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

On average, new furnace costs in Philadelphia, Pennsylvania, range from $3,609 to $8,041, with most Philadelphians paying around $5,820. Whether you buy a gas, electric, or oil furnace, the type you choose will affect your final costs—and so will its size. Based on these factors, here’s what you can expect to spend on your new furnace.

New Furnace Cost Factors 

From the type of furnace to its efficiency rating, there are several things that affect how much you’ll pay to install a furnace. Here are the key factors.

Type of Furnace

Whether you’re replacing an old furnace or installing one for the first time, the type of furnace you pick will have a big impact on your overall project costs. Electric models are typically the most affordable option, while oil furnaces are the priciest.

Size of Furnace

The size of your furnace, measured in British thermal units (BTUs), also affects its costs. Residential furnace sizes usually range from 40,000 to 120,000 BTUs, depending on the property’s square footage, insulation and ductwork, number of windows and doors, and more. Your HVAC installer will calculate the right size furnace for your home based on these factors.

Here are the estimated costs of natural gas furnaces—the most common type—in different sizes:

Furnace Efficiency

A furnace’s Annual Fuel Utilization Efficiency (AFUE) rating is a percentage that represents how much fuel it converts into heat. Furnaces with higher AFUE ratings use fuel more efficiently, so they can help reduce your heating bill, which is especially helpful in Philadelphia’s long and cold winters.

However, more efficient furnaces are pricier to purchase and install than lower-efficiency models. In fact, high-efficiency furnaces—or those with AFUE ratings above 90%, according to the U.S. Department of Energy—can cost twice as much as standard efficiency models (80% to 89% AFUE).

Ductwork Replacement

If your current ductwork is damaged or not compatible with your new furnace, you’ll also need to budget for ductwork replacement. In Philadelphia, replacing ductwork costs an average of $410 to $1,630, but this can vary depending on the size of your house, duct material, and other factors.

Furnace Removal

Before installing a new furnace, your contractor will need to remove and dispose of the old one. Generally, this adds several hundred dollars to your project total. Many HVAC pros in Philadelphia, Pennsylvania, will include this service in their quotes, but if you don’t see it, be sure to ask.

Furnace Pro Costs 

Your total furnace installation costs will also depend on how much your pro charges for labor, as well as the cost of permits and sales tax.

Licensing and Certification

In Philadelphia, you need to hire a licensed and insured contractor to install your heating system. Although the city doesn’t have a specific HVAC licensing requirement, your pro should have a contractor license unless their company only works on existing one- or two-family dwellings. 

In addition, HVAC pros in Philadelphia need a sheet metal license to install, maintain, and service sheet metal used in HVAC systems. If your project involves upgrading or adding new ductwork, make sure your pro is licensed to do so.

For any HVAC project including furnace installation, it’s also best to hire a contractor who’s certified by North American Technician Excellence (NATE). This is an optional certification, but it helps ensure that your pro has the right skills and experience for the job.

Permits

Before installing a furnace or ductwork, your local furnace installation pro will need to get a mechanical permit from the city of Philadelphia. Permit costs vary depending on the specifics of your job. But as an example, if you have a one- or two-family property, you’ll pay around $190 for new ductwork or $69 for each new heating appliance, not including city and state surcharge fees.

Taxes

If you buy a new furnace in Philadelphia, you’ll pay the city’s 8% sales tax. Depending on the price of your furnace, this could increase your costs by hundreds of dollars. On a $2,000 furnace, for example, you’d pay $160 in sales tax.

Does Installing a New Furnace Increase Home Value?

In Philadelphia’s winters, snow and freezing temperatures are common, so you need a reliable heating system to stay safe and warm throughout the colder months. And if you ever decide to sell your home, potential buyers will expect that, too.

If you upgrade your home’s HVAC system before putting your house on the market, it could boost your home’s value by 5% to 7%. You’ll see the biggest increase if you invest in a high-efficiency system, which will be attractive to buyers who want to reduce their energy bills or carbon footprint.

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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