Gas furnace replacement cost in Indianapolis, IN
Installed, 80,000 BTU, 95%+ efficiency
A typical furnace (80,000 BTU, 95%+ efficiency) costs about $4,850 installed in the Indianapolis area, about the same as the national figure, because HVAC technicians here earn a median $30 an hour against $29 nationally.
Prices by size in Indianapolis
| Size | Low | Typical | High | National typical |
|---|---|---|---|---|
| 60,000 BTU, 80% efficiency | $3,650 | $4,150 | $5,600 | $4,100 |
| 60,000 BTU, 95%+ efficiency | $4,400 | $4,750 | $5,950 | $4,750 |
| 80,000 BTU, 80% efficiency | $3,750 | $4,050 | $5,200 | $4,050 |
| 80,000 BTU, 95%+ efficiency | $4,450 | $4,850 | $6,100 | $4,850 |
| 100,000 BTU, 80% efficiency | $3,900 | $4,250 | $5,650 | $4,250 |
| 100,000 BTU, 95%+ efficiency | $4,600 | $5,000 | $6,150 | $4,950 |
Local labor: what HVAC technicians earn here
| Hourly wage | Indianapolis metro | United States |
|---|---|---|
| 25th percentile | $24 | $23 |
| Median | $30 | $29 |
| 75th percentile | $42 | $37 |
The Indianapolis market
Current Indianapolis permit rules for replacing a water heater, furnace, AC or heat pump were not confirmed from official sources for this page, including the fee, who may file and whether an inspection follows. Contact the city's Department of Business and Neighborhood Services before work starts; Carmel, Fishers and other suburbs issue their own permits. DOE's Building America guide puts Marion County in cold climate zone 5A, so heating dominates. EIA's 2020 survey found 82% of Indiana homes heat with a furnace, 65% use natural gas and 81% have central air. Indiana is one of the few states whose federally funded rebates are open: the Indiana Energy Saver Program covers heat pump water heaters and heat pump HVAC for households under 150% of area median income.
A furnace failure in an Indianapolis January is urgent, and urgency is when people overpay. Date your unit from its serial number now and get a replacement quote before it fails. Ask bidders whether they will reuse the existing venting and whether the AC coil is compatible. A high-efficiency furnace drains condensate, so ask where the drain line will run and how it is protected from freezing.
Permits in Indianapolis
We couldn't confirm all of Indianapolis'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 |
|---|---|
| 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 Indiana
HEAR: open. HOMES: open. Source: Indiana Office of Energy Development, checked October 13, 2026.
What these programs cover, and other states
Other systems in Indianapolis
- 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
- Indianapolis, IN permit source: Page content not retrievable
- DOE Building America: Guide to Determining Climate Regions by County
- Indiana Office of Energy Development: homeowner incentives
- 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, Indianapolis-Carmel-Greenwood, IN (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)