Is $40,000 a Good Salary in Toronto? (2024)

The Verdict

Below Typical Professional Income

At $40,000, your income is below the estimated professional median for Toronto (~$84,000). Budgeting will be essential, especially for housing in central districts.

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Estimated Monthly Allocation

Monthly Net Income

$2,745

Full Tax Breakdown

Housing & Utilities

$1,235

Target 30-35% of net. Covers rent/mortgage in outer districts.

Groceries & Transport

$961

Core living expenses adjusted for Toronto CPI.

Lifestyle & Leisure

$412

Dining out, entertainment, and personal care.

Savings & Investment

$137

Remaining allocation for long-term wealth.

Other salary checks in Toronto

Jump to adjacent income bands to stress test lifestyle outcomes.

8 options

$45,000 $60,000 $75,000 $90,000 $110,000 $130,000 $150,000 $180,000

Compare $40,000 across peer hubs

Same salary, different macro-region hubs to benchmark opportunity cost.

Adjust the Numbers

Salary FAQs

What does $40,000 translate to after tax in Toronto?↓

Our deterministic engine estimates roughly $32,941 per year (~$2,745 monthly) after Canada income taxes and mandatory social contributions for a single filer.

Can $40,000 comfortably cover housing in Toronto?↓

Allocating about $1,235 (45% of monthly net income) keeps housing and utilities within the recommended 30–35% band even in prime districts.

How much could I save earning $40,000 in Toronto?↓

Following the Sovereign allocation, you could direct roughly $137 per month (5% of take-home pay) toward investments, reserves, or debt payoff.