Canada vs California - costs of living compared

Moving from one country to another brings about many changes. One of the biggest ones you have to pay attention to is the cost of living. If you plan on moving from Canada to California, or vice-versa, you will most likely have to spend more money to maintain the same lifestyle. As some of the most trusted movers Canada has to offer, we will break down and compare the cost of living in Canada vs California so you know what to expect and get prepared for your new place of residence.

Housing Costs in Canada vs California

Housing costs in Canada vs California differ significantly. In California, the average home is around $744,000, and even higher in major cities like San Francisco, where it reaches $1.4 million. On the other hand, the average price of a home in Canada is $612,000. The price variation is notable in Canada too, with cities like Toronto having an average home value of $1.3 million, considerably higher than the national average. However, in places like Edmonton, the average home value is much more affordable at $370,000. Depending on where you are moving from in Canada, the price disparity in the housing market may shock you, so carefully examine it and use the help of a trusted real estate agent to find the perfect home in California relative to your budget.

Food and Groceries

Groceries are on average 13.9% less expensive in Canada than in California. Here is a breakdown of some of the most shopped groceries and how their prices vary:

• Bread (1 loaf) – $3.79 vs $2.29
• Milk (1 liter) – $6.34 vs $5.39
• Eggs (1 dozen) – $4.63 vs $3.04
• Chicken breast (1 kg) – $13.33 vs $10.59
• Bananas (1 kg) – $1.89 vs $1.49
• Potatoes (1 kg) – $3.14 vs $2.48

It’s no surprise there are many people who are moving from California to Toronto, to avoid the higher living expenses. However, it is important to note that the local purchasing power in Los Angeles is 42.8% higher than in Toronto. What this means is you can get more from your salary there in terms of buying goods and services. Based on what we’ve seen so far with housing and groceries prices it may not look that way, but read until the end so you can get a deeper sense of how the two economies differ.

Food is cheaper in Canada vs California, so that might affect your daily life unless you find a well-paid job in California

Utilities

In Toronto, the basic utilities, including electricity, heating, cooling, and water, add up to around $147. However, the same utilities would cost approximately $176 in Los Angeles, resulting in a 19.2% difference. California’s higher costs could be attributed to factors like warmer weather, leading to increased cooling expenses, and higher electricity rates. On the other hand, Canada’s colder climate may result in higher heating costs. Local regulations and market conditions can also influence the variation in utility prices. That’s why it’s crucial to explore different regions of California prior to moving so you can find the most suitable place that’s good for your budget. It’s also important to know that the average salary in California is $111,622, whereas in Canada it is $59,300. You can offset the higher cost of living in California by finding a well-paid job, and thankfully its job market is thriving!

Transportation

The transportation costs in Canada and California are roughly the same. The price of 1 liter of gasoline in California is around $1.29, while in Canada, it is slightly higher at $1.31. For taxi trips in downtown areas, the average cost in California is about $17.49. That is also on almost the same level as in Canada, with the average taxi fair being $16.98. However, when it comes to public transportation, California offers a more affordable option. In Los Angeles, for example, a monthly pass costs $86 which is cheaper than the $116 cost for a similar pass in Toronto. Overall, while gasoline and taxi trips are marginally cheaper in Canada, California’s advantage lies in its lower-priced public transportation. Also, the USA has a more car-centric-oriented culture than Canada. Some places aren’t as well connected by public transit, so owning a car could be a must.

California has lower-priced public transportation, but it also has more expensive gasoline prices

If you already own a car and are moving here, then you have nothing to worry about! You can always get in touch with Centennial Moving if you need your car shipped, and they’ll help you with that side of your relocation as well.

Education

In Canada, undergraduate tuition fees range from $15,000 to $60,000 per year. The most expensive programs are Medicine, Engineering, and Social Science. For Master’s degrees in fields like Engineering, Computer Science, Arts, and Social Science, tuition can vary from $12,000 to $35,000 annually. The MBA program is also costly but more affordable than some US institutions, costing between $35,000 and $100,000 per year. There are options available in various price ranges to suit different budgets.

In the USA, studying costs range from $23,000 to $80,000 per year for four-year undergraduate programs. Tuition fees differ based on the university and can be as low as $18,000 per year for state colleges and up to $35,000 per year for private institutions. In-state students at four-year public colleges typically pay $18,230 annually, while out-of-state students may pay around $26,290. Non-profit private colleges charge an average of $35,830. While the USA’s education system has much higher costs, international students can explore various funding sources and financial aid options to make education more affordable.

Taxes

Canada generally has higher income tax rates compared to California. Canada’s tax structure is designed to fund various social benefits and services, such as healthcare, education, and social welfare program. The progressive income tax system means that higher earners pay a larger percentage of their income in taxes. Canada’s federal income tax rates range from 15% to 33%. In contrast, California follows a progressive income tax system as well, but the tax rates tend to be lower than those in Canada. They range from 1% to 13.3%. The state relies on a combination of income taxes, sales taxes, and property taxes to generate revenue for public services and programs. Both Canada and California offer different deductions, credits, and exemptions to reduce the overall tax burden for individuals and businesses.

