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Furnace Replacement Cost in the Philadelphia Area

By Jess Maren · Sources verified by the editorial team on Oct 31, 2026

What a new furnace costs

Philadelphia figures (Angi)

Angi is the only source we found that publishes furnace prices for Philadelphia itself. Angi says its cost data comes from surveys of "real Angi customers" paired with other research, but its Philadelphia pages don't say how many local projects they use.

Item Angi Philadelphia figure Source
New furnace, typical range $3,609–$8,041; most pay around $5,820 Angi Philadelphia furnace
Furnace by type (unlabeled "Average Cost Range") Electric $600–$2,600; natural gas $700–$3,000; propane $800–$3,000; oil $1,000–$4,000 Angi Philadelphia furnace
Furnace by type (Angi's Philadelphia HVAC page) Electric $2,200–$8,400; gas $4,800–$12,500; oil $4,800–$12,800 Angi Philadelphia HVAC
Replacing ductwork $410–$1,630 on average Angi Philadelphia furnace
Labor $85–$150 per hour per technician, "with most installations requiring two-person crews" Angi Philadelphia HVAC
Removing and disposing of old equipment $300–$900 Angi Philadelphia HVAC
Tight rowhome access Can add $500–$2,000 Angi Philadelphia HVAC
Gas line modifications $400–$1,800 Angi Philadelphia HVAC

Sources: Angi, New furnace cost in Philadelphia (updated Jul 8, 2026) and HVAC replacement cost in Philadelphia (updated Apr 25, 2026), as of Oct 31, 2026.

How to read Angi's Philadelphia figures (our reading and arithmetic):

  • They run above Angi's national figures, but not by one fixed amount. The Philadelphia typical figure ($5,820) is about 1.21 times Angi's national average ($4,814). The low end is about 1.28 times and the high end about 1.17 times.
  • Angi's two Philadelphia pages disagree on furnace prices by type. The furnace page lists natural gas at $700–$3,000; the HVAC page lists gas at $4,800–$12,500. The furnace page's table doesn't say whether installation is included, and its figures are well below its own $3,609–$8,041 total, so we read them as mostly equipment prices. The HVAC page introduces its table as "the costs associated with installing different types of furnaces."
  • Use the $3,609–$8,041 range as a rough local benchmark, not a quote. Get written quotes for your home.

National ranges by fuel

Fuel Angi, installed (national) HomeGuide, installed (national) Source
Natural gas $3,800–$10,000 $3,000–$10,000+ (new furnace page); $3,800–$12,000 (gas furnace page) Angi furnace; HomeGuide new furnace; HomeGuide gas furnace
Oil $6,750–$10,000 $4,000–$10,000+ (new furnace page); $2,500–$6,000 replacement, or $4,200–$8,800 with a new oil tank (oil furnace page) Angi furnace; HomeGuide new furnace; HomeGuide oil furnace
Propane $3,700–$14,200 $3,000–$12,000+ (new furnace page); $2,200–$5,700 standard, $3,500–$7,400 high-efficiency (propane furnace page) Angi furnace; HomeGuide new furnace; HomeGuide propane furnace
Electric $2,000–$7,000 $2,500–$7,000+ (new furnace page); $1,900–$5,600 (electric furnace page) Angi furnace; HomeGuide new furnace; HomeGuide electric furnace

Sources: Angi, How Much Does a New Furnace Cost? (updated Sep 8, 2026); HomeGuide new furnace (updated Dec 31, 2025), gas furnace (Dec 31, 2025), oil furnace (Feb 5, 2026), propane furnace (Dec 30, 2025) and electric furnace (Feb 5, 2026) pages. All as of Oct 31, 2026. National figures, not Philadelphia prices.

Where the sources conflict:

  • Oil furnaces. HomeGuide's own pages disagree: its oil furnace page puts a replacement at $2,500–$6,000, while its new furnace page puts an oil furnace at $4,000–$10,000+ installed. Angi's national range is $6,750–$10,000.
  • Propane and electric. HomeGuide's dedicated propane and electric pages give lower ranges than its new furnace page. We show both.
  • Angi's averages. Angi's furnace cost article gives a $4,814 national average; its repair-or-replace article says "$5,500" on average.
  • Size tables. Angi's national size table ($1,200–$2,000 installed for a 1,000 sq ft home, up to $6,000–$10,000 for 5,000 sq ft) sits well below its own $2,823–$6,897 typical range, so we don't use it.

