Home Renovation Cost in Toronto: How to Plan Your Budget in 2026

How to start planning your renovation?

When people think about home renovation, they often have no idea how much it will cost. The uncertainty can be overwhelming, causing delays and second-guessing every decision:

• What if we run out of money and end up living in a construction site?
• Where do we even begin?
• What if we make the wrong choices and waste a fortune?
• Or worse — uncover a budget-breaking disaster we can’t fix?!

Let’s break it down and make the process financially manageable.

In 2026, planning matters more than ever. The cost environment has been moving every quarter — tariff announcements, Bank of Canada decisions, and shifting federal/provincial program rules all change the math. The good news is that financing has improved significantly versus 2025, and Ontario’s zoning rules around garden suites and laneway homes have been liberalized. The bad news is that materials volatility is real: a kitchen quote from spring 2025 will not hold in spring 2026.

How Much Does a Renovation Cost Per Square Foot in Toronto

The cost of home renovations in Toronto varies based on factors like the project’s scope, materials, quality of finishes, etc.

Here’s an approximate breakdown for whole-house renovations:

• Basic renovations cost approximately $160 to $190 per square foot.
• Mid-range renovations range around $200 to $250 per square foot.
• High-end renovations can be between $290 and $500 per square foot. Older-home gut renovations with underpinning often exceed $500/sq ft.

Applying these ranges to different home sizes:

These estimates include factors such as materials, labour, and fixtures.

Note for 2026: the lower bound on mid-range jobs has actually softened slightly versus 2025 because more contractors are competing for smaller in-and-out kitchen-plus-bath projects, while the upper bound on high-end work has moved up due to tariff impacts on cabinetry, steel, and appliances. If your home was built before 1960, expect to land at the upper end of any range once knob-and-tube wiring, cast-iron drains, or asbestos abatement come into play.

Home Renovation Cost by Project

When planning a home renovation in Toronto, you can choose to renovate the entire house at once or tackle it room by room.

Kitchens and bathrooms are more expensive to renovate due to a range of costly plumbing and electrical work. These projects require significant craftsmanship, problem-solving, and materials like cabinetry or appliances. Also, rooms with plumbing, like kitchens and bathrooms, typically cost more to renovate than dry rooms.

Let’s look at general price ranges for common renovations.

Kitchen Renovation Cost

The cost of a kitchen remodel in average cost from $20,000 and up to $60,000, depending on the type of updates and the size of the kitchen. For custom or large kitchen projects, the cost can exceed $120,000! Given such a broad range, it can be difficult to pinpoint where your project will fall.

• Small Kitchens (less than 70 sq. ft.): Renovations typically range from $8,000 to $28,000.
• Medium Kitchens (100 to 150 sq. ft.): Costs usually fall between $25,000 and $60,000.
• Large Kitchens (200 sq. ft. or more): Renovations can start around $50,000 and may exceed $90,000, depending on the complexity and materials used.

Why kitchens have moved up the most: a 25% U.S. Section 232 tariff on imported cabinets took effect October 14, 2025. Approximately 60% of cabinets sold in Canada are imported, so the pass-through has been broad. A stock-cabinet package that was $3,000 in mid-2025 is now landing in the $3,750–$4,200 range; semi-custom packages that were $10,000 are quoted at $12,500+. (Source: CFIB tariff tracker; Next Day Cabinets, May 2026.)

Cost of kitchen cabinet refacing

Refacing kitchen cabinets generally costs approximately $11,000–$12,500 in Ontario. The price will also depend on the refacing materials used. Some estimates suggest that refacing costs can range from $300 to $850 per linear foot, depending on materials and project specifics. Each door usually costs $120 to $480, depending on the materials and finishes chosen. Homeowners can choose plastic laminate or hardwood for a more premium finish.

Bathroom Renovation Costs

Bathroom renovations can vary from simple cosmetic updates to full remodels. Average bathroom renovation cost is $16,000 – $32,000. These renovations not only improve the aesthetics of kitchen or bathroom renovation but also the functionality of the space.

