Compare what you might really take home when moving to Canada from the UK: wages, taxes and cost of living in 2025, so you can decide whether the move could favour your wallet.
If you’re considering swapping drizzle for dramatic landscapes, Canada’s job market could be calling. It continues to attract skilled professionals despite tighter immigration limits, offering competitive salaries, world-class work-life balance and an enviable standard of living. But will you actually be better off once the novelty fades and your first payslip lands?
In this guide, we’ll take a practical look at what British professionals can expect financially in 2025 – comparing typical salaries, taxes and living costs in both countries.
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Canada versus UK: wages in 2025
Let’s begin with national averages. According to a June 2025 report from Statistics Canada, the average weekly earnings in Canada reached CAD $1,297.44, up 4.4% year on year. That equates to an annual gross income of about CAD $67,467 (assuming full-time work).
In the UK, average weekly earnings (without bonuses) in Great Britain rose by 4.7% over the year to £682 in October 2025, according to the Office for National Statistics. Over a year, that figure is £35,464.
To put that in context: if you converted Canada’s average salary into pounds (depending on exchange rate), Canada’s average is around 12.2% higher.
For context in professional roles, here’s a benchmark table (converted roughly at 1 CAD = 0.59 GBP):
| Occupation | Average Canada Salary (CAD) | Average UK Salary (GBP) | Canada relative % |
|---|---|---|---|
| Average (all roles) | $67,467 (£39,806) | £35,464 | + 12.2% |
| Electrical engineer | $77,000 (£45,430) | £35,000 | + 29.8% |
| Graphic designer | $50,000 (£29,500) | £25,000 | + 8.5% |
| IT / software | $93,000 (£54,870) | £45,000 | + 21.9% |
| Mechanical engineer | $73,000 (£43,070) | £34,000 | + 26.7% |
| Midwife / nurse | $65,000 (£38,350) | £32,000 | + 19.8% |
| Accountant | $57,000 (£33,630) | £31,000 | + 8.5% |
| Retail manager | $47,000 (£27,730) | £26,000 | + 6.7% |
| Surveyor / mapping | $81,000 (£47,790) | £36,000 | + 32.8% |
| Teacher | $62,000 (£36,580) | £34,000 | + 7.6% |
*Data sourced from PayScale’s Canada and UK figures
This table shows that average salaries in Canada are higher across the board, though the lead narrows in certain professions.
Tax and deductions: what remains in your pocket
High gross salaries are one thing but your net income after tax, social contributions and deductions is what counts.
Canada
In Canada, you pay federal and provincial income tax, plus contributions such as CPP (Canada Pension Plan) and EI (Employment Insurance). According to OECD’s Taxing Wages 2025, the “tax wedge” (i.e. taxes + contributions) for someone earning the average wage is about 31.9 % in Canada.
If you apply that to CAD $67,467:
- Taxes and contributions = CAD $21,532
- Net (take-home) = CAD $45,935
Converted (roughly) to GBP, that might be around £27,100 (using the same exchange assumption), although the final figure will vary depending on exchange rates, provincial taxes and individual deductions.
UK
According to OECD 2025 data, income tax and National Insurance deductions in the UK come to about 31.6%.
So for a UK gross salary of £35,464:
- Taxes + NI = £11,211
- Net (take-home) = £24,253
Summary comparison
While the overall tax burden is similar in both countries, higher average salaries in Canada mean that most professionals still come out ahead. After tax and deductions, a worker earning the national average in Canada keeps around CAD $45,935 (£27,100), compared with £24,253 for someone on the UK’s average salary. In real terms, that’s a net income advantage of roughly 11.7% in Canada – before factoring in regional tax differences or cost-of-living variations. For many skilled professionals, that higher take-home pay provides a noticeable boost to spending power and savings potential.
Cost of living: how far your money goes
A higher net salary means little if your costs are eating it up. Here’s how Canada and the UK compare in 2025:
- According to Numbeo, the cost of living in Canada is around 7.4% lower than the UK excluding rent and 6.4% lower including rent.
- Rent prices in Canada are 3.9% lower than the UK and restaurant prices are 13.8% lower.
- Grocery prices are 11.9% higher in Canada.
For the clearest comparison, look at the specific cities rather than national averages – the gap can be wider than you think. London, for instance, ranks as the 11th most expensive city in the world, while Victoria, Canada’s priciest location, sits much lower at 43rd. Where you’re moving from and to will have a major impact on how far your salary goes.
Final thoughts: will you be better off in Canada?
In summary, for a British professional relocating to Canada:
- You start with higher gross salaries in many skilled roles in 2025.
- Tax burdens are similar in percentage terms, so your net salary advantage often holds.
- The cost of living tends to favour Canada overall, especially once you avoid premium cities.
- The deciding factors will often be which province you land in, which city you choose and your industry / role.
So yes – for many professionals, relocating to Canada in 2025 can improve your take-home pay and purchasing power. But it’s not automatic: the balance shifts based on your job, the specific region and your lifestyle.