What's in a typical quote (HomeGuide, national): furnace equipment and materials $2,000–$4,000+ and installation labor $1,500–$3,500+, for a total of $3,500–$7,500+ on a standard installation (HomeGuide new furnace, as of Oct 31, 2026).

Cost by efficiency (AFUE)

AFUE is the share of the fuel a furnace turns into heat. HomeGuide calls 80%–89% "Standard efficiency" and 90% and up "high-efficiency."

AFUE HomeGuide gas furnace, unit only (national) HomeGuide gas furnace, installed (national) Source
80%–89% $700–$1,800 $3,800–$6,200 HomeGuide gas furnace
90%–95% $1,500–$3,700 $5,200–$8,800 HomeGuide gas furnace
96%+ $2,800–$6,200 $7,500–$12,000 HomeGuide gas furnace

Source: HomeGuide gas furnace prices (updated Dec 31, 2025), as of Oct 31, 2026. National figures, "Not including ductwork modifications or replacement." HomeGuide's high-efficiency furnace page gives $3,800–$11,500 installed for 90% AFUE and up (HomeGuide high-efficiency, Apr 20, 2025). Angi's Philadelphia page says high-efficiency furnaces "can cost twice as much as standard efficiency models (80% to 89% AFUE)."

Venting can change the price. HomeGuide says "High-efficiency furnaces often require different venting systems than standard furnaces," and that if existing ductwork or vents need changes, ductwork costs can add $500 to $2,000 or more. Its oil furnace page says condensing oil furnaces "have two heat exchangers and an extra vent or condenser drain" (both national, as of Oct 31, 2026). Ask each installer what venting and drain work your home needs.

What ENERGY STAR means in Pennsylvania and New Jersey (as of Oct 31, 2026): ENERGY STAR's gas furnace criteria are "97% AFUE or greater for U.S. North gas furnaces" and 95% for U.S. South. Its northern list includes Pennsylvania and New Jersey; Delaware is in the southern list. Oil furnaces need 87% AFUE or more. ENERGY STAR says certified northern gas furnaces can be "up to 18 percent more energy efficient than baseline models and can save $160 a year" (a national figure) (ENERGY STAR furnace criteria; ENERGY STAR furnaces).

The 2028 federal gas furnace rule, and why its date is uncertain

  • The rule: federal rules currently set a minimum of 80% AFUE for non-weatherized gas furnaces. A 2023 rule raises that to 95% AFUE for furnaces "manufactured on and after December 18, 2028" (10 CFR 430.32; DOE consumer furnaces). The rule turns on when a furnace is made, not when it's installed.
  • The petition: in April 2026, DOE published a gas industry petition asking it to move that date to "January 1, 2030, at a minimum," and asked for comments (Federal Register 2026-08145).
  • The court case: in the gas industry's challenge to the rule (American Gas Association v. Department of Energy, No. 25-879), the federal government told the Supreme Court on April 28, 2026 that the challengers were right that the rules rest on "an unduly narrow understanding" of a key term in the federal energy law: "Following the change in Administration, the government agrees with that contention." On June 8, 2026, the Court vacated the appeals court's judgment, which had upheld the rule, and sent the case back for further consideration (Supreme Court docket 25-879; government's brief).
  • What we can say: as of Oct 31, 2026, the federal regulation and DOE's page still show December 18, 2028. The government's brief also said DOE "is considering a new rulemaking." We found no Federal Register notice changing the furnace date as of Oct 31, 2026, and couldn't confirm from an official source what has happened in the case since it was sent back, or whether DOE will change the date. Don't rush a replacement because of the 2028 date, and don't assume an 80% furnace will always be an option; ask installers what's available when you buy.

