Renovation quotes in Toronto have moved sharply, and the reasons are more specific than general inflation. Understanding which components rose helps you read a quote rather than simply react to the total.
The current ranges
Toronto renovation costs in 2026 run $280–$400 per square foot, with gut jobs on older homes reaching $450–$550+. A basic whole-house renovation typically falls between $140 and $280 per square foot, while custom work with premium finishes pushes well past $350.
By room: kitchens run $20,000 to $150,000+, bathrooms $15,000 to $70,000+.
Those spreads look uselessly wide until you realise they are mostly finish-level decisions, not contractor variation.
Tariffs are a named line item now
Material costs are running above pre-2020 levels due to ongoing supply-chain pressure and tariffs on imported building products. Lumber, roofing materials and imported tile have all seen significant increases, with roofing materials facing tariffs from 10% to 60%.
Tariff exposure now specifically affects cabinets, steel and appliances — which is to say, the most expensive components in a kitchen.
This is useful when comparing quotes. A contractor sourcing domestic cabinetry and one importing may quote very differently for identical-looking work, and the difference is not margin.
The costs that are not in the quote
HST at 13% applies to both labour and materials on most residential renovations in Ontario. On a $400,000 renovation that is over $52,000.
This catches people repeatedly. A quote presented before tax is not a budget.
Permits generally land between $400 and $2,000+ depending on scope.
And the Bank of Canada rate environment affects any renovation financed through a line of credit — a variable that sits outside the contractor’s control entirely.
How to use these numbers
Ask for a material-versus-labour split. Given that tariffs hit specific categories, knowing what share of your quote is tariff-exposed material tells you where negotiation or substitution is possible.
Ask what happens if material prices move. Fixed-price and cost-plus contracts allocate that risk differently. Neither is wrong; you should know which you have signed.
Budget from the all-in figure. Per-square-foot ranges exclude HST, permits and financing. Build the budget from the total you will actually pay.
Treat older-home premiums as expected, not as upselling. The $450–$550+ range for gut renovations on older housing stock reflects knob-and-tube wiring, asbestos, and structures that are not square. A contractor who quotes an old house at new-build rates has either not inspected it or has priced in a change order.
The spread between a well-scoped renovation and a poorly scoped one is larger than the spread between contractors. Time spent on scope is the highest-return work in the whole project.
Sources
- HomeStars — How Much Do Renovations Cost in Toronto? 2026 Guide
- Maserat Developments — Home Renovation Costs Toronto 2026
- Reno Quotes — Home Renovation Cost Canada 2026