Data note: This guide uses publicly available 2025-2026 sources and should be treated as a planning estimate, not a guaranteed personal budget. Your actual cost depends on neighbourhood, lease date, household size, lifestyle, debts, insurance, childcare, and tax situation.
The cost of living in Toronto, Canada with rent depends heavily on the type of rental you choose. A shared room, basement apartment, studio, one-bedroom condo, and family-sized unit can produce very different monthly budgets even before groceries, transit, insurance, and personal spending are added.
This 2026 guide focuses on rent-first budgeting. It explains how to estimate Toronto living costs, what rent data means, and how to avoid underestimating monthly expenses.
Start with rent, then build the budget
For renters, housing should be the first line of the budget. CMHC\’s 2025 Toronto data listed average purpose-built apartment rents at $1,761 for a one-bedroom and $2,046 for a two-bedroom. In the broader 2025 Rental Market Report, CMHC showed Toronto two-bedroom turnover rent at $2,547, which is more relevant for many new tenants.
The practical lesson is simple: the budget for an existing renter can look different from the budget for someone signing a new lease in 2026. Always check current listings and compare them with official average rent data.
Example budget categories with rent
After rent, include tenant insurance, electricity if not included, internet, phone, groceries, transit, personal care, clothing, medical or dental out-of-pocket costs, debt payments, and savings. If you own a car, add parking, fuel, insurance, and maintenance.
Do not treat rent as the only housing cost. Condo rentals may include different utilities than purpose-built rentals. Some landlords include heat and water, while others pass more costs to tenants.
Transit cost planning
Toronto renters often use TTC service instead of owning a vehicle. TTC listed the adult monthly pass at $156, with monthly fare capping scheduled to begin on September 1, 2026. Under fare capping, eligible riders receive free TTC travel after 47 paid trips in a calendar month when they use the same payment method.
If you commute five days a week, transit cost assumptions should be different from someone working remotely. Hybrid work can reduce transportation spending but may increase home internet, electricity, or workspace needs.
Food and household costs
Statistics Canada reported food purchased from stores increased 3.8% year over year in April 2026. For Toronto renters, this means grocery budgets should not be copied from older articles without adjustment.
Households can control food spending by cooking more meals at home, shopping with a weekly plan, reducing delivery, and separating groceries from restaurants in the budget. Families should also budget for school lunches, household supplies, and occasional bulk purchases.
How much income do you need?
There is no single income number that works for everyone. A single person sharing housing may need much less than a couple renting a downtown one-bedroom or a family needing a two-bedroom unit. The better method is to estimate after-tax monthly income and compare it against a full monthly budget.
Rent-to-income ratios can help, but they are incomplete. Debt, childcare, car ownership, and savings goals can make the same rent affordable for one household and stressful for another.
Common mistakes
- Using national averages instead of Toronto-specific costs
- Ignoring whether rent includes utilities
- Using old grocery or transit numbers
- Forgetting tenant insurance, internet, phone, and moving costs
- Comparing gross salary instead of take-home pay
FAQ
What rent number should newcomers use for Toronto?
Newcomers should compare current listings with CMHC data and pay attention to turnover rents. Average rents paid by existing tenants may be lower than prices seen in active rental searches.
Can I live in Toronto without a car?
Many residents can, especially if they live near transit and work or study along accessible routes. Avoiding car ownership can reduce monthly costs substantially.
Are utilities always included in Toronto rent?
No. Some rentals include heat or water, but electricity, internet, parking, or tenant insurance may be separate. Confirm details before signing a lease.
Sources
- CMHC Housing Market Information Portal: Toronto Average Rent
- CMHC 2025 Rental Market Report
- TTC Fares and Passes
- TTC Monthly Fare Capping Update
- Statistics Canada CPI, April 2026
Alex Wang is a financial content researcher and writer at Canada Tax Hub.
He focuses on researching Canadian taxes, cost of living, personal finance, and everyday financial topics to help readers better understand money-related information in Canada.
Alex creates educational content by analyzing publicly available information from reliable sources, including government resources and financial publications.
His goal is to make complex financial topics easier to understand through clear explanations, practical guides, and useful tools.
All content is created for educational purposes and should not be considered professional tax or financial advice.