Alberta vs. Ontario: What to Know BEFORE Moving

Would you rather live in Ontario or Alberta? In this provincial showdown, we cut through the fluff and provide data-driven insights into the cost of living, taxation, job opportunities, and broader lifestyle considerations. While Ontario is home to the nation's capital and largest city, Alberta offers a lower cost of living and an ever-growing economy. Read on to settle the Alberta vs Ontario debate once and for all. 

Main Comparisons

• Alberta offers a more affordable cost of living than Ontario, including lower housing costs, utility expenses, and transportation costs. It also has significant tax advantages, such as no provincial sales tax and lower income tax rates.
• Alberta boasts higher average incomes and a strong job market, highlighted by a diverse range of industries and an employment growth rate that surpasses Ontario's. These factors indicate a promising economic future for the province.
• While both Alberta and Ontario offer a wealth of cultural and recreational activities, Alberta's real estate market presents compelling investment opportunities without the limits on rent increases and additional tax benefits not available in Ontario.

Cost of Living: Ontario vs Alberta

When considering a move from Ontario's bustling cities to Alberta's serene landscapes, one must consider the cost of living. After all, your dollar stretches differently depending on where you live. Alberta shows cheaper living expenses in real estate, taxes, and utilities.

Housing Costs

In Ontario, the Greater Toronto Area witnessed an average home price of over a million dollars in early 2024, while the market trend showed a dip due to increased inventory and stagnating sales. Even with a projected decrease, Ontario's home prices are expected to hover significantly above pre-pandemic levels.

Alberta's real estate is on an upward trajectory, with homes in Calgary and Edmonton experiencing substantial annual increases in prices, signalling a robust market. The booming market indicates more affordable housing options, starkly contrasting Ontario's fluctuating but still high prices. The promise of more affordable living in Alberta, coupled with a lower tax burden, raises residents' purchasing power. This financial breathing room creates a lower barrier of entry for first-time buyers in Alberta than they may find in Ontario.

Utilities and Other Necessities

When it comes to monthly utilities, Albertans enjoy a lower average cost of $266.41, excluding electricity, for services like water, gas, and internet. This figure contrasts with Ontarians, who face average utility bills of $339.49. As one of the sunniest provinces, Albertans can save extra by adding home solar panels.

Transportation Expenses

In Ontario, public transportation can take a bigger bite out of your wallet with a monthly bus pass averaging around $150, while Alberta presents a more affordable option at just over $100. Considering the longer commute times faced by Torontonians, Alberta's lower transportation expenses and shorter travel times offer yet another reason to consider calling this province home.

Taxes in Alberta vs Taxes in Ontario

Known for having the lowest tax rate in Canada, Alberta stands out with no provincial sales tax and lower income tax rates. This fiscal advantage positions Alberta as a haven for those seeking to keep more of their hard-earned money. It's a province where the tax burden doesn't loom as large over your finances, allowing for a lighter financial load and more room for personal and professional growth.

Income Tax Rates

Diving deeper into the specifics of income tax reveals that Alberta's rates are set to entice, ranging from 10% to 15%. Even at the highest income bracket, Albertans face a tax rate of 15%, starkly lower than Ontario's 20.53% when accounting for the surtax. This significant tax relief is further sweetened by Alberta's higher basic personal amount, allowing residents to earn more before the total income tax kicks in, making Alberta pay more attractive.

Alberta's corporate income tax is set at an inviting 8% for businesses, significantly lower than Ontario's 11.5%. This differential benefits individual taxpayers and fosters a corporate environment more conducive to growth and investment. Consequently, Alberta's lower taxes offer a persuasive argument for individuals and companies considering moving to the province.

Provincial Sales Tax

While income tax is significant, sales tax cannot be overlooked. Alberta's lack of a Provincial Sales Tax (PST), charging only the 5% federal Goods and Services Tax (GST), stands in sharp contrast to Ontario's Harmonized Sales Tax (HST) of 13%. This makes Alberta an attractive destination for consumers and investors alike, with the lower total sales tax rate reducing the cost of goods and services and enhancing the overall economic appeal of the province.

Job Opportunities and Average Wages

In terms of employment, Alberta shines with the highest average income among Canadian provinces, suggesting a solid job market and robust economic performance. The landscape of job opportunities is ever-changing, and Alberta's focus on diverse sectors, including healthcare and infrastructure, hints at a future teeming with potential for job seekers.

Top Industries in Ontario and Alberta

Ontario boasts substantial industries like gasoline and petroleum, commercial banking, and manufacturing, which contribute to a significant portion of the province's GDP. This economic diversity is mirrored in employment, with these sectors offering jobs to millions. However, Alberta is not to be outdone, with its revenue-driving industries of oil drilling and gas extraction, oil and gas field services, and commercial banking.

The biggest cities in Alberta and Ontario offer abundant job opportunities across many sectors. Calgary's job market thrives, while Ontario's biggest city, Toronto, hosts a competitive job market with an unemployment rate of 7.5%. These job opportunities, coupled with the average wages in each province, are critical factors for those considering where to build their careers.

