Ontario's lower taxes vs Quebec's lower living costs: which actually leaves you ahead?
Top Provincial Rate
Sales Tax: 13% HST
Advantage: Lower taxes
Housing: ~$1.1M (Toronto)
Top Provincial Rate
Sales Tax: 14.975% (GST+QST)
Disadvantage: Higher taxes
Housing: ~$550K (Montreal)
| Annual Income | Ontario Tax | Quebec Tax | Ontario Saves |
|---|---|---|---|
| $50,000 | $7,822 | $9,441 | $1,619 |
| $75,000 | $14,283 | $17,074 | $2,791 |
| $100,000 | $21,694 | $25,457 | $3,763 |
| $150,000 | $39,524 | $45,089 | $5,565 |
| $200,000 | $61,231 | $66,744 | $5,513 |
At $100,000 income, Ontario saves:
Plus ~$1,000/year in sales tax (13% vs 14.975%)
| Category | Toronto | Montreal | Quebec Saves |
|---|---|---|---|
| Average Home Price | $1,100,000 | $550,000 | $550,000 |
| 1BR Rent (monthly) | $2,500 | $1,600 | $10,800/year |
| Car Insurance (annual) | $2,000 | $700 | $1,300 |
| Childcare (per child/year) | $19,200 | $2,280 | $16,920 |
| Utilities (monthly) | $175 | $100 | $900/year |
Quebec's living cost advantage:
Depending on housing situation and family size
| Factor | Ontario | Quebec |
|---|---|---|
| Income Tax | $21,694 (saves $3,763) | $25,457 |
| Sales Tax (~$40K spending) | $5,200 (saves $788) | $5,988 |
| Rent (1BR annual) | $30,000 | $19,200 (saves $10,800) |
| Car Insurance | $2,000 | $700 (saves $1,300) |
| NET RESULT | Quebec saves ~$7,549/year | |
| Factor | Ontario | Quebec |
|---|---|---|
| Income Tax | $39,524 (saves $5,565) | $45,089 |
| Sales Tax (~$60K spending) | $7,800 (saves $1,185) | $8,985 |
| Childcare (2 kids) | $38,400 | $4,560 (saves $33,840) |
| Car Insurance (2 cars) | $4,000 | $1,400 (saves $2,600) |
| Housing (mortgage diff)* | $72,000/year | $36,000 (saves $36,000) |
| NET RESULT | Quebec saves ~$65,690/year | |
*Based on 5% mortgage rate, 25-year amortization
The Verdict
Quebec is often cheaper despite higher taxes
Especially for families with young children and first-time homebuyers
Ontario is financially better if:
English is the dominant language in Ontario. No language laws govern business operations. French is only useful for federal government positions or businesses serving Quebec. Fully 77% of Ontario residents speak only English at home.
For English-only speakers, Ontario offers significantly more career opportunities. Quebec's Bill 96 requires French for most professional positions. Moving from Quebec to Ontario removes language barriers for anglophones, potentially opening higher-paying positions.
See your personalized breakdown:
Ontario Calculator Quebec CalculatorOntario is generally better for high earners ($150K+) without young children. At $150K, you save $5,500/year in taxes. However, families with children under 5 often do better in Quebec due to $8.70/day childcare savings of $15,000-$35,000/year.
Montreal is 25-30% cheaper overall. Housing is the biggest factor: Toronto homes average $1.1M vs Montreal's $550K. Rent, car insurance, and utilities are all significantly lower in Montreal.
Quebec funds more extensive social programs: $8.70/day childcare, lower tuition ($3K vs $7K+), prescription drug coverage, and parental leave top-ups. Higher taxes pay for services that would cost significantly more privately in Ontario.
No. English is primary in Ontario with no language laws. French is only beneficial for federal government positions or businesses serving francophone clients. Unlike Quebec, Ontario has no workplace language requirements.
Ontario has the larger market, especially in finance, federal government, and for English-only speakers. Quebec excels in aerospace, video games, and AI. For anglophones, Ontario offers more options without language barriers.
Disclaimer: This comparison provides general information for educational purposes. Tax laws and benefit programs change. Consult a qualified professional for advice specific to your situation. Data from CRA, Revenu Québec, and provincial authorities as of January 2026.