What drives the price

From the sources above (national unless noted; as of Oct 31, 2026):

  • Fuel and efficiency. See the tables above.
  • Size. Most homes need 30 to 60 BTUs per square foot, according to both Angi and HomeGuide. HomeGuide says a professional load calculation also considers "the ceiling height, window efficiency, and other home-specific variables," and that an HVAC evaluation costs $150 to $500, though "some contractors may apply the cost as a credit toward installation."
  • Ductwork. HomeGuide says "Most furnace replacements can use the existing HVAC ductwork." Angi's national furnace article puts new ductwork at about $2,000 to $5,000, and its Philadelphia page puts replacing ductwork at $410 to $1,630 on average.
  • Switching fuels. HomeGuide says switching fuel types on a replacement "typically adds $500 to $2,000+," and adding a gas line for a conversion "often add $350 to $2,000 or more."
  • Access. HomeGuide says cramped crawlspaces or attics can raise costs "by 25% to 50%"; Angi's Philadelphia HVAC page says tight rowhome layouts can add $500 to $2,000.
  • Removal. National estimates for removing the old furnace run from $50 to $400 depending on the source (HomeGuide $50–$200+ on one page and $150–$400 on another; Angi $60–$330). Angi's Philadelphia HVAC page gives $300 to $900 for removing old HVAC equipment.
  • Sales tax in Philadelphia. Angi's Philadelphia page says you'll pay "the city's 8% sales tax" on a furnace. Pennsylvania's Department of Revenue confirms the rate: 6% state plus "2 percent local tax" in Philadelphia (PA Revenue). Ask whether tax is included in the quote.
  • Time of year. HomeGuide says replacing a furnace "during spring or early fall typically provides quicker service and potentially better pricing than during peak winter season." It says a standard replacement "takes 4 to 8 hours."

If your furnace dies in winter

  • Safety first. If you suspect carbon monoxide, Angi says to "leave your home immediately," call the fire department and wait for their directions (Angi repair or replace). The CPSC says "More than 200 people in the United States die every year from accidental non-fire related CO poisoning associated with consumer products," and recommends CO alarms "on every level of the home and outside sleeping areas" (CPSC).
  • Pennsylvania suburbs: "An emergency repair or replacement of equipment may be made without first applying for a permit if a permit application is submitted to the building code official within 3 business days of the repair or replacement" (34 Pa. Code §403.62).
  • Emergency contracts in Pennsylvania: the PA Attorney General says work done under the emergency provisions of the state's consumer protection law "is not considered a home improvement," but the exception is "limited to emergencies meeting the criteria" in that law, and "the contractor must obtain the emergency waiver required by the law in each case" (PA AG FAQ). Our reading: an emergency waiver changes the usual contract rules, so ask what you'd be giving up and read it before you sign.
  • Get a second written quote if you can, even by phone or email, before agreeing to a full replacement (our suggestion).

Repair or replace?

Source (national) When it suggests replacing
HomeGuide When the furnace "is more than 15 years old and requires frequent fixing, or when repairs cost more than half the replacement cost"
Angi Calls 15 years "a good cutoff," and uses "roughly 30%, or around $1,500 to $2,000 in repairs" as a benchmark; it also says repairs "over $2,000" signal replacement time

Sources: HomeGuide new furnace (Dec 31, 2025); Angi repair or replace (Jul 9, 2026). As of Oct 31, 2026.

The two rules give different answers for the same bill (our reading): a $2,000 repair against a $6,000 replacement is 33%, which passes Angi's 30% benchmark but not HomeGuide's 50% rule. Neither is specific to Philadelphia. Ask for the repair quote and the replacement quote in writing.

How long furnaces last (national): HomeGuide gives 15–25 years for gas and oil furnaces, 20–30 for electric and 15–20 for propane. Angi says furnaces "last about 20 years on average" in one article and 15 to 30 years "when maintained well" in another.

Running costs (national): HomeGuide says oil furnaces "cost 2.5 times more to operate than gas systems," and electric furnaces "cost 2 to 4 times as much to run" as gas. We found no source comparing running costs at PECO, PGW or PPL rates.

