Here's How Much You Need To Make To 'Thrive' In Toronto On A Single Salary
The report looked at two scenarios.
The Toronto skyline. Right: A person holding Canadian dollar bills.
A new report is highlighting how much a single working-age adult living in Toronto needs to make to "thrive" in the city.
The Wellesley Institute released its "Thriving in the City" framework which is meant to identify what is required for a person living in the Greater Toronto Area to reach a state of "physical, social and psychological well-being."
The institute says the goal is to provide information about the gap between what "people have and what they need to thrive."
According to the report, the annual cost of thriving for a single, working-age adult (between 25 and 40 years old) in Toronto is estimated to be $61,654 after taxes. In Mississauga, it costs $83,680 after taxes.
"This is far above the earnings of a minimum-wage ($16.55 per hour), full-time worker (i.e., 35 hours per week), which is $25,994 after taxes," the report reads.
"The highest costs are associated with fundamental aspects of life, such as shelter, transportation and savings."
In its report, the institute presented an estimate of the household income required for single, working-age adults to thrive in both Toronto and Mississauga.
The two scenarios examined by the institute include a person who rents a one-bedroom apartment in Toronto and does not own a car and a person who owns a one-bedroom condo in Mississauga and owns a car as well.
Researchers then broke down the costs for several components like shelter, savings, and transportation.
For the person living in a rental in Toronto, the annual cost of rent is estimated to be $21,008 ($1,750.70 per month). In Scenario B, the cost goes up to $36,228 per year, which includes mortgage payments, utilities, condo fees and property taxes.
As for annual transportation costs the average came to $2,877 for a transit user in Toronto and $11,193 for a car owner in Mississauga.
Food and nutrition costs came to $5,310 per year and health care was calculated at an average of $2,436 per year.
The report also included the cost of "social participation" for items like books, gifts, smartphone plans, domestic and international travel and occasional social outings. The average cost of that was calculated to be $7,356 per year.
The Wellesley Institute's findings are a reflection of the current expenses in the GTA using publicly available data. However, they could differ for each person depending on the type of vehicle they own, social outings, or vacations they go on.
"While it is possible to adjust personal expenses such as travel or fitness memberships, such adjustments are likely to have only a minimal effect on the total annual expenses," the report reads.
"In addition to increasing the minimum wage, and wages overall, finding ways to reduce individual financial burdens would bridge the income gap in the GTA."
This article's cover image was used for illustrative purposes only.