’t your imagination. Data shows that regular items like milk & bread are usually 10-20% more expensive in Canada than in many American stores.
It’s mostly due to us having shorter growing seasons and more expensive transport. A lack of serious competition for grocery giants doesn’t help either. It unfortunately means that people have to sometimes rely on frozen vegetables or shopping across the border when they live close enough, just to fill their fridges.
Housing
The gap in home prices across the border isn’t huge. But the proportion of income that Canadians spend on their homes versus Americans is quite sizeable. Canadians spent approximately 46% of their income on their homes, but it’s only around 34.2% for Americans.
People who live in more expensive cities like Toronto or Vancouver usually spend an even bigger portion. They’ll spend around two-thirds of their income on their homes & may have to share their home with their family to cope.
Utilities
It’s natural that heating is more expensive in a place where winter stays around for longer. Studies show that Canadians spend around 10% of their budget on electricity & home energy.
Per-kWh rates in Canada are similar to American prices. But our colder seasons usually last for more time, so we have to pay more in the long run. Relying on sealing drafts or off-peak rates can help to reduce huge energy bill spikes.
Telecommunications plans
Even our phone lines are more expensive in Canada. Mid-tier Canadian phone data & home internet packages are often more expensive than similar American plans. That’s the case even though speeds are relatively the same.
It’s normal for many Canadian households to try bouncing between bundles & promotional offers to find a better deal. The savings are usually minimal. But for some families, they’re worth trying.
Car ownership totals
It’s no secret that owning a car is expensive since you have to factor in insurance & fuel, as well as maintenance, with the car’s actual cost. Canadians pay roughly C$13,000 (US$9,400) on their cars each year & Americans pay around C$12,400 (US$8,960) each year.
One study also found that Canadians pay approximately 20% more than Americans for new vehicles. That’s about $5000 to $6000. You could try reducing your bill by car sharing or downsizing, perhaps even carpooling.
Childcare bills
Federal-provincial subsidies have helped to reduce the costs of childcare in Canada. But before they kicked in, full-time daycare in major cities was approximately C$1,400 to C$2,100 per month. The average is closer to US$1,000 in America.
The $10-a-day goal has begun to make up some of the shortfall. But many Canadian families are still facing long waitlists and piecemeal plans.
Public transit passes
The monthly cost of a transit pass in Canada is approximately C$103 (US$75). But in America, it’s around C$90 (US$65). That may not seem like a huge difference, yet it can get quite expensive over the course of a year & Canadians pay roughly C$200 (US$144) more annually.
There are some ways to pay less. Employer programs and student discounts are some of the best ways to pay less for transit, while switching to biking or walking during the warmer months doesn’t hurt, either.
Taxes and fees
GST and HST taxes are quite expensive in Canada. Combining them with provincial sales taxes means that you could be paying an overall tax rate of 15% in Canada, depending on where you live. The majority of Americans pay 10%, and some states have no tax at all.
Avoiding these costs is relatively impossible. But you could try saving your bigger purchases for rebate days, or perhaps sticking to second-hand purchases to soften the blow of taxes.
Entertainment and leisure outings
Having fun has a price. Movie tickets across Canada are a little cheaper than in America, averaging around C$16 (US$11.50) to America’s C$20 (US$15). Yet it’s the extras like concessions & sports events that cost more than in America.
Sports and events tickets in major cities are pricier than they are down south. It’s one of the main reasons most Canadians try to use reward apps or follow midweek show deals for lower prices.
Sources: Please see here for a complete listing of all sources that were consulted in the preparation of this article.