How Much Does a Heat Pump Cost in Austin? [2025 Data]

Heat pump costs in Austin, Texas, range between $5,424 and $8,691, including labor and materials. On average, though, Austinites pay around $7,057 for heat pump installation, depending on the heat pump’s type, size, and other factors. This guide explains what goes into heat pump pricing in Austin so you can budget for your project.

Heat Pump Cost Factors in Austin

In Austin, the cost of heat pump installation can vary considerably, depending on the specifics of the heat pump. Here are the main factors that affect your project price.

Type of Heat Pump

You can pick from several types of heat pumps, but air-source and ground-source heat pumps are the most common options for homes.

Ductless mini-splits—which are a type of air-source heat pump—are the most budget-friendly of the bunch. Ground-source (or geothermal) heat pumps cost much more, mainly due to their complex and expensive installation requirements.

Heat Pump Size

There’s also a link between heat pump size—which is measured in tons or British Thermal Units (BTUs)—and price. Simply put, larger heat pumps have more heating and cooling capacity than smaller models. So, as you might expect, they’re more expensive. 

Here are a few popular air-source heat pump sizes and their average costs:

Efficiency Ratings

Heat pumps also have efficiency ratings, which describe how efficiently they use energy to cool or heat your house. Seasonal Energy Efficiency Ratio (SEER) measures a heat pump’s cooling efficiency, while Heating Seasonal Performance Factor (HSPF) measures its heating efficiency.

On both rating scales, a higher number means the unit uses electricity more efficiently. A high-efficiency heat pump can reduce your ongoing heating and cooling expenses, but it will cost more to install.

Ductwork Replacement

If you install a ducted heat pump, you’ll also need a duct system to circulate warm or cool air throughout your house. You should already have ductwork if you're swapping out an old heat pump or using a heat pump to replace an existing furnace or central AC.

However, if your ducts are leaking, blocked, or inefficient, it’s best to replace them when installing a new heat pump. In Austin, air duct replacement costs anywhere from $658 to $2,496, depending on the size of your home, duct material, and other factors.

HVAC Pro Costs in Austin

Once you’ve added up the costs of the heat pump and any necessary ductwork repairs, there are a few more expenses to factor in before finalizing your budget.

Licensing and Certification

If you qualify for a homestead permit, you can perform your own HVAC work in Austin, but that’s not a good idea. For one, installing a heat pump involves working with electricity and refrigerants—both of which can pose serious health risks if mishandled. Plus, many heat pump manufacturers won’t honor your warranty unless you hire a certified HVAC professional for installation.

Instead, you should look for an HVAC professional with an Air Conditioning and Refrigeration Contractor License from the Texas Department of Licensing and Regulation. HVAC pros in Austin, Texas, should also be registered with the city’s Building and Trade Contractor Services (BTCS).

In addition, the Environmental Protection Agency (EPA) requires HVAC installers in Austin (and all other parts of the U.S.) to have a Section 608 Technician Certification, which lets them work with refrigerants.

Permits

Before installing your new heat pump, your HVAC pro will need to apply for a mechanical permit from the City of Austin. Permit fees depend on your home’s size, but for a 2,500-square-foot property, a mechanical permit would cost $124.

Sales Tax

If you purchase your heat pump in Austin, you’ll pay the city’s 8.25% combined sales tax. That might not add much to a small, lower-cost mini-split, but it will make a bigger impact if you install a large, ground-source heat pump. For example, if you buy a $4,000 heat pump, the sales tax would come out to $330.

Rebates

Austin Energy offers rebates ranging from $450 to $750 if you install an energy-efficient heat pump at your home. To qualify, your heat pump must have a minimum 15.2 SEER2 rating and a minimum 7.8 HSPF2 rating.

Does Installing a Heat Pump Increase Home Value in Austin?

A heat pump can be a good investment in Austin, where the harsh summer heat and humidity make cooling a necessity. And while winters here are milder than many other parts of the country, there will be nights when you’ll want a reliable heating system, too—and heat pumps can provide both.

By installing a new heat pump in your Austin home, you’ll effectively replace the entire HVAC system. If you put your house on the market, that’s something that will stand out to many buyers. In fact, after overhauling your HVAC system, you’ll often see a 5% to 7% increase in your home’s value.

How Angi Gets Its Cost Data

Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We survey real Angi customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects. 

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