Furnace replacement cost
A typical furnace replacement costs $2,800 to $7,500, averaging about $4,800, according to Fixr's January 2026 data. Angi (September 2026) puts most jobs at $2,823 to $6,896, averaging $4,814. HomeGuide (December 2025) puts standard-efficiency installs at $3,500 to $7,500+, or up to $11,500 for high-efficiency. Below you'll find ranges by fuel, home size and AFUE, what's in the price, federal tax credit status for 2026, and an estimator you can fill with your own quotes.
Published cost ranges
These are national ranges as each source publishes them. None of them are our own prices.
| Source (date) | Installed range | Notes |
|---|---|---|
| Fixr (updated Jan 28, 2026) | $2,800–$7,500 | Average $4,800 |
| Angi (updated Sep 8, 2026) | $2,823–$6,896 | Average $4,814 (11,869 projects) |
| HomeGuide (Dec 31, 2025) | $3,500–$7,500+ | Up to $11,500 high-efficiency |
By fuel type
| Fuel | HomeGuide (Dec 2025) | Angi (Sep 2026) | Fixr (Jan 2026) |
|---|---|---|---|
| Electric | $2,500–$7,000+ | $2,000–$7,000 | $1,800–$7,300 |
| Natural gas | $3,000–$10,000+ | $3,800–$10,000 | $3,800–$10,000 |
| Oil | $4,000–$10,000+ | $6,750–$10,000 | $6,700–$10,000 |
| Propane | $3,000–$12,000+ | $3,700–$14,200 | $3,700–$14,200 |
Angi says about 58% of its customers have a natural gas furnace. Electric is usually cheapest to install but can cost more to run in cold climates. Oil remains common in parts of the Northeast. Propane suits homes without a gas main.
By home size (HomeGuide)
| Home size | Installed (standard) |
|---|---|
| 1,000–1,500 ft² | $2,000–$4,500 |
| 1,500–2,500 ft² | $3,000–$6,500 |
| 2,500–3,500 ft² | $4,000–$9,500 |
| 3,500+ ft² | $5,500–$10,000+ |
Angi and Fixr also publish cost-by-size tables tied to BTU bands (about 30–60 BTU per square foot). A 2,000 ft² home often lands around $2,400–$4,000 in those tables - lower than some fuel-type headlines - so treat size and fuel bands together and get local quotes.
Efficiency (AFUE)
Annual Fuel Utilization Efficiency (AFUE) is the share of fuel turned into heat. HomeGuide puts standard-efficiency furnaces at about 80–89% AFUE and high-efficiency at 90–98% AFUE, with high-efficiency installs at $3,800 to $11,500+. Angi describes low (80–89%), mid (90–95%) and high (96%+) bands. Higher AFUE costs more up front and usually less to run, especially in cold climates.
Estimate your own job
The system line starts from HomeGuide's fuel table (or size table / high-efficiency band when you choose those). Type in a figure from your quote and that line uses your number instead. Leave a box blank to keep the published range.
What's in the price
- Equipment: HomeGuide puts the furnace and materials at about $2,000–$4,000+ and labor at $1,500–$3,500+. Brand, staging (single, two-stage, modulating) and AFUE drive the unit price.
- Labor: Angi about $75–$100/hr; HomeGuide and Fixr about $75–$150/hr. Fixr puts total labor often at $300–$1,800. Many change-outs finish in one day (HomeGuide: 4–8 hours).
- Ductwork: Angi puts new ductwork at $2,000–$5,000. HomeGuide puts minor leak repairs at $200–$700 and airflow modifications at $25–$55 per linear foot.
- Chimney / vent liner: High-efficiency furnaces often need different venting than an old atmospheric unit. HomeGuide puts a stainless steel chimney liner at $900–$3,800 installed. Angi puts typical liner jobs around $1,500–$5,000 (average about $2,500).
- Thermostat: HomeGuide $200–$500 for a smart thermostat installed.
- Permit and removal: HomeGuide permits $50–$300; Angi $400–$1,500 where fees run high. Removal about $60–$330 (Angi) or $50–$200+ (HomeGuide).
- Fuel conversion: HomeGuide puts switching fuels at roughly $500–$2,000+ extra, and a new gas line at $350–$2,000.
Signs it's time to replace
- Age past about 15–20 years (HomeGuide, Fixr); Angi notes ~18 years with recurring problems.
- Repair quotes that top half the cost of replacement (HomeGuide).
- Rising energy bills, uneven rooms, short cycling, loud noises, soot or dust, yellow burner flames, or a gas smell (leave and call the utility or 911 if you smell gas).
