Central air conditioner replacement cost in Memphis, TN
Installed, 3 ton (outdoor unit + matching coil)
A typical central AC (3 ton (outdoor unit + matching coil)) costs about $4,600 installed in the Memphis area, 1% below the national figure, because HVAC technicians here earn a median $27 an hour against $29 nationally.
Prices by size in Memphis
| Size | Low | Typical | High | National typical |
|---|---|---|---|---|
| 2 ton (outdoor unit + matching coil) | $3,150 | $3,500 | $4,550 | $3,500 |
| 3 ton (outdoor unit + matching coil) | $4,100 | $4,600 | $6,050 | $4,650 |
| 4 ton (outdoor unit + matching coil) | $5,450 | $5,900 | $7,550 | $6,000 |
| 5 ton (outdoor unit + matching coil) | $6,650 | $7,300 | $8,750 | $7,400 |
Local labor: what HVAC technicians earn here
| Hourly wage | Memphis metro | United States |
|---|---|---|
| 25th percentile | $23 | $23 |
| Median | $27 | $29 |
| 75th percentile | $35 | $37 |
The Memphis market
Building permits in Memphis and Shelby County are handled through the Division of Planning and Development's construction enforcement office (develop901.com), which publishes fees for building, electrical, mechanical and plumbing permits and runs a DIY corner for homeowners. Whether a like-for-like water heater, furnace, AC or heat pump replacement needs a permit, what it costs, and whether a homeowner can pull it could not be confirmed for this page, so check with that office first. Mississippi and Arkansas suburbs follow their own rules. Statewide, EIA's 2020 survey found Tennessee homes mostly electric: 60% heat with electricity, 35% with a central heat pump, 86% have central air and 74% heat water electrically. Memphis Light, Gas and Water is a TVA power distributor, and TVA's EnergyRight program offers equipment rebates.
Memphis summers make the AC the hardest-working system in the house. Ask for a load calculation, a matched coil and the refrigerant type on the quote. Long run times reward efficiency, so compare SEER2 ratings across bids. TVA EnergyRight offers central AC rebates through its contractor network, so ask whether your bidder belongs to it. Get the warranty terms in writing.
Permits in Memphis
We couldn't confirm all of Memphis's rules from official pages. Check with the building department before work starts.
| Permit for this job | Not stated on the city pages we checked (source) |
|---|---|
| Fee | Not stated on the city pages we checked |
| Who can pull it | Not stated on the city pages we checked |
| Inspection | Not stated on the city pages we checked |
Rebates in Tennessee
HEAR: announced, not open yet. HOMES: announced, not open yet. Source: TDEC Office of Energy Programs, checked October 13, 2026.
- TVA EnergyRight rebates: Heat pump $500-$800, central AC $200-$400, HPWH $900 via Quality Contractor Network
What these programs cover, and other states
Other systems in Memphis
- Gas tank water heater
- Gas tankless water heater
- Gas furnace
- Heat pump (ducted, outdoor unit + air handler)
Central air conditioner cost in other metros
Sources
- Memphis, TN permit source (water heater permit)
- Memphis, TN permit source (who can pull)
- Memphis, TN permit source: 2022 building fee schedule (fetch
- TVA EnergyRight: residential rebates
- EIA RECS 2020: Highlights for space heating fuel in U.S. homes by state
- EIA RECS 2020: Highlights for space heating in U.S. homes by state
- EIA RECS 2020: Highlights for air conditioning in U.S. homes by state
- EIA RECS 2020: Highlights for water heating in U.S. homes by state
- BLS OEWS May 2025, Memphis, TN-MS-AR (49-9021 HVAC mechanics and installers)
- DOE Residential CAC & Heat Pumps Direct Final Rule TSD (Dec 2016), Table 8.2.30, split AC coil-only (2015$; 4-ton interpolated)