Furnace Replacement Cost in Canada

Furnace replacement costs across Canada in 2026: installed ranges by fuel type ($2,000–$14,200), provincial differences, the rebates open in each region, and the oil-furnace question.

Applies in: across Canada

A furnace dies on its own schedule, and the first quote you get is almost always the most expensive one you will hear. In Canada in 2026, a standard gas furnace replacement runs $4,000 to $10,000 installed depending on the tier, while the national spread across fuel types runs $2,000 to $14,200. This page is the national picture: what a replacement costs where you live, why it costs that much, and which rebate programs actually exist.

The figures below are market ranges drawn from current 2026 Canadian cost guides, not quotes. Your province, your fuel, and your home's ductwork and venting move the number within the range; rural delivery and the time of year move it across ranges.

The headline numbers, by fuel type

Fuel type is the single biggest cost driver. A gas furnace and an oil furnace are not the same job, the same equipment, or the same operating cost.

Fuel typeInstalled range (CAD)The catch
Natural gas$3,800–$10,000Cheapest to run where gas mains exist; the most common replacement in cities
Electric$2,000–$7,000Cheapest to install, most expensive to run outside Quebec's low power rates
Oil$6,750–$10,000No gas line needed, but the highest fuel cost and carbon exposure
Propane$3,700–$14,200The band is wide because homes without a tank and supply line pay for both

Entry-level single-stage gas units start around 95 to 96 percent AFUE; premium modulating units reach 97 to 98 percent. The efficiency gains between those tiers are real but modest — a few percent of the annual heating bill. The bigger value in premium furnaces is the hardware that comes with the tier: modulating burners, variable-speed blowers, quieter operation, longer warranties, and steadier temperature through the house. If you want reliable heat at the lowest purchase price, a 95 percent AFUE unit does the job.

Gas furnace prices by size and type

"How much is a gas furnace?" has two answers that multiply together: how big the unit is, and what kind of burner it runs. Size first. FurnacePrices.ca's Canadian size table, for the same brand line in different capacities, installed:

Furnace sizeMid-range brand, installedPremium brand, installed
40,000 BTU$3,500–$4,500$4,500–$5,500
60,000 BTU$4,000–$5,000$5,000–$6,500
80,000 BTU$4,500–$5,500$5,500–$7,000
100,000 BTU and up$5,000–$6,500$6,500–$8,000+

Do not just match the BTU rating of the furnace you are replacing. Older furnaces were routinely oversized by 25 to 50 percent, and a modern high-efficiency unit does more with less, so a properly sized replacement often lands one or two sizes smaller. An oversized furnace costs more up front and short-cycles for its whole life.

Type second. Reliance Home Comfort's 2026 Canadian pricing splits gas furnaces by burner stage, installed:

TypeHow it runsInstalled range
Single-stageFull blast or off, one heat output$4,500–$6,000
Two-stageLow fire most of the time, high fire on the coldest days$6,000–$8,000
ModulatingAdjusts output in small increments to match the house's demand$8,400 and up

The equipment alone is a smaller number than people expect: FurnacePrices.ca puts the unit itself at roughly $1,500 to $3,500 if you could buy it without installation. Most homeowners cannot — manufacturers sell through licensed distributors who bundle installation, and most contractors will not install a furnace they did not supply, because they cannot warranty someone else's equipment. The gap between the equipment price and the installed price is labour, venting, permits, and warranty coverage, and it is why "buy the furnace online and hire someone to hook it up" rarely works in Canada.

The budget tier: what a cheap furnace replacement includes — and skips

The floor for a legitimate gas furnace replacement in Canada is about $3,500 installed: a value-brand, single-stage unit swapped into existing ductwork. FurnacePrices.ca's brand table puts the value tier — Goodman, KeepRite, Armstrong, Coleman, and their siblings — at roughly $3,500 to $6,000 installed. One caution from the same source, worth taping to the fridge: advertised "furnace installed from $1,500" deals almost never reflect the price you will actually pay, and any quote far below the ranges on this page deserves a written, itemized estimate naming the exact make and model before you sign anything.

