Cost guides › Furnace replacement
Canada
Furnace replacement cost
Replacing a gas furnace with a 95-96% AFUE single-stage model in a 186 m² home typically costs $5,500, with most quotes from $4,300 to $7,200 before GST/HST. Since 2019, new gas furnaces sold in Canada must be at least 95% efficient, so the choice is between single-stage, two-stage and modulating models. A basic single-stage swap is about $5,150; a modulating furnace with a communicating thermostat is closer to $9,650.
Most homeowners pay
Estimate your project
Compare materials
mid-range, typicalCost by region
| Location | Basic | Mid-range | Premium |
|---|---|---|---|
| Alberta | $5,300 | $5,650 | $9,800 |
| British Columbia | $5,300 | $5,650 | $9,800 |
| Saskatchewan | $5,300 | $5,650 | $9,800 |
| Quebec | $5,200 | $5,550 | $9,650 |
| Ontario | $5,150 | $5,500 | $9,600 |
| Manitoba | $5,100 | $5,450 | $9,550 |
| Newfoundland and Labrador | $5,100 | $5,450 | $9,550 |
| Nova Scotia | $4,900 | $5,200 | $9,250 |
| New Brunswick | $4,850 | $5,150 | $9,150 |
What's included
Mid-range
- Removal and haul-away of the old furnace
- A 95-96% AFUE single-stage condensing gas furnace sized for a 186 m² home
- Gas, electrical and condensate connections
- Connection to the existing PVC intake and exhaust venting
- Filter rack and new filter
- A programmable thermostat
- Start-up, combustion and safety checks
- Gas permit and inspection
What affects the cost
Single-stage, two-stage or modulating
All new gas furnaces are high-efficiency, so the price gap is about comfort. Two-stage furnaces with a variable-speed blower are a popular middle ground: they run quietly on low through most of the winter. Modulating furnaces cost the most and keep the temperature steadiest.
Venting from an old mid-efficiency furnace
If the old furnace vented into the chimney, the new condensing furnace needs PVC intake and exhaust pipes through the side wall or roof, plus a condensate drain. A gas water heater left alone in the chimney may then need a liner or its own venting.
Size and heat loss
Furnace capacity should come from a heat loss calculation. Older furnaces were often oversized; a right-sized unit costs less, cycles less and is quieter.
Ductwork
A new cabinet usually needs some plenum and transition work to meet the existing ducts. Undersized return air is a common problem in older homes and limits what a variable-speed furnace can do.
Fuel type
Electric furnaces are simpler to install but costly to run in a Canadian winter unless electricity is cheap where you live. Oil furnaces remain common in parts of Atlantic Canada and cost more to replace than gas.
Access and season
Tight basements, crawlspaces and attic units add labour. Emergency replacements in January cost more and leave fewer choices than a planned replacement in spring or fall.
How to save
- Ask for a room-by-room heat loss calculation instead of matching the old furnace's size.
- Plan the replacement for spring or early fall rather than waiting for a breakdown in mid-winter.
- Compare three written quotes for the same efficiency, staging and blower type, with the permit and haul-away included.
- If you heat with oil, price a cold-climate heat pump too: federal and provincial programs target oil-to-heat-pump switches.
Grants, tax and rules
95% AFUE minimum
Under the federal Energy Efficiency Regulations, gas furnaces manufactured since July 3, 2019 must have an AFUE of at least 95%, with narrow exceptions such as through-the-wall units and replacements in manufactured homes.
Grants for furnaces
The Canada Greener Homes Grant and Loan are closed. Rebates now focus on heat pumps: Ontario Home Renovation Savings offers up to $2,000 for a cold-climate air-source heat pump in gas-heated Enbridge homes, and up to $7,500 in homes heated by electricity, oil, propane or wood, with pre-approval and a participating contractor.
Oil-heated homes
Oil to Heat Pump Affordability offers up to $10,000, or up to $25,000 where co-delivered with the province. Applications closed on 31 July 2026 in Alberta, Manitoba, the Northwest Territories, Quebec and Saskatchewan.
Licensed trades, permits and tax
Gas and electrical work needs licensed trades and usually a permit. GST/HST applies; our figures are before GST/HST (13% HST in Ontario, 5% GST in Alberta).
Frequently asked questions
How much does a new furnace cost in Canada?
A 95-96% AFUE single-stage gas furnace for a 186 m² home costs around $5,500 installed before GST/HST, with most quotes between $4,300 and $7,200. Two-stage and modulating models cost more.
Can I still buy an 80% furnace in Canada?
Not for a normal house. Gas furnaces made since July 2019 must be at least 95% AFUE, apart from narrow exceptions such as through-the-wall units and manufactured-home replacements.
Is a two-stage furnace worth it?
For many Canadian homes it is a good middle ground: it runs on low stage most of the season, which is quieter and more even, for a moderate extra cost over single-stage.
Should I rent or buy a furnace?
Renting spreads the cost into monthly payments that include repairs, but over the life of the furnace you usually pay much more than buying. Read the buyout terms carefully before signing a rental.
Are there rebates for a new gas furnace?
Federal grants have closed, and current provincial programs such as Ontario's mainly target heat pumps, not gas furnaces. Check with your gas utility for any current offers.
How long does furnace installation take?
Usually one day for a like-for-like swap, and up to two days if new PVC venting or duct changes are needed.
How this estimate is calculated
Work hours: 16.8 · Labour: $1,782 · Materials: $3,740
Sources: Job Bank wages (Employment and Social Development Canada); Regione Toscana, Prezzario dei Lavori 2026 (CC BY 4.0); ECB exchange rates; market check: Mid = 95-96% AFUE single-stage gas furnace (80% not sold in Canada since 2019). furnaceprices.ca (2026-04-23): typical high-efficiency gas furnace 4,000-7,000 installed; Reliance Home Comfort (2026-04-14): single-stage 4,500-6,000, two-stage 6,000-8,000, modulating 8,400+, electric 6,000-7,500. Before GST/HST..
Last reviewed September 26, 2026 · How we calculate costs · Editorial policy