• Minor bathroom updates: Basic updates such as new fixtures or tiles can cost between $6,000 and $16,000.
• Full bathroom renovation: For a complete renovation including new plumbing, high-end fixtures, and custom finishes, costs $16,000 – $32,000 or more.
• Primary ensuite / spa bathroom: $30,000 – $70,000+ in 2026, with luxury steam-shower or smart-fixture builds well over $70,000.

Plan a 10–15% contingency on bathroom work in 2026. Hidden walls in older Toronto homes regularly reveal galvanized supply lines or cast-iron drains that need full replacement, easily adding $3,000–$8,000 to the job. Labour now runs 40–60% of a Toronto bathroom budget.

Living Room Remodel Cost

Renovations for living rooms and bedrooms typically range from $22,000 to $45,000. These “dry rooms” generally cost between $160 and $220 per square foot to remodel. The final price is influenced by material selections and design choices. When planning your living room remodel consider that adding built-in storage or custom lighting can increase costs.

Renovating large areas or several rooms simultaneously can be more expensive. However, combining renovations may offer cost savings by reducing mobilization expenses and allowing for parallel work.

Bedroom renovation cost

Bedroom renovations in Toronto, typically start at $22,000. There are a wide range of options depending on your choices. Smaller bedrooms with minimal upgrades can be done for as low as $4,000, while larger rooms with major layout changes and high-end features can go up to $45,000.

While cost is essential, it’s not the only factor to consider when starting renovation. Since you spend a lot of time in your bedroom, a remodel can greatly improve your comfort and satisfaction — especially if you also renovate an ensuite bathroom. Before starting, it’s essential to understand the factors that affect the cost, which are outlined below.

Basement renovation cost

Basement renovations in Toronto can transform an underutilised space in an old house into a functional living area, adding significant value to a home. On average, basement renovation in Toronto costs $80,000 – $95,000.

• Basic basement remodel costs can start from $45,000 for a 1,000 sq ft finish.
• An extensive basement renovation with high-quality finishes is between $60,000 and $120,000.
• Legal secondary suite (separate entrance, kitchen, fire-rating): $120,000 – $200,000+. This category has grown rapidly in 2026 thanks to stronger rental yields and the Multigenerational Home Renovation Tax Credit if the unit houses an eligible family member.
• Underpinning (low-ceiling basements): add $50,000 – $80,000+ on top of finishing costs.

Garage Renovation Cost

The average cost for a garage remodel in Toronto ranges from $12,000 to $35,000, with most homeowners spending over $18,000 for a complete garage conversion. Several factors will influence where your project falls within this range, with garage size being one of the most significant considerations.

One-Car Garage Conversion:

• Average Size: Approximately 240 square feet.
• Cost Range: $8,000 to $20,000.

Two-Car Garage Conversion:

• Average Size: Approximately 440 square feet.
• Cost Range: $13,000 to $38,000.

Factors Affecting Home Renovation Costs

Home renovation costs can vary widely, influenced by several factors. The size of the area being renovated, the type of room, and the scope of the project all contribute to the overall expense. While homeowners typically spend an average of $46,748 on renovations, this amount can fluctuate significantly depending on every project specifics.

When planning a home improvement project, analyze factors that drive renovation costs. Whether you’re aiming for a budget-friendly makeover at $20 per square foot or a more mid-range upgrade at $100, consider these variables for a more effective renovation process and avoid unexpected surprises along the way.

Age of Home

Renovating older homes typically starts around $100,000 and can rise significantly from there. These projects are often more expensive than renovating newer homes due to the need for updates to plumbing, electrical, and HVAC systems. Additionally, older homes may uncover unexpected issues during the renovation, such as termite damage or water damage in the basement, adding to the overall cost.

In 2026, Toronto contractor blogs report that pre-1960 homes (Riverdale, Leslieville, the Annex, the Junction, East York) consistently land 25–40% over original budget once walls are opened. Knob-and-tube wiring replacement runs $10,000–$25,000; cast-iron and galvanized plumbing replacement adds $5,000–$15,000; lead-paint or asbestos abatement adds another $3,000–$10,000.

