Toronto is Canada’s largest city and economic capital, home to the country’s financial industry, a booming tech sector, and the most expensive housing market in Ontario. While Toronto household income is among the highest in Canada, the extreme cost of housing creates the country’s most challenging affordability gap.
Average and median income in Toronto
| Metric | Toronto | Ontario | Canada |
|---|---|---|---|
| Average Household Income | $163,100 | $154,700 | $146,600 |
| Median Household Income | $131,900 | $125,700 | $121,000 |
| Median Individual Income | $44,900 | $44,900 | $44,200 |
Source: Statistics Canada, Census 2021 (updated with CIS 2023 trends).
Toronto’s average household income of $163,100 is 11.3% above the national average and 5.4% above the Ontario provincial average. However, the city’s extreme housing costs more than offset this income advantage. Use our salary calculator to see your Toronto after-tax take-home pay.
Income vs. housing affordability in Toronto
Toronto has one of the worst affordability ratios of any major Canadian city:
| Metric | Amount |
|---|---|
| Median Household Income | $131,900 |
| Average Home Price | $1,009,000 |
| Price-to-Income Ratio | 7.6× |
| Monthly Mortgage Payment (20% down, 5yr fixed) | ~$4,600 |
| Income Needed to Qualify | ~$180,000+ |
At 7.6× median household income, Toronto’s affordability ratio is nearly double that of Calgary (4.0×) and more than double Edmonton (3.1×). Only Vancouver is less affordable at 9.5×.
See how much income you need with our income to afford a home calculator, or calculate your mortgage payment.
How Toronto compares to other major cities
| City | Average HHI | Median HHI | Avg Home Price | Ratio |
|---|---|---|---|---|
| Toronto | $163,100 | $131,900 | $1,009,000 | 7.6× |
| Calgary | $168,400 | $140,200 | $567,000 | 4.0× |
| Ottawa | $158,200 | $131,500 | $630,000 | 4.8× |
| Vancouver | $155,700 | $123,800 | $1,179,000 | 9.5× |
| Montreal | $128,800 | $105,200 | $556,000 | 5.3× |
While Toronto has the second-highest household income in Canada (behind Calgary), the extreme home prices create the second-worst affordability after Vancouver. Toronto also has unique cost burdens including the municipal land transfer tax — the only city in Canada with this additional tax on home purchases.
Key industries driving Toronto income
- Financial services — Home to Canada’s Big Five banks, the TSX, and major insurance companies. Bay Street salaries are among the highest in Canada.
- Technology — Toronto-Waterloo is Canada’s largest tech corridor. Major employers include Shopify, Google, Microsoft, Amazon, and many startups.
- Professional services — Legal, consulting, and accounting firms (including Big Four firms) have major operations in Toronto.
- Healthcare — World-class hospital networks including UHN, SickKids, and Sunnybrook.
- Media and entertainment — Canada’s media capital with major broadcast networks, film production, and advertising agencies.
- Real estate — The city’s dominant industry by employment, supported by high property values and development activity.
Toronto’s tax and cost considerations
- Double land transfer tax — Toronto charges a municipal LTT on top of Ontario’s provincial LTT. On a $1,000,000 home: ~$32,950 combined. Use our land transfer tax calculator.
- Ontario Health Premium — Up to $900/year additional tax
- HST of 13% — On most purchases
- High childcare costs — Average $1,500–$2,000/month per child (compared to $8.70/day in Quebec)
Combined with housing costs, these factors significantly reduce the real purchasing power of Toronto household incomes. An individual earning $100,000 in Toronto has considerably less disposable income than the same earner in Calgary or Edmonton.
Rental affordability in Toronto
Toronto’s rental market is the second most expensive in Canada after Vancouver:
| Housing Type | Average Monthly Cost | % of Median HHI |
|---|---|---|
| 1-Bedroom Apartment | $2,300 | 20.9% |
| 2-Bedroom Apartment | $2,900 | 26.4% |
| 3-Bedroom House Rental | $3,500+ | 31.8% |
| Average Home Mortgage (20% down) | ~$4,600 | 41.9% |
At nearly 42% of median household income, the average mortgage payment in Toronto far exceeds the 30% affordability guideline. Even renting a 2-bedroom apartment consumes over a quarter of median household income. Toronto’s rental vacancy rate has historically been below 2%, giving landlords significant pricing power and leaving renters with few negotiating options.
