How Much Does a Heat Pump Cost in Canada? (2026 Price Ranges + Rebates)
Short answer: prices vary a lot by home, region and system type. Published 2026 cost guides put a single-zone ductless mini-split at roughly $3,000–$7,500 installed and a ducted cold-climate heat pump at roughly $12,000–$20,000 installed before rebates, with new ductwork or an electrical panel upgrade pushing totals higher. The Government of Canada's own example used about $15,000 for a heat pump versus about $6,000 for an electric furnace. Rebates can cut that by thousands of dollars; check yours with the calculator.
These are ranges from third-party price guides, not quotes. Your installer's written quote, based on a heat-loss calculation for your house, is the only number that matters.
Typical installed price ranges (before rebates and tax)
| System | Typical range reported | Source |
|---|---|---|
| Ductless mini-split, single zone | $3,500–$7,500 | Jobsite Calcs 2026 |
| Ductless mini-split, single zone | $5,483–$7,417 (typical $6,450) | QuoteSaver, Sept 2026 |
| Ductless, 3 zones | $11,433–$15,467 | QuoteSaver, Sept 2026 |
| Multi-zone ductless (3–4 rooms) | $12,000–$22,000 | Greenfoot, July 2026 |
| Ducted cold-climate, 3 ton | $12,283–$16,618 | QuoteSaver, Sept 2026 |
| Ducted cold-climate replacing furnace + AC | most installs $12,300–$20,500 | KeelFox 2026 |
| Heat pump + full new ductwork (finished home) | $15,000–$25,000 | HomeStars 2026 |
| Ground-source (geothermal) | $20,000–$40,000 | HomeStars 2026 |
| Federal government example | ~$15,000 heat pump vs ~$6,000 electric furnace | Prime Minister's speech, Oct 8, 2026 |
Sources disagree because they price different sizes, efficiency tiers and regions. Treat the table as a sanity check for quotes, not a price list.
What drives the price
- System type. Ductless units are cheaper per zone, but a whole house of ductless heads can cost as much as a ducted system. See ducted vs ductless.
- Size (capacity). Measured in tons (1 ton = 12,000 BTU/h). Size should come from a heat-loss calculation, not the old furnace's rating. Natural Resources Canada publishes an ASHP sizing and selection guide that contractors use.
- Cold-climate rating. Most rebates, including the new federal program, require cold-climate models, which cost more than standard units. See do heat pumps work at -30°C?.
- Ductwork condition. Reusing good ducts keeps costs down. Undersized or leaky ducts may need changes.
- Electrical work. Some homes need a panel or service upgrade. This varies widely, so ask for it as a separate line on the quote.
- Backup heat. Keeping your furnace as a backup (hybrid) or adding electric backup strips changes the scope.
- Region and season. Labour rates differ, and emergency mid-winter installs can cost more.
- Tax. Most guides quote before GST/HST.
How rebates change the math
The National Heat Pump Rebate announced October 8, 2026 offers up to $10,000 for households below their province's median income and $2,000 for other eligible homeowners. It is not open yet; see how to apply. The Prime Minister's office says it can be combined with provincial programs.
Examples of current provincial amounts (verified on official pages; requirements apply):
| Province | Program | Maximum |
|---|---|---|
| British Columbia | CleanBC Energy Savings Program (income-qualified) | $13,000 |
| Ontario | Home Renovation Savings (non-gas homes) | $7,500 |
| Quebec | Hydro-Québec LogisVert | $6,700 |
| Manitoba | Efficiency Manitoba ducted ccASHP | $2,000 |
| New Brunswick | Total Home central ducted | $1,500 |
| Alberta | No provincial rebate | $0 (financing only) |
The government's Quebec example: a heat pump about $9,000 dearer than an electric furnace pays back in over 6 years with no help, about 5 years with the $2,000 federal rebate, and about 3 years adding a Hydro-Québec rebate of about $3,000, based on about $1,400 a year in savings.
Getting an honest quote: checklist
- Ask for a heat-loss calculation and the model numbers of the indoor and outdoor units.
- Confirm the exact equipment combination is on the eligible product list for each rebate you want.
- Get pre-approval where a program requires it, before signing.
- Ask for electrical, ductwork and old-equipment removal as separate lines.
- Get at least two or three quotes. Request installer quotes.
Cost by efficiency tier
KeelFox's 2026 estimate for replacing a furnace and central AC with a 3-ton ducted system that reuses existing ductwork, before GST/HST:
| Tier | Typical cost (KeelFox 2026) |
|---|---|
| Basic single-stage heat pump | about $9,800 |
| Two-stage or variable-speed standard model | about $12,000 |
| Cold-climate ducted heat pump | about $15,800 (most installs $12,300–$20,500) |
Jobsite Calcs estimates that cold-climate models rated for -25°C or colder add $2,000–$5,000 over standard models. The extra matters because most rebates, including the federal program, require cold-climate equipment.
What a furnace costs for comparison
| Scope | Typical (QuoteSaver, Sept 2026) |
|---|---|
| Gas furnace, 80,000 BTU, 96% AFUE | $4,633–$6,267 (typical $5,450) |
| Central AC, 2.5 ton | $4,123–$5,578 |
| Furnace + AC combo | $7,523–$10,178 |
| Ducted cold-climate heat pump, 3 ton | $12,283–$16,618 |
A heat pump replaces both the furnace and the air conditioner, so compare it against the furnace + AC price if you'd otherwise replace both.
Hidden costs to ask about
- Electrical panel/service upgrade: QuoteSaver reports $2,500–$8,000 when needed. Toronto's HELP loan and Ottawa's Better Homes loan both list required electrical upgrades as eligible costs, as does Yukon's rebate.
- Ductwork changes: HomeStars reports $15,000–$25,000 total for a heat pump plus full new ductwork in a finished home.
- Permits: some cities (e.g., Vancouver) require mechanical and electrical permits for heat pump installs.
- Tax: add 5% GST or 13–15% HST depending on province (KeelFox notes its figures exclude tax).
Financing options if rebates aren't enough
| City | Program | Terms (official) |
|---|---|---|
| Toronto | Home Energy Loan Program (HELP) | Up to $125,000; 20-yr fixed 4.75% (rates valid to Sept 30, 2026); 2% admin charge |
| Ottawa | Better Homes Ottawa Loan | Up to $125,000; 20-yr fixed 4.33%; 4% admin charge; +$700/ton ccASHP incentive |
| Calgary | CEIP | Up to $50,000; est. 6.00–6.10%; intake closed until winter 2026/27 |
| Edmonton | CEIP | $3,000–$50,000 at 6.00%; waitlisted; usually needs 3 upgrades |
| Halifax | HalifACT Home Energy Upgrade | 4.75% over 10 years; oil-heated homes built before 2000; about 100 homes |
Use our cost calculator to set these ranges against your rebates.
FAQ
What is the average cost of a heat pump in Canada?
There is no single official average. 2026 price guides commonly report about $12,000–$20,000 for a ducted cold-climate system and $3,000–$7,500 for one ductless zone. The federal government's example used about $15,000.
Is a heat pump more expensive than a furnace?
Usually yes, upfront. The government's example put an electric furnace around $6,000 versus about $15,000 for a heat pump, with about $1,400 a year in savings.
Do rebates cover the whole cost?
Sometimes, for income-qualified households. Some provincial programs (Nova Scotia HomeWarming, New Brunswick's Enhanced Energy Savings Program) provide no-cost upgrades for eligible low-income homes. For most households, rebates cover part of the cost.