Permitting Costs

Depending on the scope of work home renovation permits cost $500 to $3,000. Minor updates, like painting, usually don’t need one. It’s a good idea to check local rules and regulations or consult your contractor for guidance.

City of Toronto building permit fees increased roughly 4% on January 1, 2026. Current rates:

Permit wait times in 2026: 8–16 weeks for residential alteration permits, 4–6 months for additions. Garden-suite permits have actually accelerated since Ontario Regulation 462/24 (see new section below).

Temporary Living Arrangements

Home renovations typically take between two and eight months. For smaller, more contained projects like renovating a bathroom or bedroom, you and your family can usually stay in the home while contractors work. However, larger projects may require you to find alternative living arrangements, like a mobile home on your property or an extended-stay hotel.

The cost of these accommodations can range from $3,000 to $12,000 or more, depending on how long you need them. In Toronto specifically, an 8–12 week short-term rental during a whole-home gut renovation now runs $8,000–$20,000+.

Repair of the Foundation

Most people do not even think of foundation, when they renovate their house, yet it can act as a significant factor and add a tremendous cost to the overall project.

Foundation repairs can cost you between $25,000 – $60,000 and are crucial for preserving your home’s structure and safety. Working with a structural engineer is often necessary to ensure the repairs are done correctly. It’s essential to tackle foundation issues before moving forward with other renovation projects. Underpinning (often required to gain ceiling height in older Toronto basements) adds $50,000–$80,000+ on top.

Restoring a building’s foundation is necessary as environmental factors like groundwater, weather, and underground utilities can cause deterioration. Design flaws during construction can also contribute to foundation issues over time. Addressing foundation issues promptly ensures the structural integrity and long-term stability of the building.

Signs that your foundation needs major repairs include:

• Cracks in window and door frames
• Wall deformation or cracks
• Cracks in the foundation
• Distorted doorways and windows
• Cracks in floors or ceilings
• Floor sagging

More serious signs may require immediate attention from experts, especially if there are increased loads or structural changes to the building. Identifying these early can prevent further damage and costly repairs.

Foundation repair costs depend on various factors:

• type of foundation
• building structure
• extent of damage
• soil conditions
• and the cost of materials and labour

The final price is influenced by the building’s waterproofing and communications systems and specialized equipment. These elements can significantly influence the complexity and overall cost of the repair project.

Remediation of Mold or Asbestos

Mold remediation typically costs around $4 to $5 per square foot, while asbestos removal ranges from $6 to $18 per square foot, depending on the extent of the damage. Both mold and asbestos require professional handling to avoid health risks to your family. If you encounter either issue during a DIY renovation, halt the process and call in a professional immediately.

If mold or asbestos could become airborne during the renovation, you may need to arrange for alternative housing to ensure your family’s safety. All these issues can lead to higher overall costs due to the additional precautions required.

Appliance Updates

As you install new kitchen cabinets or a custom laundry storage system, you might also be considering upgrades to appliances like the fridge, washer, or dryer. The cost of new appliances can range from $250 to $12,000 each, depending on the type and quality. For instance, Energy Star-rated appliances typically cost between $250 and $4,000, while custom built-in appliances can range from $1,200 to $12,000.

Appliance pricing has been volatile in 2026 due to U.S. Section 232 steel and aluminum tariffs (25–50%) and tariff impacts on appliances from Mexico. Most major appliances are trading 5–15% above their mid-2025 prices. Always confirm pricing within 30 days of contract signing — quotes from spring 2025 are not necessarily honoured today.

Plumbing Overhaul

Plumbing installation or replacement typically costs between $400 and $2,500, depending on the complexity of the work. There are exceptions to this. Simple repairs, such as fixing leaky pipes, usually cost around $400, while more extensive work — like plumbing for a new addition — can push costs over $2,500. And labour fees range from $200 to $550 per hour. At times one has to replace the entire plumbing system, especially in older houses. This can once again be a significant cost factor, as rerunning all the plumbing for the house can cost tens of thousands of dollars.

