Whether you call the province home or are planning a move, understanding the cost of living in Ontario is key to staying financially secure. Ontario is Canada’s most populated province, known for its job opportunities, cultural diversity, and vibrant cities. But with rising interest rates, grocery bills, and housing prices, many Ontarians are feeling the financial strain in 2025.
At Spergel, we’ve supported over 100,000 Canadians dealing with rising costs and personal debt. We’ve seen firsthand how living in a high-cost province like Ontario affects financial wellbeing. This guide breaks down the latest data on expenses across the province – from urban hubs like Toronto to smaller communities like Sudbury – so you can plan smarter and manage your money more effectively.
How much does it cost to live in Ontario in 2025?
Here’s what Ontarians are spending each month in 2025, based on recent estimates from Statistics Canada, Numbeo, and the Canada Mortgage and Housing Corporation (CMHC):
| Household Type | Monthly Average (2025) |
|---|---|
| Single adult | $3,200 – $3,800 [source: Numbeo / StatCan] |
| Couple | $5,200 – $6,200 [source: StatCan] |
| Family of four | $6,500 – $7,800 [source: Numbeo / StatCan] |
These figures reflect day-to-day essentials like rent or mortgage payments, groceries, transport, utility bills, and healthcare costs. Your location and lifestyle will influence your actual spending, especially in a province as diverse as Ontario.
Ontario cost of living breakdown
Housing costs
Housing continues to be the single biggest expense for Ontarians. In 2025, real estate and rental prices remain high across much of the province.
- Average rent for a 1-bedroom in Toronto: ~$2,400 [source: Rentals.ca]
- Average rent in Ottawa: ~$1,850 [source: Zumper]
- Average home price (Ontario-wide): ~$870,000 [CREA, May 2025]
While some smaller cities and towns offer lower costs, the affordability gap remains a challenge for both renters and first-time homebuyers.
Transportation
Transportation costs vary depending on where you live and how you get around.
- Average gas price: ~$1.58/litre [source: StatCan]
- Annual car insurance (Ontario average): ~$1,700 [source: Ratehub]
- Public transit (Toronto adult monthly pass): $156 [source: Toronto Transit Commission]
While cities like Toronto, Ottawa, and Hamilton have reliable transit systems, rural areas often require a car – adding extra insurance, fuel, and maintenance costs to your budget.
Food and groceries
Food prices have continued to rise into 2025, with some of the steepest increases seen in Ontario.
- Monthly grocery cost (single adult): $450–$550
- Grocery costs are up ~6.2% year-over-year [source: Canada Food Price Report 2025]
Families and those in remote areas face even steeper bills due to limited access to low-cost retailers and rising transportation costs.
Utilities and internet
- Monthly average for electricity, water, heat, and internet: $300–$450 [source: LetsGetMoving]
Rates vary across the province, but electricity costs in Ontario are among the highest in Canada – particularly in winter.
Healthcare and insurance
Ontario residents have access to OHIP for core medical care, but out-of-pocket costs still apply for:
- Prescription medication
- Dental and eye care
- Mental health services
Private health insurance is common, adding another $75–$200 per month to household costs, depending on coverage.
Comparing cities and regions in Ontario
| Location | Housing Cost | Transit Access | Overall Affordability |
|---|---|---|---|
| Toronto | Very high | Excellent | Low–Moderate |
| Ottawa | High | Good | Moderate |
| Hamilton | Moderate | Good | Moderate |
| Northern Ontario | Low housing | Limited | Mixed (higher food/utility costs) |
Toronto remains the most expensive place to live, while cities like London, Windsor, and Thunder Bay offer more budget-friendly options, especially in housing.
How does Ontario compare to other provinces?
- Housing costs are significantly higher than in Alberta or the Maritimes
- Sales tax (HST at 13%) adds to the cost of everyday purchases
- Insurance premiums and electricity rates are also higher than in most provinces
However, Ontario’s strong public infrastructure and job market are still major advantages – particularly in health, education, and tech.
Budgeting strategies for Ontario residents in 2025
Here are five ways to reduce spending and regain control of your finances:
- Use a spending tracker or Spergel’s FREE budget template
- Take advantage of transit passes and energy rebates where available
- Compare car insurance and utility providers annually
- Use grocery apps like Flipp or Checkout 51 to save on essentials
- Check if you qualify for supports like the Trillium Benefit or OESP
Struggling with high costs or rising debt?
If the cost of living is forcing you to rely on credit cards, lines of credit, or payday loans, you’re not alone.
According to Statistics Canada, the average Canadian household now owes $1.74 in credit market debt for every dollar of disposable income — a debt-to-income ratio of 173.9% as of early 2025. The household debt service ratio also remains high at 14.4%, meaning a significant portion of income is already going toward debt repayment. With essentials like housing and groceries still climbing, it’s no surprise that more Ontarians are feeling stretched to their limits. At Spergel, we help Ontarians explore realistic debt relief options such as:
- Consumer proposals – a legal process to settle your debt for less – often up to 80% off what you owe – with no interest and one affordable monthly payment. You keep your assets.
- Debt consolidation – simplify your debt into one payment at a potentially lower rate. A good option if your credit is still in good shape.
- Bankruptcy – when no other option fits, filing for bankruptcy with a Licensed Insolvency Trustee can give you a clean slate and stop creditor calls immediately.
Book a free consultation with a local Spergel trustee and get answers – without judgment.
FAQs: Ontario living costs
Here are some of the most common questions we receive about the cost of living in Ontario:
How much income do you need to live in Ontario?
A single adult needs roughly $45,000–$50,000/year, while a family of four typically needs at least $80,000–$100,000/year to cover basic expenses.
Which cities are most affordable in Ontario?
Look at cities like Kingston, Windsor, Sudbury, or Peterborough for lower housing and living costs.
What is Ontario’s living wage in 2025?
- Toronto: $25.05/hour
- Ottawa: $21.95/hour
- Windsor: $18.15/hour [Ontario Living Wage Network]
What’s the biggest monthly expense for most Ontarians?
Housing is the #1 cost driver, followed by groceries and utilities.
Get support today
The cost of living in Ontario in 2025 means facing real financial challenges – but you don’t have to face them alone. Spergel has Licensed Insolvency Trustees across Ontario who understand the pressures of high living costs and can help you explore your options. There’s no cost. No judgment. Just a path forward. Book your free consultation now.
