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HVAC

Furnace Cost in Chicago, IL

Average Cost:

$5,900 - $10,900

In Chicago, furnace replacement costs run between $5,900 and $10,900 on average. This range includes installation but not any major updates that may be needed to your home’s existing electrical or ductwork. Read on to learn more about what influences new furnace cost in Chicago as well what rebates and incentives are offered and what you should know about getting the right permits.

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Cost of a New Furnace in Chicago, IL

The cost of a new furnace or furnace replacement in Chicago ranges from $5,900 – $10,900. This includes installation! Your own price can shift depending on the size (capacity) furnace you need, how efficient you want your furnace to be, venting needs, permit/inspection fees, and any duct fixes.

Cost Table – Furnace Replacement in Chicago (Including Installation)

Chicago, IL Furnace Cost
PackageWhat’s IncludedTypical Total
80k BTU, 95% AFUE, single-stageStandard swap, permit + inspection$5,900–$7,700
100k BTU, 97% AFUE, variable-speedNew PVC flue, condensate, permit$8,400–$10,900

What Influences Price

There are several common issues or add-ons homeowners may discover they need to work into their budget during a furnace replacement. We have listed average prices for them when we have cost estimates available:

  • Gas line relocation
  • Gas run extension ($250–$600)
  • Chimney liner ($300 – $900)
  • Vent length & routing changes
  • Electrical upgrades
  • Duct resizing or return modifications
  • New condensate pump ($150–$300)
  • Asbestos or hazardous materials

If your attic or basement is particularly difficult to access in order to get to the furnace in the first place, that can also raise costs.

Need Help With Some of the Terminology in the Table?

  • BTUs are how furnace size is measured. You can read about how to find the right furnace size for a home in Illinois or you can use Modernize’s furnace size calculator for a ballpark estimate. For well-insulated homes in Chicago that are between 1,600 – 2,200 square feet, you will often land in the 60k–100k BTU range. Be aware that older homes may need more due to less efficient insulation and potential leaks in windows and air ducts.
  • AFUE is how furnace efficiency is measured. We have a blog post devoted to understanding AFUE ratings.
  • Single-stage and variable-speed refer to different types of furnaces. You can learn all about both these furnaces as well as other types by visiting Modernize’s guide to heating systems.

What to Know About Furnace Permitting in Chicago

  • Do you need a permit? Yes, you do, and permitting in the Chicago metro area is typically stricter than in other parts of the state.
  • Issuing authority: Chicago Department of Buildings — Mechanical permits via Express Permit Program or standard review.
  • Typical fee range: ~$100–$300 (varies by project valuation)
  • Inspection requirement: Yes — final inspection is required once installation is complete.
  • Extras: Combustion air clearance, vent terminations, mechanical code compliance, gas piping tests
  • How long it takes: Many mechanical/HVAC replacements qualify for the Express Permit route and can be approved same day or within 1–3 business days.

Windows in a modern kitchen with snow outside

Furnace Rebates and Incentives Serving Chicago

Utility Providers We Checked

  • ComEd (electric)
  • Peoples Gas
  • Nicor Gas

Current Offers

Note: Some utilities require contractors to be approved participants. You should also check whether income-qualified bonus or appliance bundles are available in your ZIP.

We last checked for rebates and incentives for HVAC replacement in Chicago in September of 2025. During heating season, we will check for updates monthly. Outside of heating season, this section will be updated quarterly. Our next update will be in October of 2025.

Average Labor Cost and Market Conditions

The Chicago metro median HVAC hourly wage varies from ~$33–$37/hr (journeyman level). Companies will then apply a markup to this base wage to cover costs and to turn a profit. Typically, this will land labor cost per hour in Chicago somewhere between $75 and $100.

Winter months see heavy demand. If you need to install a new furnace in the winter, you will wind up paying more than you would in other seasons. Getting quotes in late summer/early fall reduces lead times and premium markups.

Ready to Compare Quotes?

You can find a furnace installer in Chicago by browsing our listings. There, you will find reviews, frequently asked questions, and even some promotions you may be able to take advantage of.

If you would rather have Modernize do the research for you, you can click the button below and answer a few questions about your project to be matched with up to four HVAC professionals in your area.

Methodology and Sources

We build average furnace replacement costs in Chicago by using the following method:

  • Data from ~12–24 months of Modernize/lead database + closed installs in Cook County + verified contractor quotes
  • Equipment MSRP bands (80–120k BTU, multiple efficiency levels) adjusted to local freight / markup
  • Labor component = crew hours × local fully-loaded wage (including benefits, overhead, profit)
  • Permit + inspection median from Chicago DOB schedules factored in

These costs exclude full duct redesign, major electrical upgrades, structural work, and hazardous material remediation, all of which will vary on a home by home basis.

This page was last updated September 2025 and is updated quarterly. As stated above, when Chicago is in heating/furnace season, we check for updates and rebates and savings monthly. This page will next be updated in December 2025, but rebates/savings will be checked (and updated where applicable) in October 2025.

Sources:
Chicago DOB / Express Permit terms 
The Chicago permit portal
Chicago construction codes
Utility rebate pages (ComEd, Peoples, Nicor) – all linked above in “Furnace Rebates and Incentives Serving Chicago”
HDD, wage, equipment baselines — BLS, NOAA, national OEM lists

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