Source: https://www.numbeo.com as of September 18, 2014. Exchange rate of that date was 1 USD = 1.09 CAD

Jobs/ employment

Now Hiring by jay / Wikimedia Commons / CC BY-SA 2.0

When it comes to wages, it really depends on what job you do. Toronto is the place for lower paying jobs: the minimum wage is higher in Toronto – especially in the restaurant industry – and obviously the lower cost of living means you might actually be able to live off the minimum wage in Toronto (albeit barely), unlike in NYC where it is hard to see how anyone could live for $8 per hour. However, when it comes to the better jobs, you are likely going to earn a little bit more in NYC than you will in Toronto, and that doesn’t take into consideration rather huge differences in compensation in certain sectors. It’s still not anywhere close to double (remember the rent is pretty much double) so it’s hard to see how New York comes out ahead in the wage category, unless you a) have a very good job and b) don’t live in the city limits and are willing to handle a brutal commute. All other factors being equal (and they’re not), Toronto comes out ahead because the slightly better salaries in New York cannot makeup for the insane cost of rent.

Another point for Toronto.

The above wage information is taken from the Ontario Ministry of Labour and StatsCan, and the New York State Department of Labor

Taxes

IRS Building [Public Domain]

VS.

Revenue Canada by Xtabi / Wikimedia Commons / CC BY-SA 3.0

Canadian Taxes

Like most countries, Canada imposes a variety of taxes on its residences: income taxes, “consumption” taxes and “wealth” taxes. The most important of the “consumption” taxes is Canada’s sales tax, usually called “Value Added Tax” (VAT) in Europe. Canada has two, a federal and a provincial, and this can get really confusing, but let’s focus on Ontario. In Ontario (and in many other provinces), the VAT or sales tax from both the federal and provincial governments is combined into one and is known as the Harmonized Sales Tax (or HST). HST in Ontario is currently 13%, about average for Canada.

Other Canadian sales taxes are hidden. These taxes are known as “excise taxes” and are responsible for the high prices of certain goods in Canada: alcohol, cigarettes, gas and other products are more expensive in Canada because of hidden excise taxes.

Federal Income Tax in Canada in 2014

• 15% on the first $43,561 of taxable income
•  22% on the next $43,562 of taxable income (on the portion of taxable income between $43,562 and $87,123)
•  26% on the next $87,124 of taxable income (on the portion of taxable income between$87,124 and $135,054)
•  29% of taxable income over $135,054

Source: www.cra-arc.gc.ca

Provincial Income Tax in Ontario in 2014

Tax brackets for Ontario:

•  5.05% on the first $39,723 of taxable income, +
•  9.15% on the next $39,725, +
•  11.16% on the next $429,552, +
•  13.16% on the amount over $509,000.

So to roughly calculate the amount of tax you pay, just add the two percentages together. The tax year in Canada runs from January 1st to December 31st. If you are on a working holiday you will be able to claim most of your taxes back.

American Taxes

The US has similar taxes to Canada, only most American products have lower excise taxes on them.

In New York State, sales tax is complicated, there isn’t one rate. There is a state rate of 4% and then, on top of that, a minimum county or municipality rate of 3%, making the state sales tax rate normally 7% (so just over half of Ontario’s). However, many counties and municipalities have higher sales tax rates. New York City’s sales tax is currently 8.875% (still much lower than Toronto’s) on most items. There are exceptions to sales tax in New York State, namely groceries and prescription drugs, and there are other, odder exceptions such as no state sales tax on clothing purchases less than $110. New York City’s sales tax is about in the middle for US state rates.

Federal Income Tax in the United States

The US federal income tax rules are extremely complicated and we will not go into great detail here. Below is a table of “effective” federal income tax rates in the United States, namely what you are likely to end up paying after various deductions.

So, so far New York is killing Toronto in the tax department.

New York State Income Tax in the United States

Individual States are also allowed to collect income tax and all but a few States do so. Some States impose a “flat” tax (i.e. one rate for everyone). New York State is not one of those States. Instead, New York State imposes different rates for pretty much everybody.

