Cost guides › Heat pump installation
United States
Heat pump installation cost
Replacing an old furnace and central AC with a 3 tons two-stage or variable-speed ducted heat pump typically costs $14,500, with most installs between $11,300 and $18,800. A basic single-stage system runs about $12,000, while a cold-climate inverter model pushes it toward $18,800.
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mid-range, typicalCost by region
| Location | Basic | Mid-range | Premium |
|---|---|---|---|
| District of Columbia | $13,400 | $15,900 | $20,200 |
| Illinois | $13,300 | $15,800 | $20,000 |
| Alaska | $13,200 | $15,700 | $19,900 |
| Massachusetts | $13,200 | $15,600 | $19,900 |
| Washington | $13,100 | $15,600 | $19,900 |
| Connecticut | $13,100 | $15,500 | $19,800 |
| Minnesota | $13,100 | $15,500 | $19,800 |
| New Jersey | $13,000 | $15,500 | $19,800 |
| New York | $12,900 | $15,400 | $19,700 |
| California | $12,800 | $15,300 | $19,600 |
Show all regions
| Hawaii | $12,800 | $15,200 | $19,500 |
| New Hampshire | $12,700 | $15,200 | $19,500 |
| North Dakota | $12,800 | $15,200 | $19,500 |
| Maryland | $12,600 | $15,000 | $19,300 |
| Rhode Island | $12,500 | $15,000 | $19,300 |
| Oregon | $12,400 | $14,900 | $19,200 |
| Colorado | $12,200 | $14,700 | $19,000 |
| Maine | $12,200 | $14,700 | $18,900 |
| Wisconsin | $12,200 | $14,700 | $19,000 |
| Michigan | $12,100 | $14,600 | $18,900 |
| Montana | $12,100 | $14,600 | $18,900 |
| Ohio | $12,200 | $14,600 | $18,900 |
| Pennsylvania | $12,100 | $14,600 | $18,900 |
| Delaware | $12,000 | $14,500 | $18,800 |
| Indiana | $12,000 | $14,500 | $18,800 |
| Missouri | $12,000 | $14,500 | $18,800 |
| Nevada | $12,000 | $14,500 | $18,800 |
| South Dakota | $12,000 | $14,500 | $18,700 |
| Vermont | $12,100 | $14,500 | $18,800 |
| Arizona | $11,900 | $14,400 | $18,600 |
| Iowa | $12,000 | $14,400 | $18,700 |
| Kansas | $12,000 | $14,400 | $18,700 |
| Nebraska | $11,900 | $14,400 | $18,700 |
| Virginia | $11,900 | $14,400 | $18,600 |
| Kentucky | $11,800 | $14,300 | $18,600 |
| Utah | $11,800 | $14,300 | $18,600 |
| Florida | $11,700 | $14,200 | $18,400 |
| Idaho | $11,700 | $14,200 | $18,500 |
| Louisiana | $11,800 | $14,200 | $18,500 |
| North Carolina | $11,700 | $14,200 | $18,500 |
| Oklahoma | $11,700 | $14,200 | $18,500 |
| Texas | $11,700 | $14,200 | $18,500 |
| Wyoming | $11,700 | $14,200 | $18,500 |
| Georgia | $11,600 | $14,100 | $18,400 |
| South Carolina | $11,700 | $14,100 | $18,400 |
| Tennessee | $11,600 | $14,100 | $18,400 |
| New Mexico | $11,300 | $13,800 | $18,000 |
| West Virginia | $11,300 | $13,800 | $18,000 |
| Mississippi | $11,200 | $13,700 | $18,000 |
| Alabama | $11,100 | $13,600 | $17,900 |
| Arkansas | $11,100 | $13,600 | $17,800 |
What's included
Mid-range
- Removal and haul-away of the old furnace, AC condenser and coil
- Two-stage or variable-speed outdoor heat pump unit, sized to the house
- Matching indoor air handler connected to your existing ductwork
- New refrigerant line set, outdoor pad, disconnect and condensate drain
- Brazing, pressure test, vacuum, refrigerant charge and commissioning
- Dedicated electrical circuit and outdoor disconnect run by an electrician
- Programmable or smart thermostat compatible with the heat pump
- Site cleanup after installation
What affects the cost
System size
Heat pumps are sized in tons of capacity, and equipment cost rises with each extra ton. A proper room-by-room load calculation (Manual J) often shows a smaller system than the old furnace is enough, especially in a house that has had new windows or insulation.
