On paper, Montreal is 15–20% cheaper than Ottawa across almost every category — rent is $300–$400/month less for a comparable one-bedroom, groceries run 10–15% lower, and Hydro-Québec provides the cheapest electricity in North America. But Quebec’s higher income tax and sales tax (14.975% QST+GST vs Ontario’s 13% HST) claw back some of that advantage: at $80,000 gross income, an Ottawa resident takes home roughly $3,000 more per year than their Montreal counterpart.
The game-changer for families is $10/day childcare. Two kids in daycare in Ottawa cost $2,500–$4,000/month versus $400/month in Montreal — a difference of $25,000+/year that overwhelms every other cost comparison. A family of four earning $120,000 combined will spend roughly $7,850/month in Ottawa versus $4,720/month in Montreal, with childcare accounting for the vast majority of that gap. If you don’t have (or don’t plan to have) young children, the cities are remarkably close on net financial terms, and the choice comes down to language, career sector, and lifestyle preference.
Quick Comparison
Overall Costs
Category
Ottawa
Montreal
Winner
Housing
$$$$
$$$
Montreal
Rent
$$$
$$
Montreal
Income tax
$$$
$$$$
Ottawa
Sales tax
$$$
$$$$
Ottawa
Groceries
$$$
$$
Montreal
Childcare
$$$
$
Montreal
Overall Verdict
Factor
Lower gross costs
Montreal
Lower taxes
Ottawa
Net difference
Close (income dependent)
Housing Costs
Home Prices (2025-2026)
Property Type
Ottawa
Montreal
Detached house
$750,000
$600,000
Semi-detached
$600,000
$500,000
Townhouse
$500,000
$425,000
Condo
$450,000
$400,000
Average Prices
Metric
Ottawa
Montreal
Avg home price
~$650,000
~$525,000
Difference
~20% cheaper
Neighborhoods Compared
Ottawa Area
Avg Price
Montreal Area
Avg Price
Westboro
$900,000
Westmount
$1,500,000
Centretown
$550,000
Plateau
$750,000
Barrhaven
$600,000
Villeray
$650,000
Orleans
$550,000
Verdun
$550,000
Kanata
$650,000
Rosemont
$700,000
Property Taxes
City
Rate
On $500K Home
Ottawa
~1.1%
~$5,500
Montreal
~1.2%
~$6,000
Plus welcome tax
-
Montreal one-time
Rent Comparison
Monthly Rent (2025-2026)
Unit Type
Ottawa
Montreal
1-BR downtown
$2,000
$1,600
2-BR downtown
$2,500
$2,100
1-BR suburban
$1,600
$1,300
2-BR suburban
$2,000
$1,700
Rent Difference
Savings
1-BR
$300-$400/month in Montreal
Annual
$3,600-$4,800 less
Income & Taxes
Average Salaries
Role
Ottawa
Montreal
Government (federal)
$85,000
-
Software developer
$95,000
$85,000
Accountant
$72,000
$65,000
Nurse (RN)
$80,000
$75,000
Marketing manager
$80,000
$72,000
Teacher
$80,000
$65,000
Tax Comparison
Tax Type
Ontario
Quebec
Top income tax
~53.5%
~53.3%
Sales tax
13% (HST)
14.975% (GST+QST)
Health premium
Varies
None
Take-Home Pay Comparison
Gross Income
Ottawa (Net)
Montreal (Net)
$60,000
$46,500
$44,800
$80,000
$59,500
$56,500
$100,000
$71,800
$68,200
$120,000
$83,500
$78,900
At $80K
Factor
Ottawa
Montreal
Net income
$59,500
$56,500
Difference
Ottawa +$3,000/year
Childcare - Montreal’s Big Advantage
Childcare Costs
Type
Ottawa
Montreal
Infant (monthly)
$1,500-$2,000
$200 ($10/day)
Toddler (monthly)
$1,200-$1,600
$200
Preschool (monthly)
$1,000-$1,400
$200
Annual Childcare Savings
Children
Ottawa Cost
Montreal Cost
Savings
1 child
$18,000
$2,400
$15,600
2 children
$30,000+
$4,800
$25,000+
Impact on Family Finances
With 2 Kids
Childcare savings
$25,000/year
Higher taxes
-$3,500/year
Net savings
~$21,500/year in Montreal
Transportation
Public Transit
Factor
OC Transpo
STM
