Furnace Replacement Cost in 2026: Ontario Prices and US Benchmarks
Ontario furnace prices in CAD by efficiency and home size, the add-ons that raise a quote, what rebates still apply, and US price benchmarks from HomeGuide.
A furnace replacement in Ontario costs $4,900 to $8,000 before HST in 2026, according to Enbridge Sustain, with installation included. Premium 96% to 98% AFUE models reach $8,000 to $10,000 or more. A furnace replacement swaps your old forced-air heater for a new unit, plus the venting, gas, electrical and duct connections it needs. Furnace and HVAC requests reach our quote form every heating season. This guide sets out what you should expect to pay. To get local quotes, start with our HVAC services.
Ontario prices from Enbridge Sustain and Custom Contracting are in CAD and exclude 13% HST unless stated. HomeGuide figures are US benchmarks in USD. All figures were checked on October 12, 2026.
Key takeaways
- Ontario average furnace replacement: $4,900 to $8,000 before HST, installed (Enbridge Sustain, CAD).
- Two-stage 92% to 95% AFUE: $4,500 to $7,000; modulating 96% to 98%: $6,000 to $10,000 (Custom Contracting, CAD).
- Most Ontario homeowners spend $4,500 to $6,500 all-in (Custom Contracting).
- US benchmark: $3,500 to $7,500+ for a standard-efficiency furnace installed (HomeGuide, USD).
- New gas furnaces in Canada must reach at least 95% AFUE for most homes (Natural Resources Canada).
- No Ontario rebate covers a gas-to-gas furnace swap; heat pump rebates reach $12,000 (Home Renovation Savings).
How much does furnace replacement cost in 2026?
Most Ontario furnace replacements cost $4,900 to $8,000 before HST in 2026, according to Enbridge Sustain. Custom Contracting puts the full Ontario range at $3,500 to $10,000 installed and says most homeowners spend $4,500 to $6,500. Both prices include equipment, labour and removal of the old unit.
In the US, HomeGuide puts a standard-efficiency furnace at $3,500 to $7,500 or more installed, and a high-efficiency unit at up to $11,500. Equipment and materials make up $2,000 to $4,000 of that, and labour $1,500 to $3,500. For the wider heating and cooling picture, see our 2026 HVAC statistics report.
| Source | Typical range | Notes | Currency |
|---|---|---|---|
| Enbridge Sustain (Sept 2026) | $4,900 to $8,000 | Ontario average, before HST, installed | CAD |
| Custom Contracting (May 2026) | $3,500 to $10,000 | Ontario, most pay $4,500 to $6,500 | CAD |
| HomeGuide (Dec 2025) | $3,500 to $7,500+ | US standard efficiency, installed | USD |
| HomeGuide gas furnace | $3,800 to $12,000 | US gas furnace, installed | USD |
Sources: Enbridge Sustain; Custom Contracting; HomeGuide. Accessed October 12, 2026.
How much does each furnace efficiency level cost?
Efficiency and staging set most of the price gap. In Ontario, Custom Contracting puts a single-stage 80% AFUE furnace at $3,500 to $5,000, a two-stage 92% to 95% model at $4,500 to $7,000 and a modulating 96% to 98% model at $6,000 to $10,000. AFUE is the share of fuel a furnace turns into heat over a season.
Enbridge Sustain's GTA tiers line up closely. It puts an entry-level 80% AFUE replacement at $4,000 to $5,000, a 92% to 95% AFUE unit at $5,000 to $7,500 or more, and a premium 96% to 98% unit at $8,000 to $10,000 or more. Note that most new gas furnaces sold in Canada must now reach 95% AFUE, so 80% units apply only to narrow exceptions.
| Furnace type | Custom Contracting | Enbridge Sustain (GTA) | Lifespan (Custom Contracting) |
|---|---|---|---|
| Single-stage, 80% AFUE | $3,500 to $5,000 | $4,000 to $5,000 | 15 to 20 years |
| Two-stage, 92% to 95% AFUE | $4,500 to $7,000 | $5,000 to $7,500+ | 18 to 22 years |
| Modulating, 96% to 98% AFUE | $6,000 to $10,000 | $8,000 to $10,000+ | 20 to 25 years |
Sources: Custom Contracting; Enbridge Sustain. Enbridge Sustain lists 80% AFUE as an entry-level tier.
Custom Contracting says moving from 80% to 96% AFUE can save $400 to $600 a year on gas in Ontario winters. Premium brands such as Carrier, Lennox and Trane cost $500 to $1,500 more than value brands, by its estimate.
How does home size change the price?
Bigger homes need more heating capacity, so the furnace and the labour cost more. Custom Contracting puts a high-efficiency furnace for an 800 to 1,200 square foot home at $5,500 to $8,000, and one for a 1,800 to 2,500 square foot two-storey at $7,000 to $10,000, in CAD.
| Home type | Square feet | Standard furnace | High-efficiency |
|---|---|---|---|
| Small home or condo | 800 to 1,200 | $3,500 to $5,500 | $5,500 to $8,000 |
| Average bungalow | 1,200 to 1,600 | $4,000 to $6,000 | $6,000 to $9,000 |
| Two-storey home | 1,800 to 2,500 | $4,500 to $7,000 | $7,000 to $10,000 |
| Large home | 2,500 to 4,000+ | $6,000 to $8,500 | $8,500 to $12,000 |
Source: Custom Contracting, Furnace Replacement Cost Ontario 2026.
Square footage is only a starting point. Enbridge Sustain says a technician should run a heat-loss assessment that weighs insulation, windows, air leakage and ceiling height. An oversized furnace short-cycles and wastes fuel, and an undersized one runs nonstop on the coldest days.
What hidden costs can raise a furnace quote?