If you have a boiler, or are thinking about a heat pump

  • Boilers aren't furnaces. Angi's Philadelphia HVAC page says "Boilers heat water and send steam through radiators and baseboards, unlike furnaces that distribute hot air." It puts boiler replacement in Philadelphia at $4,800–$10,200 on average, up to $14,500 for high-efficiency models. In Philadelphia, L&I says "Boiler installations are regulated by the PA Department of Labor and Industry" (L&I Mechanical). PECO and PGW pay separate boiler rebates (see the rebate table).
  • Replacing the AC too? Our HVAC replacement guide covers furnace-plus-AC replacements and central AC prices.
  • Heat pump instead? Our heat pump guide covers prices, cold-weather performance and heat pump rebates.

Permits: Philadelphia, the Pennsylvania suburbs and New Jersey

Where Permit or fee Key requirement Source
Philadelphia: L&I Mechanical Permit One- or two-family homes: $69 per appliance (if submitted separately) or $69 per warm air heating apparatus connected to a flue or chimney; $189 flat fee for new ductwork; fuel gas work 2% of contract costs (minimum $189); $100 filing fee (credited toward the permit); $3 city + $4.50 state surcharges "A licensed contractor must perform all work." EZ permits (no plans) cover "Replacing appliances in one-or-two-family dwellings." Sheet metal work must be done by a registered sheet metal technician or apprentice L&I Get a Mechanical Permit
Philadelphia: L&I Electrical Permit $25 per $1,000 of estimated electrical cost; $63 minimum L&I says "If any component of the system requires electrical power you need an Electrical Permit" L&I Mechanical; L&I Electrical
Pennsylvania suburbs Set locally; we couldn't confirm fees A permit is required to "install … convert or replace an electrical, gas, mechanical or plumbing system regulated by the Uniform Construction Code"; 3-business-day emergency rule (see above) 34 Pa. Code §403.62
New Jersey Set by the local enforcing agency; we couldn't confirm fees Replacing warm air furnaces "with new appliances of like capacity" is "minor work"; notice "before work commences" and a permit application "within five business days" N.J.A.C. 5:23-2.17A

Sources: City of Philadelphia L&I permit pages; 34 Pa. Code §403.62; N.J.A.C. 5:23-2.17A (via Cornell LII). All as of Oct 31, 2026.

  • Philadelphia permit example (our arithmetic, one- or two-family home): if a furnace swap triggers only the $69 appliance fee, you'd pay at least the $100 filing fee (L&I credits it toward the permit fee) plus $7.50 in city and state surcharges. L&I doesn't say which fee lines a typical swap triggers (for example, whether fuel gas work at 2% of contract cost also applies), so we couldn't confirm the total. Angi's Philadelphia page uses the same $69 appliance and roughly $190 ductwork figures; its Philadelphia HVAC page gives a broader $100–$350 permit range.
  • National permit estimates for comparison: HomeGuide $50–$300 (new furnace page); Angi $400–$1,500 (national furnace article). Both are national and far apart.
  • Licensing: Pennsylvania has "no licensure or certification requirements for most construction contractors," though some municipalities license trades locally (PA Labor & Industry). New Jersey's HVACR licensing law says "A person shall not work as a Master HVACR contractor … unless licensed" (P.L.2007, c.211, as enacted; we didn't check later amendments).

Rebates and tax credits

Furnace rebates come from your gas utility. PECO and Atlantic City Electric also pay for efficient furnace fan motors through your electric service. These are the amounts on the utilities' own pages and forms as of Oct 31, 2026; for full rules, see our rebate guide.

