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Updated Oct 27, 2026 · By Michael Gonzales · Prices from Angi, HomeGuide and Carrier; tax-credit status from the IRS
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Short answer: Replacing a furnace costs about $2,800 to $6,900 for most homes, and Angi's 2026 national average is $4,814. A gas furnace runs $3,800 to $12,000 installed, depending on its efficiency tier and your home's size, per HomeGuide. Electric furnaces cost $2,000 to $7,000. The federal tax credit no longer covers furnaces installed in 2026.
Compare local HVAC companies, or let us match you with pros. Heating-heavy states: Ohio, Pennsylvania, Illinois, Michigan and Minnesota.
How much does it cost to replace a furnace?
Most furnace replacements land between about $2,800 and $6,900, per Angi, with a $4,814 average. The big cost guides measure it a little differently:
| Source | What it measures | Typical cost |
|---|---|---|
| Angi, Sep 2026 | All furnace installs, from 11,869 projects | $4,814 average; $2,823 – $6,896 typical |
| HomeGuide, Dec 2025 | Standard-efficiency furnace, installed | $3,500 – $7,500+ |
| HomeGuide, Dec 2025 | High-efficiency furnace, installed | Up to $11,500 |
| Carrier | Gas furnace, 80,000 BTU, 1,600 – 2,000 sq ft home | $3,800 – $12,000 |
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Sources: Angi, furnace installation cost (updated September 8, 2026), HomeGuide, new furnace cost (December 31, 2025) and Carrier, furnace replacement vs. repair cost.
The low end is a like-for-like swap of a standard furnace in a small home. The high end is a large home, a high-efficiency unit, a fuel change or new ductwork.
How much does a gas, electric, oil or propane furnace cost?
Fuel type sets the starting price. Gas is the most common choice: Angi's customer data shows 58% have a natural gas furnace, 12% oil and 12% electric.
| Fuel | Angi (installed) | HomeGuide (installed) | Good to know |
|---|---|---|---|
| Electric | $2,000 – $7,000 | $2,500 – $7,000+ | Cheapest to install; Carrier puts a 1,500 sq ft home at about $2,000+ in mild climates |
| Natural gas | $3,800 – $10,000 | $3,000 – $10,000+ | Needs a gas line; HomeGuide says adding one costs $350 to $2,000+ |
| Oil | $6,750 – $10,000 | $4,000 – $10,000+ | Needs an on-site tank; HomeGuide says it's still common in the Northeast |
| Propane | $3,700 – $14,200 | $3,000 – $12,000+ | Needs a tank; widest price range |
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Electric or gas? An electric furnace costs less to buy and install, but HomeGuide says gas furnaces generally cost less to run than electric ones in most regions. If you're leaving gas behind entirely, ask a pro to price a heat pump too, since that's where most remaining rebates go (see the rebates section below).
How much more does a high-efficiency furnace cost?
A lot more up front. A furnace's efficiency is its AFUE rating, the share of the fuel that becomes heat in your home. HomeGuide's gas furnace prices by tier:
| Efficiency tier (AFUE) | Unit only | Installed |
|---|---|---|
| Standard: 80% – 89% | $700 – $1,800 | $3,800 – $6,200 |
| Moderate: 90% – 95% | $1,500 – $3,700 | $5,200 – $8,800 |
| High: 96% and up | $2,800 – $6,200 | $7,500 – $12,000 |
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Source: HomeGuide, gas furnace prices (December 31, 2025). Installed prices don't include ductwork changes.
What you get back. ENERGY STAR says certified gas furnaces in the northern U.S. are up to 18% more efficient than baseline models and save about $160 a year. In the South, where homes need less heat, its "U.S. South" models save an average of about $60 a year. So a high-efficiency furnace pays back faster in Minnesota than in Georgia.
What counts as ENERGY STAR. Gas furnaces need an AFUE of 97% or more in the northern states and 95% or more in the southern states, per ENERGY STAR's key product criteria. Oil furnaces need 87% or more. Ask for the exact AFUE on every quote.
HomeGuide says top-tier furnaces usually have modulating stages and sealed combustion, and mid-tier ones are often two-stage or variable-speed. High-efficiency models may also need new venting: its high-efficiency guide puts vent and duct changes at $500 to $2,000 or more.
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How much does a furnace cost for a 2,000 sq ft house?
About $4,700 to $8,000 installed for a gas furnace in a 1,600 to 2,000 sq ft home, per HomeGuide. Bigger homes need more heating capacity (BTUs), and that raises the price:
| Home size | Furnace size | Gas furnace, installed |
|---|---|---|
| Up to 1,200 sq ft | 40,000 – 50,000 BTU | $3,800 – $6,700 |
| 1,200 – 1,600 sq ft | 50,000 – 60,000 BTU | $4,200 – $7,200 |
| 1,600 – 2,000 sq ft | 60,000 – 70,000 BTU | $4,700 – $8,000 |
| 2,000 – 2,500 sq ft | 70,000 – 90,000 BTU | $5,100 – $9,500 |
| 2,500 – 3,000+ sq ft | 90,000 – 120,000 BTU | $5,800 – $12,000 |
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Source: HomeGuide, gas furnace prices. Ductwork isn't included.
Bigger isn't better. HomeGuide says an oversized furnace raises both the purchase price and fuel costs, while an undersized one can't heat the whole house. A good installer sizes the furnace from your square footage, insulation and climate, not from the old unit's label.
What extra costs show up on a furnace quote?
The furnace is only part of the bill. Watch for these line items:
- Labor: $75 to $100 an hour, per Angi. NerdWallet says a standard install takes four to eight hours.
