The National Heat Pump Rebate is a new federal program that gives Canadian homeowners $2,000 toward an eligible cold-climate heat pump, or up to $10,000 if their after-tax household income is at or below the median for their province or territory. Under the program rules released this fall, eligible heat pumps installed on or after November 1, 2026 can be claimed retroactively, the online application portal opens in early 2027, no energy audit is required, and the home does not have to be your primary residence. Below: who qualifies, the income cutoffs, which equipment counts and what paperwork to keep.
How much is the National Heat Pump Rebate?
There are two tiers: a flat $2,000 for eligible households above the income threshold, and up to $10,000 for households at or below it. The final amount depends on your income tier and the cost of the installed system.
The program is backed by $2 billion in federal funding for up to 820,000 households. Funding is not guaranteed until an application is approved, and nothing is paid out before the portal launches.
Who qualifies for the heat pump rebate?
You qualify if you live in Canada, own the home the heat pump is installed in, and that address has never received federal heat pump funding before. A few details that surprise people:
- Any owned home. It does not need to be your primary residence. A rental property or a cottage you own is eligible, but you can only claim one rebate even if you own several properties.
- Any current fuel. Homes heated with natural gas, oil, propane, electric baseboards or an electric furnace, wood, coal or diesel can all apply.
- No audit. Unlike the old Greener Homes Grant, there is no pre- or post-installation energy evaluation.
- No removal needed. You do not have to remove your existing furnace or prove it failed.
What is the income cutoff for the $10,000 heat pump rebate?
The cutoff is median after-tax household income for your province or territory and household size, which is higher than many people assume. For a four-person household it is $146,217 in Ontario, $145,019 in Alberta and British Columbia, $134,232 in Quebec and $125,843 in Nova Scotia (figures in 2025 dollars). Because these are after-tax figures, a two-earner family with a six-figure gross income can still land under the line.
| Province | 1 person | 2 persons | 4 persons |
|---|---|---|---|
| Ontario | $46,981 | $92,884 | $146,217 |
| British Columbia | $46,981 | $92,884 | $145,019 |
| Alberta | $50,816 | $99,476 | $145,019 |
| Quebec | $41,228 | $82,097 | $134,232 |
| Manitoba | $43,146 | $85,693 | $125,843 |
| Nova Scotia | $38,831 | $80,300 | $125,843 |
To check your own number, take line 23600 (net income) on your 2025 tax return, subtract line 43500 (total payable), and add your spouse or partner's result. The full table for every province, territory and household size is on the Government of Canada program page. For the higher tier you will provide your SIN so the CRA can verify income.
Which heat pumps are eligible for the rebate?
Only cold-climate heat pumps on the federal eligible product list qualify, identified by their AHRI reference number, and the system must be purchased from and installed by an HVAC contractor. The unit also has to be capable of heating your entire home, so a single ductless head sized for one room will not qualify on its own. Confirm the exact AHRI number with your contractor before signing. The program page also notes that homes on natural gas may not see lower heating bills in every region, so ask your contractor about operating costs, not just the rebate.
What paperwork do you need to claim the heat pump rebate?
Keep the installer's invoice, because the receipt has to be submitted within six months and must show: your name and the installation address, the installing company's name, the heat pump's make, model and AHRI number, the number of units installed, and the total project cost including related work such as ductwork or electrical upgrades. A receipt without the AHRI number cannot be matched to the eligible list, so check it before the installer leaves.
After the install, a ducted heat pump still needs its air filter changed on the same schedule as a furnace, usually every 1 to 3 months for a 1-inch filter. The size is printed on the frame, and the furnace filters listing is sorted by size. Our post on whether a dirty furnace filter raises your energy bill explains why a clogged filter cuts into the savings a new system should deliver.
Common questions
Can I combine the federal rebate with a provincial heat pump program?
The rebate is meant to work alongside provincial and utility programs, but the stacking rules have not been finalized. Check your province's terms; a provincial program may still require an energy audit even though the federal one does not.
I installed a heat pump before November 1, 2026. Can I apply?
No. Only installations on or after November 1, 2026 are eligible, and they are assessed against the criteria in effect on the installation date.
Is this a reason to replace a furnace that still works?
Not on its own. If your furnace is sound, keep it maintained with our fall furnace checklist and plan the switch for when it nears end of life. The program page notes that nearly 80 percent of heating systems are replaced after an unexpected failure, so pricing out an eligible system before yours fails leaves you with options.
