Home Repair Decoded

Furnace Replacement Cost

$2,950 – $8,350A typical furnace replacement costs about $2,950 to $8,350 in the U.S. That covers a gas furnace on existing ductwork and gas line. The range reflects parts, job difficulty and local labor rates.
Part of the jobLowHigh
Parts and materials (our assumption)$2,500$6,500
Labor hours (our assumption)614
Billed labor rate per hour$73$132
Estimated total$2,950$8,350

Our estimate, not a quote. Billed rate is the national median wage from BLS (2025, $29.33 an hour) times 2.5 to 4.5 to cover payroll costs, overhead, travel and profit. How we estimate

What our assumptions are based on

ItemSourced figureBasisSource
Parts$1,249 – $1,835Budget Heating listed prices for 20 gas furnaces, all 80% AFUE, 40,000 to 135,000 BTU. No 90%+ AFUE models were on this list.Budget Heating

What other publishers report

National figures as published by each source, checked 2026-11-03. Their scope can differ from ours.
PublisherLowHighScope
This Old House$3,800$10,000Gas furnace installed. Page dated June 2026.
Today's Homeowner$3,300$7,800Gas furnace replacement installed. Page dated September 2025.
Bob Vila$3,800$10,000Gas furnace installed. Page dated April 2024.

Having this problem?

This job often needs a permit. Check with your local building department before work starts.

Estimated cost by state

StateHVAC Technician median wageLowHigh
Alabama$23.26$2,850$7,950
Alaska$37.23$3,050$8,850
Arizona$28.56$2,950$8,300
Arkansas$23.13$2,850$7,950
California$34.88$3,000$8,700
Colorado$31.35$2,950$8,500
Connecticut$36.83$3,050$8,800
Delaware$29.96$2,950$8,400
District of Columbia$40.57$3,100$9,050
Florida$27.24$2,900$8,200
Georgia$27.11$2,900$8,200
Hawaii$31.47$2,950$8,500
Idaho$27.04$2,900$8,200
Illinois$37.21$3,050$8,850
Indiana$29.05$2,950$8,350
Iowa$29.17$2,950$8,350
Kansas$29.07$2,950$8,350
Kentucky$28.18$2,900$8,300
Louisiana$28.20$2,900$8,300
Maine$30.37$2,950$8,400
Maryland$33.67$3,000$8,600
Massachusetts$37.16$3,050$8,850
Michigan$29.26$2,950$8,350
Minnesota$36.71$3,050$8,800
Mississippi$23.41$2,850$7,950
Missouri$28.82$2,950$8,300
Montana$29.26$2,950$8,350
Nebraska$28.77$2,950$8,300
Nevada$29.09$2,950$8,350
New Hampshire$35.51$3,050$8,750
New Jersey$35.79$3,050$8,750
New Mexico$24.17$2,850$8,000
New York$35.78$3,050$8,750
North Carolina$27.53$2,900$8,250
North Dakota$35.81$3,050$8,750
Ohio$30.06$2,950$8,400
Oklahoma$27.67$2,900$8,250
Oregon$30.26$2,950$8,400
Pennsylvania$30.00$2,950$8,400
Rhode Island$32.39$3,000$8,550
South Carolina$27.22$2,900$8,200
South Dakota$29.51$2,950$8,350
Tennessee$26.68$2,900$8,200
Texas$27.77$2,900$8,250
Utah$28.24$2,900$8,300
Vermont$29.88$2,950$8,400
Virginia$28.72$2,950$8,300
Washington$36.38$3,050$8,800
West Virginia$23.49$2,850$8,000
Wisconsin$29.67$2,950$8,350
Wyoming$26.30$2,900$8,150

Download this table (CSV)

Common questions

How much does furnace replacement cost?
A typical furnace replacement costs about $2,950 to $8,350 in the U.S. That covers a gas furnace on existing ductwork and gas line. The range reflects parts, job difficulty and local labor rates.
Which states cost the most for furnace replacement?
Labor is the part that changes by state. See the table on this page for each state's estimate.
Can I replace my furnace with a heat pump?
Often yes. ENERGY STAR says that in most climate zones an air-source heat pump can be a drop-in replacement when a central AC or furnace needs replacing. In very cold weather, it says pairing the heat pump with a backup energy source heats most efficiently, so ask your contractor. Source
Can a new furnace be claimed on my taxes?
The IRS page says you can claim the Energy Efficient Home Improvement Credit, which listed gas, propane and oil furnaces, for improvements made through December 31, 2025, and it gives no later date. This is general information, not tax advice, so ask a tax professional about your situation. Source
Sources

General information, not professional advice. Conditions, codes and prices vary. Turn off power, gas or water before any work, and hire a licensed professional when in doubt. Cost figures are our estimates, not quotes.