What a budget replacement includes:

  • A 95 to 96 percent AFUE single-stage furnace — the Canadian efficiency floor, so even the cheap tier is a high-efficiency unit by the old standards.
  • A like-for-like swap on your existing ductwork, gas line, and venting path.
  • A basic thermostat and the standard parts warranty the value brands carry.

What it skips, and what the extra money in the higher tiers actually buys:

  • Burner staging. A single-stage furnace is full blast or off. Two-stage and modulating units run at partial output most of the time, which means steadier temperatures and quieter cycles.
  • A variable-speed blower. Budget units use simpler blower motors; the premium tiers' variable-speed blowers are quieter, move air more evenly, and cost less to run.
  • Communicating controls. Premium furnaces pair with proprietary smart thermostats that report faults and modulate the system as one unit. Budget installs reuse a basic thermostat.
  • Duct and venting work. A budget quote assumes your existing setup passes as-is. Sealed-combustion venting changes, duct modifications, or a fuel conversion are extra at every tier, and they are where cheap quotes quietly grow.

None of the skips are safety items — a budget install by a licensed gas technician heats the house to the same Canadian standard. You are trading comfort features and quiet, not heat.

The provincial spread

Labour rates, fuel availability, and transport costs mean the same furnace job prices differently across the country.

RegionTypical installed range (gas furnace)
Ontario, British Columbia$4,500–$9,000
Alberta, Saskatchewan$3,500–$7,500
Atlantic Canada$3,200–$6,800

Three things drive the spread. First, labour: installer hourly rates in Toronto and Vancouver run meaningfully above Moncton or Saskatoon. Second, fuel mix: oil furnaces dominate older Atlantic Canadian homes, and propane is common in rural areas with no gas mains, which changes which equipment installers quote. Third, transport: rural jobs anywhere in Canada can add $500 to $1,500 for equipment delivery and limited contractor availability. Local building permits add $100 to $500 to most installations.

Note that city-level pricing can diverge from the provincial band. Ottawa and the GTA price above the Ontario average; so does Vancouver relative to the rest of BC. Get quotes from installers who work your actual postal code.

The efficiency floor in Canada

This one is simple and often misunderstood. New gas furnaces in Canada are 95 percent AFUE and above. The mid-efficiency 80 percent tiers still sold in parts of the United States are not part of the Canadian new-install market, so the question is not "high-efficiency or not" but which tier of high-efficiency: 95 to 96 percent single-stage entry units versus 96 to 98 percent two-stage or modulating units. Anyone quoting you a new "standard-efficiency" gas furnace in Canada is selling you something that does not exist.

Rebates: what is actually open across Canada in 2026

Furnaces attract almost no rebate money anywhere in Canada. The money is behind heat pumps. What exists, by level:

Federal programs. The Oil to Heat Pump Affordability Program helps eligible low- and median-income homeowners switch from oil heating to a heat pump, with applications through provincial delivery partners rather than the federal government. The federal Greener Homes Affordability Program funds heat pump upgrades for low-income households through provincial partners in British Columbia, Manitoba, Nova Scotia, Prince Edward Island, and Quebec. The interest-free Canada Greener Homes Loan, up to $40,000, closed to new applications on October 1, 2025.

Ontario. Home Renovation Savings pays $500 per ton of heat-pump capacity up to $2,000 for gas-heated homes, and $1,250 per ton up to $7,500 for oil-, electric-, propane-, or wood-heated homes. Oil-heated homes combining federal and provincial funding can reach up to $15,000 toward a heat pump swap. The bundled path's $250 figure is for air sealing, not for the gas furnace itself. Our Ontario furnace replacement guide covers the full provincial picture.

British Columbia. BC Hydro's home renovation rebates apply only to homes heated mainly by electricity — baseboard or electric-furnace homes — with a whole-home heat pump earning up to $4,000. Income-qualified households can access CleanBC rebates of $3,500 to $13,000 for a heat pump swap. FortisBC runs separate rebates for its natural gas customers. Check your last bills before calling anyone: eligibility turns on the existing heating fuel, not the postal code.

The pattern everywhere else. Quebec's LogisVert and Manitoba's Efficiency Manitoba run their own provincial programs, and the Atlantic provinces co-deliver the federal oil-to-heat-pump funding. In every case, the rebate math favours heat pumps over like-for-like furnace replacements.

