Canada vs USA cost of living: what everyday things cost on each side of the border

Converted to US dollars, everyday prices are lower in Canada on 7 of the 16 items we track and higher on 9. But Americans earn more: average income per person is 57% higher in the US, so once prices are set against pay, 3 of 4 benchmark purchases are easier to afford south of the border. This comparison covers food, fuel, electricity, phones and streaming. It does not include rent, house prices, healthcare or income tax, which we don’t track and which often decide the question for someone moving.

Every price, side by side

Canadian prices are shown in Canadian dollars and converted at 1.427 CAD per USD. Apple’s prices in both countries are before sales tax, so they compare fairly. Fuel and electricity are national averages from GlobalPetrolPrices; the Big Mac is from The Economist’s latest survey.

The full head-to-head, including every iPhone and Netflix plan, is on the Canada vs United States comparison.

Energy: where the border matters most

Petrol (gas) is 18% dearer in Canada: $5.48 a US gallon against $4.65 in the US, according to GlobalPetrolPrices. Fuel taxes explain most of any gap, since crude oil is priced on world markets; Canada layers federal and provincial taxes on top, and US fuel taxes are among the lowest in the developed world. Pump prices vary widely within each country too, by province and by state. Electricity runs the other way: Canadian households pay $0.123 per kWh, 35% less than the US average of $0.190. Large hydroelectric systems in several provinces help keep Canadian power cheap. Over a 600 kWh month, a fair figure for a North American home with electric appliances, that is $74 in Canada and $114 in the US, before fixed charges. Business power is 27% cheaper in Canada. See Canadian petrol prices for the history.

Phones and streaming

Across 7 current iPhones, Canadian prices average 2% above US prices in dollar terms. The iPhone 18 Pro in Canada is C$1,749, or $1,225, against $1,199. Sales tax changes the final bill on both sides. Canada adds GST, HST or provincial sales tax, from 5% in Alberta to as much as 15% in parts of Atlantic Canada; US state and local sales tax runs from zero in a handful of states to around 10% in some cities. On streaming, Canada is cheaper on 4 of 4 subscriptions in dollar terms; Netflix Premium is C$23.99 against $26.99 and Spotify Premium C$13.99 against $12.99. Netflix and Spotify set Canadian prices in Canadian dollars, and they don’t move with the exchange rate, so a weaker loonie makes them cheaper in US terms.

Against what people earn

World Bank figures put gross national income per person at $56,420 in Canada and $88,810 in the US (2025). That 57% gap is wider than every price gap in the table above, which is why the affordability picture flips in America's favour:

Phone and burger rows are measured in work time; subscriptions as a share of a month’s income. Averages hide a lot: income is spread less evenly in the US, so a median Canadian and a median American are closer than these figures suggest. Our cost of living in Canada guide goes deeper on the Canadian side.

The loonie factor

Since our first snapshot on July 3, 2026, the Canadian dollar has weakened by about 0.6% against the US dollar, to 1.427 per USD. Every dollar-converted figure in this guide moves with that rate. For Americans visiting Canada, a weaker loonie is a discount on everything priced locally. For Canadians shopping across the border, it is the opposite, and it explains why cross-border trips for fuel or electronics come and go with the exchange rate. Compare more of the countries we track on the Canada and United States country pages.