How Much Does a New Furnace Cost in Ontario? (2026 Installed Prices)
Written by the Northland Home Comfort team — TSSA-registered heating, cooling and hydronics contractor (FS-R-50021) serving Simcoe County and Muskoka. Updated October 2026.
Short answer: A new high-efficiency gas or propane furnace installed in Ontario costs about $5,500 to $9,500 in 2026 for most homes. Two-stage 96% furnaces, the most common replacement, land between $6,500 and $8,500. Modulating, variable-speed models run $9,000 to $12,000. Prices include equipment, labour, venting, permit and removal of the old unit, before any rebates.
Those ranges come from what we quote across Simcoe County and Muskoka. Your number depends on the furnace type, the size the house actually needs, the venting and the condition of the ductwork — not on the square footage of the house.
Furnace cost by type (installed, Ontario 2026)
| Furnace type | Best for | Installed price |
|---|---|---|
| Single-stage, 95–96% AFUE | Budget replacement, small or simple homes | $5,500 – $7,000 |
| Two-stage, 96–97% AFUE | Most replacements; quieter, steadier heat | $6,500 – $8,500 |
| Modulating, 97–98% AFUE, variable-speed blower | Large or multi-level homes, heat pump pairing | $9,000 – $12,000 |
| Propane (any of the above) | Rural homes and cottages without natural gas | Add $150 – $400 for the conversion kit |
| Furnace + central A/C together | Replacing both at once | $10,000 – $15,000 |
A furnace that is installed as the indoor half of a cold-climate heat pump system (a “hybrid” or dual-fuel setup) is priced separately. See our heat pump cost guide.
What drives the price up or down
- Size (BTU output). A 60,000 BTU furnace costs less than a 100,000 BTU unit, but bigger is not better. The right size comes from a heat-loss calculation, not a rule of thumb. Oversized furnaces short-cycle and wear out early.
- Efficiency and staging. Single-stage furnaces are cheapest. Two-stage and modulating furnaces cost more but run longer, quieter cycles and hold temperature better in a cold snap.
- Venting. High-efficiency furnaces vent through PVC to the sidewall. If the old furnace used the chimney, the water heater may need its own liner or a power-vent model. Budget $500 to $1,500 if that applies.
- Ductwork and electrical. Undersized returns, a plenum that does not fit the new cabinet, or a new circuit for the blower add cost. We check this on the site visit so it is in the quote, not a surprise on install day.
- Condensate and drains. Condensing furnaces produce water. If there is no floor drain nearby, a condensate pump is added.
What should be included in a furnace quote
A proper Ontario furnace quote lists the exact model and BTU rating, the AFUE efficiency, the thermostat, venting materials, the gas permit and TSSA inspection, removal and disposal of the old furnace, the labour warranty and the manufacturer warranty, and the total price with HST shown. If a quote is one line and a number, ask for the rest in writing.
Rebates and financing in 2026
There is no provincial rebate for a standard gas furnace in Ontario in 2026. The Home Renovation Savings Program pays rebates on cold-climate heat pumps (up to $7,500), smart thermostats ($100) and insulation, which is why many homeowners replacing a furnace now add a heat pump and keep the furnace as backup. Financing on approved credit is available on any replacement; the monthly payment is shown in the quote beside the cash price.
Repair or replace?
If the furnace is under 12 years old and the repair is under a third of the replacement price, repair it. If it is 15-plus years old, has a cracked heat exchanger, or needs a second major repair in two winters, replace it. A cracked heat exchanger is a carbon monoxide risk and will be red-tagged — see what a furnace red tag means in Ontario.
What it looks like around here
Most of our furnace replacements in Orillia, Barrie, Midland and Coldwater are like-for-like swaps done in a day: two-stage 96% furnace, new venting, new thermostat, old unit hauled away. In Muskoka and the rural townships, propane is the norm, and we size the furnace with the propane supply and regulator in mind. Across the board, the single biggest price mistake we see is a furnace sized by square footage that is 30 to 40 percent too big for the house.
Frequently asked questions
Most Ontario furnace replacements cost $5,500 to $9,500 installed. Two-stage 96% gas or propane furnaces, the most common choice, are typically $6,500 to $8,500 including venting, permit, thermostat and removal of the old unit.
The furnace is the same; propane models use a conversion kit that adds $150 to $400. The bigger difference is fuel cost: propane costs more per unit of heat than natural gas, which is why many rural homeowners pair a propane furnace with a cold-climate heat pump.
It should. In Ontario a gas furnace must be installed by a licensed gas technician and the work is subject to TSSA requirements. Our quotes include the permit, inspection and the TSSA-registered contractor number.
A like-for-like replacement takes one day. Jobs that need new venting routes, duct modifications or a new gas line can take two days.
Usually yes for homes over about 1,500 square feet or with more than one floor. It runs on low fire most of the time, which means quieter operation, more even temperatures and less wear.
Get a written, flat-rate furnace quote from a TSSA-registered contractor. We measure the house, run the heat loss and show you two or three options with prices.
