M-202 Home Systems
High-efficiency furnace replacement without the guesswork
Replacing a gas furnace in Toronto and the GTA typically costs $4,500 to $7,000 installed for a two-stage, 95 to 96% AFUE unit, before HST. A like-for-like swap takes about one day.
- Typical cost
- $4,500–
$7,000 - Timeline
- 1–3 days on site
- Permit
- ESA notice; no Toronto permit
- Prices checked
- 2026
- Gas work by TSSA-registered firms
- Free on-site estimates
- The MKC Guarantee
Free, no-obligation estimate. We typically reply within 24 hours.
M-202.1 Why MKC
Why choose MKC for furnace replacement
A furnace tends to fail in the coldest week of the year, when there is little time to compare quotes. It helps to know the numbers beforehand: the size the house needs, whether the venting has to change, and whether the gas supply is large enough. We size the furnace from a heat loss calculation, not from the label on the old one. Gas work is done by a TSSA-registered contractor with certified gas technicians. In Toronto, the installer also holds a City heating licence. We only use ECRA/ESA-licensed electrical contractors to perform any electrical work.
What a furnace-only quote can miss
Three items change the price of a simple swap. Replacing a mid-efficiency furnace means new PVC venting, at $400 to $1,200. Duct changes to fit the new cabinet add $300 to $1,500. If the combined gas load exceeds the meter, a service upsize adds $1,200 to $3,500. We check all three at the estimate.
M-202.2 Scope
What’s included
- M-202.1Furnace replacementThe old furnace removed and a 95%+ AFUE gas furnace set on the existing ducts and gas line.
- M-202.2SizingA heat loss calculation, so the BTU rating matches the house as it is insulated today.
- M-202.3VentingPVC intake and exhaust venting where the old mid-efficiency furnace used a metal flue.
- M-202.4Ductwork changesPlenum, return and duct changes where the new furnace does not line up with the old one.
- M-202.5Furnace with coolingA furnace and a central air conditioner or heat pump replaced together on the same ducts.
- M-202.6Permits and inspectionESA notification for the electrical connection, and the City permit where one applies.
M-202.3 Cost guide
What it costs
in Toronto & the GTA
Three current price guides agree within about $1,000 on a typical two-stage furnace. Budget and premium units sit on either side. All prices are before HST.
Two-stage 95–96% AFUE gas furnace, installed, with the old furnace removed
A like-for-like swap takes one day, about 8 to 10 hours. Allow a day and a half to two days if the venting changes, and two to three days if the gas line is upsized. The electrical connection is reported to ESA. In Toronto, replacing a furnace in a house needs no building permit, and we confirm whether any other part of your job does.
Every project is different, so your estimate comes with its own written schedule, and we aim to beat the usual industry timeline on every job.
| Level of work | Typical cost |
|---|---|
| Budget replacementBasic 95% AFUE single-stage furnace, a simple swap on the existing venting and ducts. | $3,500– |
| Typical two-stage, 95–96% AFUEThe furnace, labour, materials and removal of the old furnace. | $4,500– |
| Premium modulating furnaceModulating burner and variable-speed blower, or a typical furnace with added complexity. | $7,000– |
| Furnace plus central airA gas furnace and a central air conditioner replaced together on existing ducts. | $6,500– |
| Item | Typical price |
|---|---|
| Upgrade to two-stage or variable-speed | $1,500– |
| PVC venting when replacing a mid-efficiency unit | $400– |
| Ductwork modification or repair | $300– |
| Gas service upsize, where the meter is too small | $1,200– |
| Disposal of old equipment, where not included | $300– |
Worked examples
- Example 1
Budget furnace replacing a mid-efficiency unit, with new PVC venting
$3,900–$5,700 - Example 2
Typical two-stage furnace with duct modifications
$4,800–$8,500
What moves the number
- 01Staging and blower
A two-stage or variable-speed furnace adds $1,500 to $3,000 over a single-stage unit, and a modulating burner adds $1,500 to $2,500.
- 02Size (BTU)
A 2,000 sq ft Ontario home generally needs 60,000 to 80,000 BTU. The exact size should come from a load calculation for your house.
- 03Venting
Moving from a mid-efficiency to a high-efficiency furnace needs PVC venting, which adds $400 to $1,200 to the job.
- 04Ductwork and gas supply
Duct modifications add $300 to $1,500. If the combined gas load exceeds the meter, a gas service upsize adds $1,200 to $3,500.
- 05Fuel conversion
Switching from oil or electric heat to a gas furnace adds $1,500 to $3,500 or more to the replacement price.
