Understanding salary expectations is crucial for negotiating your first tech job offer. This guide breaks down software engineer compensation across Canada with real data from 2025-2026.
The Quick Answer
If you just want the numbers:
| Level | Toronto | Vancouver | Montreal | Calgary | Remote |
|---|---|---|---|---|---|
| New Grad | $70K-90K | $65K-85K | $55K-75K | $60K-80K | $65K-85K |
| Junior (1-2 yrs) | $80K-110K | $75K-100K | $65K-90K | $70K-95K | $75K-100K |
| Mid (3-5 yrs) | $110K-150K | $100K-140K | $85K-120K | $90K-125K | $100K-140K |
| Senior (5+ yrs) | $140K-200K+ | $130K-180K+ | $110K-150K | $115K-160K | $130K-180K+ |
Base salary only, CAD. Total compensation can be 10-30% higher with bonus/equity.
Salary by City: Detailed Breakdown
Toronto
Toronto is Canada's largest tech hub with the highest salaries—and highest cost of living.
New Grad / Entry Level ($70K - $90K) - Banks (TD, RBC, Scotiabank): $70K-80K + bonus - Mid-size tech (Shopify, Wealthsimple): $80K-90K + equity - Startups: $65K-85K + significant equity
What affects your offer: - Company type (banks pay lower base, better benefits) - Your university (Waterloo/UofT commands premium) - Internship experience - Competing offers
Vancouver
Tech salaries are slightly lower than Toronto, but so is income tax (BC vs Ontario).
New Grad / Entry Level ($65K - $85K) - Amazon/Microsoft: $85K+ base + signing bonus + RSUs - Local tech (Hootsuite, Clio): $70K-80K - Startups: $60K-75K + equity
Vancouver advantage: No provincial sales tax on many items, slightly lower income tax bracket.
Montreal
Lower salaries, but significantly lower cost of living. Your purchasing power may be similar to Toronto.
New Grad / Entry Level ($55K - $75K) - Big tech (Google, Microsoft, Meta): $75K+ (rare positions) - Gaming (Ubisoft, EA): $55K-70K - AI/ML startups (Element AI alumni): $65K-80K - Enterprise (CGI, Desjardins): $55K-65K
Montreal consideration: Some roles require French. Bilingual developers command 5-10% premium.
Calgary & Edmonton
Alberta's tech scene is smaller but growing, with oil & gas tech paying premium.
New Grad / Entry Level ($60K - $80K) - Oil & gas tech: $70K-85K + benefits - Local startups: $55K-70K - Remote for US companies: $80K-100K
Alberta advantage: No provincial sales tax, lower cost of living than Vancouver/Toronto.
Ottawa
Government and defense contractors dominate, with stable but moderate pay.
New Grad / Entry Level ($65K - $80K) - Shopify Ottawa: $75K-85K - Government/defense (CGI, Lockheed): $65K-75K - Startups: $60K-75K
Ottawa consideration: Many positions require security clearance (Canadian citizenship).
Beyond Base Salary: Total Compensation
Base salary is just part of the picture. Here's what else to consider:
Signing Bonus
- Common at big tech: $10K-50K
- Usually requires 1-year commitment (prorated clawback)
- More common for new grads than you'd expect
Annual Bonus
- Banks: 10-20% of base
- Tech companies: 5-15% of base
- Startups: Often 0% (compensated with equity)
Equity/Stock
- Public companies (RSUs): $10K-50K/year for new grads
- Startups (options): Highly variable, often worthless
- Vesting: Usually 4 years with 1-year cliff
Benefits Value
Often overlooked but worth $5K-20K: - Health benefits: $3K-8K value - RRSP matching: 3-6% of salary - Vacation: 3-4 weeks standard - Professional development: $1K-5K/year
Company Type Comparison
| Company Type | Base Salary | Bonus | Equity | Work-Life | Growth |
|---|---|---|---|---|---|
| Big Tech (FAANG) | ★★★★★ | ★★★★ | ★★★★★ | ★★★ | ★★★★ |
| Canadian Banks | ★★★ | ★★★★ | ★★ | ★★★★ | ★★★ |
| Mid-size Tech | ★★★★ | ★★★ | ★★★★ | ★★★★ | ★★★★★ |
| Startups | ★★★ | ★ | ★★★★★ | ★★ | ★★★★★ |
| Consulting | ★★★ | ★★★ | ★ | ★★ | ★★★ |
How to Research Salaries
Reliable Sources
- Levels.fyi - Best for big tech, US-focused but has Canadian data
- Glassdoor - Wide coverage, some outdated data
- Blind - Anonymous, can be inflated
- LinkedIn Salary - Good for Canadian companies
Red Flags in Job Postings
- "Competitive salary" with no range = often below market
- Only showing wide range ($60K-$120K) = depends heavily on negotiation
- No salary info at all = research before applying
Ontario 2026 Update
Starting January 2026, Ontario employers with 25+ employees must post salary ranges. This makes research much easier.
