Planning a furnace replacement or HVAC upgrade in 2026? Costs can vary widely across Puget Sound, and understanding these factors will help you budget smartly. This guide covers average furnace prices, installation costs, and energy-efficient options for homeowners in Seattle, Mercer Island, Tacoma, and the Everett area.
Average Furnace Cost in 2026
In the Puget Sound region, the average furnace installation cost ranges from $4,500 to $10,000, depending on:
- System Type: Gas, electric, or oil furnace
- Efficiency rating: Higher efficiency rating lowers energy bills
- Size of your home and the ductwork required
- Local Labor Rates in Seattle, Tacoma, Redmond, Everett
Tip: Energy-efficient furnaces cost more upfront, but can reduce heating bills by up to 30% annually.
Cost Breakdown Table

What effects Furnace Replacement Costs?
- Home size: Bigger homes need bigger furnaces.
- Ductwork: Repairs or changes can add $1,000–$3,000.
- Permits & removal: Local permits and oil furnace disposal can add $300–$800.
- Labor rates: Prices vary by city and contractor, but our HVAC expert at Home Comfort Alliance always offers upfront pricing and financing options.
Heat Pump Installation Costs
Heat pumps are increasingly popular in Seattle and Redmond for energy efficiency.
- Average Installed Cost: $9,000–$18,000
- Benefits: One System for heating and cooling
- Efficiency: Can cut energy use by 50% annually
What About Rebates and Tax Credits?
Current rebates and tax credits expire December 31, 2025, and as of now, future incentives for 2026 have not been announced. Homeowners should monitor federal programs like the Energy Efficient Home Improvement Credit (IRS Form 5695) for extensions before purchasing or visit HomeComfortAlliance.com/Rebates for real-time updates.
Next Steps
Ready to upgrade your home comfort? Get an Instant HVAC Quote Today for furnace installation, heat pump installation, or a full HVAC system upgrade in Seattle, Tacoma, Redmond, or Everett.
Disclaimer:
These price ranges are general estimates. Your actual cost may vary based on your home size, system type, installation complexity, local taxes, permits, and any rebates available at the time.

