Budgeting for life in Canada
Immigrating to Canada can be an exciting milestone, but it takes a lot of planning. Before you arrive, it’s helpful to understand the main expenses you’ll need to budget for in your new country. Here are some tips and key things to know as you prepare for life in Canada.
Before you arrive
Government requirements
You should start looking into the Canadian government’s financial requirements well before you arrive. Some immigration applications require proof of funds.1 This is to show that you have the means to support yourself and your family when you move to Canada. It’s like a financial cushion the government wants you to have when you arrive.
The amount you’ll need depends on whether you’re applying for a work permit, a study permit, a Working Holiday Visa or permanent residence.
When you arrive
Housing expenses
Rent
Rent varies based on several factors. The region, city and neighbourhood all matter. The type of housing, the number of rooms and whether the unit is fully or partially furnished can also affect the cost of rent. You’ll have to budget for electricity, heating and telecommunications services, like TV, internet and mobile phone plans, because those aren’t usually included in the rent.
You should also think about getting tenant insurance. It isn’t legally required in Canada, but it can help reduce the impact of a covered loss and give you some peace of mind. Tenant insurance protects your personal belongings in the event of covered losses, such as theft or fire. It also includes liability coverage if you’re held responsible for causing bodily injury or property damage to another person.
For more information, check out our article on renting an apartment in Canada.
Electricity
The cost of electricity depends on the province you live in, how much you use, the size of your home, the time of year and even the age of your building. If your home has electric heating, your electricity bill will very likely be higher in the winter. Heating is the main energy expense for Canadian households.2
If you’re moving to Quebec, you can use Hydro-Québec’s electricity cost estimation tool to get a better idea of how much your electricity bill might be. If you’re moving to Ontario, visit the Ontario Energy Board website for more information about electricity rates.
Everyday expenses
Sales tax on consumer products
In Canada, provincial and federal sales taxes are charged on many products and services. The rates vary by province. Depending on what you’re buying and which province you’re in, you can generally expect to pay 5% to 15% in tax on top of the advertised price. Keep in mind that prices shown in stores and online are usually before taxes. It’s important to factor in sales tax when budgeting for life in Canada.
Groceries
The cost of groceries depends on what you buy and where you shop. To get an idea of prices, you can visit the websites of the major Canadian grocery chains. Many shoppers save money by using loyalty cards, choosing store brands and checking weekly flyers. There are also smartphone apps that can help you compare prices and find deals. Sales tax doesn’t apply to every item at the grocery store. There’s no tax on basic food products, like fruit, vegetables, meat and eggs. Non-essential items, like soft drinks and some snacks, are taxed.
Telecommunications plans
Prices on internet, TV and mobile plans depend on the service provider and the options you choose. Comparing offers from different providers on their websites is a good way to explore your options and find a package that works for you.
Transportation and gas
There are many ways to get around in Canada. Most cities and urban areas have public transit systems. Services, modes of transportation and fares vary by region. If you choose to buy a vehicle, you’ll have to budget for the associated costs. Be aware that electric vehicles are usually more expensive to buy than gas-powered vehicles.
Some cities also have carsharing services. These services let you rent a vehicle for a short period of time. They can be a good option if you need a car occasionally but don’t want to buy one.
If you do decide to buy a gas-powered vehicle, fuel will be an important part of your budget. Gas prices vary by province and city and can even be different from one gas station to another. They also depend on the type of fuel your vehicle uses.
Insurance
Home insurance
In Canada, home insurance (for tenants, homeowners and condominium owners) can help protect your property in the event of theft, fire and some types of water damage. It can also provide liability coverage if you unintentionally cause bodily injury or property damage to someone who doesn’t live with you.
Home insurance is generally not mandatory, but it is strongly recommended. In Quebec, condominium owners are required to have at least civil liability insurance.
The cost of home insurance depends on the coverage you choose and factors like your location and the type of residence.
Car insurance
You must have car insurance to drive a vehicle in Canada. Several factors can affect the cost of your car insurance, such as your age and the make, model and year of your vehicle. The region, city or neighbourhood you live in can also affect the premium you pay.