Negotiation Tips for New Grads
Yes, you can negotiate—even as a new grad.
What's Negotiable
- Base salary (5-15% increase possible)
- Signing bonus (easier than base)
- Start date
- Vacation days
- Remote work flexibility
What's Usually Fixed
- Equity vesting schedule
- Benefits package
- Job title (at entry level)
Sample Script
"Thank you for the offer. I'm excited about the role at [Company]. Based on my research and competing offers, I was hoping we could discuss the base salary. Would $X be possible?"
Key Rules
- Always negotiate after receiving written offer
- Never lie about competing offers
- Be specific with your ask
- Express enthusiasm for the role
- Be prepared to accept or walk away
Cost of Living Comparison
Salary means nothing without context. Here's monthly cost for a single person:
| Expense | Toronto | Vancouver | Montreal | Calgary |
|---|---|---|---|---|
| Rent (1BR) | $2,200 | $2,100 | $1,500 | $1,400 |
| Utilities | $150 | $120 | $100 | $180 |
| Transit | $156 | $100 | $94 | $112 |
| Food | $500 | $450 | $400 | $450 |
| Total | $3,006 | $2,770 | $2,094 | $2,142 |
Purchasing Power Index (higher = better): - Montreal: 100 (baseline) - Calgary: 95 - Vancouver: 75 - Toronto: 70
Salary Progression: What to Expect
Typical progression over first 5 years:
| Year | Title | Toronto Salary | Annual Increase |
|---|---|---|---|
| 0 | New Grad | $80K | - |
| 1 | SDE I | $85K | 6% |
| 2 | SDE I | $95K | 12% |
| 3 | SDE II | $115K | 21% |
| 4 | SDE II | $125K | 9% |
| 5 | SDE II/Senior | $145K | 16% |
Key insight: Biggest jumps come from promotions and job changes, not annual raises.
FAQ
What is the average software engineer salary in Canada for new grads?
New grad software engineers in Canada typically earn $65,000-$90,000 CAD base salary in 2026, depending on location and company. Toronto offers the highest at $70K-90K, Vancouver $65K-85K, Montreal $55K-75K, and Calgary $60K-80K. Big Tech companies (Google, Amazon, Microsoft) pay $85K+ base plus signing bonuses and RSUs for new grads.
Which Canadian city has the highest tech salaries?
Toronto has the highest absolute tech salaries in Canada, with new grads earning $70K-90K and seniors reaching $200K+. However, when factoring in cost of living, Montreal offers better purchasing power despite lower nominal salaries ($55K-75K for new grads). Vancouver salaries are 5-10% lower than Toronto but with slightly lower taxes in BC.
How much can I negotiate as a new grad?
New grads can typically negotiate 5-15% higher base salary, plus signing bonuses which are often easier to increase. Most hiring managers expect negotiation. Sample script: "Based on my research and competing offers, I was hoping we could discuss the base salary. Would $X be possible?" Always negotiate after receiving a written offer.
What is total compensation vs base salary?
Total compensation includes base salary, signing bonus, annual bonus (5-20% at banks, 5-15% at tech), equity/stock (RSUs worth $10K-50K/year at public tech companies), and benefits ($5K-20K value including health, RRSP matching, vacation). A $80K base with $20K in equity may be worth more than $90K base alone.
Do Canadian banks pay less than tech companies?
Yes, Canadian banks typically pay $70K-85K base for new grads compared to $80K-90K+ at tech companies. However, banks offer substantial pension benefits worth $10K-20K/year, better work-life balance, and exceptional job stability. When including pension value, total compensation is more competitive than base salary suggests.
How much do software engineers make at Google Canada?
Google Canada pays L3 (new grad) software engineers approximately $114,000 CAD base salary plus stock compensation in 2025-2026. L4 engineers earn around $175,000 total compensation, L5 reaches $239,000 TC, and L6 can exceed $395,000 TC. Google's Waterloo and Toronto offices have the most positions.
Final Advice
- Don't optimize only for salary - Growth opportunity, work culture, and learning matter more early career
- Consider total compensation - A $80K base with $20K equity beats $90K base with nothing
- Factor in cost of living - $70K in Montreal may give you more than $90K in Toronto
- Always negotiate - Worst case is they say no
- Track your market value - Review salaries annually, even if not job searching
Looking for your first tech job? Browse entry-level positions in Canada updated daily.
Related Articles: - Canada Tech Interview Process Guide - Companies Hiring New Grads in Canada 2026 - Tech Skills in Demand in Canada 2026 - Do Referrals Actually Work?
Data Sources: - Levels.fyi Canada data (2025) - Glassdoor salary reports - LinkedIn Salary Insights - Anonymous survey of 200+ Canadian new grads (r/cscareerquestionsCAD) - Statistics Canada Labour Force Survey