Furnace Replacement Cost in 2026
Replacing a furnace costs $2,823–$6,897 for most US homes in 2026, with a national average of $4,814 across 11,869 verified projects. Fuel type and efficiency class decide where you land.
Quick answer: what it costs in 2026
| Furnace replacement (installed) | Low | Typical | High |
|---|---|---|---|
| All fuel types (Angi, 11,869 projects) | $2,823 | $4,814 | $6,897 |
| Natural gas furnace | $3,800 | $7,000 | $10,000 |
| Electric furnace | $2,000 | $4,500 | $7,000 |
| High-efficiency gas (96%+ AFUE) | $7,500 | $9,750 | $12,000 |
The overall average hides the fuel split: electric furnaces are the cheapest to install, gas is the mainstream choice, and oil and propane sit at the top. For a standard 1,600–2,000 sq ft home, Angi's project data puts a gas replacement around $7,000.
Estimates based on published ranges from Angi (updated September 2026) and HomeGuide, checked November 9, 2026. Your local price will differ — see the regional table below and our research method.
A furnace replacement is usually a distress purchase — the old unit fails on the coldest weekend of the year, and the first quote becomes the reference point by default. This guide is the reference point instead. The national figures come from Angi's 2026 furnace data, built on 11,869 verified projects: most homeowners pay $2,823–$6,897, averaging $4,814, with fuel type and efficiency class explaining most of the spread.
Two 2026 specifics matter. First, the federal Energy Efficient Home Improvement Credit (25C) expired for equipment placed in service after December 31, 2025, so there is no federal tax credit on a 2026 furnace — state and utility rebates are what remains. Second, if your quote also includes the air-conditioning side, that is a different job: see our full HVAC replacement guide and the central AC replacement guide for the cooling numbers.
What the price normally includes
- The new furnace unit, sized to your home (most homes need 80,000–100,000 BTU)
- Removal and disposal of the old unit (typically $60–$330)
- Connection to existing ductwork, gas line or wiring, flue and condensate drain
- New thermostat or reconnection of the existing one
- Building permit and inspection where required ($400–$1,500 in Angi's data)
- Manufacturer's parts warranty (commonly 10 years when registered) plus installer labour warranty
Furnace replacement cost by fuel type
| Fuel type | Installed cost | Notes |
|---|---|---|
| Electric | $2,000–$7,000 | Cheapest to install; highest running cost in cold climates |
| Natural gas | $3,800–$10,000 | The mainstream choice — 58% of Angi's customers heat with gas |
| Propane | $3,700–$14,200 | Widest range in the data; tank and line work drive the top end |
| Oil | $6,750–$10,000 | Mostly like-for-like swaps in the Northeast |
Fuel-type ranges are Angi's 2026 published figures. Switching fuels costs more than any row here — an electric-to-gas conversion adds a gas line, venting and sometimes a panel upgrade, and should be quoted as its own project.
Cost by efficiency (AFUE)
| Efficiency tier | Gas furnace, installed | What you get |
|---|---|---|
| Standard, 80–89% AFUE | $3,800–$6,200 | Single-stage workhorse; metal flue; lowest purchase price |
| Mid, 90–95% AFUE | $5,200–$8,800 | Condensing furnace; PVC venting; meaningfully lower gas bills |
| High, 96%+ AFUE | $7,500–$12,000 | Often two-stage or modulating; quietest, cheapest to run |
Efficiency bands are HomeGuide's published installed ranges. AFUE is the share of fuel that becomes heat: an 80% furnace wastes 20 cents of every fuel dollar up the flue, a 96% furnace about 4 cents. In cold climates the upgrade pays back; in mild ones, the standard tier is often the rational buy.
What drives the price up or down
Size and staging
Bigger homes need bigger furnaces, and two-stage or modulating burners cost more than single-stage. An oversized quote is not a favour — oversized furnaces short-cycle, wear faster and heat unevenly. The quote should follow a load calculation, not the old unit's label.
Ductwork condition
Like-for-like swaps into sound ductwork sit at the low end. New or heavily modified ductwork adds $2,000–$5,000 in Angi's data, and leaky ducts can waste a fifth of a new furnace's output.
Installation complexity
Attic and crawlspace installs, flue relining, condensate pumps and electrical panel work each add line items. Labour in Angi's data runs $75–$100 per hour; a standard swap is a one-day job for a two-person crew.
Timing
Furnaces fail in cold snaps, when installers are busiest and least flexible on price. If your unit is 15+ years old and limping, replacing it in the shoulder season usually gets sharper quotes and your choice of installer.
Cost by region
| Region | Typical range | Why |
|---|---|---|
| South / Southeast | $2,600–$6,200 | Smaller heating loads; many homes use heat pumps instead |
| Midwest | $2,900–$7,100 | Near national average; gas is the default fuel |
| Northeast | $3,400–$8,600 | Higher labour; oil and propane systems pull the range up |
| West Coast | $3,300–$8,300 | Higher labour costs; milder loads partly offset them |
Regional bands are compiled from the regional spreads published in national cost guides (Angi, HomeGuide). They are variation bands around the national figures, not official state statistics — your metro can sit outside them.
Ways to keep the cost down
- Get three quotes in the shoulder season if the furnace still runs — January pricing is desperation pricing.
- Match the efficiency tier to your climate; a 96% AFUE furnace in a mild climate rarely earns back its premium.
- Ask for the load calculation behind the size quoted, and walk away from quotes that simply match the old label.
- Check state energy-office and utility rebates before signing — with the federal credit gone, these are the only incentives left, and some require pre-approval.
- Keep the existing ductwork if it is sound, and get any duct work itemised separately so you can see what it buys.
- Register the warranty. Manufacturer parts coverage commonly runs 10 years registered versus 5 unregistered.
Frequently asked questions
How long does a furnace last?
Most furnaces last 15–20 years; well-maintained gas units can reach 25. Age plus a major repair bill is the usual replace signal — a common rule is to replace when a repair exceeds about half the cost of a new unit on a furnace over 15 years old.
How long does furnace replacement take?
A like-for-like swap is normally a single day for a two-person crew. Fuel conversions, duct modifications or flue work can extend it to two or three days.
What size furnace do I need?
Most single-family homes need 80,000–100,000 BTU, but the right size comes from a load calculation (Manual J) using your home's area, insulation, windows and climate — not from the old unit's size, which was often oversized to begin with.
Is there a tax credit for a new furnace in 2026?
No federal one: the Energy Efficient Home Improvement Credit expired for equipment placed in service after December 31, 2025. State, utility and manufacturer rebates may still apply — check before you sign, as some require pre-approved equipment or installers.
What is AFUE and how much does it matter?
AFUE is the percentage of fuel converted to heat. Going from 80% to 96% cuts fuel waste from 20% to about 4% — worth roughly $150–$400 a year on a cold-climate gas bill, and much less in a mild climate.
Should I replace the furnace and AC together?
If both are old, yes, usually: matched systems share the blower and air handler, labour overlaps, and mismatched new/old pairs can lose efficiency and warranty coverage. If the AC is under 10 years old, a furnace-only swap is normally fine.
Related cost guides
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Typical: $1,350 · Range $880–$1,830Sources: Angi, "How Much Does a New Furnace Cost in 2026?" (updated September 8, 2026; $4,814 average from 11,869 verified projects; fuel-type ranges); HomeGuide gas furnace cost guide (AFUE efficiency tiers); HomeAdvisor furnace cost data (same project dataset). Full source list and methodology: How we research. Spotted a price that looks wrong in your area? Tell us — we re-check reader-flagged figures first.