Living wage in Toronto reaches $27.60 an hour in 2026, report finds

TORONTO — A new economic report says workers in the Greater Toronto Area (GTA) need an income of at least $27.60 an hour to cover basic living expenses, as housing, food and child care costs continue to rise.

That amount is about $9.65 an hour above Ontario's legal minimum wage, reflecting a growing gap between the income of low-wage workers and everyday expenses.

The Ontario Living Wage Network released its 2026 results on Monday, Nov. 9, stating that the GTA remains the most expensive region in the province to live in.

$27.60 an hour to cover needs

Toronto's living wage rose from $27.20 in 2025 to $27.60 in 2026, an increase of 40 cents an hour.

The living wage differs from the legal minimum wage. It represents the estimated income needed to cover basic needs and to take part reasonably in social life.

Ontario's minimum wage rose on Oct. 1 to $17.95 an hour.

Based on a 35-hour work week, the new living wage amounts to about $50,232 a year before taxes, compared with $32,669 at the minimum wage.

This is an illustrative calculation, not a fixed salary that guarantees financial comfort for every household.

Rent takes the largest share of income

The report's figures show that a family of four needs about $34,802 a year to cover housing costs in a three-bedroom apartment.

That amount includes rent, electricity and tenant insurance, or roughly $2,900 a month.

A person living alone in a one-bedroom apartment may face estimated housing costs of $25,501 a year.

The figures show the pressure housing puts on budgets, especially for people who do not share rent with others.

What households spend on food and child care

Estimated annual grocery costs in the GTA are about $12,914 for a family of four, compared with $4,469 for a person living alone.

Child care costs are added to that. They average about $21.05 a day in Ontario under the study's assumptions.

In the GTA, child care costs reach about $12,565 a year for a family of two parents and two children, compared with about $7,062 for a single-parent family.

The calculations also include clothing, transportation, communications, health care and some basic social expenses.

Wages needed in Ontario regions

The results show the living wage rose in all 10 regions covered by the study, although the increases varied from one region to another.

• Greater Toronto Area: $27.60 an hour
• Grey, Bruce, Perth, Huron and Simcoe: $24.75 an hour
• Ottawa: $24.10 an hour
• Guelph, Waterloo, Dufferin and Wellington: $23.40 an hour
• Hamilton: $23.10 an hour
• London, Elgin and Oxford: $21.15 an hour

Ottawa recorded the largest relative increase over the year, at three per cent, while the average living wage in Ontario rose 1.6 per cent.

How the required income was calculated

The researchers used three household models: a single adult living alone, a single parent with one child, and a family of two working parents and two children.

They factored in taxes, government benefits and the costs of basic needs, then calculated a weighted average reflecting the circumstances of different households.

The estimates do not necessarily include all personal obligations, such as repaying large debts or saving for a home or retirement.

Will the new wages be mandatory?

The published figures are not a government decision to raise the minimum wage, and they do not require businesses to pay $27.60 an hour.

However, some employers voluntarily commit to paying a living wage as part of initiatives aimed at improving employees' financial stability.

The network says the current minimum wage is not enough to cover basic living expenses in any of Ontario's 10 regions.

The findings show that a full-time job in Toronto is no longer a guarantee of covering basic needs, particularly as rents and the costs of food and child care continue to rise.