How Much Does Furnace and AC Replacement Cost in Chicago, IL? [2026 Data]

The furnace and AC replacement costs in Chicago, IL average around $7,770, but can range between $5,180 and $12,950. The main factors that determine the price are the type of HVAC system and the unit's size.

The cost of living in Chicago is higher than the national average, which means homeowners will pay more to replace their furnaces and AC units. Let’s explore the factors that will affect the price of replacing the furnace and AC in your Chicago, IL home.

Furnace and AC Replacement Cost Factors 

Furnace and AC replacement costs in Chicago, IL, vary depending on the type of system, your home's size, and the brand. ​You should discuss with a local HVAC pro which system is best for your Chicago home. Here’s a breakdown of the various factors you should consider when replacing your furnace and AC. 

Type of HVAC System

There are four types of HVAC systems, including split systems, duct-free systems, hybrid systems, and packaged heating and air systems. For example, hybrid systems are more costly but ideal for Chicago’s cold climate. This system optimizes energy efficiency by automatically switching from an electric heat pump to the gas furnace when temperatures drop to below freezing. This system can reduce electric bills and energy costs by 30% to 50%.

The typical cost ranges for each are:

• Split systems: $3,940–$7,700

• Duct-free systems: $2,070–$15,020

• Hybrid systems: $2,590–$10,360

• Packaged heating and air systems: $10,360–$14,500

Unit Size

The square footage of your house will determine what size furnace and air conditioner you need to heat or cool your space efficiently. A local HVAC company can help you determine what size you need exactly by doing a load calculation.

Unit Brand

An HVAC system costs about $4,900 on average, but the brand you buy can change this number. For example, brands like Amana or Coleman tend to come in the lower end of the spectrum at $3,100, while brands Trane and York are often $6,200 or more.

HVAC Pro Costs

Hiring an HVAC pro in Chicago, IL can cost $75 to $150 per hour or $1,000 to $3,000 per unit. The price will depend on the pro's experience, the unit's size, and the job's complexity. For example, a ductless mini split will require less labor because they do not require traditional ductwork installation. It’s always best to hire a pro to replace your furnace and AC system because they will ensure the job is done safely and correctly.

Permits

Replacing furnaces and AC systems requires a permit in the city of Chicago. A permit to replace an HVAC can cost between $50 to $500, depending on the size of your home and the number of units installed. It’s best to confirm with the HVAC pro that they will obtain all necessary permits for the job.

Taxes

As long as labor is listed separately on the invoice, it is not taxable. However, you will need to budget to pay taxes on the materials and equipment. Chicago’s combined sales tax rate is 10.25%, which means if your HVAC system costs $10,000, you will pay $1,025 in taxes alone. It’s critical to account for all costs when budgeting for your furnace and AC replacement.

Does Replacing Your AC and Furnace Increase Home Value?

Replacing your furnace and AC system can increase your home's value by 5% to 7% and offer an average 30% return on investment. Since the Windy City has harsh winters with temperatures that dip below freezing, an efficient heating system is essential for homebuyers. 

Newer HVAC systems are more energy efficient, resulting in lower utility costs and making the home more attractive to potential buyers. Discuss with a local HVAC pro which type of system would be best to boost your home’s value before deciding.

How Angi Gets Its Local Cost Data 

To help homeowners plan their next project, Angi provides readers with carefully researched cost data and upholds strict editorial standards. We start with national average project costs, which we collect by analyzing competitor information, retailer material costs, and input from professional contractors. We then apply local price index data to calculate location-specific estimates that reflect what homeowners typically pay in their local area. To do that, we use data from the U.S. Bureau of Economic Analysis (BEA), including its Regional Price Parities (RPPs), which measure price differences across cities. This helps us account for differences in labor, materials, and overall cost of living, so estimates in higher- or lower-cost areas better reflect real-world local pricing.

Every estimate undergoes a thorough editorial review to verify accuracy, consistency, and alignment with observed market conditions.

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.