Heat pump (ducted, outdoor unit + air handler) replacement cost in Chicago, IL
Installed, 3 ton system
A typical heat pump (3 ton system) costs about $6,050 installed in the Chicago area, 5% above the national figure, because HVAC technicians here earn a median $37 an hour against $29 nationally.
Prices by size in Chicago
| Size | Low | Typical | High | National typical |
|---|---|---|---|---|
| 2 ton system | $4,000 | $5,000 | $7,250 | $4,850 |
| 3 ton system | $5,150 | $6,050 | $8,100 | $5,750 |
| 4 ton system | $6,750 | $7,550 | $10,050 | $7,150 |
| 5 ton system | $8,050 | $9,050 | $11,900 | $8,450 |
Local labor: what HVAC technicians earn here
| Hourly wage | Chicago metro | United States |
|---|---|---|
| 25th percentile | $29 | $23 |
| Median | $37 | $29 |
| 75th percentile | $47 | $37 |
The Chicago market
Chicago's Department of Buildings handles these swaps through its Express Permit Program, which lists repairing or replacing an existing hot water heater and mechanical (HVAC) work. The fee excerpt shows $75 per dwelling unit for an in-kind water heater and $75 per equipment type per dwelling unit for in-kind heating or cooling equipment, rising to $150 for new AC equipment. A city-licensed contractor is required on every application, though an owner who lives at the address can do their own plumbing with Form 401 and ID. One wrinkle: the contractor must click a link in an emailed request to accept the job before the permit issues. The city pages checked do not describe inspections, so ask. EIA counts furnaces as the main heat in 76% of Illinois homes. Suburban Cook, DuPage and the Indiana counties have separate rules.
Heat pumps heat only about 2% of Illinois homes, so most local quotes pair one with a gas furnace as backup for the coldest weeks. Ask at what outdoor temperature the system switches to the furnace, and who sets that point. Illinois has not launched its federal HEAR rebates. The Illinois EPA says the application has not yet been processed by DOE. Treat any quote that subtracts a state heat pump rebate with caution until the program opens.
Permits in Chicago
| Permit for this job | Yes (in-kind replacement of heating/cooling equipment has a stand-alone permit fee; Express Permit Program covers 'Mechanical (HVAC) Work') (source) |
|---|---|
| Fee | $75 per dwelling unit for repair or in-kind replacement of a hot water heater (individual equipment); $75 per equipment type per dwelling unit for in-kind replacement of heating, cooling or air-handling equipment; $150 for new AC equipment. |
| Who can pull it | Chicago-licensed contractor required on every application; owner-occupant may do own plumbing with Form 401 (Owner as contractor) and ID |
| Inspection | Not stated on the city pages we checked |
Rebates in Illinois
HEAR: announced, not open yet. HOMES: announced, not open yet. Source: Illinois EPA Office of Energy, checked October 13, 2026.
What these programs cover, and other states
Other systems in Chicago
Heat pump (ducted, outdoor unit + air handler) cost in other metros
Sources
- Chicago Express Permit Program: plumbing work
- Chicago Department of Buildings: Express permits
- Chicago permit fee excerpts (14A)
- Illinois EPA: Home energy rebates
- EIA, 2020 RECS: Highlights for space heating in U.S. homes by state
- EIA, 2020 RECS: Highlights for water heating in U.S. homes by state
- EIA, 2020 RECS: Highlights for air conditioning in U.S. homes by state
- BLS OEWS May 2025, Chicago-Naperville-Elgin, IL-IN (49-9021 HVAC mechanics and installers)
- DOE Residential CAC & Heat Pumps Direct Final Rule TSD (Dec 2016), Table 8.2.30, split heat pump (2015$; 4-ton interpolated)