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

New furnace costs in Dallas, Texas, average $3,586, and most homeowners pay between $1,736 and $5,542. Your cost will mostly depend on the size of your home and the type of furnace you’re installing, although furnace efficiency can play a role, too, especially if you’re installing a gas furnace.

New Furnace Cost Factors

Most Dallas homeowners pay between $1,736 and $5,542 for a new furnace, but prices can climb up to $9,090. Make sure to consider all of the following factors to get an accurate estimate for your total.

Home Size

A furnace installer in Dallas, Texas, will size your furnace based largely on the square footage it needs to heat. There are other important factors that determine the output requirements of your furnace, like home age, ceiling height, and lifestyle, but square footage is the most crucial factor. Furnace output is measured in British thermal units (BTUs). Furnaces with higher BTU ratings cost more for the materials, so homeowners with larger homes will pay more for a new furnace.

According to the International Energy Conservation Code (IECC) climate map, Dallas is located in climate zone 3. Homeowners in this area require less intensive heating than those in northern states, so you’ll need between 35 and 45 BTUs per square foot. It’s important to have a pro size your system for you, but you can use this as a baseline to get a good estimate.

The average home in Dallas has around 1,850 square feet of living space, and the appropriate furnace for this home size would cost between $2,500 and $3,200 for materials alone.

Fuel Type

Furnaces can run on electricity, natural gas, oil, or propane, and the type of furnace you need will affect your installation costs. More than 60% of homeowners in Dallas use electricity as their primary source of home heating, and electric furnaces are the most affordable option. Most of the remaining homes use natural gas furnaces, which are twice as expensive but cost less to run.

Oil and propane furnaces are uncommon in Dallas because natural gas is readily available, and homeowners in the relatively warm climate don’t need the high heat output of oil.

Efficiency Needs

Furnaces come in a wide range of efficiency ratings, too, and the rating you choose will affect your material costs, with higher efficiencies costing more up front. It’s worth noting, though, that furnaces with higher efficiency ratings—measured in annual fuel utilization efficiency (AFUE)—have lower operating costs and can save you money over time.

Electric furnaces, which are the most common in Dallas, have AFUE ratings between 95% and 100%. Gas and propane furnaces can reach up to 98.5% efficiency, and oil furnaces are the least efficient, reaching up to 87% efficiency.

According to the U.S. Department of Energy, it’s difficult to justify the added cost of a peak-efficiency furnace in a moderate climate like the one in Dallas. You can upgrade to reduce your carbon footprint, but you’re unlikely to see long-term savings from choosing the highest efficiency available.

Old Furnace Removal

Many HVAC companies will include the cost of removing your old furnace in their initial estimate, but you should budget between $60 and $300 extra if yours doesn’t.

Many people see higher fees when converting from one fuel source to another. Going from gas to electric is the most common conversion type in Dallas, and this would come with an additional fee of $125 to $250 to cap the old gas line. You’ll pay closer to $500 if you’re going from electric to gas and need to install a new gas line.

HVAC Pro Costs

Replacing your own furnace in Dallas is illegal. The local building department only allows licensed HVAC professionals to carry out the work. When you hire an HVAC professional in Dallas, you can expect to pay between $1,000 and $3,000 for labor. While this is expensive, it’s worth it for the peace of mind you’ll get that your furnace will be safe to use and sized perfectly for your home.

You should also consider permit fees since you’ll need a permit to replace your furnace. Your HVAC company will handle the paperwork and inspection scheduling, but you’ll have to pay the related fee. The City of Dallas charges a flat rate of $143 plus a multiplier based on the cost of the improvement. With new furnace costs in Dallas averaging $3,586, the permit fee will be an average of $163.58.

Does a New Furnace Increase Home Value?

Installing a new furnace or fully replacing an old one that’s started to have problems will increase your home value because it ensures buyers that they won’t need to worry about HVAC outages or repairs for years after closing. Installing a new furnace provides an average return on investment (ROI) of 30%, which means a home value bump of just over $1,000 in Dallas.

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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