Toronto is the most expensive city in Canada, outpacing Vancouver in the rankings, according to Mercer. Other Canadian cities that made it to the list are Montreal, Ottawa and Calgary. But all these cities are far from being the most expensive in the world. Globally, Toronto ranks 90th while Vancouver landed at 116th.

As of March 2026, Toronto is not the most expensive city in the world, though it consistently ranks as one of the most expensive in North America. Global cost-of-living indices, such as those from the EIU or Mercer, typically place cities like Zurich, Singapore, New York, and Geneva at the very top of the list. However, for residents, Toronto feels exceptionally costly due to a severe housing affordability crisis. The average rent for a one-bedroom apartment often exceeds $2,500 CAD, and the price-to-income ratio is among the highest in the G7. When you factor in high grocery inflation, mandatory auto insurance, and the "carbon tax" impacts on utilities, the "real-feel" cost of living for a middle-class family is immense. While it may not hit the #1 global spot for a billionaire or an expat on a corporate package, for the average worker, Toronto’s combination of high taxes and astronomical real estate costs makes it one of the most financially challenging urban environments in the Western Hemisphere.