Furnace Replacement Cost in Alberta
Furnace replacement cost in Alberta in 2026: Calgary and Edmonton installed prices, cold-climate sizing, gas permits, and why Alberta has no furnace rebate.
Furnace and AC Replacement Cost in Canada
Furnace and AC replacement together in Canada in 2026: combined prices, matched-system sizing, when bundling saves money, and when to stage it.
Applies in: across Canada
When a furnace and an air conditioner age together — and in most Canadian houses they were installed together — the replacement question arrives as a pair. Replace both now, or replace the one that failed and let the other run? In Canada in 2026, doing both in one job typically costs $7,500 to $12,000 installed, with most homeowners paying $8,500 to $10,500. This page covers what the pair costs, how the two units are sized to each other, and the cases where bundling is the smart move and the cases where it is a sales pitch.
For furnace-only pricing in depth, see our furnace replacement cost in Canada guide. For the other technology entirely, our cheap heat pump guide covers the systems that are pulling most of the rebate money in 2026.
The combined price, and what it replaces
Two published 2026 Canadian benchmarks frame the market. FurnacePrices.ca puts a combined furnace and central AC install at $7,500 to $12,000, with most homeowners at $8,500 to $10,500. HomeStars puts a mid-range installation of both units at $8,000 to $15,000, against $3,500 to $8,000 for a furnace alone and $3,000 to $7,500 for an AC alone.
| Job | Installed range (CAD) |
|---|---|
| Furnace + central AC together | $7,500–$12,000 (up to $15,000 for higher tiers) |
| Furnace alone | $3,500–$8,000 |
| Central AC alone | $3,000–$7,500 |
| New ductwork, if the home has none | $5,000–$15,000+ (a separate project) |
Notice the arithmetic: the pair usually costs less than the two standalone jobs added together at their midpoints. The reasons are mundane, not magical. The crew is already there. The furnace has to come out to change the coil anyway in many layouts. Disposal, permits, and commissioning happen once. Contractors also sharpen package pricing because a combined job is a bigger, simpler sale. Expect the bundle saving to be hundreds of dollars to perhaps $1,500 against two separate visits — meaningful, not life-changing.
High-efficiency equipment adds $500 to $2,000 per unit over base models. In Canada, a new gas furnace is a high-efficiency unit by definition in practice: 95 percent AFUE and up, with two-stage and modulating models at 96 to 98 percent — 95 percent is the legal minimum for a new residential gas furnace. For the AC side, look at the SEER2 rating; 16 SEER2 and above marks the higher-efficiency tier.
Sizing the pair: the part that decides how it feels
Furnace and AC sizing are linked by one shared component: the blower. The furnace's blower pushes air for both heating and cooling, so the pair is chosen together even when only one unit is being replaced.
Cooling capacity is measured in tons — one ton is 12,000 BTU per hour of cooling — and typical Canadian homes take 1.5 to 5 tons. Planning ballparks:
| Home size | Cooling size | Pairing note |
|---|---|---|
| 1,000–1,200 sq ft | 2 tons (24,000 BTU) | Small furnace, standard blower |
| 1,500–1,800 sq ft | 2.5–3 tons (30,000–36,000 BTU) | The most common Canadian pairing |
| 2,000–2,400 sq ft | 3.5–4 tons (42,000–48,000 BTU) | Blower capacity becomes the constraint |
| 2,500–3,000 sq ft | 4–5 tons (48,000–60,000 BTU) | Check duct sizing before assuming |
Heating size follows heat loss, not floor area alone. Cold-climate design loads run far higher per square foot than mild-coast loads, which is why a Vancouver and a Winnipeg house of the same size do not get the same furnace. Treat the table as a starting point for the conversation. The quote you sign should rest on a load calculation — a room-by-room assessment of insulation, windows, orientation, and local design temperature — and a contractor who sizes by the nameplate of the unit coming out is guessing with your money.
Oversizing is the quiet failure mode. An oversized AC cools in short bursts and never runs long enough to pull humidity out, leaving the house cold and clammy. An oversized furnace short-cycles, wears its parts, and heats unevenly. A matched, correctly sized pair at a moderate efficiency tier will feel better than an oversized premium pair, every day of the year.
Matched systems: why the coil is not a detail
The indoor evaporator coil sits on top of the furnace and belongs to neither unit — it belongs to the system. Manufacturers rate efficiency and capacity for tested combinations of outdoor unit, coil, and furnace blower. Three practical consequences:
- Rated efficiency is combination-specific. A 16 SEER2 claim applies to a listed combination. Pair that outdoor unit with an old coil and an aging blower and the delivered efficiency is whatever the mix produces, which is less.
- Warranties can hinge on the match. Some manufacturers condition full warranty terms on matched, registered equipment. Ask, and get the answer on the quote.
- The refrigerant transition is live. New AC equipment has moved to lower-GWP refrigerants (R-32 and R-454B), while most installed systems run R-410A — R-410A was phased out for new equipment manufactured after January 2025. Coils and units from different refrigerant generations do not mix. If your AC is a newer refrigerant and the furnace blower is being replaced, matching is straightforward; if you are keeping an R-410A AC, the new furnace must suit the existing coil.
