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HVAC Replacement Cost Guide
Updated 2026 · National averages
National Average
$5,000 – $15,000
per system
Full HVAC system replacement (AC + furnace) costs $5,000–$15,000 installed, with most homeowners paying $8,000–$11,000.
Overview
Replacing a central HVAC system costs $5,000–$15,000 depending on system type, home size, and whether you're replacing just the AC or the full system (AC + furnace or a heat pump). Heat pumps have become the most popular choice due to efficiency and eligibility for the 30% federal tax credit under the Inflation Reduction Act. HVAC accounts for 40–50% of a home's energy bill, making upgrades one of the fastest-payback home improvements.
Cost by Scope
AC only (central)
Replacing the AC unit and condenser only, keeping existing furnace and air handler.
$3,500–$7,500
Furnace only
Gas or electric furnace replacement. Often replaced separately from AC.
$2,500–$6,000
Full system (AC + furnace)
Replacing both units at once often saves $1,500–$2,500 vs. replacing separately.
$8,000–$15,000
Heat pump (air-source)
Heats and cools in one unit. Eligible for 30% federal tax credit up to $2,000.
$4,500–$11,000
What Affects the Cost
High
System type
Central AC ($3,500–$7,500), gas furnace ($2,500–$6,000), heat pump ($4,000–$10,000), mini-split ($3,000–$10,000 per zone).
High
System size (tons/BTU)
Undersized or oversized systems waste energy and wear out faster. Proper Manual J load calculation is essential.
Medium
SEER / AFUE rating
Higher efficiency units cost more upfront but save more monthly. 16+ SEER AC and 96% AFUE furnaces are the sweet spot.
Medium
Brand
Carrier, Trane, Lennox lead in reliability. Budget brands like Goodman cost 20–30% less with acceptable quality.
High
Ductwork condition
Leaky or uninsulated ducts waste 20–30% of conditioned air. Duct sealing adds $500–$2,000.
Medium
Labor & region
Install labor runs $1,500–$4,000. Southern states average less; Northeast and Pacific coast average more.
Low
Emergency vs. planned
Emergency replacements in extreme weather may cost 15–20% more due to surge demand.
What's Typically Included
- New equipment
- Disconnect / reconnect electrical
- Refrigerant charge
- Condensate drain
- Thermostat
- Labor
- Basic permits
Common Add-Ons (Not Included)
- Ductwork repair or replacement
- Electrical panel upgrade
- Gas line work
- Extended labor warranty
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Frequently Asked Questions
How long does an HVAC system last?
Central AC units last 15–20 years. Gas furnaces last 20–30 years. Heat pumps last 15–20 years. Regular maintenance extends life significantly.
Is a heat pump better than AC + furnace?
In most climates, yes. Modern cold-climate heat pumps work efficiently down to -13°F. They're 2–3× more efficient than gas furnaces and qualify for the 30% federal tax credit.
What SEER rating should I get?
Minimum 16 SEER2 is required in most states. 18–22 SEER2 offers the best balance of upfront cost and long-term savings in hot climates.
Does the federal tax credit apply to HVAC?
Yes. The Inflation Reduction Act provides a 30% credit up to $2,000/year for qualifying heat pumps, and up to $600 for qualifying central AC.
How do I know what size HVAC I need?
A licensed contractor performs a Manual J load calculation based on square footage, insulation, windows, climate, and occupancy. Never accept a 'rule of thumb' sizing without a proper calculation.