Gas furnace replacement cost in Phoenix, AZ
Installed, 80,000 BTU, 95%+ efficiency
A typical furnace (80,000 BTU, 95%+ efficiency) costs about $4,850 installed in the Phoenix area, about the same as the national figure, because HVAC technicians here earn a median $29 an hour against $29 nationally.
Prices by size in Phoenix
| Size | Low | Typical | High | National typical |
|---|---|---|---|---|
| 60,000 BTU, 80% efficiency | $3,650 | $4,100 | $5,350 | $4,100 |
| 60,000 BTU, 95%+ efficiency | $4,350 | $4,750 | $5,700 | $4,750 |
| 80,000 BTU, 80% efficiency | $3,700 | $4,050 | $4,950 | $4,050 |
| 80,000 BTU, 95%+ efficiency | $4,400 | $4,850 | $5,850 | $4,850 |
| 100,000 BTU, 80% efficiency | $3,900 | $4,250 | $5,400 | $4,250 |
| 100,000 BTU, 95%+ efficiency | $4,550 | $4,950 | $5,900 | $4,950 |
Local labor: what HVAC technicians earn here
| Hourly wage | Phoenix metro | United States |
|---|---|---|
| 25th percentile | $23 | $23 |
| Median | $29 | $29 |
| 75th percentile | $36 | $37 |
The Phoenix market
Phoenix's Planning and Development Department is unusually permissive about replacements. Its residential permit page lists water heater replacements done by a licensed contractor among projects that do not need a permit, while a DIY electric water heater replacement does. The page does not address DIY gas replacements. Air conditioner repairs or replacements that do not increase size and capacity or change location also need no permit. Furnaces and heat pumps are not addressed, and no fee was found for the DIY permit. The flip side: with no permit, no city inspector checks the work, so the contractor's license is your main protection. Cooling defines the market here, with EIA finding 94% of Arizona homes use air conditioning and a quarter heat with a heat pump. Mesa, Chandler, Scottsdale and other valley cities set their own rules.
Heating is a minor load in Phoenix, and many homes have a gas furnace or electric air handler paired with a large AC unit. Because winters are short, an aging furnace that still runs safely may not need replacing on its own, unless it is being matched with a new AC system. When it is, ask whether the blower can move enough air for the new outdoor unit. Get the model numbers in writing.
Permits in Phoenix
| Permit for this job | No for AC replacement that does not increase size/capacity or change location; furnace and heat pump not addressed (source) |
|---|---|
| Fee | Unclear (none needed for the exempt contractor replacements; no fee figure found for DIY electric water heater permit) |
| Who can pull it | Unclear (exemption hinges on use of a licensed contractor; applicant eligibility for DIY permit not stated) |
| Inspection | Yes when a permit is required (generic); none for exempt replacements |
Rebates in Arizona
HEAR: status unclear. HOMES: status unclear. Source: Arizona Governor's Office of Resiliency (energy programs), checked October 13, 2026.
What these programs cover, and other states
Other systems in Phoenix
- Gas tank water heater
- Gas tankless water heater
- Central air conditioner
- Heat pump (ducted, outdoor unit + air handler)
Gas furnace cost in other metros
Sources
- City of Phoenix: Residential permits
- Arizona Governor's Office of Resiliency
- EIA, 2020 RECS: Highlights for space heating in U.S. homes by state
- EIA, 2020 RECS: Highlights for water heating in U.S. homes by state
- EIA, 2020 RECS: Highlights for air conditioning in U.S. homes by state
- https://pddonline-test.phoenix.gov/Permits/Instructions/35
- BLS OEWS May 2025, Phoenix-Mesa-Chandler, AZ (49-9021 HVAC mechanics and installers)
- DOE Consumer Furnaces Final Rule TSD (Sep 2023), Table 8.2.12 (2022$); labor share from App. 8D (11.97 person-hours, $705 of $2,527)