How Much Does a New Furnace Cost in Toronto in 2026?
The short answer: $3,500 to $6,500 installed, depending on furnace type, brand, and your home's requirements. Here is the full breakdown including Enbridge rebates, brand comparisons, and how to get the best value.
Quick Answer: Toronto Furnace Costs at a Glance
Prices include equipment and standard installation. Excludes ductwork modifications. Enbridge rebates of up to $1,000 may apply.
Furnace Types and What They Cost
The biggest factor in your furnace cost is the type of furnace you choose. Each type offers a different balance of upfront cost, operating efficiency, and comfort. Here is how they compare for Toronto homeowners.
Single-Stage Furnace
- Lowest upfront cost
- Simple, reliable operation
- Easy to maintain
- Higher energy bills long-term
- Less consistent temperature
- Does not qualify for top rebates
Two-Stage Furnace
- Better temperature consistency
- Quieter operation on low stage
- Qualifies for some rebates
- Moderate upfront investment
- Slightly more complex than single-stage
Modulating Furnace
- Precise temperature control
- Lowest energy bills
- Qualifies for maximum Enbridge rebates
- Whisper-quiet operation
- Highest upfront cost
- More complex repairs if needed
What Affects Your Furnace Installation Cost?
No two furnace installations are identical. These factors determine where your project falls within the price range.
Home Size
Larger homes need higher-capacity furnaces, which cost more. A 1,200 sq ft home may need 40,000-60,000 BTU, while a 3,000 sq ft home could require 100,000+ BTU.
AFUE Efficiency Rating
Higher AFUE ratings (96%+) cost more upfront but save significantly on monthly gas bills. The jump from 80% to 96% can save $300-500 annually in Toronto.
Ductwork Condition
If your existing ductwork is damaged, poorly sized, or needs modification, expect an additional $300-$1,500. Upgrading from a mid-efficiency to high-efficiency unit often requires venting changes.
Brand & Model
Premium brands like Lennox or Carrier command higher prices than value brands like Goodman. However, all major brands offer reliable performance with proper installation.
Furnace Brands: Price Comparison for Toronto
We install and service all major brands. As an Authorized Lennox Dealer, we offer the best pricing on Lennox and Ducane equipment, but we can source and install any brand that suits your needs and budget.
| Brand | Price Range (Installed) | Warranty |
|---|---|---|
| Lennox | $4,500 - $6,800 | 10-year parts |
| Carrier | $4,000 - $6,500 | 10-year parts |
| Trane | $4,200 - $6,500 | 10-year parts |
| Goodman | $3,200 - $5,000 | 10-year parts |
Total Furnace Installation Cost Breakdown
When a contractor quotes you a furnace price, make sure the quote includes all of these items. Reputable companies like Megacity HVAC provide all-inclusive pricing with no hidden fees.
Furnaces with 96%+ AFUE qualify for Enbridge Home Efficiency Rebate Plus. As a certified Enbridge Sustain Trusted Partner, we submit all paperwork on your behalf. Your actual out-of-pocket cost could be $1,000 less than the figures above.
When Does Repair Make More Sense Than Replacement?
Not every furnace issue requires a full replacement. Use this guide to help decide.
Repair Makes Sense When:
- Furnace is under 10 years old
- Repair cost is less than 50% of replacement
- First-time breakdown with no history of issues
- Problem is minor (ignitor, blower motor, thermostat)
- Unit is still under manufacturer warranty
Replace Makes Sense When:
- Furnace is 15+ years old
- Repair cost exceeds 50% of a new unit
- Frequent breakdowns (2+ per heating season)
- Energy bills are rising despite maintenance
- Heat exchanger is cracked (safety hazard)
- Unit uses R-22 refrigerant (phased out)
Is a High-Efficiency Furnace Worth It?
For most Toronto homeowners, the answer is yes. The math works out clearly when you factor in both energy savings and available rebates.
A standard 80% AFUE furnace sends 20 cents of every dollar you spend on gas straight up the flue pipe. A 96% AFUE furnace captures nearly all of that energy, wasting only 4 cents per dollar. On an average Toronto gas bill of $1,500-2,000 per heating season, that difference translates to $300-500 in annual savings.
The price difference between an 80% and 96% AFUE furnace is typically $1,500-2,500. Factor in the Enbridge rebate of up to $1,000 for high-efficiency models, and the real gap narrows to $500-1,500. At $300-500 per year in gas savings, the higher-efficiency unit pays for itself in 1-5 years, then continues saving you money for the remaining 10-15 years of its lifespan.
Over a 20-year lifespan, a high-efficiency furnace can save a Toronto homeowner $6,000-10,000 in energy costs compared to a standard-efficiency model. That does not account for the fact that natural gas prices in Ontario have been trending upward, which only increases the value of higher efficiency.
20-Year Cost Comparison: 80% vs. 96% AFUE
Furnace Cost FAQs
How much does it cost to replace a furnace in Toronto?
What furnace size do I need for my Toronto home?
Are Enbridge rebates available for new furnaces?
How long does a furnace installation take?
Should I repair or replace my furnace?
Is a high-efficiency furnace worth the extra cost?
Get Your Free Furnace Estimate
We provide free in-home assessments with transparent, all-inclusive pricing. No pressure, no hidden fees. As an Enbridge Sustain Trusted Partner, we will make sure you get every rebate dollar you qualify for.