You should move to the province of Ontario for many reasons. With its scenic natural landscape and friendly and welcoming people, Ontario is a great place to live. The province also has plenty of opportunities for employment and entrepreneurship. So what is a good salary in Ontario?
What Is a Good Salary in Ontario?
A good salary in Ontario ranges between $40,000 to $60,000 per year. This is within the range of the average salary in Canada, which is $44,850 per year or $23 per hour. However, a good wage for the average person will depend on many factors, such as the cost of living, industry, and experience.
Given that Ontario is one of the most expensive provinces in Canada, you might have to earn a little more than the median. Its cost of living stands at around $2,014, 1.17 times more expensive than the national average. So, if you live in Ontario, you will have to earn way more than the minimum wage.
Factors That Determine a Good Salary in Ontario
The amount you earn in Ontario will obviously be informed by many factors. As of 2021, the median hourly wage for all occupations in Ontario was 30.03 Canadian dollars. However, this can vary greatly depending on the job and qualifications required.
Some common factors that will determine whether your earnings are good include:
- Living Expenses
- Average Industry Salaries
When determining a reasonable average salary in Ontario, it is essential to consider living expenses. Living expenses include rent or mortgage, groceries, and commuting costs. These costs can vary greatly depending on the location, with major cities like Toronto and Ottawa having higher living costs than small towns.
For example, the average rent for an apartment in Ontario is $2,499. This can be quite high, especially for those living in major towns where housing is in high demand and expensive. Transportation costs can also be costly for people who live in major cities and need to commute to work daily.
According to recent data from Victoria Transport Policy Institute, most people in Ontario spend a maximum of $100 annually on public transportation. Food and groceries in Ontario are reasonably priced. Your weekly grocery expense is around $200, which is within the national average.
Average Industry Salaries
The average industry salary in Ontario can vary greatly depending on the industry and profession. Some industries and professions offer higher salaries, while others stick to the minimum wage. The medical profession is one of the highest-paying in Ontario. For example, the average salary for a physician is $253,843 per year in Canada.
This is significantly higher than the average salary in Ontario, and it is considered one of Canada’s best-paid professions. On the other hand, some industries and professions tend to offer lower wages. For example, jobs in the manufacturing industry, such as sewing machine operator, are typically lower paying.
A good salary in Canada for a sewing machine operator is between $22,514 to $41,546 per year. This is significantly lower than the average salary in Ontario, and it is considered to be one of the minimum wage-paying jobs in Canada.
The average salary in Ontario is $52,000. However, this might be different in your city. For example, the median salary in the Toronto area is $55,524, while the median salary in Ottawa is $37,235 per year, according to Talent.com
The compensation can also vary based on where you work and your specific role. For example, the estimated median pay for an administrative assistant in Ontario is $57,355, while the median salary for the same role in Ottawa is $57,037, according to Indeed.com.
Generally, positions in the technology industries are higher-paying in major towns like Toronto and Waterloo. If you want to maximize your salary potential, avoid working in a location that mostly pays around the minimum wage.
The level of education and qualifications you have can affect your earning potential and job opportunities in Canada. People with higher education and specialized qualifications can negotiate higher salaries than those with just primary education and skills.
Entry-level positions typically offer lower salaries, with starting salaries averaging at $35,178 per year, while the more skilled workers make up to $90,274 per year. This is because experienced workers have higher skills and knowledge in demand in specific industries.
The minimum wage in Ontario stands at $15.50 per hour as of October 2022. This mostly applies to professionals who do not require formal education, such as bartenders. Students, on the other hand, can earn as low as $14.23 per hour.
Canada has a progressive tax system, meaning that the more money you make, the higher percentage of taxes you will pay. In Ontario, two types of taxes can affect your salary: federal and provincial taxes.
The federal tax rate ranges from 15% to 33%, while the provincial tax rate ranges from 5.05% to 13.16%. In addition to these income taxes, you may also have to pay taxes on goods and services, such as the Harmonized Sales Tax (HST), which is 13% in Ontario.
It’s important to note that tax deductions, credits, and exemptions can reduce the amount of taxes you owe. For instance, there are deductions for things like RRSP contributions, charitable donations, medical costs, and credits for things like tuition and education.
Lifestyle and Entertainment
Entertainment and lifestyle do not typically directly impact your salary in Canada. However, your choice of lifestyle and entertainment can impact your overall costs, which may affect your financial situation.
On average, a movie ticket in Ontario can cost around $13. On the other hand, a beer at a pub or restaurant can cost around $7. The beer cost at a liquor store depends on the brand and can range from $2 to $6.
To minimize expenses, decide which entertainment and lifestyle expenses are most important to you and prioritize them in your budget. When planning entertainment and lifestyle activities, take advantage of deals and discounts, such as coupons, group rates, and package deals.
Is $62,000 a Good Income in Ontario?
Yes, $62,000 is generally a good income in Ontario. With this salary, you can afford most services and live a comfortable lifestyle. However, it’s worth noting that the cost of living can vary depending on the individual’s lifestyle and expenses.
What Is the Average Salary in Canada?
According to data from Salary Explorer, as of 2021, the median salary in Canada is around 134,000 CAD per year. However, it’s worth noting that this is an average, and the salary can vary based on various factors such as location, industry, and the individual’s experience and position.
Is $65,000 a Good Salary in Toronto?
Yes, $65,000 a year is a good salary in Toronto. The average salary in Toronto is around $62,050, which is 14% of the national average. This means that if you make $65,000 in Toronto, you will make 4.8% more than the average worker in Toronto and your total take-home pay will be around $49,279.
A suitable salary in Canada can vary depending on factors such as cost of living, personal financial goals, and employer’s pay scale. Generally, you can earn a salary of around $40,000 to $60,000 per year in most areas of Ontario. Employers in larger cities such as Toronto typically offer higher median income than other regions.