The 2018 index of global livability compiled by The Economist Intelligence Unit has the Alberta city ranked behind Vienna, Melbourne and Osaka.
Melbourne was first seven years in a row before being displaced by the Austrian capital.
The two cities are now separated by 0.7 of a percentage point in the rankings, with Vienna scoring a near-ideal 99.1 out of 100 and Melbourne scoring 98.4.
In fact, three Australian cities entered the top 10 while another three came from Canada. Almost half the cities in the survey saw their ratings improve over the previous year.
Vienna was ranked top of the pile, ahead of Melbourne, Osaka, Calgary and Sydney, while Vancouver, Toronto and Tokyo (tied), Copenhagen and Adelaide completed the top 10.
And no New Zealand cities make the cut for the top-10 with Auckland dropping down the Economist's 2018 Global Liveability Index.
"Although it was overtaken by Singapore in the rankings for the first time past year, Hong Kong has now surpassed its regional rival, albeit with only a marginal difference of 0.1% overall".
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"The prolonged period of relative stability has resulted in the stabilisation of terrorism threat scores in several cities, especially in Western Europe".
Meanwhile the French capital Paris and the UK's Manchester, whose rankings have fallen in previous years due to terrorist attacks, recorded the biggest improvements of the past 12 months in overall scores and stability ratings.
Unfortunately, no United Kingdom city made it into the top ten.
Puerto Rico's San Juan, which was hit by two hurricanes in 2017, experienced the sharpest fall, dropping 21 places down the list to 89th place, with a score of 69.8%.
War-ravaged Syria's capital Damascus is on the bottom of the list which comprises 140 cities globally.
According to the report: "Upwards movement in the top-ranked cities is a reflection of improvements seen in stability and safety across most regions in the past year".