Good to know
With Desjardins, your previous driving experience may be recognized depending on your country of origin and the applicable criteria. In some cases, this can help reduce your premium when you ask for a car insurance quote.3
Healthcare
In Canada, each province and territory has its own public health insurance plan and rules. Before you arrive, check the eligibility requirements and coverage terms for the province or territory you’ll be living in. If you’re eligible, you’ll need to register and apply for a health card, also known as a health insurance card, to access the plan. It can take up to three months to get your card. Make sure you have private health insurance coverage during the waiting period.
Canada also has a parallel network of private clinics and doctors’ offices that charge patients directly for healthcare services.
Good to know
Desjardins offers Visitors to Canada Insurance,4 which covers emergency healthcare services in the event of an accident or illness. It can be useful if you’re visiting Canada or during the waiting period for public health insurance coverage.
School fees
In Canada, public elementary and secondary education is free for Canadian citizens and permanent residents. However, some schools may charge fees to cover the cost of educational workbooks and other school supplies. Students are required to pay tuition fees at both public and private post-secondary institutions.
If you’re moving to Canada to study, be aware that tuition fees for international students at colleges, vocational schools and universities vary depending on the program and institution. Be sure to factor education costs into your budget. You can also check whether you’re eligible for scholarships or financial aid to give you a helping hand with some of these costs. Most international students are allowed to work a certain number of hours per week during their studies, so you may be able to earn income while studying in Canada.
Income and taxes
Income
The minimum wage in Canada varies from one province to another.
For most jobs, income tax and contributions to the public pension plan will be automatically deducted from your gross pay. Most employers pay their employees every two weeks. Employees usually receive net pay, which is their salary after eligible deductions.
Employment regulations vary from one province or territory to another. Desjardins’s offer for newcomers includes a free and confidential legal assistance service for the first two years after you open an everyday account.5 You can use this service to get answers to various questions about rights and obligations in Canada, including labour rights related to employment contracts, workplace accidents, wrongful dismissal and so on.
Income tax
If you’re a Canadian tax resident, you’re required to pay federal and provincial income tax on your worldwide income. Generally, the more income you earn, the higher your tax rate will be. You have to file an income tax return every year. Quebec residents must file two tax returns—one federal and one provincial.
Depending on your situation, you may be eligible for tax credits and benefits. Generally speaking, everyone is entitled to a basic personal amount that reduces the taxes they owe. Other tax credits may also be available depending on your circumstances, such as credits for tuition, medical expenses and charitable donations. Even if you don’t earn income in Canada, filing a tax return may allow you to access certain credits and benefits. More information is available on the Government of Canada’s website.
Canada has tax treaties with many different countries to help prevent double taxation. A tax treaty is an agreement between two countries that helps prevent the same income from being taxed twice.
Settling in Canada is a big move that involves a lot of changes, especially when it comes to your finances. Planning ahead for major expenses and understanding the cost of living can help you balance your budget and approach this new chapter with peace of mind.
For more information, visit:
1. Government of Canada Prepare financially, May 5, 2026.
3. Years of driving experience are recognized only if you were the primary driver in your home country. Contact us to learn more about auto insurance and eligibility requirements. Some conditions, limitations and exclusions apply.
4. Visitors to Canada Insurance is underwritten by Desjardins Insurance, which refers to Desjardins Financial Security Life Assurance Company. Certain restrictions, exclusions and limitations may apply.
5. Certain restrictions apply. The legal assistance service is intended solely to provide general information. It does not include legal consultations, document review or case analysis. Matters related to tax law or those not governed by provincial or federal laws are excluded from the scope of this service.
These tips are provided for information and prevention purposes only. They are general in nature, and Desjardins Insurance cannot be held liable for them. We recommend using caution and consulting an expert for comprehensive, tailored advice.
Desjardins Insurance refers to Desjardins General Insurance Inc., provider of home, auto and business insurance in Quebec, and Certas Direct Insurance Company, underwriter of home and auto insurance in Ontario and Alberta. Certain restrictions, exclusions and limitations may apply. Auto insurance is not available in Manitoba, Saskatchewan or British Columbia due to government-run plans. Savings and discounts are based on each client’s individual profile and are subject to eligibility conditions. Rates and discounts are subject to change without notice. The terms and conditions of the coverages described are set out in the insurance policy, which always prevails.
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