Salary vs. Cost of Living in Ontario (2025)
Understanding how your salary compares to the cost of living in Ontario is essential for making informed financial decisions. The average annual salary in Ontario is C$62,000, while the cost of living index is 110 (Canada average = 100).
Quick Answer
In Ontario, the average salary of C$62,000 combined with a cost of living index of 110 results in an effective purchasing power of C$56,364.
Key Takeaways
- The average salary in Ontario is C$62,000 (3% above the Canada average).
- The cost of living index of 110 means expenses are 10% higher than the national average.
- After adjusting for cost of living, the effective purchasing power of the average Ontario salary is approximately C$56,364 per year.
- Housing costs (index: 125) are the largest factor in Ontario's cost of living.
| Metric | Ontario | Canada Average |
|---|---|---|
| Average Annual Salary | C$62,000 | C$60,000 |
| Cost of Living Index | 110 | 100 |
| Housing Cost Index | 125 | 100 |
| Median Home Value | C$850,000 | C$300,000 |
| Purchasing Power (adj.) | C$56,364 | C$60,000 |
| Minimum Wage | C$16.55/hr | Varies |
| Median Household Income | C$85,000 | C$72,000 |
Salary Overview
The average annual salary in Ontario is C$62,000 as of 2025. This is 3% higher than the Canada national average of C$60,000.
Cost of Living Overview
The cost of living in Ontario is 110% of the national average (index: 110). Housing costs index at 125, utilities at 105, food at 108, transportation at 108, and healthcare at 95.
Housing Affordability
The median home value in Ontario is C$850,000. With an average salary of C$62,000, the home price-to-income ratio is approximately 14x. Housing costs in Ontario are 25% above the national average.
Purchasing Power
A salary of C$62,000 in Ontario has an effective purchasing power of approximately C$56,364 when adjusted for the local cost of living. After adjusting, the purchasing power is 6% lower than the Canada national average.
Frequently Asked Questions
What is the cost of living vs. salary ratio in Ontario?
The average salary in Ontario is C$62,000 and the cost of living index is 110. After adjusting, the effective purchasing power is approximately C$56,364 per year.
Can you live comfortably in Ontario on the average salary?
With an average salary of C$62,000 and a cost of living index of 110, living comfortably depends on lifestyle, family size, and housing choices.
How does housing affordability work in Ontario?
The median home value in Ontario is C$850,000. With an average salary of C$62,000, the home price-to-income ratio is approximately 14x.
What is the take-home pay after taxes in Ontario?
Take-home pay depends on your filing status and deductions. Use our salary calculator to estimate your net pay after all applicable taxes.
Related Resources
Official Sources
- Government statistics, Canada
- Revenue/Tax authority, Canada
- National real estate data, Canada
Last Updated: June 2026 — Reviewed Against Official Sources
Official Sources
Canada calculators use data from the following official government agencies:
- Canada Revenue Agency (CRA) — Federal and provincial income tax rates, CPP contributions, and RRSP limits.
- Statistics Canada — Employment data, income statistics, and housing market data.
- Bank of Canada — Interest rates, inflation data, and mortgage rate benchmarks.
Methodology
Our Canadian calculators use federal and provincial tax brackets, CPP/QPP contribution rates, and EI premiums published by the Canada Revenue Agency (CRA). Economic data is sourced from Statistics Canada. Mortgage calculations use Bank of Canada rates and market averages. All figures are for educational purposes.
Data Sources
All tax brackets, contribution rates, and economic data used in our calculators are sourced from the official government publications listed above. Rates are updated at least annually to reflect the latest tax year and regulatory changes. Users should verify critical figures with official sources or qualified professionals.
Last updated: June 2026. Information may change; always verify with official sources.