Direct answer. A basement renovation in Toronto in 2026 costs $30,000 – $300,000+ depending on scope. Family-use finished basement: $30,000 – $120,000. Legal basement apartment: $85,000 – $300,000+. Underpinning to gain ceiling height adds $400 – $700 per sq ft of basement.

Key Takeaways

• Family refresh (rec room, no bathroom): $30,000 – $55,000.
• Family full finish (bedroom + bathroom): $60,000 – $95,000.
• Legal basement apartment (1-bed): $85,000 – $200,000.
• Premium with underpinning + separate entrance: $200,000 – $300,000+.
• OBC 9.5.3.1: 1.95 m ceiling height required over 75% of habitable floor area.
• Toronto requires backwater valve on any new basement plumbing (City subsidy up to $1,250).

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Basement Renovation Cost in Toronto: Complete 2026 Guide

The basement renovation cost Toronto homeowners can expect in 2026 ranges from $25,000 for a basic finish to $100,000+ for a fully legal basement apartment, depending on size, scope and permit requirements. As a licensed GTA general contractor, we have renovated hundreds of Toronto basements, and this guide walks you through exactly what you will pay, what is included at each price tier, what drives the cost up or down, and how to plan your project with confidence. Thinking about finishing your basement in Toronto? A basement renovation is one of the smartest investments you can make — it adds livable square footage to your home and typically returns 70 to 75 percent of its cost in added property value, making the basement renovation cost in Toronto one of the highest-ROI upgrades available to GTA homeowners.

Basic Basement Finish: $25,000 to $40,000

This entry-level tier includes framing, insulation, drywall, basic electrical, flooring, painting and lighting. It creates a clean, functional living space without a bathroom — ideal for a family room, playroom, or home office. A basic basement finish in Toronto is the most affordable way to add usable square footage and is typically completed in 4 to 6 weeks. Expect engineered laminate or vinyl plank flooring, pot lights on dimmers, and standard trim finishes at this price point.

Mid-Range Basement with Bathroom: $40,000 to $60,000

Everything in the basic basement finish plus a three-piece bathroom, upgraded flooring such as luxury vinyl or engineered hardwood, more pot lights, and higher-end finish details. This is the most popular choice for Toronto homeowners because it adds a full living suite the family can actually use — guest room, home gym, or teen hangout — while keeping the basement renovation cost reasonable. Plumbing rough-ins are either connected to an existing stack or added with a sewage ejector pump if needed.

Legal Basement Apartment: $60,000 to $100,000+

A fully legal second-unit apartment includes a separate entrance, full kitchen, bathroom, bedroom with egress windows, fire separation between units, separate utility metering, and compliance with all City of Toronto second suite requirements. This option generates rental income of $1,500 to $2,500 per month in the GTA, paying for itself within a few years. The higher basement renovation cost Toronto owners pay for a legal apartment is offset by ongoing rental income and a significant boost in property value.

What Affects Basement Renovation Cost?

Several factors influence the final basement renovation cost in Toronto:

• Basement size and layout: Larger basements cost more in materials and labour, but the per-square-foot price usually drops as size increases.
• Ceiling height: Low ceilings may require underpinning or bench footing, which can add $20,000 to $80,000 to the project.
• Waterproofing: Interior or exterior waterproofing is critical if there is any history of moisture and can add $5,000 to $25,000.
• Bathroom plumbing: Adding a bathroom requires connecting to the main sewer or installing a sewage ejector pump.
• Permits and inspections: Required for any structural, electrical, plumbing or second-suite work, typically $1,000 to $3,000 in permit fees.
• Finish level: Builder-grade vs. designer finishes can double the material budget.
• Egress windows: Legal bedrooms require egress windows — cutting and framing these costs $3,500 to $7,000 each.

Do You Need a Permit for a Basement Renovation in Toronto?

Yes — almost every basement renovation in Toronto requires a building permit. The City of Toronto requires permits for any work that involves plumbing, electrical modifications, structural changes, adding bathrooms, or creating a second dwelling unit. Cosmetic work such as painting or flooring alone does not need a permit, but the moment you add a wall, a bathroom or a second unit, permits become mandatory. A licensed contractor handles the permit application, inspections and closeout documentation on your behalf.

How Long Does a Basement Renovation Take?

A basic basement finish typically takes 4 to 6 weeks, a mid-range basement with a bathroom takes 6 to 10 weeks, and a full legal basement apartment takes 10 to 16 weeks including permit approval times. Delays are usually caused by permit wait times, custom-ordered materials, or unexpected structural and waterproofing issues discovered during demolition.

Basement Renovation Cost Toronto: How to Save Money

The basement renovation cost Toronto homeowners pay can be reduced by planning ahead: get multiple written quotes, prioritize high-impact items (flooring, lighting, layout) over luxury finishes, keep plumbing runs short by placing the new bathroom near existing stacks, and avoid scope creep once construction has started. Choosing a licensed GTA contractor with in-house trades also saves 10 to 20 percent compared to a contractor who sub-contracts everything.

Get a Free Basement Renovation Quote in Toronto

Every home is different, and the best way to know your exact basement renovation cost in Toronto is a free on-site consultation. Country Renovations Inc. is a licensed and insured GTA general contractor specializing in basements, kitchens, bathrooms, additions and custom homes. Contact us today for a detailed quote, or learn more about our full range of Toronto renovation services.