Electrical Upgrades

Rewiring a house costs between $2,000 and $20,000. Adding outlets costs $90 to $550 each, while upgrading an electrical panel is about $1,500 – $2,500. Expect to pay $80 – $160 per hour for electrical services.

HVAC System Repairs and/or Replacement

As you renovate, consider maintaining year-round comfort with an HVAC upgrade. Most HVAC companies charge a service call fee ranging from $85 to $220, which typically covers the technician’s travel and initial assessment. The average cost for HVAC repairs in Toronto can range between $100 and $165 per hour, depending on the complexity of the job. If you’re expanding your home’s square footage, upgrading your HVAC system may be necessary to ensure proper temperature control.

Repair or Replace Your HVAC System?

Considerations concerning whether to repair or replace your HVAC can be based on the ‘$5,000 rule.’ Multiply the system’s age by the estimated repair cost; if the result exceeds $5,000, replacement is advisable. For example, a 10-year-old system facing a $600 repair would equate to $6,000, suggesting replacement. Conversely, if the result is less than $5,000, repairing the unit may be more cost-effective.

Beyond the $5,000 rule, such factors as the system’s age, frequency of breakdowns, and energy efficiency can make the replacement inevitable. Older units over 15 years may benefit from replacement due to advancements in energy-efficient technology, potentially leading to lower utility bills.

Consulting with a qualified HVAC professional can provide personalized advice based on your system’s condition and your specific needs.

Let’s break down HVAC system replacement costs:

• Central air conditioning: Installing a new central air conditioning system typically costs between $4,000 and $9,000, depending on factors such as unit type, home size, and system efficiency.
• Furnace replacement: The cost to replace a furnace ranges from $3,000 to $6,000, influenced by the furnace’s size, efficiency rating, and any additional features.
• Complete HVAC System: For a combined replacement of both air conditioning and heating systems, homeowners have reported spending around $13,000 – $15,000, which includes installation and a 10-year parts and labour warranty.
• Heat pump replacement: $7,000 – $14,000+ for cold-climate ducted heat pumps. The Canada Greener Homes Loan ($40,000 interest-free) and Toronto’s HELP loan (up to $125,000 at 3.08–4.67%) are now the primary financing routes since the Greener Homes Grant ended.

Floor Plan Adjustments

Changing the floor plan of a room or area can cost anywhere from $400 to $650 for minor adjustments, or over $12,000 for major changes. These projects usually involve demolishing or building new walls, as well as rerouting electrical or plumbing systems. To ensure safety, you’ll need to hire a structural engineer and other certified professionals. Major alterations, such as removing a load-bearing wall and replacing it with a steel I-beam, will incur the highest costs when it comes to floor plan changes. Steel I-beam pricing has moved up materially in 2026 because of Section 232 steel tariffs.

Enhancing Home Accessibility

Designing a home to be accessible can be complex and may increase renovation costs. It’s important to talk with a professional contractor to decide if features like a home elevator, stair lift, or other universal design elements are necessary.

Tax break worth knowing about: the federal Home Accessibility Tax Credit (HATC) provides a 15% non-refundable credit on up to $20,000 of qualifying accessibility expenditures (max $3,000 credit). Grab bars, walk-in tubs, ramps, and widened doorways all qualify. If your renovation has any aging-in-place component, claim it.

Creating a Realistic Renovation Budget

A realistic budget is key in reaching your renovation goals. Following these steps lets you focus on the main and stay on course.

First, define what results you want to achieve and outlining objectives, priorities, and desired outcomes. This way, you will stay focused, avoid unnecessary changes during the project, and prevent overspending on features that aren’t essential to your vision.

Second, choose quality material. The cheapest option can give cost savings initially but result in higher maintenance or future replacement costs. Weigh the initial savings against potential long-term expenses. Choosing higher-quality flooring or energy-efficient windows can save you money on maintenance and utility bills.

