How Much Does a New Furnace Cost in Chicago? [2025 Data]

On average, residents of the Windy City spend around $4,022 on furnace installation, but it’s common to pay between $2,487 and $5,563. The price of your project hinges on a few things, including the type and size of your furnace, as well as its efficiency rating. Here’s how those factors impact the cost of a new furnace in Chicago.

New Furnace Cost Factors 

Before hiring an HVAC contractor, it helps to understand the different factors that affect the cost of your furnace.

Type of Furnace

Natural gas furnaces are popular in Chicago, but if that’s not the best option for you, there are other types of furnaces to consider. However, no matter which kind you choose, it’ll have a direct impact on your furnace installation costs. Electric models are the most budget-friendly option, while oil furnaces tend to be the priciest.

Size of Furnace

Your furnace size also affects how much you spend on this project. Furnaces with fewer British thermal units (BTUs) have a lower heat output, so they generate less heat for your home. Because of this, they tend to cost less than furnaces with higher BTUs.

To calculate how many BTUs you need, your HVAC installer will use a Manual J load calculator, a detailed formula that takes into account your home size, insulation, and the Chicago climate. In the meantime, you can check out the costs for natural gas furnaces in various sizes. 

Efficiency Rating

In addition to its type and size, a furnace’s Annual Fuel Utilization Efficiency (AFUE) rating influences how much it costs. Provided as a percentage, an AFUE rating indicates how much fuel a furnace turns into heat. 

A higher rating means that the unit needs less fuel to produce heat, so it’s less expensive to run, but it usually costs more upfront. In fact, high-efficiency furnaces (with AFUE ratings over 90%) can double or triple the price of standard-efficiency units (with AFUE ratings between 80% and 89%).

Ductwork Replacement

Sometimes, you’ll need to replace your ductwork along with your furnace. This can happen if your existing air ducts are damaged, inefficient, or the wrong size for your new furnace. 

In Chicago, the average cost to replace ductwork ranges from $290 to $1,130, but prices vary depending on the location and material of your ducts, as well as the size of your home.

Furnace Disposal

If you’re upgrading an old furnace, your HVAC pro will generally offer to remove and dispose of it as part of their services. This typically costs between $100 and $400.

Furnace Pro Costs

In addition to buying the furnace, replacing old ductwork, and removing your old furnace, also prepare for the following expenses.

Licensing and Certification

There is no HVAC-specific license for furnace pros in Chicago, but there are other regulations to keep in mind. Specifically, to perform any work that requires a building permit, such as installing a new furnace, your professional will need a general contractor license.

We’d also recommend hiring an HVAC installer who’s certified by North American Technician Excellence (NATE). Although NATE certification isn’t essential, it shows that a technician understands the latest industry guidelines and has the right skill set for the project.

Permits

As we’ve mentioned, you need a building permit from the city of Chicago to install a new furnace. When you hire an HVAC pro in Chicago, Illinois, to install a new furnace, part of their fee should go toward pulling the required permits for your job. If you don’t see it included in your quote, ask your contractor before the project kicks off.

Sales Tax

In Chicago, the combined sales tax rate is 10.25%, which will increase the price of any supplies, materials, and equipment bought in the city. For example, if you choose a $3,000 furnace, the sales tax would come out to around $310.

Does Adding a New Furnace Increase Home Value?

You should see a 5% to 7% increase in your home’s value after installing a new HVAC system. Between the city’s frigid winters and steamy summers, having a solid heating and cooling system is something that potential buyers will appreciate. 

For the best return on investment, consider upgrading to a high-efficiency furnace and air conditioner. These types of units are typically more attractive to Chicago homebuyers because they require less energy and can reduce utility bills.

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. 

Want to help us improve our cost data? Send us a recent project quote to [email protected]. Quotes and personal information will not be shared publicly.