Ranges cover the furnace, labour, materials and removal of the old unit, before HST. Venting changes, duct work, a gas service upsize and permit fees are extra unless the row includes them. Prices checked in 2026. Not a quote: your estimate is built from your own measurements and choices.
Where these numbers come from
- When Do I Need a Building Permit?, City of Toronto, Toronto Building (2026)
- Be Fuels Wise: Hire Registered and Certified Professionals, Technical Standards and Safety Authority (TSSA) (2024)
- O. Reg. 212/01: Gaseous Fuels, Government of Ontario (e-Laws) (2026)
- Building Permit Fees, City of Toronto (Fees effective January 1, 2026)
- Plumbing & Heating licences, City of Toronto (2026)
- 2026 Wiring Fee Guide, Electrical Safety Authority (ESA) (Effective April 1, 2026)
- Home Renovation Savings program, Save on Energy (IESO) (2026)
- Closed: Greener Homes Grant – Ontario, Natural Resources Canada (2026)
- Published 2026 price guides and GTA contractor price pages (2026)
G-003 How we work
How we deliver your furnace installation
- 1
Free Estimate
Tell us what you have in mind. We review your space and goals and give you a clear estimate at no cost.
- 2
Design + Permits
Our in-house designers model your project in 3D so you can see it and settle every choice. Our in-house engineering team prepares drawings, engineering letters and permit applications.
- 3
Material Procurement
We order cabinets, tile, stone, pavers and decking from trusted suppliers such as Unilock, Techo-Bloc, TimberTech and Trex, and schedule deliveries around the work.
- 4
Construction Process
Our crews build to code with site supervision and regular updates, so you always know where things stand.
- 5
Project Completion
Final inspection, walkthrough and clean-up. On time, within budget and beyond expectations. That is the MKC Guarantee.
Plan your project
with a free estimate.
We review your space and goals and give you a clear estimate at no cost.
M-202.4 Questions
Questions about furnace replacement
Don’t see your question? Call (647) 637-6052 or ask in your estimate request.
How much does it cost to replace a furnace in Toronto?
Typical cost in Toronto and the GTA: $4,500 to $7,000 (Two-stage 95–96% AFUE gas furnace, installed, with the old furnace removed). By level of work: Budget replacement: $3,500 to $4,500; Typical two-stage, 95–96% AFUE: $4,500 to $7,000; Premium modulating furnace: $7,000 to $9,500; Furnace plus central air: $6,500 to $12,500. The furnace’s staging and blower type move the price most. Venting changes, duct modifications and a gas supply that needs upsizing account for most of the rest. These are typical ranges, before HST, with prices checked in 2026; your estimate is built from your own measurements and choices.
Who is allowed to install a gas furnace in Ontario?
Gas work is done by a TSSA-registered contractor with certified gas technicians. Ontario’s gaseous fuels regulation requires both, and you can check a contractor’s registration with TSSA’s lookup tool. In Toronto, anyone who installs warm air heating equipment also needs a City heating contractor licence. The electrical connection is done by a licensed electrical contractor and reported to ESA.
Do I need a permit to replace a furnace in Toronto?
Not for the furnace itself. Toronto lists replacing a furnace or boiler in a house among the work that needs no building permit; work that installs or changes a heating system, such as new ductwork, can need one, and we confirm that for your job. The electrical connection is also reported to the Electrical Safety Authority. Other GTA municipalities set their own rules.
Are there rebates for a new gas furnace in Ontario?
We found none. The Home Renovation Savings pages list rebates for heat pumps, insulation, windows and doors, air sealing, heat pump water heaters and smart thermostats, but not for gas furnaces. The Canada Greener Homes Grant is closed. If a rebate matters to your decision, a cold-climate heat pump may qualify under that program’s conditions.
Should I get a heat pump instead of a new furnace?
It is worth pricing both. A cold-climate heat pump on existing ducts typically costs $9,000 to $18,000 before rebates, against $4,500 to $7,000 for a typical furnace. A hybrid system pairs a heat pump with a gas furnace as backup. We can quote the furnace alone, the heat pump alone and the hybrid on one estimate.
How do I know what size furnace I need?
From a heat loss calculation, not from the old furnace. As a guide, a 2,000 sq ft Ontario home generally needs 60,000 to 80,000 BTU. Insulation, windows and air leakage move that number, so a house that has had attic insulation or new windows since the last furnace often needs a smaller one.
Should I replace the air conditioner at the same time?
If both are near the end of their life, yes, because the two share the blower, the coil cabinet and the ducts. Published prices for a gas furnace and central air conditioner replaced together on existing ducts run $6,500 to $12,500. A furnace alone is $3,500 to $9,500 across all tiers.
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