How Much Does a New Furnace Cost in Toronto? (2026 Price Guide)
Everything you need to know about furnace prices, installation costs, brand comparisons, and available rebates in the Greater Toronto Area.
Quick Answer: Furnace Cost in Toronto (2026)
A new furnace in Toronto costs between $3,000 and $7,500 installed in 2026, depending on efficiency, brand, and home size. With available Ontario rebates, your out-of-pocket cost could be as low as $1,500–$3,000.
Mid-Efficiency
$3,000–$5,000
80% AFUE, installed
High-Efficiency
$4,500–$7,500
96%+ AFUE, installed
Modulating
$5,500–$8,500
Variable speed, installed
Furnace Cost by Type (Installed)
Furnace prices vary significantly based on efficiency rating. Higher-efficiency models cost more upfront but save hundreds per year on natural gas bills. All prices below include professional installation in the Toronto area.
| Furnace Type | Efficiency (AFUE) | Installed Cost | Best For |
|---|---|---|---|
| Mid-Efficiency | 80% AFUE | $3,000–$5,000 | Budget-conscious, rental properties |
| High-Efficiency | 96%+ AFUE | $4,500–$7,500 | Most homeowners, rebate eligible |
| Modulating / Variable Speed | 97%–98% AFUE | $5,500–$8,500 | Maximum comfort, quietest operation |
Note: Mid-efficiency (80% AFUE) furnaces are being phased out across Canada. Most new installations in Ontario use high-efficiency models, which also qualify for government rebates.
Furnace Cost by Brand in Toronto
Brand choice is one of the biggest factors in furnace pricing. Here is what you can expect to pay for a new furnace from each major manufacturer, fully installed in the GTA.
Carrier
$4,000 – $7,000Premium reliability, excellent warranty support
Lennox
$4,500 – $7,500Industry-leading efficiency ratings
Goodman
$3,000 – $5,000Best value, strong warranty, budget-friendly
Trane
$4,000 – $7,000Built for durability, commercial-grade quality
Rheem
$3,500 – $5,500Reliable mid-range option, widely available
Daikin
$4,000 – $6,500Japanese engineering, quiet operation
Imperial Heating installs all major brands. We will recommend the best furnace for your home size, budget, and comfort needs. Learn more about our heating services.
Factors That Affect Furnace Installation Cost
No two furnace installations are identical. Several factors determine your final price beyond the cost of the unit itself. Understanding these variables helps you budget accurately.
Home Size (Square Footage)
Larger homes need higher-BTU furnaces. A 1,200 sq ft bungalow may only need a 60,000 BTU unit, while a 3,000 sq ft two-storey home could require 100,000+ BTUs. Bigger units cost more.
Ductwork Condition
If your existing ductwork is undersized, damaged, or poorly sealed, modifications may be needed. Duct repairs or upgrades can add $500–$2,000 to the installation cost.
Efficiency Rating (AFUE)
Higher AFUE means more of every dollar of gas is converted to heat. A 96% AFUE furnace costs more upfront than an 80% model, but saves $300–$600 annually on heating bills.
Brand and Features
Premium brands like Lennox and Carrier cost more but offer better warranties and quieter operation. Features like variable-speed blowers and modulating gas valves add to the price.
Installation Complexity
Switching from mid-efficiency to high-efficiency requires new PVC venting. Difficult access, gas line upgrades, or electrical work can increase labour costs by $300–$1,000.
Permits and Inspections
The City of Toronto requires permits for furnace installations. Permit fees typically run $150–$300. A reputable installer handles the permit process for you.
Furnace Repair vs. Replacement: When Is It Time?
Not every furnace issue requires a full replacement. Here is how to determine whether a furnace repair makes more sense than investing in a new unit.
