Average Monthly Living Expenses in Canada

Utilities

You will need to set aside money in your budget to cover these essential services.

• • Heat - most homes in Canada are heated by natural gas, oil or electricity.

  • Electricity - your home will also require electricity to power lights, electronic equipment, appliances and air conditioning units.

  • Water - if you live in or near a city, the municipality will charge a fee for providing water and sewage services.

Communications

• • Telephones - You can buy your own telephone, or rent one from the telephone company. Major home phone companies are: Rogers, Bell, Shaw,Telus and Primus

  • Average Cost of Telephone (Monthly): $20 - $40 plus long distance charges.

  • Cellular phones - Many Canadians have a cellular (cell), or mobile, phone instead of or in addition to a land-line. You will need to purchase a phone and pay for the monthly phone service. Major cell phone retailers are: Rogers, Bell, Fido, Telus, Virgin Mobile, Windmobile, Mobilicity, Publicmobile, Solo and Koodo.

  • Average Cost of Cell Phone (Monthly): $40 + Cost Initial Cost of Phone

  • Cable or satellite television - you may need to purchase cable or satellite service. There is a monthly fee for such service, and it usually varies depending on the provider, the scope of the package and the options you choose.

  • Average Cost of Cable (Monthly): $25 - $50

  • Internet - Many Canadians subscribe to an Internet service, which allows them to surf the web or send emails from their home computer. You can purchase Internet service from most cable or telephone companies.

  • Average Cost of Internet (Monthly): $20 - $60

Taxes in Canada

Canadians enjoy many government-funded benefits, such as healthcare, education systems, interconnecting highways, clean drinking water and sanitation systems. Canadians pay a variety of taxes to the federal and provincial governments to support these benefits.

Each year, you determine your final tax obligation. On the return, you list your income and deductions, calculate federal and provincial or territorial tax, and determine if you have a balance of tax owing for the year, or whether you are entitled to a refund of some or all of the tax that was deducted from your income during the year.

Sales Taxes

When you purchase an item or a service one or more types of tax may be added:

• • Goods and Services Tax (GST) - A 5% federal tax applies to most goods and services sold in Canada.

  • Provincial Sales Tax (PST) - With the exception of Alberta, the provinces also tax many new and used items (but not services). The rate varies by province.

  • Harmonized Sales Tax (HST) - In Nova Scotia, New Brunswick, and Newfoundland and Labrador, the GST and PST are combined into a single tax - the HST. The HST is 13% (5% GST plus 8% PST) and is added to the cost of the goods or services for the final total price.