Replace together or stage it: the honest cases
Replace together when both units are near end of life (an AC at 12 to 15 years, a furnace at 15 to 20), when the AC faces a major repair on R-410A equipment, or when the furnace change already touches venting and ductwork. You pay once for labour and disruption, start both warranties on the same date, and get a properly matched pair.
Stage it when one unit is mid-life and healthy. A 6-year-old AC does not belong in a landfill because the furnace died. The one check that matters: confirm the new furnace's blower and the existing coil are compatible, and have the coil inspected while the furnace is out — swapping a coil later, on its own, costs more than swapping it during the furnace job.
The middle path worth pricing is dual fuel: a heat pump outside, a furnace inside. The heat pump handles cooling and most heating; the furnace covers the coldest days. It costs more than the conventional pair upfront and attracts the rebates the conventional pair does not. In gas-heated homes in milder regions, it is often the best 15-year arithmetic on the table.
Rebates: the short, slightly annoying truth
A furnace-and-AC pair attracts almost no rebate money in Canada in 2026. The programs that pay point at heat pumps, not at conventional pairs — and the federal picture changed in 2026, so an older guide that names the Oil to Heat Pump Affordability Program as open is stale.
The Oil to Heat Pump Affordability Program closed to new applications on July 31, 2026. Applications submitted before that date are still being processed, and the program offered up to $10,000 toward an oil-to-heat-pump switch. Its successor, the National Heat Pump Rebate, is not open yet: the online portal arrives in early 2027, it pays $2,000 — or up to $10,000 for households at or below the median after-tax income for their province and household size — and installs from November 1, 2026 can be claimed retroactively once it opens. The program is expected to run until March 2034, and its parameters are still being finalized, so check the program page before counting on a figure.
What is actually paying now sits with the provinces and utilities: Ontario's Home Renovation Savings pays per-ton heat pump rebates, and British Columbia's CleanBC and FortisBC offers cover heat pump and dual-fuel systems. A standalone AC earns nothing in most provinces, and a gas furnace earns a token amount at best, sometimes only as part of a bundled multi-upgrade path.
Two rules protect you. Confirm eligibility with the program administrator, in writing, before work starts — starting first voids claims in several programs. And never let a promised rebate carry a quote: if the deal only works with the rebate, it does not work.
Getting quotes for the pair
Get three itemized quotes that separate the furnace, the outdoor unit, the coil, labour, venting or lineset changes, permits, thermostat, disposal, and taxes. Ask each contractor three questions: What load calculation did you run? Is this combination a manufacturer-rated match? What exactly is the warranty on parts, labour, and the heat exchanger? The cheapest quote that cannot answer those is not the cheapest quote.
If you are in Ontario, our Ontario furnace replacement guide covers TSSA licensing and the provincial program detail. If your furnace is in British Columbia, the British Columbia furnace guide covers CleanBC, FortisBC, and Technical Safety BC licensing.
Related guides
- Furnace replacement cost in Canada: furnace-only pricing by fuel type and province, and the national rebate picture.
- How to start getting a cheap heat pump in Canada: the heat pump alternative, with the 2026 federal and provincial rebate stack.
- Furnace replacement cost in British Columbia: the British Columbia version — CleanBC and FortisBC rebates, Technical Safety BC licensing, and coastal versus Interior pricing.
Furnace plus AC: installed prices in Canada (2026)
| Combined furnace + central AC, typical | $7,500–$12,000 |
|---|---|
| Combined, mid-range systems (HomeStars) | $8,000–$15,000 |
| Most homeowners pay (combined) | $8,500–$10,500 |
| Furnace alone, for comparison | $3,500–$8,000 |
| Central AC alone, for comparison | $3,000–$7,500 |
Installed ranges in Canadian dollars, typically before tax. Bundling both units into one visit usually costs less than the two separate jobs added together.
How a combined replacement runs
- Load calculation firstThe contractor sizes heating and cooling to the house — square footage, insulation, windows, and climate — not to the size of the units coming out
- Pick a matched pairFurnace, indoor coil, and outdoor unit chosen to work together, with a shared blower sized for the AC's airflow
- One install visitBoth units, the coil, and the lineset go in together; one permit set, one commissioning, one disposal of the old equipment
- Confirm rebates before signingFurnaces and ACs draw little rebate money in Canada; heat pumps draw most of it — price that alternative before you commit
Questions people ask
How much does it cost to replace a furnace and AC together in Canada?
A combined furnace and central air conditioner replacement in Canada typically runs $7,500 to $12,000 installed in 2026, with most homeowners paying $8,500 to $10,500. Broader installed ranges that include higher-efficiency systems run $8,000 to $15,000. Prices vary by home size, equipment tier, and region, and are usually quoted before tax.
Is it cheaper to replace a furnace and AC at the same time?
