What Does a Furnace Replacement Cost in Washington?
Here are the real installed price ranges we quote across Federal Way, Tacoma, Kent, and the rest of the Puget Sound region for a gas furnace replacement in 2026:
| Replacement Type | Standard Homes | Larger / Premium Homes |
|---|---|---|
| Standard-efficiency furnace (80–92% AFUE) | $4,000 – $8,000 | $5,000 – $10,000 |
| High-efficiency furnace (96–98% AFUE) | $5,500 – $8,000 | $6,500 – $10,000 |
| Furnace + central AC replacement (combined) | $10,000 – $16,000 | $11,500 – $19,200 |
| Repair (existing furnace, not replacement) | $150 – $1,500 | $175 – $1,800 |
Every quote includes equipment, installation labor, the required permit, and a 10-year parts and labor warranty. We present every furnace job in Good, Better, and Best tiers so you can weigh upfront cost against long-term efficiency instead of guessing at a single number.
What Actually Moves the Price?
Five things decide where your furnace replacement lands in those ranges:
- AFUE efficiency rating. Furnaces range from 80% to 98% AFUE — the percentage of fuel actually converted to heat. Carrier's lineup spans that full range; a base 80% AFUE unit costs less upfront than a 98% AFUE premium model, but the premium unit burns less gas every winter.
- Home size and heating load. A proper installer runs a Manual J load calculation based on your home's square footage, insulation, and window area — not a rule-of-thumb guess. Sizing wrong in either direction costs you comfort or money.
- Ductwork condition. If your existing ducts are sound, the new furnace connects to them directly. Leaky, undersized, or damaged ducts need modification, which is a separate scope that adds to the project.
- Equipment tier and brand. We install Day & Night (our primary brand as an Elite Dealer), Carrier, and American Standard in Good, Better, and Best tiers.
- Combined AC installation. Replacing an aging furnace and an aging AC at the same time is usually cheaper than doing them separately later, since the crew is already on-site and some ductwork and electrical work overlaps.
Want Your Real Number?
Skip the generic ranges. Our instant quote tool gives you a genuine estimate for your home in about 60 seconds — no phone call required, no salesperson on your couch.
Should You Repair the Furnace or Replace It?
Not every furnace problem means a new furnace. A simple rule handles most cases: if your furnace is under 15 years old and the repair costs less than half the price of a new system, repair it. If it's over 15 years old, needs frequent repairs, your energy bills keep climbing, it heats unevenly room to room, or it's making noises it didn't used to make, replacement is usually the more cost-effective move over the next several winters.
If you're dealing with a furnace that's acting up right now, our repair team handles diagnosis and same-week fixes — and we'll always give you an honest read on whether a repair or a replacement makes more financial sense for your specific unit, not just the one that's better for us.
Are There Rebates for a Furnace Replacement?
This is the part that surprises a lot of homeowners: PSE rebates apply to heat pump installations, not furnace replacements. A straight furnace-for-furnace swap doesn't qualify for utility incentives.
What does apply: if you're replacing a furnace anyway and you're open to switching to a ducted heat pump instead of another gas furnace, that upgrade can qualify for up to $4,400 in PSE incentives, which meaningfully offsets the higher upfront cost of a heat pump versus a furnace. We'll walk you through both options side by side during your free estimate so you can compare real numbers before deciding. One thing that's not on the table either way: the federal 25C tax credit ended December 31, 2025 and no longer applies to furnaces or heat pumps installed in 2026.
Furnace Replacement or Heat Pump — Which Is Actually Right?
If your gas furnace still has years of life left and is running fine, replacing it now isn't necessary — a repair or routine maintenance is the honest call, and we'll tell you that even though it's the lower-revenue answer for us. But if you're already facing a full furnace replacement, it's worth pausing to compare it against a heat pump before you commit to another gas system.
A heat pump installation runs $12,000–$18,000 — more upfront than a furnace — but it replaces your furnace and your air conditioner with one system, and Western Washington's mild marine climate is genuinely one of the best heat pump environments in the country. If your home is due for AC anyway, the math often lands closer than it looks on paper once you factor in the rebate. We laid out the full comparison, including the honest trade-offs, in heat pump vs. gas furnace for Western Washington and should you replace your gas furnace with a heat pump.
Why Do Furnace Quotes Vary So Much Between Contractors?
Get a few furnace quotes in the same neighborhood and the spread can be surprising. Check what's actually included before comparing bottom lines:
- Was a real load calculation done? An oversized furnace short-cycles and wears out early; an undersized one runs constantly and still can't keep up on the coldest nights. A square-footage guess isn't engineering.
- Is the permit included? Furnace replacements require a permit in Washington. A bid that skips it is cutting a corner that shows up at resale.
- What's the warranty, really? Manufacturer base coverage is typically 5 years on parts, with labor not included. Every Varsity installation carries a 10-year parts AND labor warranty — that's often where a cheap bid quietly gets its margin back.
- Who's actually doing the install? We're owner-operated — the people who quote your job are responsible for it. Most furnace replacements are completed in one day.
The Bottom Line for Washington Homeowners
Budget $4,000–$8,000 for a standard-efficiency furnace replacement, or $5,000–$10,000 for a high-efficiency unit, larger home, or premium market. If the AC is due too, expect $10,000–$16,000 for both together. Get more than one quote — but compare load calculations, permits, and warranty terms, not just the number at the bottom. And before you commit to another gas furnace, it costs nothing to ask what a heat pump would run for the same house.
Furnace Replacement Cost FAQs
A gas furnace replacement in Washington typically costs $4,000 to $8,000 for standard installations, and $5,000 to $10,000 for higher-efficiency systems, larger homes, or more complex setups. The final price depends on the efficiency rating (80% to 98% AFUE), system size for your home's square footage, and any ductwork modifications needed.
If your furnace is under 15 years old and the repair cost is less than half the price of a new system, repair is usually the better option. If it's over 15 years old, needs frequent repairs, has rising energy bills, heats unevenly, or makes unusual noises, replacement is often more cost-effective in the long run.
PSE rebates apply to heat pump installations, not furnace replacements. If you're replacing a furnace anyway and want to explore switching to a heat pump instead, that upgrade can qualify for up to $4,400 in PSE incentives, which offsets the higher upfront cost. The federal 25C tax credit ended December 31, 2025 and no longer applies to either furnaces or heat pumps.
The right size comes from a Manual J load calculation, not a square-footage guess. It accounts for insulation, window area, ceiling height, and local climate. An oversized furnace short-cycles and wears out early; an undersized one runs constantly and still can't keep up on the coldest nights.
Most Varsity Heating furnace replacements are completed in a single day, from removing the old unit to testing combustion and airflow to every room. Jobs that also require ductwork modifications or a combined AC installation can take 1 to 2 days. Every installation includes a 10-year parts and labor warranty.