When planning a renovation, it’s wise to set aside extra money for unexpected expenses. Renovations can uncover hidden problems, so having extra funds helps you handle surprises without disrupting your budget. Typically, it’s recommended to set 10% to 25% of your total renovation budget for this purpose. The right contingency depends on the age of your home and the type of work: 10% on cosmetic refreshes, 15% on most kitchen/bath/whole-home work, and 25%+ on pre-1960 homes or condos (where board and elevator surprises stack up).

Does Renovating Boost Your Home’s Value?

A full home remodel can include upgrades that offer a great return on investment (ROI), while other improvements may not significantly impact your home’s value. Sometimes, projects with strong ROI can increase the value of your home by 60% or more.

Renovations with High ROI

Certain renovations offer a higher return on investment:

• Kitchen and bathroom renovations are the most impactful in terms of increasing a home’s value.
• Adding functional living space can significantly boost property value. In 2026, this increasingly means a legal basement suite or a permitted garden suite — both rent well in Toronto and qualify for the Multigenerational Home Renovation Tax Credit when housing eligible family members.
• Energy efficiency upgrades enhance a home’s energy efficiency and are increasingly valued. Buyer demand for heat pumps, modern insulation, and energy-rated windows has visibly increased in the 2026 GTA market.

Renovations That Might Not Pay Off

While most renovations add some value to new house, some may not yield a high return:

• Overly personalized renovations may not appeal to the general market.
• Luxury upgrades in moderate neighbourhoods might not recoup their costs.
• Neglecting essential repairs can negatively impact the value of property.

Understanding which renovations offer the best return on investment is key for homeowners considering future sales.

How Easy Reno Helps Create a Clear Home Renovation Budget

Whole home renovation is a complex process that transforms your house — structure, look, and functionality — into a space that truly feels like yours. Understanding how valuable your home space is, Easy Reno has helped dozens of homeowners create homes they love. The key to a smooth renovation is starting with a clear budget.

To ensure accurate pricing for renovations, our experts carefully assess your house, do precise planning with real design visualization, and give actual material prices. In 2026 we re-quote materials within 30 days of contract signing to protect you against tariff-driven price moves on cabinets, appliances, and structural steel. This ensures pricing reflects your real projects, without unexpected costs and uninformed decisions.

Ready to start? Drop us a line, and we will prepare a precise estimate.

Frequently Asked Questions About Home Renovation Cost in Toronto

What is the average cost per square foot for home renovations in Toronto?

Renovation costs in Toronto typically range from $120 to $380 per square foot, depending on the project’s complexity and the materials used. High-end gut renovations on older Toronto housing stock now routinely exceed $450/sq ft.

How much does it cost to renovate a bathroom or kitchen?

Bathroom renovations can range from $6,000 to $32,000, depending on the extent of the work and materials chosen. Kitchen renovations may cost between $20,000 and $60,000 or more, influenced by design complexity and appliance selection. The 25% U.S. Section 232 tariff on imported cabinets (October 2025) has pushed cabinetry pricing up 15–25% versus mid-2025.

What factors influence the cost of home renovations?

Home renovation costs depend on the size and complexity of the project, the materials, labour costs, and the design. Larger projects or those with custom features are more expensive. High-quality materials and skilled labour also increase the cost. Local factors like permits and building codes can play a role, and unexpected issues can also raise the price. In 2026, add tariff exposure (cabinets, steel, appliances) and the Bank of Canada rate environment to the list of factors that move your final number.

Are there additional costs beyond the renovation itself?

Yes, additional expenses may include permits, inspections, temporary housing if needed, and potential increases in utility bills during the renovation process. Don’t overlook waste-disposal bin fees ($500–$1,500 per bin in Toronto, often 4–6 bins on a gut job) and renovation-period insurance premium increases of 10–25%.

How can I estimate the total cost of my renovation project?

To estimate your renovation cost, decide what areas you want to renovate and what changes you need. Get quotes from contractors for labour and materials and check material prices. Don’t forget to include extra costs for permits or unexpected issues. Adding a 10–25% contingency fund for surprises is also smart.