Are you currently living in the United States and considering packing your bags for Canada? You should ask yourself, is it worth moving to Canada from the USA?
Canada is just a stone thrown from the United States. From Detroit to Canada via the Ambassador Bridge is just 2.48 miles.
Before packing your bags and saying goodbye to the American dream, think things through. Is moving from the United States of America to Canada a good decision?
We will look deeply at several factors you should consider before switching countries. These include job opportunities, standard of living, cost of living, etc. Keep reading for more details.
We won’t be doing justice to this question with a yes or no answer. The best way to respond to this question is to provide a detailed comparison of both countries.
This way, you’ll know what you’re getting into before leaving the United States of America to settle in Canada.
Check out how both countries compare below.
Canada and The United States are two countries in North America. So, they share numerous similarities and differences.
Canada’s economy resembles the US economy, a market-oriented economic system. The country’s production pattern is similar to what is obtainable in the United States.
Since the Second World War, Canada’s economy has witnessed impressive growth. The manufacturing, service, and mining sectors have witnessed steady growth.
The improvement in the various sectors of the economy has transformed. Canada has moved from a predominantly rural economy into a primarily industrial and urban one.
Canada is an oil-producing country. It boasts a massive oil and natural gas sector, with some of the country’s crude derived from oil sands in western provinces such as Alberta.
Canada has the third biggest oil reserves globally. Only Venezuela and Saudi Arabia are ahead in terms of oil reserves. Canada is also the world’s fourth-largest producer and exporter of crude oil.
The country’s annual oil output rose to 5,694,000 bpd in 2022, making it the fourth largest oil producer in the world (the United States sits at number one).
Canada and the United States 1989 Free Trade Agreement, including the 1994 North American Free Trade Agreement, is quite robust. This agreement has increased trade between both countries.
Canada has an abundance of natural resources, modern capital stock, and a skilled labor workforce, which contributes to solid economic growth.
The United States and Canada are developed countries and share similar economies. Canada featured in the top ten economies in the world in 2022.
But make no mistake. The United States boasts the largest economy in the world. The United States economy is US$24.8 trillion, while Canada’s is US$2.2 trillion. This figure places Canada as the ninth economy in the world.
Canada’s economy may be smaller than the United States, but it ranks among the best.
The Cost of living can be one of the reasons most people may consider relocating from the United States of America to Canada. People are seeking where they can have a better quality of life without breaking the bank.
So, is Canada’s living cost lower than the United States? The answer is no! The cost of living in even the most sought-after state in Canada is far lower than in the United States.
Here are the figures to prove it.
|1.||Cost of living (single)||$2213||$1826|
|2.||Cost of living (family)||$5003||$4195|
|3.||One person rent||$1399||$1071|
|7.||Monthly salary after tax||$4223||$3120|
|8.||GDP per capita||$70249||$51988|
|9.||Human freedom index||8.23||8.47|
|11.||Corruption perceptions index||69||74|
|12.||English speaking %||95.5||82.1%|
|14.||Quality of life||86||91|
You can see Canada’s cost f living compared to the United States of America. Canada’s cost of living is 17 percent less expensive than you’ll encounter in the United States.
If the cost of living is why you’re switching from the United States to Canada, it’s worth it. Canada ranks as the 15th most expensive country in the world, while the United States occupies 5th.
The cost of living for a family from the table above shows why living in Canada is an ideal country to move to with your family. The stats don’t favor singles that much.
As you can see, there’s little difference between the cost of living as a single person in the United States and Canada. However, there’s a massive difference of approximately $800 in the cost of living with a family in Canada compared to the United States. Canada is cheaper.
Food expenses are another thing to consider considering moving from the United States to Canada.
Canada’s food expenses are relatively lower than in the United States. While you spend around $568 on Food in the United States, you may only spend around $511 in Canada.
It is cheaper to eat out in Canada than in the United States. While the launch may cost around $14.7 in Canada, you should expect to splash around $16.6 in the United States.
Cappuccino is around $3.51 in Canada and $4.64 in the United States. Coca-cola, Pepsi, and some other soft drinks cost around $1.85 in Canada and $2.26 in the United States.
Furthermore, beer is around $2.41 in Canada but $2.7 in the United States. Water is $1.11 in Canada and $1.27 in the United States.
Does renting a house in the United States cost more than in Canada? Yes, it does. Rent for one person in the United States is $1399, and $1071 in Canada.
Rent for a family in the United States is also slightly higher than in Canada. In the US, rent for a family home will cost around $2331 and $1808 in Canada.
So, if budget is a major concern, moving to Canada will be worth it. In addition to lower living expenses, you’ll benefit from the country’s lower housing cost.
A Handy Tip: If you plan to buy a house in Canada, keep in mind that houses in the country are around 40% more expensive than in the United States.
Is the tax you’re paying in the United States a concern, and do you feel Canada might be better? If yes, we urge you to read this section before moving.
You’re eventually going to pay tax, whether in the United States of America or Canada. But which country pays more?
The consensus among Canadians is that they pay more taxes than their counterparts in the United States of America. But is this true?
Here’s something you need to know.
Most states don’t request income tax in the United States, but that’s not the case for Canada. Canada requests income tax in all provinces and territories.
You will pay tax for all sources of income in Canada, not just your wage. So, note that your taxable income may also include the following:
If the crime rate is the reason you’re leaving the United States of America for Canada, you have made a wise decision. The United States experiences more violence than Canada.
Homicide and violent crime are higher in Canada than in the United States. There were 542 homicide cases reported in Canada. This equates to a rate of 1.8 per 100,000 people.
In the same period, there were 15,517 homicides in the United States, a rate of 5.5 per 100,000.
Is it worth it to move to Canada from the USA? You have to consider all the necessary factors before moving. This includes the cost of living, renting, transportation, food expenses, crime rate, job opportunities, and more.
Canada has better healthcare than the United States. They also have other social benefits, including more maternity leave. However, average work hours in Canada are slightly higher.
Finally, remember that the median income in the United States is higher. Both countries also have great job opportunities. Moving to Canada might be worth it if the country offers whatever you seek.