Usually, yes. One visit instead of two saves a second round of labour, setup, and disposal, and contractors often price the pair as a package — the combined total commonly lands below the sum of the two standalone jobs. The saving is real but not enormous; the stronger reasons to bundle are the matched-system benefits and avoiding a second disruption a year or two later.
What is a matched system, and why does it matter?
A matched system means the furnace, the indoor evaporator coil, and the outdoor AC unit were selected and tested to work together. The furnace blower has to move the air volume the AC needs; a mismatched blower or coil costs efficiency, humidity control, and sometimes warranty coverage. Manufacturers publish rated efficiency for specific combinations — a pairing that was never rated together may not deliver the efficiency on the brochure.
What size furnace and AC does a typical Canadian house need?
As a rough guide only: a 1,000 to 1,200 square foot home needs about 2 tons of cooling (24,000 BTU), a 1,500 to 1,800 square foot home 2.5 to 3 tons, and a 2,000 to 2,400 square foot home 3.5 to 4 tons. Furnaces are sized by heat loss, which in cold Canadian climates runs much higher per square foot than in mild ones. A proper load calculation using your insulation, windows, and local design temperatures replaces these ballparks — insist on one, because oversized equipment short-cycles, dehumidifies badly, and wears out faster.
When should you replace only one of the two units?
Stage the work when the second unit is young and healthy. If the furnace is 18 years old and the AC is 6, replace the furnace and keep the AC — just confirm the new furnace's blower suits the existing coil. Staging also makes sense when you are planning a heat pump conversion soon, or when the budget forces a choice and the surviving unit has years of reliable life left.
When does replacing both together make the most sense?
When both units are old (roughly 12 to 15 years for an AC, 15 to 20 for a furnace), when the AC uses the phased-out R-410A refrigerant and faces a major repair, or when you are changing furnace type and the ductwork or venting is being touched anyway. One contractor, one visit, and a matched pair with a single warranty start date is worth real money against two aging units failing in back-to-back winters and summers.
Are there rebates for a new furnace and AC in Canada in 2026?
Very few, and small — and the federal picture changed in 2026. The Oil to Heat Pump Affordability Program closed to new applications on July 31, 2026, though applications submitted before that date are still being processed. Its successor, the National Heat Pump Rebate, opens in early 2027 through an online portal, pays $2,000 or up to $10,000 for households at or below the median after-tax income, and covers eligible installs from November 1, 2026 retroactively. Until it opens, the live money is provincial and utility programs: Ontario's Home Renovation Savings pays per-ton heat pump rebates, and British Columbia's CleanBC and FortisBC offers cover heat pumps and dual-fuel systems. A gas furnace on its own earns little or nothing. If rebates matter to your budget, price a heat pump (or a dual-fuel heat pump plus furnace) before signing for a conventional pair — our cheap heat pump guide walks the current stack.
How long does a combined furnace and AC replacement take?
A straightforward like-for-like swap of both units in an existing ducted home is usually a one-day job for a two-person crew, sometimes stretching to a second day when venting, lineset, or duct changes are involved. New ductwork is a different project entirely — running $5,000 to $15,000 or more on its own — and is rarely part of a replacement.
Should I consider a heat pump instead of a furnace and AC pair?
Price it, at least. A cold-climate heat pump heats and cools from one outdoor unit, and central ducted systems run about $4,500 to $12,000 installed before rebates — often less than the furnace-plus-AC pair. In milder regions it can be the only system you need; in colder ones, a dual-fuel setup keeps a smaller furnace as backup. The deciding factors are your current fuel, your electricity and gas prices, and the rebate stack where you live.
Sources
- FurnacePrices.ca, How Much Does a Furnace Cost in Canada? (2026 Prices) — combined furnace + central AC $7,500–$12,000, most homeowners $8,500–$10,500; new ductwork $5,000–$15,000+; 95% AFUE is the minimum for a new residential gas furnace in Canada.
- FurnacePrices.ca, Central Air Conditioner Prices in Canada in 2026 — central AC $4,000–$7,000 typical; 14.3 SEER2 regulatory minimum; R-410A phased out for new equipment manufactured after January 2025, replaced by R-32 and R-454B; one ton equals 12,000 BTU per hour.
- HomeStars, HVAC System Costs in Canada in 2026 — furnace + central AC mid-range $8,000–$15,000; furnace alone $3,500–$8,000; AC alone $3,000–$7,500; ducted heat pump $4,500–$12,000; high-efficiency models $500–$2,000 more; furnace lifespan 15–25 years, AC 10–20 years.
- Natural Resources Canada, Eligibility criteria for the Oil to Heat Pump Affordability program — program closed to new applications; July 31, 2026 was the last day to apply; applications submitted before the deadline continue to be processed; grant up to $10,000.
- Government of Canada, National Heat Pump Rebate — online portal in early 2027; $2,000, or up to $10,000 for low- to median-income households; installs from November 1, 2026 eligible retroactively; expected to close March 2034; parameters still being finalized.
- Home Renovation Savings — Ontario's heat pump rebate program, run by Enbridge Gas and Save on Energy (IESO) with support from the Government of Ontario.