Tech Recruitment in Montreal vs Toronto: 2026 Comparison

The Canadian tech market is structured around two major hubs: Montreal and Toronto. For both employers and candidates, choosing between these two cities goes well beyond the salary question. Cost of living, quality of life, talent pool, and market dynamics are all factors to consider in 2026.

At VALO Recrutement, we work daily with tech companies and professionals in both markets. Here is our comprehensive analysis to help you make the best recruitment decisions this year.

Purchasing Power: The Montreal Advantage

One of the most compelling arguments in favour of Montreal remains purchasing power. A $130K salary in Montreal equals the purchasing power of $160K in Toronto, primarily due to the gap in housing and transportation costs (source: 2727 Coworking).

This differential is significant. For a Montreal employer, it means offering a nominally lower salary while guaranteeing a higher quality of life for employees. For a candidate, accepting a Montreal position at $130,000 can be financially more advantageous than a Toronto role at $145,000.

Rent and Real Estate

Housing remains the primary divergence factor. A two-bedroom apartment in downtown Toronto costs on average 40 to 50% more than an equivalent unit in Montreal. For families, home ownership remains far more realistic in the Quebec metropolis.

Taxation

Quebec has a higher provincial tax rate than Ontario. However, tax credits for tech companies (notably the R&D credit and AI-related incentives) partially offset this gap for employers. Candidates should still consider the net fiscal impact in their overall calculation.

Tech Salary Trends

Tech salaries in Quebec have increased 15 to 20% since 2023, gradually closing the gap with Ontario (source: Robert Half). This trend reflects the strong demand for specialized profiles and increased competition among Quebec employers.

For a detailed analysis of Montreal salary grids, read our article on tech salaries in Montreal in 2026.

Comparison by Role (Median Annual Salary)

• Intermediate full-stack developer: Montreal $95,000 - $110,000 / Toronto $105,000 - $125,000
• Senior DevOps engineer: Montreal $120,000 - $140,000 / Toronto $135,000 - $160,000
• Cloud architect: Montreal $140,000 - $165,000 / Toronto $155,000 - $185,000
• Cybersecurity analyst: Montreal $100,000 - $125,000 / Toronto $110,000 - $140,000
• AI/ML specialist: Montreal $130,000 - $160,000 / Toronto $145,000 - $180,000

When adjusting these figures for real purchasing power, the gap between the two cities narrows considerably, and even reverses for certain positions.

Quality of Life and Talent Retention

Montreal stands out for job stability and work-life balance, while Toronto attracts more with higher salaries and geographic mobility toward US markets (source: Randstad).

Montreal's Retention Advantages

• Affordable cost of living: employees are less tempted by competing offers purely for financial reasons
• World-renowned AI ecosystem: the presence of Mila, IVADO, and numerous AI startups creates a stimulating environment
• Culture and bilingualism: Montreal's cultural richness and the ability to work in both French and English attract international talent
• Lower turnover rate: Montreal tech professionals stay on average longer with the same employer

Toronto's Recruitment Advantages

• Larger talent pool: Toronto has a greater number of tech professionals, making it easier to recruit highly specialized profiles
• Proximity to the United States: some candidates see Toronto as a stepping stone to the American market
• Major corporate headquarters: the concentration of Fortune 500 companies offers diverse career opportunities
• Transit network: a more extensive public transit network (despite its challenges)

The Impact of Hybrid Work in 2026

Hybrid work has profoundly changed the Montreal-Toronto dynamic. More and more Toronto companies are recruiting Montreal talent remotely, and vice versa. This trend has several consequences for employers:

• Increased salary pressure in Montreal: Toronto companies recruiting remotely in Montreal are driving up local salary expectations
• Competitive advantage for Montreal SMEs: by offering flexible work conditions and a salary adjusted to local cost of living, they can compete with large Toronto companies
• Need to rethink compensation: salary grids based solely on location are becoming obsolete

Recruiting in Montreal: Winning Strategies

For Montreal employers looking to attract and retain top talent, here are our recommendations:

1. Communicate real purchasing power: in your job postings, highlight the equivalence with Toronto salaries
2. Invest in non-monetary benefits: comprehensive group insurance, training budgets, additional vacation days
3. Offer flexibility: hybrid work is no longer a perk but an expected standard
4. Promote the local ecosystem: Montreal's tech scene, particularly in AI, is a powerful recruitment argument
5. Focus on process speed: the best candidates receive multiple offers. A recruitment process longer than 3 weeks risks losing talent

Key Tech Sectors in Each City

Montreal and Toronto do not specialize in the same tech niches, which directly influences the career opportunities available.

Montreal: AI and Video Game Capital

Montreal has established itself as a global hub for artificial intelligence thanks to the presence of Mila, led by Yoshua Bengio, and numerous research labs (Google Brain, Meta AI, Samsung AI). The video game sector also remains highly dynamic with Ubisoft, Warner Bros. Games, and many independent studios. Professionals specializing in AI, machine learning, or game development will find a particularly stimulating ecosystem in Montreal.

Toronto: Fintech and Large-Scale Enterprise

Toronto dominates the fintech sector, thanks to the concentration of major financial institutions and financial technology startups. The city is also a hub for large-scale SaaS companies and Canadian headquarters of American tech giants. Professionals interested in financial technology or high-volume enterprise environments will find more opportunities in Toronto.

Advice for Candidates: How to Choose

If you are deciding between the two markets, ask yourself these fundamental questions:

1. What is your financial priority? If you are aiming for maximum savings, Montreal's purchasing power is hard to beat. If you are targeting the highest possible gross salary, Toronto offers a higher ceiling.
2. What is your life plan? Family and home ownership favour Montreal. International mobility and an English-speaking professional network favour Toronto.
3. What sector excites you? AI and video games: Montreal. Fintech and enterprise SaaS: Toronto.
4. Do you speak French? French proficiency is a major asset in Montreal and opens doors that Toronto cannot offer.

VALO Recrutement: Your Strategic Partner

Whether you are recruiting in Montreal, Toronto, or both markets simultaneously, VALO Recrutement supports you with in-depth knowledge of both ecosystems. Our 18% fee on gross annual salary guarantees comprehensive support: sourcing, technical evaluation, negotiation, and onboarding follow-up.

Browse our current job openings or contact us to discuss your 2026 tech recruitment strategy.