In a country where affordability feels increasingly out of reach, there are still pockets where Canadians can build a comfortable life on a modest income. While $40,000 a year might not stretch far in Toronto or Vancouver, smaller cities and towns across Canada offer low housing costs, affordable amenities, and slower-paced lifestyles that allow every dollar to go further. Here are 21 places in Canada where you can live on less than $40k a year:
Moncton, New Brunswick
Moncton is one of Atlantic Canada’s fastest-growing cities, yet it remains among the most affordable urban centers in the country. With average rents well below the national average and a robust rental market, residents can live comfortably on under $40K. Groceries and utilities are cheaper than in major cities, and public transit provides low-cost commuting options. The city also offers a lively arts scene, growing job opportunities, and easy access to beaches.
Saint John, New Brunswick
Saint John combines maritime charm with one of Canada’s lowest costs of living. Housing remains exceptionally affordable, with some of the lowest average home prices in the country, making it possible for single earners and families to thrive on less than $40K a year. The city has seen revitalization in recent years, offering cultural attractions, affordable dining, and outdoor activities along the Bay of Fundy. While wages may be modest, careful budgeting makes Saint John one of the best-value cities in Canada.
Charlottetown, Prince Edward Island
Charlottetown offers the best of island living with affordability still within reach. While the city has grown in popularity, housing remains cheaper than in most urban centers. Rent and daily expenses are manageable for those earning under $40K, particularly when combined with the province’s slower pace of life. With beaches minutes away, fresh local food, and a thriving arts and culture scene, Charlottetown proves that you don’t need a large income to enjoy a high quality of life.
Corner Brook, Newfoundland and Labrador
Nestled on the west coast of Newfoundland, Corner Brook provides small-city amenities at a fraction of big-city costs. Housing prices are far lower than the national average, and residents benefit from affordable groceries, local markets, and outdoor recreation right at their doorstep. For under $40K a year, individuals can live comfortably and enjoy access to hiking, skiing, and the beauty of Gros Morne National Park.
Summerside, Prince Edward Island
Summerside offers a lower cost of living than Charlottetown, making it an excellent option for those looking to stretch a modest income. Housing is especially affordable, with rental and ownership options far below national averages, while utilities and groceries are budget-friendly, and the city’s compact size reduces commuting costs. Summerside also offers scenic waterfront views, a growing cultural scene, and plenty of outdoor recreation.
Cape Breton, Nova Scotia
Cape Breton has long been a haven for those seeking affordable living in a stunning natural setting. Housing costs are among the lowest in Nova Scotia, many properties come with large lots and ocean views, and living expenses like groceries and utilities are manageable, especially compared to mainland urban centers. With vibrant Celtic culture, rich history, and endless outdoor activities from hiking to kayaking, residents can thrive on less than $40K a year while enjoying one of Canada’s most scenic regions.
Fredericton, New Brunswick
Fredericton offers both affordability and culture, making it an ideal choice for budget-conscious individuals. Rental prices are low compared to the national average, and daily expenses remain modest, while a walkable downtown and short commutes help cut transportation costs. The city also boasts strong cultural institutions, festivals, and easy access to nature. With a growing economy driven by government, education, and tech, Fredericton provides both opportunity and affordability, ensuring that living on under $40K a year is not only possible but comfortable.
Thunder Bay, Ontario
Thunder Bay offers affordability rarely found in Ontario, where housing prices are among the lowest in the province, and rental options are accessible to those on modest incomes. Groceries and utilities are manageable, and the city’s natural surroundings provide endless free recreation opportunities, from hiking to lake activities. With a strong healthcare and education sector, Thunder Bay also offers employment opportunities that support affordable living. On under $40K a year, residents can enjoy a good balance between city amenities and outdoor adventure.
Trois-Rivières, Quebec
Trois-Rivières is one of Quebec’s most affordable cities, blending rich culture with low living costs. Housing is far more accessible than in Montreal or Quebec City, and everyday expenses are budget-friendly, while public transit and compact neighborhoods help minimize transportation costs. The city also boasts historic charm, arts and culture, and a growing student population that keeps things lively, and for those comfortable living in French-speaking environments, Trois-Rivières offers a culturally rich lifestyle on less than $40K a year, without sacrificing quality of life.
Saguenay, Quebec
Saguenay is known for its affordable housing and low overall cost of living, making it an attractive choice for individuals with modest incomes. Rent and homeownership remain among the lowest in Quebec, while groceries and utilities are manageable. The city is surrounded by natural beauty, including fjords and forests, offering free or low-cost recreation, and the strong sense of community and cultural pride further enhance life here. With its affordability and natural charm, Saguenay proves that $40K a year can go a long way in Quebec.