Confirm current amounts with the program administrator before signing anything, and never let a promised rebate decide a purchase before eligibility is confirmed in writing.

November 2026 update: the federal loan is closed, and a heat-pump rebate is coming

Two federal facts in the rebate section above have moved since this guide was written, and both change what to budget for. First, the Canada Greener Homes Loan is closed to new applicants: October 1, 2025 was the last day to apply, and existing approved borrowers continue under their loan terms, but a homeowner starting a retrofit now cannot submit a new application (Natural Resources Canada, Canada Greener Homes Loan). Do not let a contractor quote it as live financing.

Second, a successor is announced but not yet open. The National Heat Pump Rebate was announced on October 8, 2026, launches in early 2027, and will be retroactive to November 1, 2026 for heat-pump installs — heat pumps only, with amounts depending on household income and details still being finalized (Prime Minister announces the National Heat Pump Rebate, Canada.ca). If your furnace is failing now, keep every receipt for a heat-pump install dated on or after November 1, 2026, and confirm eligibility with the program administrator before you buy. A new furnace bought today earns no federal rebate under either program.

The oil-furnace question

Atlantic Canada has the country's highest concentration of oil furnaces, and the country's highest heating costs. The replacement question there is really two questions: what does a new oil furnace cost, and should you buy one at all?

A straight oil-furnace replacement runs $6,000 to $10,000 installed. A cold-climate heat pump runs $10,000 to $18,000 installed — but with federal and provincial rebates, the net cost can land between $2,000 and $8,000, lower than the oil furnace it replaces. Over ten years, one Nova Scotia cost comparison puts the heat pump's operating-cost saving at $8,000 to $18,000, driven by 30 to 60 percent lower annual heating costs plus the end of oil delivery and combustion maintenance.

The federal-provincial stack is highest on oil-to-heat-pump conversions: up to $15,000 in combined funding in co-delivery provinces. If the house is old or poorly insulated, keep the oil furnace as backup in a hybrid setup rather than ripping it out.

Keeping the bill down anywhere in Canada

Replace on your schedule, not the furnace's. A planned spring replacement is consistently the cheapest version of this job; a no-heat emergency in February carries a 10 to 20 percent premium.

Get three itemized quotes and compare them line by line: unit, labour, venting, permits, old-unit removal, GST/HST. Ask whether the warranty and the installer's licence are in writing before you sign.

Every province restricts gas furnace work to licensed technicians. In Ontario that means a TSSA-certified G2 or G3 certificate; other provinces have their own licensing regimes. Ask for the credential and verify it before work starts — an unlicensed install can void the warranty and the home insurance.

Price the heat pump alternative before you buy, wherever you live. The rebate stack favours it in every province, and in oil-heated homes it can win on net purchase price, not just lifetime cost.

If you are in Ontario: our Ontario furnace replacement guide covers TSSA licensing, the Home Renovation Savings details, the door-to-door sales ban, and Ottawa-area pricing — read it alongside this page.

Related guides

2026 national installed-price ranges by fuel type

Natural gas furnace$3,800–$10,000 installed
Electric furnace$2,000–$7,000 installed
Oil furnace$6,750–$10,000 installed
Propane furnace$3,700–$14,200 installed

Ranges in Canadian dollars, typically quoted before GST/HST. The propane band is widest because homes without an existing tank and supply line pay for both. Ranges drawn from current 2026 Canadian installer pricing; the prose above explains each figure.

The replacement sequence

  1. Size it to the houseThe installer runs a heat-loss calculation for the actual house, not just square footage, and prices the right BTU band
  2. Get three itemized quotesUnit, labour, venting, permits, old-unit removal, and GST/HST listed separately so quotes compare line by line
  3. Confirm rebates in writingThe program administrator confirms eligibility before you buy, because starting work first can void rebate claims
  4. Permits and a licensed installerEvery province restricts gas work to licensed technicians; the installer pulls the permits and the work passes inspection
  5. Commission and documentSystem tested and balanced, warranty paperwork filed, and the model and install date recorded for the next owner

Questions people ask

How much does a furnace replacement cost in Canada in 2026?

