Cost of living in Toronto: how it compares with London and the rest of the UK

Toronto is cheaper than London for rent, dearer than most of the UK, and the little extras (sales tax, tips, phone bills) add up faster than you'd think.

The short version

• Rent: an unfurnished one-bedroom averaged about CAD 1,969 a month (about £1,044) across the City of Toronto in one portal's October 2026 report, against a London average of £2,338 for all private rents and a UK average of £1,406 [1][2].
• Transport: a TTC fare is CAD 3.30 (about £1.75), and since 31 August 2026 your fares stop after 47 in a calendar month, a cap of about CAD 155 (about £82) [3].
• Healthcare: OHIP covers doctors and hospitals for eligible residents, with no waiting period [4]. You pay for it partly through tax.
• Shopping and eating out: shelf prices don't include the 13% sales tax, and restaurants expect a 15 to 20% tip.
• Tax: income tax is in two layers, federal and Ontario, and broadly similar to the UK for middle earners [5].

Pound conversions use the Bank of England spot rate of 5 November 2026 (£1 = CAD 1.8858). Toronto figures are converted; London and UK figures are the published sterling amounts.

Rent: Toronto against London and the UK

Rent is the biggest line in any Toronto budget, and the good news for 2026 arrivals is that it's been falling.

Sources: liv.rent's October 2026 Ontario rent report [1]; ONS [2].

These measure different things. The Toronto figures are average asking rents on listings, and ONS measures what tenants actually pay across all sizes of home, from bedsits to family houses. Even so, the gap with London is striking: a downtown Toronto one-bedroom costs less than half the London average, and a city-wide one-bedroom is below the UK average. Toronto's one-bedroom average was down 3.7% on a year earlier [1], while ONS put rent inflation at 3.8% for the UK and 3.5% for London in the year to September 2026 [2].

Two warnings. First, newer condo flats (first lived in after 15 November 2018) have no cap on rent rises. Second, Toronto rents are usually quoted without "hydro" (electricity), and sometimes without heat, so ask what's included. Our guide to renting in Toronto covers deposits, rent control and scams.

Bills you'll notice

• Heating and electricity. Toronto winters regularly drop well below freezing, and older houses can be draughty. In a modern condo, heat is often included; in a house, gas and hydro bills peak in January and February. See winter in Toronto for ways to keep them down.
• Mobile phones. Canadian mobile plans are notoriously dearer than UK SIM-only deals. Shop around between the big networks and their budget brands.
• Internet. Fast and reliable, but rarely cheap.
• Tenant insurance. Often required by the lease, and cheap compared with what it covers.
• Council tax. There isn't any for tenants. Property tax is paid by owners and built into your rent.

Getting around

The TTC runs Toronto's subway, streetcars and buses. You can pay with a PRESTO card or simply tap a contactless debit or credit card, much like the Tube [3].

Source: TTC [3].

A fare includes free transfers for two hours from your first tap, as long as you're not paying cash [3]. Monthly passes mostly ended on 31 August 2026, when the monthly fare cap came in: once you've paid 47 eligible fares in a calendar month, the rest are free [3]. That's a big saving on what a monthly Zone 1–2 commute costs in London, though TTC fares only cover the city itself. GO Transit trains to the suburbs and the UP Express to Pearson Airport are charged separately.

A car is optional downtown and close to essential in much of the suburbs. Insurance in Ontario is expensive, especially if you can't prove a Canadian driving record. Our guide to driving in Canada with a UK licence covers licence exchange.

The weekly shop

We couldn't find an official Toronto-versus-UK basket comparison, so here it is in words rather than invented numbers.