Federal tax credits (2026 status)
Section 25C ended for furnaces placed in service after December 31, 2025. The IRS FAQ on Public Law 119-21 (FS-2025-05, August 21, 2025) states the Energy Efficient Home Improvement Credit is not allowed for any property placed in service after that date. ENERGY STAR's furnace tax-credit page likewise limited the credit to products purchased and installed through December 31, 2025 - 30% of project cost, up to $600 for qualifying gas furnaces (typically AFUE ≥ 97%) and certain oil furnaces.
Some Angi and HomeGuide pages still mention longer credit windows. Do not count on a federal furnace credit for a 2026 install unless the IRS updates the rules. Utility and state rebates may still apply - check ENERGY STAR's rebate finder and DSIRE, and ask your contractor which models qualify.
Considering a heat pump instead of another furnace? See heat pump installation cost for air-source, ductless and geothermal ranges (those federal credits also ended for 2026 installs under the same IRS FAQ).
- Carbon monoxide: Combustion furnaces need correct venting and makeup air. Improper installs can leak CO. Install CO alarms on every floor and near sleeping areas. Yellow flames, soot or CO-alarm activation mean shut the system down and call a pro.
- Gas and oil: Fuel piping, valves and burners belong to licensed HVAC or plumbing pros. If you smell gas, leave the building and call your gas utility or 911 from outside.
- Electrical: Electric furnaces and controls need correctly sized circuits. Panel work belongs to a licensed electrician.
- Permits: Most towns require a mechanical permit and inspection. Manufacturers usually void warranties on DIY installs. Angi, Fixr and HomeGuide all advise hiring a licensed pro.
Getting quotes
- Ask for a Manual J load calculation and an itemized quote: model and AFUE, labor, ductwork, venting or liner, permit and disposal.
- Confirm licenses, insurance and NATE or manufacturer training where available.
- Compare equipment and labor warranties, and who services the brand locally.
- Get at least three written estimates. Spring and fall are often quieter than peak winter (HomeGuide, Fixr).
Related: AC replacement cost, garage door replacement cost, heat pump installation cost, water heater replacement cost, tankless water heater cost and the cost guides.
FAQ
How much does furnace replacement cost?
Fixr (January 2026) puts furnace replacement at $2,800 to $7,500, averaging $4,800. Angi (September 2026) reports $2,823 to $6,896 for most homeowners, averaging $4,814. HomeGuide (December 2025) puts a standard-efficiency install at $3,500 to $7,500+, or up to $11,500 for high-efficiency.
How much is a gas furnace vs electric?
HomeGuide lists electric furnaces at $2,500 to $7,000+ installed and gas at $3,000 to $10,000+. Angi puts electric at $2,000 to $7,000 and natural gas at $3,800 to $10,000. Fixr's bands are similar: electric $1,800 to $7,300, gas $3,800 to $10,000.
Is there a federal tax credit for a furnace in 2026?
Not for new installs placed in service in 2026. The IRS says the Energy Efficient Home Improvement Credit (section 25C) is not allowed for property placed in service after December 31, 2025. ENERGY STAR's furnace tax-credit page covered qualifying gas and oil furnaces only through December 31, 2025 (30% of cost, up to $600). Some cost guides still mention longer windows. Check your utility for local rebates.
What size furnace do I need?
HomeGuide and Angi both use a rough 30 to 60 BTU per square foot rule of thumb, so a 2,000 ft² home often needs about 60,000 to 120,000 BTU. Climate, insulation and windows change that a lot. Have a licensed HVAC contractor run a Manual J load calculation.
When should I replace my furnace?
HomeGuide says replace when the unit is more than 15 years old and needs frequent repairs, or when a repair costs more than half of replacement. Fixr notes rising energy bills, unusual noises or odors, uneven heat and units at 15 to 20 years as common signs. Angi suggests considering replacement around 18 years if problems keep returning.
Sources
All checked October 17, 2026. Dates are each page's own published or updated date.
- Fixr, Furnace replacement cost, updated January 28, 2026: national range and average, costs by fuel and size, labor, permits, removal, ductwork, signs to replace.
- Angi, How much does a new furnace cost?, updated September 8, 2026: project range and average, costs by fuel, size and AFUE, ductwork, permits, removal, labor, DIY risks.
- HomeGuide, How much does a new furnace cost?, December 31, 2025: costs by fuel, size and AFUE, equipment/labor split, duct repairs, thermostat, gas line, permits, removal, lifespan, signs to replace.
- HomeGuide, Chimney liner cost, 2026: stainless steel liner $900–$3,800 installed.
- Angi, Chimney liner cost, 2026: typical $1,500–$5,000, average about $2,500.
- ENERGY STAR, Furnaces (natural gas, oil) tax credits: credit window through December 31, 2025; gas AFUE ≥ 97% pathway.
- IRS, FAQs for modification of sections 25C and related credits (FS-2025-05), August 21, 2025: 25C not allowed after December 31, 2025.