- Permits: $400 to $1,500, per Angi. Your installer usually pulls the permit, and the cost may already be in the quote.
- Old furnace removal: $60 to $330, per Angi, or $150 to $400 when it's billed separately, per HomeGuide.
- Ductwork: HomeGuide puts duct sealing and repairs at $300 to $1,500 and full replacement at $1,400 to $5,600 or more. Angi says new ductwork runs $2,000 to $5,000.
- Venting: $500 to $2,000 or more for a high-efficiency furnace that needs new venting, per HomeGuide.
- Gas line: $350 to $2,000 or more if your home doesn't have one, per HomeGuide.
- Thermostat: $140 to $350 for a new one, per HomeGuide. Many utilities offer smart thermostat rebates.
Should you repair or replace your furnace?
Replace it when the furnace is old and the repair is big. Carrier suggests weighing replacement once a system is more than 10 years old, and comparing costs carefully when a repair approaches 50% of the price of a new furnace.
For scale, Carrier cites HomeAdvisor data putting the average furnace repair at about $318, with a typical range of $133 to $505. Furnaces typically last 15 to 20 years, per Carrier and NerdWallet, and Angi says about 20.
Carrier lists these signs that it's time to price a replacement:
- The furnace is 10 to 15 years old or more and needs a significant repair.
- The repair estimate approaches 50% of the cost of a new furnace.
- You keep paying for repairs.
- You have consistent heating problems or rising energy bills.
If your furnace is still young, a repair usually wins. Carrier says a well-maintained system may still have reliable years ahead.
Is there a tax credit or rebate for a new furnace in 2026?
Not a federal tax credit. The IRS says the Energy Efficient Home Improvement Credit (section 25C) "will not be allowed for any property placed in service after December 31, 2025." ENERGY STAR's tax credit page also says the credits were available through the end of 2025.
Some cost guides still say the credit runs through 2032; that changed with the July 2025 tax law.
If your furnace went in during 2025, you can still claim it on your 2025 return. The IRS says qualifying gas, propane or oil furnaces got 30% of the cost, up to $600, if they met the top Consortium for Energy Efficiency tier. Our 25C guide covers how to claim it.
What's left in 2026:
- Utility rebates. Many gas and electric utilities still pay rebates on efficient furnaces and tune-ups. Run your address through our rebate finder by ZIP code, or use the rebate finder on ENERGY STAR's furnace page.
- State HOMES and HEAR rebates. The Department of Energy says these are now available in select states. HEAR covers electric heating and cooling, so it applies to heat pumps rather than gas furnaces. See which states are open and our heat pump rebate guide.
Rebates change often. Confirm the amount and the paperwork with the program before you sign a quote.
How do you get a fair furnace quote?
- Get at least three detailed written bids that list the equipment, labor and warranties, as HomeGuide suggests.
- Ask how they sized the furnace. A sizing calculation beats matching the old unit's BTU rating.
- Compare the same thing: fuel, AFUE, BTU size, single-stage or two-stage, and what ductwork and venting work is included.
- Check the license. Our contractor licensing guide links each state's lookup.
- Ask about warranties. Angi says many manufacturers require professional installation to keep warranty coverage, so get the equipment and labor warranties in writing.
- Ask whether the permit and old-unit removal are in the price.
- Before you sign, check for utility rebates and ask whether the program needs approval before the work starts.
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Frequently asked questions
How much does it cost to replace a furnace? Angi's 2026 average is $4,814, and most jobs cost $2,823 to $6,896. HomeGuide puts a standard-efficiency furnace at $3,500 to $7,500+ installed and a high-efficiency one at up to $11,500.
How much does a new furnace cost for a 2,000 square foot house? About $4,700 to $8,000 for a gas furnace in a 1,600 to 2,000 sq ft home, per HomeGuide, not counting ductwork. Angi's range for a 2,000 sq ft home is $2,400 to $4,000, so get local quotes.
Is it worth replacing a 30-year-old furnace? Usually yes. Carrier and NerdWallet say furnaces typically last 15 to 20 years. An older unit is likely far less efficient than a new one, and a major repair on it may approach Carrier's 50% rule.
Is an electric furnace cheaper than gas? Cheaper to install: $2,000 to $7,000 for electric vs. $3,800 to $10,000 for gas, per Angi. HomeGuide says gas generally costs less to run in most regions.
How long does a furnace installation take? Four to eight hours for a standard replacement, per NerdWallet. New ductwork or a fuel change adds time.
Can I get a tax credit for a new furnace in 2026? No. The IRS says the 25C credit doesn't apply to property placed in service after December 31, 2025. Utility and state rebates may still apply.
Which furnace brand is best? No brand wins every time, and the installer matters as much as the badge. HomeGuide's installed prices by brand overlap widely, from about $2,100 at the low end for Amana or Goodman to $13,500 at the top for Trane. Compare AFUE, warranty and the contractor's install record.
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Sources
Angi: How much does it cost to install a new furnace? (updated Sep 8, 2026) · HomeGuide: New furnace cost (Dec 31, 2025) · HomeGuide: Gas furnace prices (Dec 31, 2025) · HomeGuide: High-efficiency furnace cost (Apr 20, 2025) · Carrier: Furnace replacement cost vs. repair cost · NerdWallet: Cost to replace a furnace (updated Mar 30, 2026) · ENERGY STAR: Furnaces · ENERGY STAR: Furnace key product criteria · ENERGY STAR: Federal tax credits · IRS: Energy Efficient Home Improvement Credit (reviewed Apr 28, 2026) · IRS: OBBB energy credit FAQs · U.S. Department of Energy: Home Energy Rebates. Checked October 23, 2026.