A 2023 study from The Dais at Toronto Metropolitan University reveals a sharp earnings gap between Canadian and American tech workers. Adjusted for exchange rates and cost of living, Canadian tech employees earn an average of C$83,700 per year. In contrast, workers in the United States earn around C$122,600. That difference works out to a 46 percent gap.
What Is Causing the Canada–U.S. Tech Wages Difference
The report highlights six main reasons why Canadian tech salaries lag behind those in the U.S.
1. Base Pay Is Lower in Canada
Across nearly all roles and seniority levels, Canadian salaries are smaller. Even when accounting for the cost of living, the difference in base pay remains.
2. Fewer Bonuses and Stock Options
American tech workers receive more in non-salary compensation. Stock options in the U.S. are about twice as valuable, and performance bonuses are around 40 percent higher on average.
3. More Part-Time and Seasonal Work in Canada
A larger share of Canadian tech workers are employed in part-time or part-year roles. That lowers the national average. Even when comparing only full-time, year-round employees, U.S. workers still earn about C$34,800 more.
4. Higher Education Levels in the United States
U.S. workers are more likely to hold advanced degrees. For example, those with doctorates earn approximately C$161,000, compared to C$106,000 for their Canadian peers.
5. Pay Gaps by Gender and Race
In Canada, men in tech earn about C$86,600, while women earn C$74,000. In the United States, men earn C$129,600, and women earn C$103,000. Racial wage gaps are present in both countries. Chinese workers earn the most in Canada, and Black workers the least. In the U.S., South Asian workers have the highest average salaries, while Indigenous workers earn the lowest.
6. Differences in Occupational Categories
The types of tech roles available differ between countries. The U.S. tech sector includes more jobs in higher-paid occupational groups. In contrast, Canada has a larger share of roles in lower-paying job categories.
What This Means for IT Professionals in Canada
The growing tech worker pay disparity between Canada and the U.S. is influencing where skilled professionals choose to work. Many are seeking opportunities with U.S.-based companies, either by relocating or working remotely.
While some Canadian cities offer a lower cost of living, the overall IT professional salary comparison favors the United States. The Canadian vs U.S. tech salary gap is now a major factor in tech career planning, recruiting, and retention.
Source:
The Dais (2023). Mind the Gap: Compensation Disparity Between Canadian and American Technology Workers. Toronto Metropolitan University. https://www.thedais.ca/research/tech-compensation-gap