Quick Answer

Furnace/HVAC Replacement Cost in Indianapolis (2026)

Average cost in Indianapolis

US$10,597avg

US$5,000 — US$20,000

US$15 — US$18 per sq ft

+3.5% YoY
12 sources
Updated 2 weeks ago
Indiana

Cost Breakdown

Itemized
Equipment

Furnace and AC units

US$4,000 — US$12,000

55%

Labor

Installation and testing

US$2,500 — US$5,000

30%

Permits & Inspections

City of Indianapolis fees

US$150 — US$850

5%

Removal & Disposal

Old unit recycling

US$200 — US$600

5%

Ductwork & Misc

Modifications and materials

US$300 — US$1,500

5%

🧾Sales Tax (7%) — Indiana
Base cost + $742 tax$11,339

Sales Tax at 7%

📋What's Included

Scope

Typically Includes

  • Furnace or AC unit
  • Thermostat
  • Basic ductwork connections
  • Refrigerant
  • Labor & installation
  • Old unit disposal

Typically Excludes

  • Full ductwork replacement
  • Zoning systems
  • Smart home integration
  • Permits & inspections
  • Humidifier or air purifier

Based on a standard 2,000 sq ft home with existing ductwork.

🧮Estimate Your Cost

Interactive

Estimated Cost

US$6,373

US$5,098 — US$7,648

Based on 12 sources and market data for Indianapolis. Actual costs may vary depending on specific project requirements.

📈Price Momentum

Year-over-year

~1 year ago

US$10,239

Today

US$10,597

Furnace/HVAC Replacement in Indianapolis is 3.5% compared to roughly a year ago — about US$358 more on the average project.

Comparison derived from the year-over-year change rate, not a month-by-month price index. We don't store historical snapshots yet — when we do, this will become a real time series.

🏢Top HVAC Replace Contractors in Indianapolis

Verified providers
🔨

All Pro Heating, Air and Plumbing

9175 Harrison Park Ct, Indianapolis, IN 46216, USA

5.0
★★★★★

1,768 reviews

🔨

Fellowship Heating & Cooling

5602 Elmwood Ave Suite 216, Indianapolis, IN 46203, USA

5.0
★★★★★

415 reviews

🔨

Chapman Heating, Air Conditioning, Plumbing and Electrical

9230 Crawfordsville Rd, Indianapolis, IN 46234, USA

4.9
★★★★½

7,236 reviews

🔨

Howald Heating, Air Conditioning & Plumbing

6542 Westfield Blvd, Indianapolis, IN 46220, USA

4.9
★★★★½

2,139 reviews

🔨

Masters Heating & Cooling

8450 W Washington St, Indianapolis, IN 46231, USA

4.9
★★★★½

898 reviews

Provider data sourced from public business directories. Ratings and reviews are public and may change. LookupCost is not affiliated with listed providers.

💬What People Actually Paid

Community

Common Questions

Homeowners can access up to $725 from AES Indiana for high-efficiency AC/heat pumps and up to $400 from Citizens Energy Group for natural gas furnace conversions. Additionally, the Indiana Energy Saver Program (HEAR) offers up to $8,000 for heat pump installations for income-qualified households.

A furnace-only replacement typically ranges from $4,000 to $10,000, with most Indianapolis homeowners spending between $6,000 and $7,500 for a standard mid-efficiency unit.

Yes, the Department of Business and Neighborhood Services updated its fee schedule on January 5, 2026. While craft permits for simple replacements remain stable, structural fees for projects involving significant modifications have increased, with some new residential structural fees rising to $850.

For a 2,000 to 2,500 square foot home, the average cost for a combined air conditioning and gas furnace setup is approximately $13,430, though this can exceed $20,000 for ultra-high efficiency variable-speed systems.

📊Our Methodology

How we collect data
1

Aggregated from 5+ verified web sources and cost databases

2

Licensed contractor estimates and regional cost guides

3

Government construction and labor statistics

4

Community-reported project costs and reviews

Last data collection: 2 weeks ago. Updates run weekly. All costs in USD.

About this data

Cost figures are estimates synthesized from public market data using AI research and refreshed regularly. Real project costs vary by scope, materials, contractor, and site conditions. Always get verified quotes from licensed contractors for your specific project.

Spotted bad data? Let us know — we'll review and update.