• If your taxable income will be less than USD$65,000, see the rates here.
• If your taxable income will be between USD$65,000 and $102,900, see the rates here.
• If your taxable income will be above $102,900, you get to use a special form.

So obviously it gets complicated from here, but the State tax rate is never particularly high in New York, so NYC is still in the lead.

Municipal Income Taxes

Yes, there are municipal income taxes in the United States, but not in too many places. But New York City is one of thos places. The city taxes income at a rate between 2.907% and 3.648%, depending on income. However, there are a number of tax credits that reduce the effective tax rate for most people.

New York City’s taxes could be the subject of a book, but despite the ridiculously complicated nature of taxes in New York State, we have to give them this one. It’s still better to live in New York City than Toronto when it comes to paying taxes (for most peole).

Transportation

Streetcar by Robert Taylor / Wikimedia Commons / CC BY 2.0	Howard Beach/JFK [Public Domain]
View Toronto Transit Map	View NYC Transit Map

The Toronto Transit Commission operates four subway lines (two of which are rather short) and numerous bus and streetcar (tram) lines. The fare is a flat frate of CAD$3.00 (slightly less if you buy tokens). A few of the streetcar lines are dedicated, but most run with traffic. Most people try to live near the subway lines and so rent and housing prices near the subway is more than other places. Unfortunately, if you live outside of the city itself, you have to use one of the numerous other transit systems in the Greater Toronto Area: Go Transit (the regional train system) or one of the suburbs’ systems, which makes for an awkward and expensive commute.

The Metropolitan Transit Authority is one of the transit wonders of the western world. The MTA is responsible for

• The New York City Subway, which consists of 10 subway lines covering the five boroughs;
• The Long Island Railroad, which serves all of Long Island;
• The Metro North Railroad, which serves northeastern New Jersey, southern New York State, and southwestern Connecticut;
• The Regional Bus Operations, which runs over 300 bus routes;

The subway fare is US$2.50 if you use a “Metro Card” or $2.75 for single rides. There are additional fares for the trains and buses, however the subway system covers a lot greater area than Toronto’s.

Below is the breakdown costs transportation in both cities. All figures in US dollars.

Source:  https://www.numbeo.com. These prices were quoted on the October 2, 2014

So, New York wins this one hands down. As a Torontonian, I’m jealous.

Weather

Ice Storm by Ron Bulovs / Wikimedia Commons / CC BY-SA 2.0

Hurricane Sandy Blackout by David Shankbone / Wikimedia Commons / CC BY 3.0

As you would expect, New York City is slightly warmer than Toronto, on average. Because of its situation on the coast NYC is slightly warmer than other, inland cities at the same latitude as well. Both cities experience extreme humidity for their latitudes at times during the summer. Below are the average temperatures for each month of the year. All temperatures in Celsius (which is not used in the US, by the way).

Sources: Environment Canada and National Oceanic and Atmospheric Association

So at least on temperature, New York is the winner. What about rain and snow? Below are the averages for each month of the year.

New York is far rainier than Toronto, and Toronto is far snowier, which makes sense because Toronto is farther north and further inland. Toronto is darker in the winter and brighter at the height of summer, again because of the latitude difference. You are definitely more likely to suffer from SAD during a Toronto winter, so if that’s a concern, New York is your winner. And despite its rain, New York still gets more sun more of the time than Toronto. So I grudgingly have to give this one to New York.

Alcohol

Mill Street Brew Pub by Themightyquill / Wikimedia Commons / CC BY-SA 4.0

Brooklyn Brewery by Team Dustizeff / Wikimedia Commons / CC BY-SA 3.0

Now to the most important category: booze.

New York and Toronto are home to thriving Craft Beer scenes, so if you like your beer interesting, its a wash between these two cities. New York’s Brooklyn Brewery might be more famous, but both cities boast excellent microbreweries.

Toronto wipes the floor with New York when it comes to wine; though the local wine areas in southern Ontario do not get much respect from the rest of the world, New York wine is on another level of awfulness compared to Ontario, and the local wine areas are closer to Toronto too.