For comparison, the same 1-bedroom apartment costs $1,200 in Edmonton, $1,100 in Winnipeg, and $950 in Regina.
Take-home pay: Toronto vs. other cities
| Gross Salary | Toronto (ON) | Calgary (AB) | Montreal (QC) | After-Housing Disposable (Toronto vs. Calgary) |
|---|---|---|---|---|
| $80,000 | $60,500 | $62,600 | $57,200 | -$26,200/yr |
| $100,000 | $73,700 | $76,500 | $69,300 | -$26,800/yr |
| $150,000 | $103,800 | $108,600 | $96,500 | -$28,800/yr |
The “After-Housing Disposable” column shows how much less a Toronto homeowner has after paying the average mortgage vs. a Calgary homeowner paying their average mortgage. Includes tax difference and mortgage difference. Use our income tax calculator for exact take-home calculations.
A Toronto household earning $100,000 has approximately $26,800 less per year in disposable income after housing than a Calgary household earning the same amount. Over a 25-year mortgage term, this compounds to over $670,000 in lost spending and investment capacity.
Income by area within Toronto
| Area | Approximate Median HHI | Character |
|---|---|---|
| Bridle Path / Lawrence Park | $300,000+ | Ultra-high income, executive residences |
| Leaside / North Toronto | $175,000–$225,000 | Upper-middle income, established family neighbourhoods |
| Etobicoke (South) | $120,000–$150,000 | Family residential, waterfront |
| Midtown (Yonge/Eglinton) | $100,000–$140,000 | Young professionals, condos mixed with houses |
| Downtown Core | $85,000–$120,000 | Condos, younger demographics, high earners in small households |
| Scarborough | $80,000–$110,000 | Diverse, immigrant-heavy, lower housing costs |
| East York | $90,000–$120,000 | Gentrifying, mixed income |
| Jane-Finch / Malvern | $45,000–$65,000 | Priority neighbourhoods, lowest income areas |
Estimates based on Census 2021 neighbourhood profiles.
Toronto’s income inequality is among the highest in Canada — the Bridle Path median is roughly 6× the Jane-Finch median. This wide variation partially explains why the city average ($163,100) is much higher than the median ($131,900), as a small number of very high earners pull the average upward.
Income trends in Toronto
- 2015–2019 — Strong income growth driven by the tech sector (Toronto added more tech jobs than any other North American city in 2019), financial services expansion, and a booming real estate sector that supported employment.
- 2020–2021 — Pandemic hit hospitality and retail hard, but tech, finance, and professional services adapted to remote work quickly. Many higher-income workers left for suburban areas, while lower-income service workers bore the brunt of job losses.
- 2022–2025 — Recovery was uneven. The tech sector experienced layoffs (Shopify, Wealthsimple, others reduced headcount), but financial services and AI/machine learning hiring offset much of this. Immigration drove record population growth, boosting service sector employment while also intensifying housing competition. The Bank of Canada’s rate hikes modestly cooled the housing market but didn’t resolve the fundamental supply-demand imbalance.
Toronto’s income growth has been solid in absolute terms but has consistently lagged housing price growth, causing the affordability ratio to deteriorate from approximately 5× in 2010 to 7.6× currently. This is the defining financial challenge for Toronto residents.
Related tools and resources
- Toronto Mortgage Rates — Find the best mortgage rates in Toronto
- Toronto Housing Market — Current home prices and trends
- Ontario Land Transfer Tax Calculator — Calculate your closing costs
- Income Percentile Calculator — See where your income ranks
- Mortgage Affordability Calculator — How much home can you afford
- Income Tax Calculator — Estimate your Ontario income tax