Efficiency and compressor type
Single-stage units run at full blast or off; two-stage and variable-speed units run longer at lower output, which is quieter, holds temperature better and usually earns higher SEER2 and HSPF2 ratings. Higher ratings mean lower running costs but a higher price up front.
Climate
In mild climates a standard heat pump handles winter easily. Where winters are harsh, a cold-climate model that keeps heating output at low outdoor temperatures costs more, and some homeowners keep the existing furnace as backup in a dual-fuel setup.
Ductwork condition
The estimate reuses existing ducts. Leaky, undersized or poorly insulated ducts hurt comfort and efficiency, and sealing, resizing or replacing them is a separate cost worth checking before the new system goes in.
Electrical capacity
A heat pump plus electric backup heat strips draws a lot of power. If your panel is full or undersized, a panel or service upgrade may be needed, and that is not included here.
Installation difficulty
An air handler in a cramped attic or crawlspace, a long line set run or a condenser location that needs a wall bracket all add labor. Replacing equipment in the same spots keeps the price down.
How to save
- Insist on a Manual J load calculation so you are not paying for more tons than the house needs.
- Check your state's energy office and your utility for heat pump rebates before you sign, since some require pre-approval or a participating contractor.
- Get quotes in spring or fall, when HVAC contractors are less busy than during summer and winter breakdown season.
- Seal obvious duct leaks and add attic insulation, which can let you size the heat pump smaller.
Grants, tax and rules
Federal tax credit ended
The federal 25C energy efficient home improvement credit no longer applies to property placed in service after 31 December 2025 (IRS), so a heat pump installed in 2026 does not qualify for it.
State and utility rebates
Some states run IRA home energy rebate programs (HEAR/HOMES), and availability varies by state. Utilities often offer heat pump rebates. The DSIRE database lists state and utility incentives.
Permits and licensing
Replacing heating and cooling equipment and adding a dedicated circuit usually needs a local permit. Electrical work and refrigerant handling must be done by licensed professionals where the law requires it. Permit fees are not in this estimate.
Sales tax
Sales tax on materials varies by state, and labor is often not taxed but rules vary. Our figures are before sales tax.
Frequently asked questions
How much does it cost to replace a furnace and AC with a heat pump?
For a 3 tons ducted system reusing the existing ducts, expect around $14,500. A single-stage system costs about $12,000, and a cold-climate variable-speed system about $18,800.
Is there still a federal tax credit for heat pumps?
No. The 25C credit does not apply to property placed in service after 31 December 2025. Some states offer rebates through IRA home energy programs, and many utilities have their own heat pump rebates.
Do heat pumps work in cold climates?
Yes, if you choose the right model. Cold-climate heat pumps are designed to keep delivering heat at low outdoor temperatures, and in very cold areas a backup heat source, electric strips or the existing furnace, covers the coldest days.
What size heat pump do I need?
It depends on the house's heat loss and gain, not just the square footage or the size of the old unit. A contractor should run a load calculation; many homes end up with a smaller system than the equipment it replaces.
Can I keep my existing ductwork?
Usually, if it is in good condition and sized correctly, and this estimate assumes it is reused. Ask the installer to check airflow and leakage, because a heat pump delivers air at a lower temperature than a furnace and poor ducts are more noticeable.
What do SEER2 and HSPF2 mean?
SEER2 rates cooling efficiency and HSPF2 rates heating efficiency, both under the current federal test procedure. Higher numbers mean less electricity for the same comfort, and some utility rebates require a minimum rating.
How this estimate is calculated
Work hours: 27.5 · Labour: $4,267 · Materials: $10,196
Sources: BLS Occupational Employment and Wage Statistics; Regione Toscana, Prezzario dei Lavori 2026 (CC BY 4.0); ECB exchange rates.