How Much Does AC Replacement Cost in Indianapolis? [2025 Data]

The average AC replacement cost in Indianapolis, Indiana, is $5,157. However, depending on the type and size of your air conditioner, you could pay between $3,355 and $7,105. In the city’s warm and muggy summers, it can be uncomfortable to live without AC. If you’re in need of a new cooling system, here’s how much it’ll cost.

AC Replacement Cost Factors 

Before you reach out to an HVAC pro in Indianapolis, Indiana, it helps to understand the costs involved in AC replacement. Here are some of the main factors. 

Type of Air Conditioner

There are several types of AC units on the market, and the one you pick will have a big impact on your AC replacement cost. If you only need cooling in one room, you could opt for a window or portable AC unit, both of which cost less than $1,000.

On the other hand, if you want a system that works throughout your house and you already have ductwork, central air would be a better solution. These types of whole-home systems start at $2,500.

Size of the AC Unit

Your AC size will also affect how much you pay for AC replacement. Larger air conditioners—which are those with more tonnage or British thermal units (BTUs)—have higher cooling capacities and can remove more heat from your space per hour. As you might expect, the bigger the AC unit, the more it costs.

To find the right size AC unit for your home, your contractor will run a Manual J calculation. For this, they’ll consider the square footage of your house, along with the condition of your ductwork and insulation, the number of places where heat can escape (including windows and doors), and several other factors.

Energy Efficiency

An air conditioner’s energy efficiency rating affects its price as well. Models with higher Seasonal Energy Efficiency Ratio (SEER) ratings use electricity more efficiently, so they consume less power to cool your space. While that can result in lower monthly energy bills, you’ll pay more upfront for a higher-efficiency unit.

The U.S. Department of Energy has HVAC efficiency standards for new air conditioners sold and installed in the U.S. In Indianapolis, the minimum SEER rating for AC units is 14. On the SEER2 rating system (a newer version of the SEER model), the minimum is 13.4.

Accessibility

You could pay more for labor if your air conditioner or air ducts are difficult to access. For example, let’s say your outdoor AC unit is on the roof of your apartment building, or some of your ductwork is in a cramped crawl space in your basement. In either case, your local AC installer may require extra time or special equipment for the job, which may drive up their labor prices.

AC Pro Costs 

We’ve covered the factors that influence the cost of your AC unit, but there are other expenses involved in AC replacement as well. Here are the main variables.

Licensing and Certification

There isn’t a state-level license for HVAC contractors in Indiana. However, in Indianapolis, contractors must have an HVACR license to “install, modernize, replace, service, or repair” cooling systems, according to the city of Indianapolis' Department of Business and Neighborhood Services. As a homeowner, it’s important to confirm that your AC installer has a valid license before they begin working on your air conditioner.

In addition to an Indianapolis HVAC license, pros who work with refrigerants should also have a certification from the U.S. Environmental Protection Agency.

Permits

You can’t install a new air conditioner in Indianapolis until you have a permit from the city. Before hiring an AC contractor, confirm they’ll pull the required permits for your project. Also make sure any HVAC quotes you receive include the cost of permits.

Sales Tax

In Indianapolis, new air conditioners are subject to the city’s 7% sales tax rate. That might not equate to much on a window or portable AC unit, but on an average-priced central AC system, this would add around $180 to $320 to your AC replacement costs.

Rebates

If AES Indiana is your electric company, you may be eligible for a rebate or discount when you upgrade to a more energy-efficient air conditioner. The exact amount depends on the type of AC unit and its SEER rating, but as an example, if you install central AC with a SEER rating of 16, you could receive a $300 discount.

Does Replacing AC Increase Home Value?

In Indianapolis, where summers are often hot and humid, having a new AC system will work to your benefit when it comes time to sell your home. Many buyers will appreciate (or even expect) their next house to have a functional cooling system so they can stay comfortable on muggy Midwest days.

However, you’ll also want to consider the other half of your HVAC system: the heating component. You can boost your home's resale value even further—by between 5% and 7%—if you upgrade both parts of your HVAC system at the same time.

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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