Furnace Replacement cost in Tennessee (2026)
Across Tennessee, furnace replacement varies by your city's labor rates, climate and permit fees. Select your city below for a localized estimate.
furnace replacement typically falls in this range across 17 Tennessee cities — your exact estimate depends on local rates.
| City | Typical 2026 range |
|---|---|
| Memphis, TN | $3,850 – $6,900 |
| Nashville, TN | $3,900 – $7,000 |
| Knoxville, TN | $3,800 – $6,800 |
| Chattanooga, TN | $3,850 – $6,900 |
| Clarksville, TN | $3,800 – $6,800 |
| Murfreesboro, TN | $3,900 – $7,000 |
| Franklin, TN | $3,900 – $7,000 |
| Jackson, TN | $3,700 – $6,650 |
| Johnson City, TN | $3,700 – $6,650 |
| Bartlett, TN | $3,850 – $6,900 |
| Hendersonville, TN | $3,900 – $7,000 |
| Kingsport, TN | $3,700 – $6,600 |
| Collierville, TN | $3,850 – $6,900 |
| Smyrna, TN | $3,900 – $7,000 |
| Cleveland, TN | $3,750 – $6,750 |
| Brentwood, TN | $3,900 – $7,000 |
| Germantown, TN | $3,850 – $6,900 |
Furnace Replacement cost by type in Tennessee
Typical 2026 ranges, localized to Tennessee labor, climate and permits.
| Type | Tennessee 2026 range |
|---|---|
| Gas furnace | $3,750 – $6,800 |
| High-efficiency gas furnace | $3,350 – $6,800 |
| Electric furnace | $2,100 – $4,500 |
Cheapest time for furnace replacement in Tennessee
HVAC demand collapses in the mild shoulder seasons, so installers discount to keep crews busy. The most expensive time to buy is during a heat wave or cold snap, when a dead system forces a full-price emergency replacement.
Rebates & incentives in Tennessee
Most 2026 rebates reward switching to a heat pump, not a like-for-like gas furnace. Replacing a gas furnace, your savings are mainly utility efficiency rebates (high-AFUE models) — but pricing out a heat pump often qualifies you for far larger rebates.
The federal 25C tax credit (up to $2,000 for heat pumps; $600 for high-efficiency AC or furnaces) and the 25D credit ended December 31, 2025 under the One Big Beautiful Bill Act — neither is available for 2026 installs. The remaining federal help is the IRA Home Electrification & Appliance Rebates (HEAR): up to $8,000 toward a heat pump for households under 150% of area median income, paid at point of sale where a state has launched its program.
Verified July 2026. Rebate budgets deplete and program windows change fast — confirm current amounts and eligibility with your utility and the DSIRE database before you budget. Costadia does not administer these programs.
Furnace Replacement in Tennessee
How much does furnace replacement cost in Tennessee?
Across Tennessee, furnace replacement typically runs $3,700–$7,000 in 2026, depending on your city's labor rates, climate and permit fees. Kingsport is the most affordable (around $5,150) and Brentwood the most expensive (around $5,450).
Which Tennessee city is cheapest for furnace replacement?
Kingsport has the lowest typical furnace replacement cost in Tennessee at about $5,150, while Brentwood is the highest at about $5,450 — a gap driven mostly by local labor rates.
How do other HVAC options compare in Tennessee?
In Memphis, Tennessee's largest market, furnace replacement typically runs $3,850–$6,900. For comparison, central AC installation runs $5,450–$11,700, heat pump installation runs $6,550–$11,950, full HVAC system replacement runs $7,850–$14,600. Each option has its own Tennessee cost guide with city-by-city pricing.
Why does furnace replacement cost vary across Tennessee?
The three levers are local labor rates, climate zone and permit fees. This region has a mixed climate, so a balanced furnace replacement that handles both heating and cooling well is ideal. Right-sizing and a mid-tier efficiency unit usually deliver the best payback here.
When is the cheapest time to replace in Tennessee?
The best window is spring and fall (mar–may, sep–oct), when demand drops and installers discount to keep crews busy — typically 5–15% off peak pricing. The priciest time is an emergency job during peak summer and mid-winter.
Does Tennessee require a permit for furnace replacement?
Most Tennessee cities require a permit for furnace replacement; it typically adds around $200 and is already included in the estimates above.
Other HVAC projects in Tennessee
Weighing your options? Typical 2026 ranges below are localized to Memphis, Tennessee's largest market — open any project for the full statewide breakdown.