Heat Pump Cost Calculator

How much does a heat pump cost to install in 2026?

Installed heat pump cost depends on four things: the type of system, the size your home needs, your state’s labor and permit rates, and whether you need new ductwork or are converting from an existing setup. Here is what each factor means for your price.

Cost by heat pump type

An air-source ducted heat pump is the most common residential type and the one priced in the calculator above. It uses your existing ductwork (if you have it) and replaces both your air conditioner and your heating system in one unit. Ductless mini-split heat pumps cost less for a single zone but scale up quickly when you add multiple indoor heads for whole-home coverage — a three-zone mini-split often lands near the cost of a ducted system. Ground-source (geothermal) heat pumps cost significantly more up front because they require ground loops or well drilling, but they deliver the highest efficiency and still qualify for the federal Section 25D tax credit at 30 percent of project cost through 2032. For most homeowners replacing an existing system, an air-source heat pump is the practical starting point.

Cost by system size

Heat pumps are sized in tons, and the installed price rises with each step up. A 2-ton system for a smaller home costs meaningfully less than a 5-ton system for a large one, and the equipment-cost difference is compounded by the larger refrigerant charge, electrical work, and ductwork capacity a bigger system needs. Getting the size right matters doubly for heat pumps: an oversized heat pump short-cycles in both heating and cooling mode, reducing efficiency and comfort. Use the sizing wizard to find what your home actually needs before comparing quotes.

The 2026 federal credit situation

The Section 25C Energy Efficient Home Improvement Credit, which offered up to $2,000 on qualifying air-source heat pumps, expired on December 31, 2025 and does not apply to systems installed in 2026. The Section 25D credit for geothermal heat pumps remains available at 30 percent through 2032. With the air-source federal credit gone, state and utility rebates carry more weight — check your options with the rebate finder.

When a heat pump makes financial sense

A heat pump replaces both your AC and your heating system, so the fair comparison is not heat pump vs air conditioner alone — it is heat pump vs AC plus furnace. In mild to moderate climates (climate zones 2–4), a heat pump typically costs less to operate than a gas furnace plus AC combination, especially where electricity rates are reasonable and gas prices are rising. In cold climates (zones 5–7), cold-climate heat pump models can still compete, but the math is tighter and depends heavily on your local gas vs electricity pricing. Run the numbers for your state with the heat pump vs furnace calculator.

Frequently asked questions

How much does it cost to install a heat pump?

Installed air-source heat pumps span a wide range by size and cold-climate capability; the calculator narrows it to your state and tonnage.

Is there still a federal tax credit for heat pumps?

The Section 25C heat-pump credit expired December 31, 2025 and does not apply to 2026 installs. The Section 25D geothermal credit remains through 2032, and many utilities still offer rebates.