Utility Rebate Key requirement Source
PECO: gas furnace $100 or $400 "ENERGY STAR Certified" 95–96.9% AFUE ($100) or "ENERGY STAR + Certified" 97%+ AFUE ($400); ≤2% air leakage; ECM fan motor; must be the primary heat source; application within 90 days of purchase; program term January 1 – December 31, 2026 PECO gas heating form; PECO Heating & Cooling
PECO: ECM fan motor $50 Natural gas furnaces or air handlers in a home with PECO electric service; "Propane and oil furnaces are not eligible" PECO Heating & Cooling
PECO: switching to gas heat $400 "New equipment must replace primary oil, propane or electric heating system" PECO conversion form
PGW: gas furnace $400 first unit / $250 additional ($800 / $250 Affordable EnergySense) 95% AFUE; rebates available 09/01/2024 – 08/31/2027, "first-come, first-served" PGW EnergySense
South Jersey Gas: gas furnace $900 AFUE 95% or higher, replacing a non-condensing furnace with a condensing one; apply within 120 days of purchase; rebates for equipment installed "by a participating contractor"; income-qualified bonus up to $300 South Jersey Gas rebates; SJG rebate form
PSE&G: gas furnace $540 instant rebate AFUE ≥ 95%; "Must replace a non-condensing unit"; "Condensing to condensing replacement not eligible"; installed by a participating contractor, who notes the rebate on your invoice. PSE&G also lists $60 for an ECM furnace fan PSE&G HVAC Instant Rebates ("View Gas Appliance Rebates" table)
Atlantic City Electric: furnace fan $100 ECM motor install ACE HVAC Efficiency Program
PPL No furnace rebate listed PPL's heating and cooling rebate list covers heat pumps, central AC, heat pump water heaters and smart thermostats PPL heating & cooling

Sources: the utilities' pages and forms listed, as of Oct 31, 2026. Boiler rebates: PECO $250 (90%+ AFUE) or $500 (combi boiler, 94%+); PGW $1,000 first unit ($1,400 Affordable EnergySense) at 94% AFUE; PSE&G $540 (AFUE ≥ 90%) or $600 (AFUE ≥ 95%) when the boiler replaces a non-condensing unit.

  • PGW funds are limited. On Oct 31, 2026, PGW's page showed "Percentage of Funds Used: 50%."
  • PECO's $100 tier and ENERGY STAR (our reading): PECO labels its 95–96.9% AFUE tier "ENERGY STAR Certified," but ENERGY STAR's own criteria for gas furnaces in the northern states, including Pennsylvania, are 97% AFUE or higher. Ask PECO or your installer to confirm a 95–96.9% model qualifies before you count on the $100.
  • PSE&G (New Jersey): PSE&G's furnace amounts are in the "Efficient Gas Appliances" table on its HVAC Instant Rebates page, which opens when you click "View Gas Appliance Rebates." The rebate goes through a participating contractor, not a mail-in form. PSE&G says that to qualify for its HVAC Instant Rebates Program, "you must be a current residential PSE&G customer with a valid account number," you "must be the owner of the house where the installation is to be performed," and "new construction homes and commercial properties aren't eligible." Our reading: it's for homes where PSE&G supplies the gas. We didn't confirm which Philadelphia-area New Jersey towns PSE&G serves; check your gas bill.
  • No federal tax credit for 2026 installs. The 25C credit covered "Natural gas, propane, or oil furnaces" (IRS 25C), but the IRS says it "will not be allowed for any property placed in service after December 31, 2025" (IRS FS-2025-05). As of Oct 31, 2026, Angi's national furnace article and HomeGuide's new furnace page still describe a credit of up to $600 through 2032; that's out of date.

Financing options

From official or program pages, as of Oct 31, 2026. Terms can change, and all depend on credit approval or eligibility.

Program Who Terms Source
KEEP Home Energy Loan (Pennsylvania) Owner-occupied 1–4 unit Pennsylvania homes; NEIF-approved contractor $2,500–$25,000 depending on credit score; 4.99% for 36 months, 6.99% for 60 months or 7.99% for 120 months for applications after July 1, 2025 "or until allocated program funds are exhausted"; "Boilers & Furnaces" are eligible PA DEP KEEP; NEIF KEEP
PHFA HEELP (Pennsylvania) Income limits apply (80% of area median income) $1,000–$10,000 at 1% APR for ten years; "Energy efficient heating or cooling system repairs or replacements" are eligible PHFA HEELP
Restore, Repair, Renew (Philadelphia) Philadelphia homeowners who meet credit and income rules 10-year, 3% fixed APR loans of $2,500–$50,000; HVAC repair or replacement is eligible PHDC RRR
South Jersey Gas On-Bill Repayment (NJ) Single-family and duplex homes $2,500–$25,000 at 0% APR for up to 7 years (up to 10 years for income-qualified customers); requires "Upgrading from a standard-efficiency non-condensing furnace or boiler to a high-efficiency condensing furnace or boiler" SJG On-Bill Repayment

