How Much Does Furnace Repair Cost in New York City? [2025 Data]

Getting ready to upgrade your heating system in the Big Apple? New furnace costs in New York typically come in around $5,466, with most homeowners spending between $3,440 and $7,536. Here are the main cost factors to keep in mind when budgeting for furnace installation in New York.

New Furnace Cost Factors in New York

Many of the costs involved in this project relate to your home’s furnace itself, including its type, size, and efficiency rating. Here’s how these factors impact your overall costs.

Type of Furnace

In New York, you can choose between several types of furnaces, including electric, natural gas, and oil. 

Electric furnaces are the most budget-friendly option, but they’re often pricier to run than natural gas furnaces (which cost more upfront but have lower operating costs). And while oil heating is still common in New York (unlike many other parts of the country), it’s the most expensive type of furnace on the market.

Furnace Size

The size of your furnace affects your costs as well. Furnace sizes—which are expressed in British Thermal Units (BTUs)—describe how much heat a furnace creates. 

Most gas furnaces range from 40,000 to 120,000 BTUs. The higher a furnace’s BTU rating, the more heat it can generate per hour. With that in mind, it probably won’t surprise you to learn that bigger furnaces are more expensive than smaller ones.

Here’s how the size of a natural gas furnace impacts its cost:

Furnace Efficiency

Every furnace has an Annual Fuel Utilization Efficiency (AFUE) rating, which measures the percentage of fuel it can convert into heat. Units with higher AFUE ratings are more efficient, meaning they require less fuel to warm your home—which can lead to significant savings over the course of a long New York winter.

There’s a trade-off, though: High-efficiency furnaces (with AFUE ratings of 90% or higher) often cost twice as much as mid-efficiency models (with AFUE ratings of 80% to 89%).

Ductwork Replacement

Sometimes, you’ll have to replace your ductwork when installing a furnace. This can happen if your current ductwork is leaky, moldy, or the wrong size for your new heater. In New York, replacing ductwork costs between $416 and $1,564, depending on the length of the ductwork, duct material, and other factors.

Furnace Removal

If you’re upgrading an old furnace, you’ll need to set aside some money to remove and dispose of the existing unit. In most cases, your HVAC installer will handle this for you (and include the costs in their quote). You can expect to spend a few hundred dollars on this part of the project.

Sales Tax

When you buy a furnace in New York, it will be subject to the city’s 8.875% sales tax. This might not increase the price of your project significantly, but it will add to your costs. On a $1,500 furnace, for example, you’d pay $133 in tax.

HVAC Pro Costs in New York

In New York City, HVAC professionals typically charge an hourly labor rate of $75 to $150. However, when it comes to professional installation costs, you should also consider other expenses, including labor and permits.

Licensing and Certification

New York doesn’t have a statewide HVAC licensing requirement, but you should still hire a city-licensed contractor when installing a furnace here. In addition, if you plan to install an oil heater in New York, you’ll need a licensed Oil Burning Equipment Installer.

It’s also smart—but not mandatory—to hire a NATE-certified technician for your furnace installation. Issued by the North American Technician Excellence non-profit organization, a NATE certification is a nationally recognized program that HVAC pros can pursue to verify their industry experience and knowledge.

Permits

Before any work begins, your New York HVAC pro should obtain a permit for your furnace installation. In addition to the cost of the permit itself, your contractor might also charge for their time when pulling the permit.

Does Installing a New Furnace Increase Home Value in New York?

New York winters can be magical, but they can also be bitterly cold—which is why having a new furnace is so valuable when selling your home. From a buyer’s perspective, a house with an upgraded furnace is attractive because it means they won’t have to pay to replace the heating system for years to come.

High-efficiency furnaces, which use less fuel than standard efficiency models, are even more appealing—especially when you consider the cost of energy in New York. According to the latest available data from the Bureau of Labor Statistics (BLS), national gas prices in the Empire State are 22.8% higher than the national average, and electricity prices are 54.5% higher.

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.