Ontario's cheapest cities were revealed and you could save $26,000/year by leaving Toronto

If you've been wondering about the cheapest places to live in Ontario or where the best cities to live in Canada might be — especially for your wallet — this new report has some answers.

A new cost of living comparison from personal finance platform MoneySense breaks down how much income you'd need to live comfortably in 36 of Ontario's biggest cities, and the differences are wild. It turns out you could save over $26,000 on cost of living in Toronto by moving to one of the province's cheaper spots.

The report ranks the most and least affordable cities across the province based on how much it costs a single renter to cover essentials like housing, food, transportation, clothes and leisure — plus savings, taxes and a little extra cushion for unexpected stuff.

It uses data from CareerBeacon to estimate the basic annual cost of living in every city with a population of 50,000 or more, then roughly doubles that number to account for taxes and other payroll deductions, savings, and a small "margin of comfort." This results in an annual figure residents need to earn for a "comfortable" life in each city.

So, how much do you really need to earn to feel financially safe in Ontario? Let's just say it depends a lot on where you live — and spoiler alert: it's actually not even Toronto that tops the list.

The most expensive cities in Ontario

Unsurprisingly, the priciest cities are mostly in the GTA. But what might surprise you is that Toronto itself isn't even in the top four.

According to MoneySense, Richmond Hill takes the number one spot — not just in Ontario, but in all of Canada. To live comfortably there, you'd need to pull in about $106,536 a year.

Milton and Whitby are also second and third in all of Canada, respectively, beating out even the priciest spots in Metro Vancouver. Meanwhile, Toronto, which was fifth most expensive in Ontario, actually only came in ninth overall in the country.

Here are the top 10 most expensive cities in Ontario and the incomes you'd need to be comfortable:

1. Richmond Hill — $106,536/year
2. Milton — $106,392/year
3. Whitby — $105,624/year
4. Mississauga — $99,816/year
5. Toronto — $98,880/year
6. Markham — $98,016/year
7. Vaughan — $96,960/year
8. Burlington — $96,024/year
9. Guelph — $91,632/year
10. Oakville — $91,536/year

All 10 of these cities are over the $90,000 mark, meaning you'd need to be earning well above the national average just to feel financially stable there — not exactly great news if you're on a budget.

Ontario cities with mid-range affordability

In the middle of the pack, you'll find a mix of mid-sized cities, suburban hubs and growing regional centres. These places still require a decent income to live comfortably, but they won't necessarily force you to break six figures.

Here are Ontario's mid-range cities, ranked by their comfortable income estimates:

11. Barrie — $91,368/year
12. Kitchener — $90,888/year
13. Cambridge — $89,928/year
14. Belleville — $89,376/year
15. Oshawa — $89,256/year
16. Ottawa — $89,112/year
17. Hamilton — $88,344/year
18. Waterloo — $87,096/year
19. Windsor — $87,024/year
20. Pickering — $86,976/year
21. North Bay — $86,904/year
22. London — $86,832/year
23. Ajax — $86,520/year
24. St. Catharines — $84,792/year
25. Peterborough — $84,744/year
26. Welland — $84,720/year

This group offers a decent blend of access to major job markets, transit and amenities without the steep price tag of GTA hotspots.

Ottawa, in particular, is notable for being the nation's capital but still landing mid-pack when it comes to affordability.

If you're eyeing a move, these cities might offer a decent balance between affordability and access to bigger job markets — especially if remote work is on the table.

The cheapest places to live in Ontario

If you're looking to stretch your paycheque, the bottom 10 cities on the list could offer the best value for your money. These are the most affordable cities in Ontario based on what it costs a single renter to live comfortably.

27. Aurora — $84,504/year
28. Thunder Bay — $83,400/year
29. Brampton — $83,304/year
30. Niagara Falls — $82,824/year
31. Kingston — $82,488/year
32. Newmarket — $82,224/year
33. Greater Sudbury — $81,480/year
34. Brantford — $80,064/year
35. Sarnia — $74,208/year
36. Sault Ste. Marie — $72,744/year

There's a $33,000 gap between Richmond Hill at the top and Sault Ste. Marie at the bottom — which is a huge difference in what it takes to feel financially comfortable.

And just because these cities are more affordable doesn't mean you're sacrificing quality of life. Cities like Sudbury and Kingston offer strong infrastructure, schools and health care, all while letting your budget breathe a little easier.

What it really takes to feel comfortable in Ontario

MoneySense explains that the "comfortable income" is based on single renters, but the same math applies for households too — just scale it up. So, a two-income family in Ottawa or Hamilton might need around $178,000 to hit that comfort zone, while that same family in Sault Ste. Marie could get by comfortably on around $145,000.

But the numbers paint a pretty stark picture, especially for lower-income earners.

Ontario's minimum wage is currently $17.20 per hour, set to rise to $17.60 on October 1. Even at that higher rate, a full-time worker putting in 40 hours a week would earn just $36,608 a year. That's not even half of what it takes to live comfortably in Richmond Hill or Milton.

In fact, to hit the lowest "comfortable" income on the list — $72,744 in Sault Ste. Marie — a minimum wage earner would need to work 80 hours a week, every week of the year. That's basically two full-time jobs, just to get by.

Still, if you're feeling the pinch or considering a move, it might be time to think beyond the GTA. There's a huge range in how far your paycheque can stretch depending on where you live — and in some cities, your budget could go a whole lot further without sacrificing your quality of life.

To find out where Ontario's cities rank at a national level, you can read the Canadawide story here.

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