Neith city is home to particularly well known liquor brands.

Now for what matters to those of you who don’t care about quality: the prices!

These prices were quoted on October 2, 2014 from Numbeo. They are averages and the wine prices in particular are a little off. (You can get a decent bottle of wine in Toronto for less than US$13.) But still, Toronto is generally cheaper for a night out at a bar or club but NYC (predictably) has lower beer prices in store. Additionally the drinking age is 19 in Ontario and 21 in New York State. Since people are looking to have a good time, Toronto wins this one on affordability.

Groceries

Big Carrot by Skeezix1000 / Wikimedia Commons / CC BY-SA 3.0

Westside Market by Magnus Back / Wikimedia Commons / CC BY 3.0

Despite Canada’s notorious excise taxes inflating prices in Toronto, it seems as though demand inflates prices in New York City.  Though food in the US is usually cheaper than Canada, this clearly does not apply to America’s biggest city.

Source: www.numbeo.com on October 2, 2014

This one goes to Toronto in a shocker.

Phones

Canada has a reputation for some of the most expensive cell phone rates in the world, but at least judging by a national carrier there isn’t much difference.

These prices were quoted on October 2, 2014. Remember that, especially in the United States, there are many competing companies that may offer better rates. I’d call it a wash but I know that there are better options in the US. New York wins this one.

Time Difference

Toronto and New York are in the same time zone, Eastern Standard Time (-5 GMT). And they both move to Eastern Daylight Time at the same time of year, so there is no difference.

Immigration

[Public Domain]

Immigration Stamp by Pmkpmk / Wikimedia Commons / CC BY-SA 3.0

Working Holidays

Canada has a program geared towards young people temporarily working and traveling in Canada. The rules and regulations for the Canadian working holiday program vary a little bit from country to country, but for the most part applicants must be from certain countries and of a certain age and they must apply before the quota fills.

The United States has a similar program – known as “Cultural Exchange” in the US – but it is extraordinarily complicated in comparison, with 55 separate sub-programs, and the requirement that the applicant is sponsored by either a government body or a private organization. This makes things a lot more difficult.

So clearly if the aim is to visit the country to see what you think, the choice is obvious: Toronto beats New York on simple ease of application, provided you are from a qualifying country.

Immigrating Permanently

Coming to Toronto or New York to live permanently is a lot more difficult as both the Canadian and American immigration systems are complex. Workers usually require job offers and entrepreneurs must meet certain requirements.

Here are the government websites:

https://www.cic.gc.ca (Can)

https://www.uscis.gov (US)

For more information on Canadian immigration programs, check out the following pages:

• • Use this tool to see if you can come to Canada

• List of Canadian immigration programs
• Federal (national) immigration programs
• Canadian Experience Class (CEC)
• Federal Skilled Trades
• Federal Skilled Worker (FSW)
• Live-in Caregiver
• Provincial Nominee Programs (PNP) for Entrepreneurs
• PNP for Skilled Workers
• PNP for Semi-Skilled Workers
• PNP for Students

The US admits over three times as many new permanent residents than Canada but that doesn’t mean there are more jobs for just because the US lets in far fewer new permanent residents per capita: the countries have nearly identical overall unemployment rates at the moment.  The Permanent Residence period in the US, prior to naturalization, is longer than Canada’s (at the moment). So it takes less time to become a citizen if you come to Canada. Toronto wins this one. It’s just far easier to legally come to Canada as an average person than it is to come to the US.

What Do You Think?

So there you have it, Toronto wins by a score of 6-5.

• Travel: tie
• Rent: Toronto
• Jobs: Toronto
• Taxes: New York
• Transportation: New York
• Weather: New York
• Alcohol: Toronto
• Groceries: Toronto
• Phones: New York
• Time Difference: Tie
• Immigration: Toronto

Don’t agree? Vote for which city you would prefer to live in below, or leave us a comment below.

Toronto vs. New York

Canada vs. the US