• Supermarkets: Loblaws (and its discount sister No Frills), Metro, Sobeys and FreshCo dominate, with Costco for bulk buys. Most Brits find a typical trolley costs more than at Tesco or Sainsbury's, and there's no real equivalent to Aldi's prices.
• Dearer: dairy and cheese in particular, plus anything imported. PG Tips, Marmite, Cadbury's and a decent mature cheddar all come at a premium; our guide to British food, shops and pubs in Toronto says where to find them.
• Better value: maple syrup, obviously, and seasonal Ontario fruit and veg in summer and autumn.
• Alcohol: sold in the provincially run LCBO, The Beer Store and, more recently, many supermarkets and corner shops. Prices are higher than a UK supermarket, partly because of minimum prices.

The trap for new arrivals is sales tax. Ontario's 13% HST is added at the till on most goods and services, so a CAD 10 item on the shelf is CAD 11.30 at checkout. Basic groceries are mostly exempt, but snacks, toiletries and household goods aren't.

Eating out and drinking

Toronto has one of the best food scenes in North America, from Kensington Market to the Chinatowns and the Danforth's Greek tavernas. But two things make the bill bigger than the menu suggests:

1. Sales tax: 13% on top of menu prices.
2. Tips: 15 to 20% is expected at sit-down restaurants and bars, often calculated on the after-tax total on the card machine.

Put those together and a meal costs around a third more than the menu prices add up to. Many Brits find eating out feels closer to London prices than to the rest of the UK. A pint in a downtown bar isn't cheap either, and check the glass size before you get excited about the price.

Healthcare

Healthcare is where Toronto can feel familiar. Ontario's public scheme, OHIP, covers doctors' visits and hospital treatment for eligible residents, free at the point of use, much like the NHS [4].

• Who qualifies: Canadian citizens and permanent residents, and some temporary residents, such as people on a work permit working full time for an Ontario employer for at least six months. You must also be physically in Ontario for 153 days in any 12-month period [4].
• When it starts: there's no longer a waiting period [4].
• What it doesn't cover: prescriptions for most working-age adults, dental care, eye tests for most adults, and physiotherapy outside hospital. Many employers provide a benefits plan for these; if yours doesn't, budget for it.

Canada has no reciprocal healthcare agreement with the UK [6], so you need private insurance until OHIP applies. See OHIP: getting Ontario health cover.

Pay and tax

Salaries in Toronto are usually higher in pounds than in most of the UK, but lower than in London for many professional jobs, especially in finance and law. The tax system takes a similar bite for middle earners:

Canada's tax year is the calendar year. You'll also pay Canada Pension Plan and Employment Insurance contributions, roughly the equivalent of National Insurance. Our guide to Canadian taxes for Brits has the full bands and how they fit with the UK.

Putting together a monthly budget

Every household is different, so rather than invent an average, here's the order to work through:

1. Rent: start from the October 2026 figures above, then adjust for neighbourhood and whether heat and hydro are included.
2. Bills: hydro, gas if you're in a house, internet, mobile and tenant insurance.
3. Transport: no more than about CAD 155 a month (about £82) on the TTC, plus GO trains or a car if you live outside the core.
4. Food: the most flexible line. Shop at No Frills and cook at home and it's manageable; eat out on King West every night and it isn't.
5. Health: dental, prescriptions and eyes if you don't have an employer plan, plus private cover until OHIP starts.
6. Winter kit: a proper coat, boots, gloves and a hat in your first year. Not optional.

For a reality check from people already living the sums, our community group for Brits in Canada is the place to ask: join here.

Sources

1. liv.rent: October 2026 Ontario rent report (2 October 2026)
2. ONS: Private rent and house prices, UK (21 October 2026, data for September 2026)
3. TTC: Fares and passes
4. Government of Ontario: Apply for OHIP and get a health card (updated 21 July 2025)
5. Canada Revenue Agency: Tax rates and income brackets for individuals – current year (modified 25 June 2026)
6. GOV.UK (FCDO): Living in Canada (updated 11 December 2025)
7. GOV.UK: Income Tax rates and Personal Allowances

Keep reading

• Renting in Toronto
• Healthcare and health insurance in Toronto
• Banking in Canada as a Brit
• Sending money between the UK and abroad