How much does it cost to replace an HVAC system?

HVAC system replacement costs range from $4,000 to $20,000+ depending on system type, home size, regional labor rates, and ductwork scope. A 3-ton central air conditioner with gas furnace typically costs $6,000–$12,000 installed. A 3-ton air-source heat pump costs $8,000–$16,000 installed before IRA credits. Ductwork replacement adds $3,000–$7,500 to any central system. Regional labor rates range from $65/hr in rural markets to $120/hr in high-cost metros.

How much does central air conditioner installation cost?

Central air conditioner installation costs $3,500–$8,500 for the AC unit alone, or $6,000–$12,000 for a full AC + gas furnace system installed. Equipment cost varies by tonnage (2–5 ton), efficiency tier (SEER2 14–22+), and brand. Labor typically runs $1,500–$3,000. If existing ductwork needs partial repair or full replacement, add $1,500–$7,500. Enter your ZIP code in the estimator above to adjust for regional labor rates.

How much does furnace replacement cost?

Gas furnace replacement costs $2,500–$6,500 installed for a standalone furnace swap, or $6,000–$12,000 when bundled with a new central air conditioner. Equipment cost depends on BTU capacity (60,000–120,000 BTU), AFUE efficiency (80% vs. 95%+ condensing), and brand. A 95% AFUE condensing furnace costs $1,500–$3,000 more than an 80% AFUE unit but qualifies for the IRA §25C $600 tax credit. Labor typically runs $1,000–$2,500.

What HVAC systems qualify for IRA tax credits?

Under the Inflation Reduction Act, qualifying HVAC systems include: air-source heat pumps (up to $2,000 via §25C, SEER2 ≥16 or HSPF2 ≥9.0), geothermal heat pumps (30% credit, no cap, via §25D), central air conditioners meeting ENERGY STAR standards ($600 via §25C), gas furnaces with AFUE ≥95% ($600 via §25C), and heat pump water heaters ($2,000 via §25C). The annual cap under §25C is $3,200 total. Credits are available 2023–2032.

What is the HEAR rebate for heat pumps?

The Home Energy Appliance Rebate (HEAR) program, funded by the Inflation Reduction Act and administered by state energy offices, provides point-of-sale rebates for heat pump installations. Households below 80% of Area Median Income (AMI) can receive up to $8,000 (100% of cost). Households at 80–150% AMI can receive up to $4,000 (50% of cost). HEAR programs are active in select states — enter your ZIP code to check eligibility.

What is SEER2 and how does it affect installation cost?

SEER2 is the post-2023 efficiency rating for air conditioners and heat pumps, replacing the legacy SEER rating. It measures seasonal energy efficiency at more realistic test conditions. Higher SEER2 ratings require more efficient (and more expensive) equipment: standard SEER2 14–15 is the entry level; high SEER2 16–18 costs roughly 25% more but qualifies for the IRA $2,000 heat pump credit; premium SEER2 19+ costs roughly 55% more than standard but maximizes long-term energy savings.

HVAC Cost Estimator

Calculate the total installed costof a new or replacement HVAC system — component-level breakdown with equipment, labor, ductwork, and permits, plus federal IRA credits and state HEAR rebates applied automatically.

Your ZIP code (for regional pricing)

System Configuration

System type

Most common US system — comparing with a heat pump?

System capacity

Home square footage

Climate zone

Estimated system size: ~1.8 tons (based on 1,800 sq ft in Zone 3 — Mixed-Dry / Temperate)

Estimating by square footage gives a ±30% size approximation. For a more accurate estimate, use the Heat Loss Calculator →

Installation Details

Ductwork scope

Assumes ductwork is in good condition. Leaky ducts may need sealing — consider getting an inspection.

Efficiency tier

high-efficiency, qualifies for IRA tax credit

Installation complexity

Example: Replacing a garage-mounted system with the same system type

Replacing an existing HVAC system (includes removal of old unit — $200–$600)

Configure your system above and click “Calculate estimate”

← Need to calculate your heating load first? Use the Heat Loss Calculator

About IRA Credits & HEAR Rebates

Federal IRA Tax Credits (§25C/§25D)

The Inflation Reduction Act provides tax credits for qualifying high-efficiency HVAC equipment. Heat pumps can receive up to $2,000/year (§25C). Geothermal systems receive 30% of installed cost with no cap (§25D). Smart thermostats add $150. Available 2023–2032.

State HEAR Rebates

The Home Energy Appliance Rebate program provides point-of-sale rebates for heat pump installations. Up to $8,000 for households below 80% AMI, or $4,000 at 80–150% AMI. Administered by state energy offices — availability varies by state.

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This tool provides calculations for informational purposes only and does not constitute professional engineering, construction, or safety advice. Verify all results independently before use in design, construction, or compliance decisions. See our Terms of Service.

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