Venting, ducts and gas lines are the most common extras. Custom Contracting lists duct modifications at $500 to $3,000, flue or venting upgrades at $300 to $1,200 and gas line work at $200 to $800. Permits and inspection add $150 to $400 in most Ontario municipalities.
- Ductwork modifications: $500 to $3,000 when ducts need upsizing or sealing (Custom Contracting).
- Flue or venting upgrades: $300 to $1,200; high-efficiency furnaces use PVC venting (Custom Contracting).
- Gas line work: $200 to $800 for relocation or upsizing (Custom Contracting).
- Permit and inspection: $150 to $400 (Custom Contracting).
- Humidifier: $400 to $900 in Ontario (Custom Contracting); $400 to $1,200 in the US (HomeGuide).
- Old equipment disposal: $75 to $200 (Custom Contracting); $50 to $200+ (HomeGuide).
HomeGuide notes that leaky ducts can cut system efficiency by up to 30%, and that installs in cramped crawlspaces or attics can cost 25% to 50% more. If your furnace shares a utility room with an old tank, our tankless water heater cost guide covers the other appliance you may want to replace on the same visit.
What rebates and rules apply in Ontario?
No current Ontario rebate covers a straight gas furnace swap. Enbridge Sustain says the Home Renovation Savings program focuses on heat pumps and other upgrades. That program lists heat pump rebates of up to $12,000, smart thermostat rebates of $100 to $125 and attic insulation rebates of $1,000 to $1,250.
Federal rules also shape what you can buy. Natural Resources Canada requires most residential gas furnaces up to 225,000 Btu/h without integrated cooling to reach at least 95% AFUE, for units made on or after July 3, 2019. Only fuels contractors registered with TSSA can legally do gas work. TSSA states, "Registered Fuels Contractors are the only businesses that are legally authorized to do fuels related work in Ontario."
| Item | What it says | Source |
|---|---|---|
| Minimum gas furnace efficiency | 95% AFUE for most new residential units | Natural Resources Canada |
| Gas furnace rebate | None for a standard furnace replacement | Enbridge Sustain |
| Heat pump rebate | Up to $12,000 | Home Renovation Savings |
| Smart thermostat rebate | $100 to $125 | Home Renovation Savings |
| Who can do gas work | TSSA-registered fuels contractors only | TSSA |
| Written contract | Required for renovation contracts over $50 | Government of Ontario |
Sources: Natural Resources Canada; Enbridge Sustain; Home Renovation Savings; TSSA; Government of Ontario.
How do you get an accurate furnace quote?
Get at least three written quotes that name the brand, model, capacity and AFUE of the furnace. Enbridge Sustain says a quote should also state the staging type, blower motor, removal, permits, manufacturer and labour warranties, and 13% HST. Ontario law requires a written contract for any home renovation worth more than $50.
Check each company's TSSA registration before you sign, and ask for a heat-loss calculation rather than a copy of the old furnace's size. Custom Contracting suggests asking for a contractor labour warranty of at least 1 to 2 years. Replace before a mid-winter breakdown when you can, since off-season installs are easier to schedule.
Pro House Maintenance matches you with vetted, licensed and insured pros who give free fixed-price estimates. Compare furnace and HVAC quotes in Toronto, HVAC service in Mississauga or heating pros in Hamilton, or request an estimate. For smaller repairs around the house, see our handyman cost guide.
Sources
- Enbridge Sustain, How Much Does Furnace Replacement Cost in Ontario? (September 24, 2026)
- Custom Contracting, Furnace Replacement Cost Ontario 2026 (updated May 2026)
- HomeGuide, How Much Does a New Furnace Cost? (December 31, 2025)
- Natural Resources Canada, Gas furnaces energy efficiency regulations
- Home Renovation Savings program (Enbridge Gas and Save on Energy)
- TSSA, Authorized Heating Fuel Contractors
- Government of Ontario, Your rights when starting home renovations or repairs
Frequently Asked Questions
How much does a new furnace cost in Ontario in 2026?
Enbridge Sustain puts the average Ontario furnace replacement at $4,900 to $8,000 before HST, with installation. Custom Contracting puts a two-stage 92% to 95% AFUE furnace at $4,500 to $7,000 and a modulating 96% to 98% model at $6,000 to $10,000 installed. All figures are CAD.
Is there a rebate for replacing a gas furnace in Ontario?
Not for a gas-to-gas swap. Enbridge Sustain says standard furnace replacements do not qualify, because the Home Renovation Savings program focuses on heat pumps and other upgrades. That program lists heat pump rebates of up to $12,000 and smart thermostat rebates of $100 to $125.
What AFUE rating can I buy in Canada?
Most new residential gas furnaces sold in Canada must reach at least 95% AFUE. Natural Resources Canada set that minimum for gas furnaces up to 225,000 Btu/h without integrated cooling, manufactured on or after July 3, 2019. Narrow exceptions exist for relocatable buildings and some replacement non-condensing units.
How long does furnace replacement take?
HomeGuide and Custom Contracting both put a standard furnace replacement at 4 to 8 hours, usually in one day. Enbridge Sustain says jobs with duct upgrades and other changes take a full day or longer. Custom Contracting adds 1 to 2 days when ductwork needs modification.
When should I replace my furnace instead of repairing it?
HomeGuide says to replace a furnace when it is more than 15 years old and needs frequent fixing, or when repairs cost more than half the price of a new unit. Custom Contracting adds a cracked heat exchanger as a safety reason to replace. A licensed technician should confirm the diagnosis.
Is Pro House Maintenance free to use for furnace quotes?
Yes. Pro House Maintenance is free for homeowners. You describe your furnace or HVAC job once, and we match you with vetted, licensed and insured local pros who give free written estimates. You compare the quotes and choose who to hire, with no obligation to book.