U.S. or Canada: Which Country Is Best to Call Home?

This question is part of an age-old debate between the two largest nations of North America. The societies of both Canada and the United States hold the view that their own country is the better place to live. Generally, neither country knows all the facts about what the other country has to offer. When considering establishing your principal residence, it is a good idea to take a deeper look at both countries. So, which is better: Canada or the United States?

Economics

Canada’s 2022 gross domestic product (GDP) was $2.14 trillion, while the United States reported a GDP of $25.44 trillion. While the U.S. is a much larger superpower in terms of the economy, the incomes of citizens are much more closely aligned. The U.S. Census Bureau reports the median income for U.S. families at $74,580. In Canada, the median income was 68,400, according to the latest report.

Taxes can also be a key differentiator for the two countries. While U.S. federal income tax brackets span from 10% to 37% for individuals, in Canada, tax rates are between 15% and 33%. However, in the U.S., singles making over $44,725 annually pay 22% in taxes, whereas Canadian singles making less than $53,359 only have to pay 15% in taxes.

According to the website numbeo.com, the cost of living is higher for Americans than for Canadians. The Numbeo Cost of Living Index estimates that consumer prices in Toronto are about 26.6% lower than in New York City, and Toronto's rent price is approximately half the price of renting an apartment in New York. This Index looks at rent, groceries, restaurant prices, and local purchasing, which are all higher collectively in the United States ($ in USD).

Family Benefits

Spending time with children represents enormous financial needs of parents. How does each country support new mothers and fathers?

Canada

Canada has mandated leave and benefits. The government supports this through provincial employment insurance. The program includes both mothers and fathers. Benefits paid could be up to $638 per week.

The U.S.

The United States is less progressive in this area. The U.S. offers some support under the Family and Medical Leave Act (FMLA). FMLA can allow for 12 weeks of unpaid leave. Individual states also have their own laws.

Healthcare

The United States has the highest healthcare costs in the world. Per capita, individuals can expect to pay approximately $11,582 annually. This compares to an annual average of $8,740 for Canadians.

Education

University can be another large expense in a person's life and puts many students deep in debt. The United States tops the list for countries with the most expensive university costs, with Canada coming in sixth. The average annual tuition at a ranked, in-state public college in the U.S. is estimated at $11,260, while the average annual tuition at a private college was $41,540.

Climate and Culture

Both the United States and Canada are large countries spanning from the Pacific Ocean to the Atlantic Ocean coasts, meaning their climate and culture vary greatly by state or province. As a whole, the United States is more densely populated and warmer than Canada, being nearer to the equator.

The Bottom Line

The United States is a larger global superpower and as such, Americans can expect to pay more in nearly every aspect of living. People in the U.S. and Canada generally have similar annual incomes. However, taxes are reportedly lower in the U.S., which can offer Americans a slight take-home pay advantage.

In the area of social benefits, Canadians have a somewhat stronger government-mandated family program with greater government funding for maternity leave through employment insurance programs. Canadians can also expect to pay less for healthcare costs. Furthermore, educational university costs are also lower (on average) in Canada, which could be a final factor that tempts many citizens across the border when considering long-term family planning.