How ‘Living Alone’ Is One of the Most Expensive Choices You Can Make in the GTA

According to the most recent census data from Statistics Canada, the number of one-person households has more than doubled from 1981 to 2021, indicating a significant shift in how Canadians live. The data also shows that the City of Toronto, the core of the Greater Toronto Area (GTA), had 385,765 one-person households, accounting for 33.2% of all private households in the city.

However, the financial realities of living alone are often overlooked in policies aimed at helping residents afford basic necessities, according to Kwame McKenzie, CEO of the Wellesley Institute.

Reason: Many savings, government strategies, and policies are designed with families in mind, with little consideration for single individuals. As a result, those who choose to live alone often face financial challenges on their own.

Single individuals must cover all expenses, from rent and utilities to groceries and everyday essentials, which might otherwise be shared between two or more incomes in other households.

Economists and researchers, including McKenzie, have termed this phenomenon the “single tax.” As the cost of living squeezes Canadians, individuals living alone are especially affected and often struggle to make ends meet in Toronto.

So, how much does it cost to live alone in the GTA?

In 2024, the Wellesley Institute updated its research on what it takes to live a healthy, meaningful life. This research goes beyond basic survival and includes a nutritious diet, maintaining relationships, and manageable housing costs.

The study found that a single person under 45 living in the GTA needs about $61,654 a year after taxes to achieve this standard of living, equivalent to a gross annual salary of about $82,000.

This figure sharply contrasts with the region’s median income for one-person households, which was $45,200 according to the 2021 census.

On average, someone living alone in any GTA city spends about $2,783 per month, including a one-bedroom apartment costing about $2,273 per month and utilities costing about $150 per month.

This spending nearly consumes the entire take-home pay of about $3,057, based on the last recorded median income for a single-person household, and doesn’t even account for internet, transit, clothing, or other personal expenses.

These financial realities are evident at food banks across Canada, including those in the GTA.

So, what are the solutions?

Experts believe addressing this crisis effectively requires looking beyond broad economic indicators and examining structural gaps directly.

For example, tax reforms should prioritize the demographic most vulnerable to poverty: single individuals aged 18 to 40.

Possible solutions must include rent controls and a reevaluation of student debt repayment structures that match income.

When asked about tax relief specifically for people living alone, Sarah Chapin, a spokesperson for the Ontario Ministry of Finance, pointed to broader affordability measures.

“Since 2018, we have not raised a single tax and have provided nearly $12 billion in support this year to help keep costs down for families and individuals,” she stated.

The statement also highlighted the province’s permanent gas tax cuts, minimum wage increases, and income tax reductions or eliminations for 1.7 million low-income residents.

“A single person can receive up to $950 this year, including the one-time top-up (Canada Groceries and Essentials Benefit), along with about $700 a year for the next four years,” the statement added.

It also noted that the federal government reduced the lowest marginal personal income tax rate from 15 percent to 14 percent, benefiting nearly 22 million Canadians. The next budget, scheduled for November 5, will build on these affordability efforts.