Quick Answer

Furnace/HVAC Replacement Cost in Minneapolis (2026)

Average cost in Minneapolis

US$13,250avg

US$7,500 — US$18,500

US$3 — US$7 per sq ft

+8.5% YoY
12 sources
Updated today
Twin Cities

Cost Breakdown

Itemized
Equipment

Furnace and AC units

US$3,750 — US$9,250

50%

Labor

Licensed HVAC installation

US$3,000 — US$7,400

40%

Materials

Ductwork, refrigerant, and supplies

US$375 — US$925

5%

Permits & Inspections

Minneapolis mechanical permits

US$150 — US$555

3%

Removal & Disposal

Old unit haul-away

US$225 — US$370

2%

🧾Sales Tax (6.88%) — Minnesota
Base cost + $912 tax$14,162

Sales Tax at 6.88%

📋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$6,913

US$5,530 — US$8,296

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

🏢Top HVAC Replace Contractors in Minneapolis

Verified providers
🔨

O'Boys Plumbing, Furnace & AC Repair

3040 Lyndale Ave S suite 206, Minneapolis, MN 55408, USA

5.0
★★★★★

136 reviews

🔨

Bloomington Heating & Air

1101 W 80th St, Bloomington, MN 55420, USA

5.0
★★★★★

967 reviews

🔨

Sensible Heating and Air Conditioning

3533 Roosevelt St NE, St Anthony, MN 55418, USA

5.0
★★★★★

171 reviews

🔨

Standard Heating & Air Conditioning, Inc.

130 Plymouth Ave N, Minneapolis, MN 55411, USA

4.9
★★★★½

6,664 reviews

🔨

Pronto Heating and Air Conditioning, Inc.

7415 Cahill Rd, Minneapolis, MN 55439, USA

4.9
★★★★½

5,497 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

Yes, Minneapolis requires a mechanical permit for all furnace and AC replacements. Fees typically range from $84 to $380 depending on the project valuation, and a final inspection by the city is mandatory.

Due to Climate Zone 6 conditions, local experts recommend a minimum of 95% AFUE. While 80% units are available for $3,800–$5,500, high-efficiency models ($7,000+) can save homeowners $400–$800 annually in heating costs.

Labor rates in Minneapolis are approximately 16% higher than the national average. Homeowners should budget between $1,500 and $4,500 for labor alone, with billable hourly rates for licensed technicians ranging from $95 to $130.

Yes, Xcel Energy and Minnesota Energy Resources offer rebates up to $500 for high-efficiency gas furnaces. Additionally, federal tax credits (25C) can provide up to $600 for qualifying energy-efficient upgrades.

📊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: today. Updates run weekly. All costs in USD.