How to get and compare quotes

  1. Know what you have: the furnace's age, fuel and AFUE (on its label), whether it shares a chimney with anything else, and which utilities serve you (that decides your rebates).
  2. Get at least three written estimates. HomeGuide says to "Compare at least three estimates with similar details from experienced installers" and to ask for "heating-load calculations" (HomeGuide new furnace, as of Oct 31, 2026).
  3. Compare the same things: fuel, BTU size, AFUE, single-stage, two-stage or modulating, venting work, ductwork, removal, permits and warranty.
  4. Check registration and the contract. In Pennsylvania, home improvement registration covers "the installation of central heating, air conditioning," contracts over $500 must be in writing and include your right to cancel, and the AG says "a down payment of one-third of the total contract price or one-third plus the cost of special ordering materials is appropriate" for jobs over $5,000 (PA AG FAQ). In New Jersey, home improvement contracts over $500 must be in writing, and you can cancel "before midnight of the third business day after the consumer receives a copy of it" (N.J.S.A. 56:8-151). Our sewer line guide covers both states' contract rules in more detail.

Questions to ask each installer:

  1. How did you size the furnace? Can I see the load calculation?
  2. What's the AFUE, and does it meet the PECO, PGW, South Jersey Gas or PSE&G rebate tier? Will you file the rebate or give me the paperwork?
  3. Does a high-efficiency model need new venting or a condensate drain here, and does that affect anything else that vents through my chimney, such as a water heater? (Our water heater guide covers water heater venting costs.)
  4. Can the existing ductwork stay? Is any duct work or sealing priced separately?
  5. Who pulls the permits (in Philadelphia, the Mechanical Permit and, if needed, the Electrical Permit), and are the fees included?
  6. Are you licensed for this work (in Philadelphia, an L&I-licensed contractor; in New Jersey, a Master HVACR license)? What's your PA home improvement registration number?
  7. Does the price include removing the old furnace, and sales tax?
  8. What are the equipment and labor warranties?
  9. What's the payment schedule, and how much is due before work starts?

Red flags: no written contract or notice of your right to cancel; a large deposit; a size picked without a load calculation (our reading of HomeGuide's advice); no permit; or a promise that a 2026 install qualifies for the federal 25C credit.

FAQ

How much does a new furnace cost in Philadelphia? Angi's Philadelphia page says $3,609 to $8,041, with most paying around $5,820. It doesn't say how many local projects that's based on. Nationally, Angi's average is $4,814.

Is a high-efficiency furnace worth it? It costs more up front: HomeGuide's national installed ranges are $3,800–$6,200 at 80%–89% AFUE versus $7,500–$12,000 at 96% and up. PECO's $400 tier needs 97% AFUE or more, and PGW and South Jersey Gas need 95%. Whether it pays back depends on your gas use and rates, which we couldn't compare locally.

Do I need a permit to replace a furnace in Philadelphia? Yes. L&I requires a Mechanical Permit for heating equipment, and a licensed contractor must do the work. Replacing an appliance in a one- or two-family home qualifies for an EZ permit, which doesn't need plans.

Will 80% furnaces be banned in 2028? A federal rule sets 95% AFUE for non-weatherized gas furnaces made on and after December 18, 2028. The gas industry has asked DOE to delay it, and the Supreme Court sent the court challenge back for further review in June 2026. We couldn't confirm whether the date will change.

Is there a federal tax credit for a new furnace in 2026? No. The IRS says the 25C credit isn't allowed for property placed in service after December 31, 2025.

Thinking about a project?

If you'd like a quote from a local installer, you can use our quote form. We may be paid by contractors when we refer a job to them. That doesn't change the costs, rules or rebates in this guide, which come from the sources listed below. Learn how we make money.

Sources

All checked Oct 31, 2026 unless noted.