Furnace Cost in Minneapolis, MN

Cost of a New Furnace and Installation in Minneapolis

Most furnace replacements in Minneapolis fall between $6,300 and $11,600 installed. Final costs will vary with furnace size, efficiency, venting path, permit/inspection fees, ductwork needs, and local labor rates.

Read more below about what might impact your own final project cost. You can also use Modernize’s HVAC cost calculator to get a ballpark estimate.

Installed Furnace Prices in Minneapolis – Table

Price shifts depending on attic/basement access, vent routing, chimney liner work, gas-line runs, and return-air changes.

Terms to Know

• BTU, or British Thermal Unit, is a measure of furnace heating capacity — higher BTUs mean more heat output for larger or less insulated homes. You can find an estimate for the furnace size you need by using Modernize’s furnace size calculator.
•  AFUE stands for Annual Fuel Utilization Efficiency and tells you how much of your fuel actually turns into usable heat (95% AFUE means only 5% is wasted). Learn more by reading our blog post on understanding AFUE ratings.
• There are several types of furnaces. Single-stage furnaces always run at full blast, while variable-speed or modulating models can ramp up and down for better comfort and efficiency. Visit our guide to home heating systems to learn about all the furnace types available.

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Furnace Permits in Minneapolis

• Permit required? Yes — mechanical permits are mandatory for furnace replacement.
• Issuing authority: Minneapolis Development Services Department will issue your mechanical permit.
• Typical fee: ~$75–$200.
• Inspection: Final mechanical inspection required once your new furnace is installed. Your contractor should be able to help you set this up.
• Typical timeline: Like-for-like replacements – meaning, you are replacing an old gas furnace with a new gas furnace – often receive permit approval in one to two business days.

Utility Rebates For Minneapolis Furnace Replacement

Utilities Companies We Checked

• Xcel Energy
• CenterPoint Energy

We last checked these providers in October 2025. During heating season, we will check these providers monthly to see if there are any updates to available rebates and incentives. Outside of heating season, this section (along with the rest of the page) will be updated quarterly.

Offers

• Xcel Energy offers rebates of up to $500 on high-efficiency furnaces. If you have an electric furnace, they also offer reduced electric rates.
• CenterPoint Energy offers furnace rebates from $200 to $1,000. The higher your furnace efficiency, the higher the rebate offered.

Labor and Market Conditions

• Average billable HVAC labor: $95 – $130 per hour (includes wages, benefits, truck, insurance, company overhead & profit).
• Labor share per install: Roughly $3,000 – $4,500 of a $6,300 – $11,600 furnace project.
• Seasonality: Winter demand for new/replacement furnaces is very high. Both homeowners and contractors have reported that fall installs often secure better scheduling and pricing.

Climate and Sizing

• Heating degree days (HDD): ~8,000–8,400 → This shows how long and cold the heating season is. The higher the HDD, the more a furnace will run each year.
• Elevation: ~830 ft → At this height, no special adjustments to furnace capacity are needed. High elevations (above ~3,500 ft) sometimes require furnace derating or high-altitude kits.
• Sizing guideline: For 1,600 – 2,200 square foot homes, furnaces in the 80k–120k BTU range are common.

Compare Local Quotes

Get up to four quotes from reputable Minneapolis HVAC professionals to compare model specs, warranties, and pricing. Click below and answer a few questions about your project to get started.

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You can also browse our list of Minneapolis furnace installers and see reviews, promotions, and more.

Methodology and Sources

• Local data blend: Twin Cities installs/leads (Minneapolis/St. Paul) + quotes.
• Labor factor: Twin Cities OEWS wages; winter surge factored into typical lead-time but not price band unless reflected in quotes.
• Permits: Minneapolis Development Services; standard mechanical permit & inspection included at median.
• Bands/Exclusions/Updates: As stated above.
  Sources: Minneapolis permit pages; Xcel Energy + CenterPoint rebates; OEWS; EIA; NOAA HDD.

How We Calculate Furnace and Install Cost for Minneapolis

Installed cost band = (equipment in SKU band) + (crew-hours × local fully-loaded wage) + (permit/inspection median) + (typical materials & disposal) + (standard overhead & profit).