Get familiar with the tax rates before you move

Entertainment and Leisure

You would have to spend about 15% more on entertainment and leisure in California. For example, a movie ticket there may cost around $12 to $15, while in Canada, it could be slightly cheaper at $10 to $13. Gym memberships in California tend to be more expensive, as the average price is $52. In Canada, you would have to pay around $40 to hit the gym. A cappuccino in California costs about $5, while the same beverage in Canada is around $2. Similarly, the cost of a local or domestic beer is higher in California, averaging $5 to $7, compared to Canada, where it may cost around $3 to $5.

Healthcare in California vs Canada

Healthcare is one of the biggest contrasts when comparing Canada vs California. In California, healthcare expenses are four times more expensive compared to Canada. On average, a person in California spends around $2479 on healthcare annually. Meanwhile, in Canada, it is much lower at $551 per person. Canada’s healthcare system is known for its universal coverage, providing essential medical services to all citizens without direct costs at the point of care. In contrast, California’s healthcare system involves a mix of private and public options, which can lead to higher expenses for individuals. However, private healthcare is prevalent in the USA. There are definitely good public options, but they are far less represented and offer smaller coverage. This is one of the things you would have to get used to very quickly after moving from Canada to USA!

California and Canada have very different healthcare systems

Childcare and Family Expenses

Both California and Canada offer support programs and benefits to assist families with childcare and family expenses. For example, California provides programs like the CalWORKs (California Work Opportunity and Responsibility to Kids) that offer financial aid to eligible families in need. Canada has the Canada Child Benefit (CCB), a tax-free monthly payment given to eligible families to help with the cost of raising children. However, in California, childcare expenses can be relatively high. The average cost for infant care is $1,500 per month. Private preschool and daycare services are also around $1,500 per month.

In contrast, the price per month for preschool is $750! That’s 50% less, so it’s definitely a substantial difference.  Both regions aim to ease the financial burden on families through support programs, but the actual costs can differ based on location and specific family circumstances.

Personal Goods and Services

In general, California may have slightly higher prices for consumer goods due to factors like higher import costs, transportation expenses, and sales taxes. For care products, items like toiletries and cosmetics might be somewhat more expensive in California compared to Canada. Similarly, clothing prices may be higher in California. This is due to the cost of production and designer brands prevalent in the region. Consumer goods like electronics and household items can also show price disparities.

In some cases, California might offer a wider selection of products, but these could be more expensive compared to similar items in Canada. Even if you’d look at something like the relocation services Canada has to offer versus California, the prices may vary from region to region. However, as we’ve mentioned earlier, the local purchasing power is much higher in California. Therefore, you should be able to afford many more things you desire.

You could potentially find more products and services in California vs Canada, but they might cost more overall

Savings and Retirement Planning in Canada vs California

Savings and retirement planning slightly differ between California vs Canada. In Canada, retirement planning often involves contributions to the Canada Pension Plan (CPP) and Registered Retirement Savings Plan (RRSP). The CPP is a government-managed pension program, while the RRSP is a personal savings account with tax advantages for retirement. On the other hand, options like 401(k) plans in the US are popular for retirement savings. These are employer-sponsored retirement accounts that allow individuals to save for retirement with pre-tax dollars.

It’s essential for individuals who wish to move to either of these places to understand their retirement options and assess their financial goals. They should also consider factors like employer contributions, tax implications, and investment choices to make informed decisions about retirement planning. It’s a key decision not to be taken lightly.

Quality of Life Factors Also Plays an Important Part!

Factors like safety, climate, and overall living standards also play a significant role in influencing the perception of the living standard in Canada and California. In Canada, the generally lower crime rates and access to universal healthcare contribute to a sense of safety and well-being. The country’s diverse climate offers different experiences, from mild coastal regions to colder climates in the north.

The size of the place you live in also dictates prices

California’s warm and sunny weather attracts many, but its perception of safety might vary due to crime rates in certain urban areas. The state’s healthcare system has a mix of public and private options, impacting the perceived quality of healthcare access. Both regions offer access to quality education. However, the overall living standards might differ based on factors like housing costs and employment opportunities.

It’s Up to You to Decide whether to live in Canada vs California!

As we’ve seen, there are numerous benefits to both Canada vs California living! If you are looking for a more affordable place to live, then Canada is the obvious choice. However, do not underestimate all the great things California can give you. With the right job, you could potentially have a much more diverse lifestyle than you could have ever imagined! So once you’re ready for your move, contact Centennial Moving and let them help you experience a seamless transition to Golden State!