Monthly pass
$125
$97
Coverage
Good
Excellent
Metro
LRT
Extensive metro
Quality
Good
Very good
Car Ownership
Cost
Ottawa
Montreal
Gas (per litre)
$1.45-$1.55
$1.55-$1.65
Insurance (annual)
$1,500-$2,400
$800-$1,500
Parking (downtown)
$200-$350/mo
$200-$400/mo
Insurance Difference
Factor
Quebec auto insurance
Government-run (SAAQ)
Private portion
Much cheaper
Annual savings
$500-$1,000+
Groceries & Food
Monthly Grocery Costs
Item
Ottawa
Montreal
Milk (4L)
$6.50
$6.00
Bread (loaf)
$3.50
$3.25
Eggs (dozen)
$4.50
$4.00
Chicken (kg)
$14.00
$12.00
Cheese (500g)
$8.00
$7.00
Monthly Budget
Ottawa
Montreal
Single person
$375-$450
$325-$400
Family of 4
$1,100-$1,400
$950-$1,200
Dining Out
Factor
Ottawa
Montreal
Cheap meal
$15-$20
$14-$18
Mid-range (2 people)
$80-$110
$70-$100
Coffee (latte)
$5.50
$4.75
Beer (pint)
$8-$10
$7-$9
BYOB restaurants
Rare
Common (savings!)
Utilities
Monthly Costs
Utility
Ottawa
Montreal
Electricity
$90-$130
$60-$90
Heating
$80-$120
$40-$70
Internet
$70-$100
$60-$90
Mobile
$50-$80
$45-$70
Why Montreal Utilities Are Cheaper
Factor
Hydro-Québec
Cheapest electricity in North America
Montreal savings
$60-$100/month
Education
Post-Secondary
Institution
Tuition (Quebec Resident)
McGill
$3,000/year
Concordia
$3,000/year
Université de Montréal
$3,000/year
University of Ottawa
$8,000/year
Carleton
$8,000/year
Quebec Tuition Advantage
Factor
Quebec resident
~$3,000/year
Ontario resident
~$8,000/year
Must live in Quebec
To qualify
Quality of Life
Lifestyle Comparison
Factor
Ottawa
Montreal
Nightlife
Good
Excellent
Restaurants
Very good
Excellent
Culture/arts
Good
Excellent
Festivals
Good
Excellent
Outdoor activities
Excellent
Very good
Winter sports
Excellent
Very good
Language
City
Language Reality
Ottawa
English dominant (Ontario side)
French useful (Gatineau nearby)
Montreal
French essential for most jobs
English works in some sectors
Budget Comparison
Single Person Monthly Budget
Expense
Ottawa
Montreal
Rent (1-BR)
$1,800
$1,500
Utilities
$150
$100
Transit
$125
$97
Groceries
$400
$350
Dining out
$200
$175
Phone/internet
$130
$110
Entertainment
$200
$175
Other
$250
$225
Total
$3,255
$2,732
Annual Comparison
Factor
Ottawa
Montreal
Expenses
$39,060
$32,784
At $70K gross income
Net income
~$54,000
~$51,500
Annual savings
$14,940
$18,716
Family of 4 Monthly Budget
Expense
Ottawa
Montreal
Rent (3-BR)
$2,500
$2,000
Utilities
$250
$170
Car
$600
$400 (cheap insurance)
Groceries
$1,200
$1,050
Childcare (2 kids)
$2,500
$400
Other
$800
$700
Total
$7,850
$4,720
Family Verdict
Factor
Childcare savings
Massive
Montreal wins
For families with young kids
Who Should Choose Which City?
Choose Ottawa If:
Factor
Career
Federal government
Language
Prefer English
Income
High earner (>$100K)
Stability
Job security priority
Choose Montreal If:
Factor
Family
Young children (childcare)
Language
Speak French or learning
Lifestyle
Arts, culture, nightlife
Budget
Lower costs priority
Students
Lower tuition
The Bottom Line
Montreal wins decisively for families with young children (childcare savings alone are $15,000–$25,000/year), students (tuition is $3,000 vs $8,000/year), and budget-conscious singles. Ottawa wins for high earners ($100K+) who benefit more from Ontario’s lower income tax, federal government workers, and English-only speakers. Run the numbers on your specific income and family situation — the net difference is smaller than headlines suggest once you factor in Quebec’s higher taxes.