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Mohamed Oun
Toronto
#45 of 124
North America

Toronto

Canada

Salary & Cost of Living

View purchasing power ranking

How do salaries and expenses in Toronto compare to Luxembourg?

Purchasing Power Comparison

An engineer in Toronto is 28% better off vs in Luxembourg

This shows how far a software engineer's salary goes in Toronto compared to Luxembourg, taking into account both salary differences and cost of living.

Median Salary
$97,823
-$6K (-6%) vs Luxembourg
Based on 2926 data points from levels.fyi
Net Salary
$68,476
+$2K (+3%) vs Luxembourg
Tax Rate: 30%

Community Insights

New

Toronto presents a polarized reality for software engineers: it offers a top-tier urban lifestyle with great food and diversity, but at a severe financial cost. While it remains Canada's undisputed tech capital with a median SWE salary around $98k, the purchasing power ranks low (#46) due to an aggressive cost of living. The city is safer and cleaner than many of its North American counterparts, but the housing affordability crisis (requiring ~8.6 years of net salary to buy a flat) looms large over almost every discussion.

The sentiment is clear: Toronto is a fantastic place to live if you have the money, but a difficult place to build wealth compared to the US. For senior engineers at top-tier companies, the city offers a balanced, vibrant life. For juniors or those at average local companies, the math often doesn't add up, leading to a "grind" just to maintain a baseline standard of living.

Resident Sentiment

The mood among residents is bittersweet. There is a genuine love for the city's vibe, food, and culture, but it is frequently overshadowed by financial anxiety. A common phrase seen is "Toronto is great, but..." followed by complaints about rent and grocery prices. Many transplants from the US or Europe feel the quality of life is good but question if it's worth the financial trade-off. There is a noticeable trend of engineers using Toronto as a stepping stone to gain experience before trying to move to the US for better pay, while others accept the "sunshine tax" (or rather, "culture tax") for the safety and stability Canada provides.

Living Environment

Weather•Safety•Pollution•Events

A quick look at climate, safety, pollution, and tech community compared to Luxembourg.

Rankings

Pollution Score

Top 31%

#38

of 124 cities

37.5/100

Current value (lower is better)

Purchasing Power

Middle of the pack

#45

of 124 cities

Net Income

Middle of the pack

#46

of 124 cities

$68,476/yr

Current value

Housing Affordability

View affordability ranking

How affordable is housing for a software engineer in Toronto compared to Luxembourg?

Avg. Property Price
$7,815 / m²
27% cheaper than Luxembourg
View detailed property prices on Numbeo

Salary Converter

Enter your annual gross salary (before taxes) to see what you would need to earn in Toronto to maintain the same standard of living.

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Cost of Living
20% cheaper than Luxembourg
View detailed cost breakdown on Numbeo

Top Paying Companies in Toronto

Facebook logo
Facebook
Block logo
Block
Uber logo
Uber

The Good

  • Major Tech Hub: Home to significant offices for Big Tech (Amazon, Google, Meta, etc.) and a vibrant startup ecosystem, offering career growth for senior talent.
  • Work-Life Balance: The engineering culture is often described as more relaxed and "chill" compared to the intense grind of Silicon Valley or NYC.
  • World-Class Diversity & Food: Residents consistently praise the incredible food scene and multicultural environment, calling it one of the most diverse cities in the world.
  • Urban Lifestyle: A highly walkable downtown with decent public transit (TTC, GO Train), allowing for a car-free lifestyle in the core.
  • Safety: Generally felt to be safer than comparable major US cities, with less violent crime and a greater sense of personal security.
  • Proximity to US Hubs: Short flights to NYC, Boston, and Chicago, making it easy to travel for business or leisure while staying in Canada.

The Bad

  • Severe Housing Crisis: The cost of housing is disproportionately high relative to local salaries; buying a home is out of reach for many, even on tech salaries.
  • Lower Purchasing Power: A recurring complaint is the "half the pay, double the cost" dynamic when compared to US tech hubs like Austin or Seattle.
  • Oversaturated Entry-Level Market: The job market is extremely competitive for juniors and new grads, with many expressing feelings of defeat and struggle to find work.

The Verdict

You'll love it if...

Senior engineers or specialists who have secured offers from Big Tech companies or high-paying startups. It is also ideal for those who value safety, diversity, and urban walkability over maximizing their savings rate. Canadians seeking the biggest domestic career opportunities without leaving the country will find their best options here. Additionally, US remote workers earning USD can live like royalty here while enjoying the Canadian lifestyle.

Skip it if...

Junior developers and new graduates without a signed offer will face a brutal, oversaturated market. Those solely focused on FIRE (Financial Independence, Retire Early) or maximizing purchasing power should avoid Toronto, as the tax-to-income ratio and housing costs will severely hamper savings compared to the US. Similarly, anyone who strongly dislikes cold winters or relying on public transit/long commutes should look elsewhere.

Updated 11/29/2025

Weather3.4/10-13% vs Luxembourg
Safety56-22%
Pollution38+84%
Events6+6
3.4/10TechCities weather score vs 3.9/10 in Luxembourg

0–10 composite (higher is better) combining temperature comfort, sunshine hours, rainy-day count, and humid days. See methodology for weighting and data sources.

Weather snapshot

Average High
12°C(vs 13°C in Luxembourg)
Average Low
5°C(vs 6°C in Luxembourg)
Sunshine Hours
2,066h/yr+432h/yr(+26%)
Hottest Month High
25°C(vs 23°C in Luxembourg)
Coldest Month Low
-8°C(vs -1°C in Luxembourg)
Rainy Days
76/yr-22/yr(-23%)

Community & Quality

Toronto community pulse

Toronto has 6 Luma events listed.

Luxembourg has no listed Luma events for comparison.

Community Events

Middle of the pack

#47

of 124 cities

6 events on luma

Current value

Tax Rate

Middle of the pack

#52

of 124 cities

30%

Current value (lower is better)

Safety Index

Middle of the pack

#58

of 124 cities

56.4/100

Current value

Home Affordability

Middle of the pack

#74

of 124 cities

≈9.1 yrs to buy 80m²

Current value

Cost of Living

Middle of the pack

#75

of 124 cities

56/100

Current value (lower is better)

Comfortable Weather

Bottom 28%

#91

of 124 cities

34/100 weather score

Current value

SWE Affordability
9.1 years
3.8 years quicker than Luxembourg
High Tax Burden: High income taxes combined with a 13% sales tax (HST) significantly reduce disposable income compared to US peers.
  • Traffic & Commute: For those living outside the core to save money, the commute times and traffic congestion are notoriously bad.
  • Winter Weather: The long, grey winters and cold temperatures are a frequent source of misery for those not accustomed to the climate.
    • Muggy Days
    19/yr+18/yr(+3680%)
    Cloud Cover
    48%(vs 58% in Luxembourg)