Drummondville, Quebec
Drummondville offers a balance of affordability and opportunity in central Quebec. Housing costs are significantly below the national average, and everyday expenses like food and transportation remain budget-friendly. The city has a growing manufacturing base and cultural scene, adding vitality to its small-town charm, and with easy access to both Montreal and Quebec City, residents benefit from proximity to urban centers without the high costs. On under $40K a year, it’s possible to live comfortably here while also enjoying a thriving, community-oriented environment.
Timmins, Ontario
Timmins combines northern Ontario’s resource-driven economy with low living costs, making it a strong option for those earning modest incomes. Housing prices are far below the provincial average, and many properties come with significant land. While groceries can be higher in northern communities, the savings on housing offset the difference. Outdoor recreation opportunities, from fishing to snowmobiling, offer low-cost entertainment, and individuals and families can enjoy a balanced lifestyle in a city that values both work and play on less than $40K a year.
Brandon, Manitoba
Brandon is a growing Prairie city that remains affordable for individuals living on modest incomes. Housing prices and rents are well below national averages, and utilities, groceries, and transportation costs remain manageable. The city has a strong agricultural base, along with growing education and healthcare sectors, and with a vibrant arts scene, festivals, and easy access to outdoor recreation, Brandon offers a well-rounded lifestyle.
Moose Jaw, Saskatchewan
Moose Jaw is a small city with surprisingly affordable living costs, where the housing prices are far below the national average, making both renting and ownership accessible on under $40K a year. Utilities and groceries are manageable, and the city’s compact size keeps transportation costs low. Moose Jaw’s rich history, thriving arts scene, and natural mineral spas add to its appeal. With a slower pace of life and welcoming community, residents can stretch their incomes while enjoying a comfortable lifestyle in Saskatchewan’s heartland.
Prince Albert, Saskatchewan
Prince Albert is known as the “Gateway to the North” and offers affordable living for those earning under $40K a year. Housing is significantly cheaper than in larger cities, and everyday expenses remain manageable. The city also has a growing healthcare sector and small-business opportunities. Surrounded by lakes and boreal forest, residents have access to abundant outdoor activities without costly entertainment. For individuals seeking affordability combined with a strong community feel, Prince Albert offers a balanced lifestyle that doesn’t require a big income.
Lethbridge, Alberta
Lethbridge stands out in Alberta as one of the most affordable cities for individuals and families. Housing prices are significantly lower than in Calgary or Edmonton, and utilities and groceries remain budget-friendly. The city has a diverse economy, supported by agriculture, education, and healthcare, providing employment opportunities without the high costs of larger urban centers. Residents benefit from ample green space, cultural events, and a strong community feel.
Medicine Hat, Alberta
Medicine Hat consistently ranks as one of Canada’s most affordable cities, thanks in part to its low utility costs. Housing is accessible for both renters and homeowners, and groceries and transportation remain budget-friendly. The city’s sunny climate and abundance of parks add to its appeal, while a growing arts community provides affordable cultural experiences. With a strong sense of community and low cost of living, residents can live comfortably on less than $40K a year while enjoying the benefits of southern Alberta living.
Cranbrook, British Columbia
While British Columbia is often associated with high living costs, Cranbrook offers an affordable alternative, as housing is significantly cheaper than in Vancouver or Victoria, and everyday expenses remain manageable. The city is surrounded by stunning mountain scenery, providing abundant free recreation from hiking to skiing. Cranbrook’s small size reduces transportation costs, while its community amenities ensure residents don’t miss out on urban comforts.
Prince George, British Columbia
Prince George remains one of BC’s most affordable cities, making it possible to live well on a modest income. Housing costs are far below the provincial average, and groceries and utilities are manageable. The city serves as a hub for northern BC, offering strong employment opportunities in healthcare, education, and forestry. Residents also benefit from a wide range of affordable outdoor activities, from hiking to fishing.
Whitehorse, Yukon
Whitehorse offers a unique blend of affordability and high wages, making it possible to live comfortably on under $40K a year. While groceries and some goods are more expensive due to location, housing costs remain manageable compared to many southern cities, and the territory’s lack of a sales tax also helps stretch incomes further. Whitehorse’s stunning natural surroundings provide free recreation, from hiking to kayaking, while its vibrant arts community adds cultural depth.
Yellowknife, Northwest Territories
Yellowknife may have a higher cost of living than southern Canada, but wages often outpace expenses, making life on under $40K possible, especially for those in subsidized or shared housing. The city offers strong opportunities in healthcare, public administration, and skilled trades, and outdoor recreation, northern lights, and a tight-knit community add unique lifestyle perks. While groceries and imports are expensive, the city’s employment incentives and housing allowances offset these costs.
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