For a natural gas furnace, the national installed range runs about $3,800 to $10,000, with a tighter market range of $4,000 to $7,000 for a standard swap. Electric furnaces run $2,000 to $7,000 installed, oil furnaces $6,750 to $10,000, and propane furnaces $3,700 to $14,200, with the propane range driven by whether a tank and supply line are already in place. Prices are typically quoted before GST/HST, and Ontario and British Columbia sit at the top of the bands while Atlantic Canada is usually cheapest.

Which province has the cheapest furnace replacement?

Atlantic Canada generally runs cheapest for like-for-like replacements, with full installs commonly landing between $3,200 and $6,800, while Ontario and British Columbia run highest at roughly $4,500 to $9,000 for the same work. Alberta and Saskatchewan sit in the middle around $3,500 to $7,500. The gap comes from labour rates, fuel availability, and transport: rural jobs anywhere in Canada can add $500 to $1,500 for equipment delivery and limited contractor availability.

How much does it cost to replace an oil furnace in Atlantic Canada?

A straight oil-furnace replacement in Nova Scotia, New Brunswick, or Newfoundland typically runs $6,000 to $10,000 installed. Before signing for a like-for-like oil swap, price the heat pump alternative: cold-climate heat pumps in Nova Scotia run $10,000 to $18,000 installed, but federal and provincial rebates can bring the net cost down to $2,000 to $8,000, and operating costs run 30 to 60 percent lower than oil over a 10-year horizon.

Are there federal rebates for replacing a furnace in 2026?

Not for a new furnace itself, but two federal programs matter at the edges. The interest-free Canada Greener Homes Loan, up to $40,000, stopped taking applications on October 1, 2025, and can no longer fund a new retrofit. The Oil to Heat Pump Affordability Program helps eligible low- and median-income homeowners switch from oil heating to a heat pump, applied through provincial delivery partners rather than directly to the federal government. Almost all rebate money nationally sits behind heat pumps, not furnaces.

What furnace rebates exist in BC, Alberta, or Quebec in 2026?

BC Hydro's home renovation rebates apply only to homes heated mainly by electricity, such as baseboard or electric-furnace homes, with a whole-home heat pump earning up to $4,000; income-qualified households can access CleanBC rebates of $3,500 to $13,000 for a heat pump swap, and FortisBC runs separate rebates for its natural gas customers. Quebec runs its own efficiency programs through LogisVert, and Manitoba through Efficiency Manitoba. Check the program for your province and fuel type before signing, because eligibility turns on the existing heating fuel.

Can I still buy an 80 percent efficiency furnace in Canada?

Not for a new residential installation in most of Canada. New gas furnaces sold here are 95 percent AFUE and above; the mid-efficiency 80 percent tiers still sold in parts of the United States are not in the Canadian new-install market. The real choice is between 95 to 96 percent single-stage entry units and 96 to 98 percent two-stage or modulating units.

Should I replace my oil furnace with a heat pump instead?

In Atlantic Canada, the math usually says yes for homeowners who can swing it. A cold-climate heat pump typically cuts annual heating costs 30 to 60 percent versus an oil furnace, and one Nova Scotia cost comparison puts the 10-year saving at $8,000 to $18,000. Rebates stack highest on oil-to-heat-pump conversions: in co-delivery provinces, federal and provincial funding combined can reach up to $15,000 toward the swap. Keep the oil furnace as backup in a hybrid setup if the house is old or poorly insulated.

How much is a new gas furnace in Canada?

Installed, a new gas furnace in Canada runs about $3,500 to $8,000 for most homes, and the stage of the burner explains most of that spread: Reliance Home Comfort's 2026 Canadian pricing puts single-stage units at $4,500 to $6,000 installed, two-stage at $6,000 to $8,000, and modulating at $8,400 and up. Size moves the price less than tier does — FurnacePrices.ca's size table runs from about $3,500 to $5,500 installed at 40,000 BTU to $5,000 to $8,000 or more at 100,000 BTU and above. The equipment alone, if you could buy it without installation, runs roughly $1,500 to $3,500.

How is this different from the Ontario furnace replacement guide?

The Ontario guide goes deep on one province: TSSA gas-technician licensing, the Home Renovation Savings program details, the door-to-door sales ban, and Ottawa-area pricing. This page is the national overview: how costs change by province and fuel type, and which federal and provincial programs exist across the country. If you are in Ontario, read both.

Sources

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