How Much Does a New HVAC System Cost in 2026? Complete Pricing Breakdown

HVAC pricing is one of the most opaque markets in home improvement. Contractors rarely publish prices, quotes vary wildly, and the combination of equipment, labor, and add-ons makes comparison shopping difficult. Here's what homeowners actually paid in 2026 based on our survey of 3,000+ recent installations.

Average Costs by System Type

Central air conditioner only (replacing outdoor unit): $3,500-$7,500 installed. The average homeowner pays about $5,200. Budget units (Goodman, budget Rheem) start around $3,500. Mid-range (Rheem, York) runs $4,500-$6,000. Premium (Carrier, Trane, Lennox) runs $6,000-$7,500+.

Gas furnace only: $2,500-$6,500 installed. Average around $4,200. An 80% AFUE furnace costs $2,500-$3,500. A 96%+ AFUE high-efficiency furnace costs $4,000-$6,500. The efficiency upgrade typically pays for itself in 5-8 years through gas savings.

Complete AC + furnace replacement: $6,000-$14,000 installed. Average around $8,500. This is the most common HVAC purchase - replacing both components at once ensures compatibility and typically gets a package discount from the contractor. Budget complete systems start around $6,000; premium systems reach $14,000+.

Heat pump system: $4,500-$10,000 installed. Average around $7,200. Heat pumps have a higher upfront cost than AC-only but eliminate the need for a separate furnace in moderate climates. With federal tax credits of up to $2,000 for qualifying heat pumps, the effective cost is very competitive.

Ductless mini-split (single zone): $3,000-$5,000 installed. Multi-zone systems (3-4 indoor units) run $8,000-$15,000. Mitsubishi and Daikin are the premium options; budget brands start lower but have shorter lifespans.

What Drives the Price Difference

Equipment brand and tier: Premium brands (Carrier Infinity, Trane XV, Lennox SL) cost 25-40% more than budget brands (Goodman, basic Rheem). The premium buys higher efficiency, quieter operation, better warranties, and typically longer lifespans.

Efficiency rating: Jumping from a 14.3 SEER2 to a 20 SEER2 AC adds $1,500-$3,000 to the equipment cost. The energy savings pay back that difference over 7-12 years depending on your climate and usage.

Installation complexity: A straightforward swap of existing equipment costs less than installations requiring new ductwork, electrical upgrades, gas line modifications, or structural changes to accommodate a different system type.

Regional labor costs: Installation labor varies by 25-40% between regions. The same system that costs $7,000 installed in the Midwest might cost $9,500 in the Northeast or West Coast due to higher labor rates.

Hidden Costs to Watch For

Permits: Most jurisdictions require a mechanical permit for HVAC installation ($100-$500). Reputable contractors include this in their quote; shady ones skip permits to save time and money.

Ductwork modifications: If your new system has different airflow requirements, ductwork may need modification or replacement ($1,000-$5,000 additional). This should be identified during the initial assessment.

Electrical upgrades: Switching from a gas furnace to a heat pump may require a new circuit or panel upgrade ($500-$2,000). Older homes are more likely to need electrical work.

Thermostat: A smart thermostat ($150-$400) is often recommended or included with new systems. Some high-end systems require a specific communicating thermostat for full functionality.

How to Save on HVAC Installation

Get at least 3 quotes - price variation of 30-50% is normal. Buy during off-season (spring and fall) when contractors are less busy and more willing to negotiate. Ask about manufacturer rebates - Carrier, Trane, and Lennox all run seasonal promotions with $500-$1,500 in rebates. Claim the federal tax credit - up to $2,000 for qualifying heat pumps and up to $600 for efficient AC systems and furnaces. Check local utility rebates - many utilities offer $200-$1,000 for high-efficiency installations. Finance at 0% if available - many contractors offer promotional financing through equipment manufacturers.