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

New furnace costs in Austin average $3,489, and most homeowners pay somewhere between $2,105 and $5,000. Your HVAC technician will base your price primarily on the size of your home and the type of fuel you’re using, although efficiency also plays a significant role.

New Furnace Cost Factors

Homeowners in Austin pay as little as $900 for furnace replacement, while prices for some climb as high as $6,300. There are a few key factors to consider to determine where your total will fall within this wide range.

Home Size

Your HVAC technician will determine the size of furnace you need, primarily based on your home’s square footage. More capable furnaces cost more, which means the larger your home is, the higher your installation costs will be.

Furnaces come with different British thermal unit (BTU) ratings, which determine their output capabilities. In Austin’s warm climate, you’ll need heat infrequently, and you’ll need minimal output when you do need heat. You should aim for 35 to 40 BTUs per square foot, in general.

The table below includes material costs only based on home square footage, so it can give you a good idea of what you’ll pay for a furnace. The average home in Austin is just under 1,750 square feet and will need between 61,250 and 70,000 BTUs. However, it’s essential to have a furnace installer near you size your system, as they’ll consider other additional factors, such as ceiling height, sun exposure, and insulation quality.

Fuel Type

Most furnaces in Austin are powered by natural gas or electricity. Electric furnaces cost half as much to replace as gas furnaces, both because the equipment is more affordable and the labor is less intensive, as there is no need to pay for gas line work. Oil and propane furnaces are very uncommon types of furnaces in Austin, primarily because gas is widely available and electric is far more efficient.

Efficiency

The efficiency of the furnace you install will play a crucial role in your material costs, as manufacturers charge more for furnaces with higher efficiency ratings. A furnace’s efficiency is measured by its annual fuel utilization efficiency (AFUE) rating. Equipment with higher AFUE ratings will use less fuel for an equivalent amount of heat, reducing long-term costs, but it will also cost more upfront.

The Department of Energy states that the highest-efficiency furnaces with an AFUE of 92% or higher may not be financially worthwhile in a hotter climate like Austin's, as heating costs are generally low, resulting in low potential savings.

On the other hand, high-efficiency furnaces may make you eligible for certain rebates and tax incentives. The federal energy efficiency tax credit can effectively bring down your costs by up to 30% if you owe enough in income taxes, and Texas Gas Service also has a local rebate of $675 for natural gas furnace replacement with an AFUE of 92% or higher.

Old Furnace Removal

You should budget between $60 and $300 to have your HVAC tech remove your old furnace and haul it away for you. Some pros will include this for no additional cost, so check with your tech before budgeting.

Converting from a gas furnace to an electric one is common in Austin, especially for homeowners who have solar installed. If that’s the route you’re going, you should budget an additional $125 to $250 to have your old gas line capped for safety.

HVAC Pro Costs

Labor costs in Austin are approximately 11% higher than the national average, primarily due to the area's above-average cost of living. For a complete installation, including the removal of your old furnace, you can expect to pay between $1,000 and $3,000 in Austin. While this may be expensive, handling the job yourself is both illegal and dangerous, so it’s always worth—and necessary—to hire a licensed furnace installer in Austin to get the job done.

You’ll also need to budget for permit fees, as you’ll need a permit for furnace installation in Austin. Your installer will handle the permit filing, but they’ll pass the cost on to you. The City of Austin charges a flat rate of $64.87 for HVAC replacements.

Does a New Furnace Increase Home Value?

Installing a new furnace can increase your home's value by an average of over $1,000, as the project typically yields a 30% return on investment (ROI).

A good way to maximize your ROI is to invest in an electric furnace, which is becoming the most popular type in Austin. This comes with significantly lower installation costs, yet still gives buyers confidence that they won’t need to worry about replacements, repairs, or breakdowns shortly after closing. Electric furnaces are especially valuable if you’re one of the many homeowners in Texas who have gone solar, as ongoing running costs will be minimal.

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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