Repair Makes Sense When
- Your furnace is under 15 years old and the repair cost is under $500
- The issue is a minor component (ignitor, flame sensor, blower motor capacitor)
- This is the first major repair and the unit has been well-maintained
- Your energy bills have not significantly increased over the past few years
Replacement Makes Sense When
- Your furnace is 15+ years old and repair costs exceed $1,000
- You are facing frequent breakdowns (2+ repairs in the past 2 years)
- The heat exchanger is cracked (safety hazard, expensive to repair)
- Your heating bills have risen 30%+ despite regular maintenance
- Repair cost exceeds 50% of a new furnace price
Not sure which option is right for you? Our technicians provide honest assessments. We will never recommend a replacement when a repair will do. Book a diagnostic appointment and we will give you a straightforward recommendation.
Available Furnace Rebates in Ontario (2026)
Ontario homeowners can significantly reduce the cost of a new furnace through federal and provincial rebate programs. Here are the programs available in 2026.
Canada Greener Homes Grant / HER+
Up to $5,000
The federal Home Efficiency Rebate Plus (HER+) program offers rebates for energy-efficient home upgrades, including high-efficiency furnace installations. Requires a pre- and post-retrofit EnerGuide home energy audit. High-efficiency furnaces (96%+ AFUE) qualify.
Ontario Home Energy Programs
Up to $5,000+
Provincial programs and utility-sponsored incentives provide additional rebates for energy-efficient heating upgrades. Enbridge Gas and local utility companies often offer seasonal rebates that can be stacked with federal programs. Check our rebates page for current availability.
Manufacturer Rebates
$200 – $1,000+
Carrier, Lennox, Trane, and other manufacturers run seasonal promotions offering instant rebates or extended warranties on qualifying models. These can be combined with government rebates for maximum savings.
Imperial Heating Lease-to-Own Program
6 Months Free + Up to $750 Cashback
Our exclusive lease-to-own program lets you get a brand-new high-efficiency furnace with no upfront cost. Enjoy 6 months of free rental payments and receive up to $750 cashback. No credit check required. Learn more about financing options.
Total Potential Savings Example
A Toronto homeowner installing a $6,000 high-efficiency furnace could save:
- Greener Homes / HER+ rebate: $2,500
- Enbridge/utility rebate: $500
- Manufacturer promotion: $500
- Imperial Heating cashback: $750
- Total savings: up to $4,250 — Final cost: as low as $1,750
Furnace Financing Options
A new furnace is a significant investment, but it does not have to strain your budget. Imperial Heating offers flexible payment options so you can get the heating system your home needs right away.
Lease-to-Own
No upfront cost. Low monthly payments. 6 months free with our current promotion. Own it at the end of the term.
Learn MoreMonthly Payment Plans
Spread the cost over 36, 48, or 60 months. Competitive interest rates with flexible terms to suit your budget.
Learn MoreRent-to-Own
All maintenance and repairs included. Predictable monthly cost. Upgrade anytime. No surprise bills.
Learn MoreWhat Size Furnace Does Your Toronto Home Need?
Proper sizing is critical. An undersized furnace will struggle to heat your home on the coldest Toronto winter days, while an oversized unit will short-cycle, wasting energy and wearing out components faster. Here are general guidelines based on home size.
| Home Size (sq ft) | Recommended BTUs | Typical Cost (Installed) |
|---|---|---|
| 800 – 1,200 sq ft | 40,000 – 60,000 BTU | $3,000 – $5,000 |
| 1,200 – 1,800 sq ft | 60,000 – 80,000 BTU | $3,500 – $6,000 |
| 1,800 – 2,500 sq ft | 80,000 – 100,000 BTU | $4,500 – $7,000 |
| 2,500 – 3,500+ sq ft | 100,000 – 120,000+ BTU | $5,500 – $8,500 |
These are estimates for standard Toronto-area homes. Factors like ceiling height, insulation quality, number of windows, and sun exposure all affect actual requirements. A professional heat loss calculation ensures accurate sizing. Book a free in-home assessment.
Frequently Asked Questions About Furnace Costs
Answers to the most common questions Toronto homeowners ask about furnace pricing, installation, and rebates.
Disclaimer: Prices are estimates based on typical Toronto-area installations as of 2026. Actual costs vary based on home size, equipment selection, installation requirements, and current market conditions. Rebate amounts and eligibility are subject to change by the issuing authority. Contact us for a free, accurate quote for your home.
Related Resources
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