Employment Prospects

The overall health of a job market is perhaps best reflected in unemployment rates. With Alberta at 6.3% and Ontario at 7.5%, both provinces sit relatively close on this scale. However, Alberta's annual employment growth rate of 3.4% surpasses the national average and outpaces Ontario's 2.4%. This growth signifies a robust demand for labour and a promising future for job seekers in Alberta.

Education and Quality of Life

Ontario and Alberta each offer a range of public schools (with Catholic and French immersion options available) and private schools. One big difference is that Alberta is the only province with charter schools. Whether you're choosing schools in Calgary or Toronto, all Canadian residents have access to the education of their choice. 

Higher Education Institutions

Ontario is home to internationally acclaimed universities, with the University of Toronto leading the pack as one of the country's top educational institutions. McMaster University and others within Ontario also enjoy strong global rankings, reflecting the province's commitment to excellence in higher education. These institutions offer a wealth of programs and research opportunities and attract a diverse international student body, enriching Ontario's cultural and intellectual landscape. 

Universities in Alberta include:

• University of Alberta
• University of Calgary
• University of Lethbridge
• MacEwan University
• Mount Royal University

Climate & Outdoor Activities

Climate and outdoor activities are integral to the Canadian lifestyle, and both Alberta and Ontario offer various options to embrace the great outdoors. Whether it's the chilly winters common to these provinces or the unique recreational opportunities they provide, life in Canada is inevitably tied to its natural environment. Alberta's proximity to the Rocky Mountains and British Columbia, as well as Ontario's parklands and waterways, each offer distinct experiences for Alberta residents and visitors alike.

Weather Patterns

Ontario experiences a range of temperatures due to its four distinct seasons, with variability across its vast geography. The province's weather includes:

• Rainy springs
• Cool falls
• Harsh winters
• Hot and humid summers in southern Ontario

In Alberta, the continental climate brings challenges, with severe winters occasionally mitigated by warm Chinook winds. The changing weather patterns in both provinces profoundly impact daily life and outdoor activities.

Outdoor Recreation

Alberta is a paradise for outdoor enthusiasts, with activities like skiing, snowboarding, and hiking set against the backdrop of the stunning Rockies. The province celebrates winter with events like the Ice Magic Festival, embracing the season's beauty and adventure.

Ontario offers a different kind of outdoor charm with its picturesque lakes and rivers, perfect for water sports, and an extensive network of trails for hiking and cycling. Both provinces share a love for sports and the outdoors, with activities that cater to every preference.

Things to Do

 Alberta and Ontario are no strangers to the arts, hosting a plethora of events and attractions catering to a wide array of interests. Whether it's the cosmopolitan allure of Toronto's diverse cultural scene or the vibrant arts community in Calgary, there are plenty of opportunities to indulge in the provinces' rich cultural tapestries.

Arts and Culture Scene

In Alberta, Calgary's attractions stand out with an array of galleries, museums, and performing arts companies, showcasing the province's dedication to cultural enrichment. Ontario, with institutions like the Royal Ontario Museum and the McMichael Canadian Art Collection, offers residents and visitors an in-depth exploration of art, culture, and history from around the globe. The Stratford Festival further highlights Ontario's commitment to the performing arts, drawing audiences from far and wide.

Major Events and Festivals

The festivals in Alberta and Ontario are vibrant and diverse, reflecting each province's cultural fabric. Alberta is home to events like the Calgary Stampede and Edmonton's Heritage Festival, celebrating the province's Western heritage and multiculturalism.

Ontario's major events, such as Canada Day celebrations and Mardi Gras Orillia, create a sense of unity and festivity that resonates throughout the province.

Would You Rather Live in Ontario or Alberta

It's clear that both provinces can be fantastic places to live. Alberta's vibrant culture, scenic beauty, and real estate opportunities make it an attractive choice. From the majestic Rockies to the warm community spirit, Alberta provides a compelling case for anyone considering a change of scenery. Whether for economic, educational, or lifestyle reasons, the province beckons with open arms, offering a quality of life that's both enriching and attainable.

Frequently Asked Questions

Why do people move from Ontario to Alberta?

People often move from Ontario to Alberta due to Alberta's more favourable tax environment and lower housing prices.

How cold is Alberta compared to Ontario?

Alberta tends to be colder than Ontario. This is because Alberta is further north and has a more continental climate, while Ontario has a more temperate climate.

Are taxes higher in Alberta or Ontario?

Taxes are lower in Alberta compared to Ontario.

How do housing costs in Alberta compare to Ontario?

Housing costs in Alberta are currently experiencing a continuous positive change year-over-year. At the same time, Ontario's market is more volatile, with higher housing costs and a trend towards decreasing prices from previous years.

If you're interested in Alberta real estate, contact Justin Havre Real Estate Team with eXp Realty with Calgary Homes at (403) 217-0003 to get in touch with a local real estate agent who can help you find your Alberta dream home today.