Furnace Replacement Cost in Minnesota (2026)
Real 2026 furnace replacement pricing for Twin Cities homes — AFUE ratings, BTU sizing, venting, permits, and Xcel/CenterPoint rebates.
Key takeaways
The 30-second version
- Baseline 80% AFUE furnace: $4,500–$6,000 installed. 96–98% AFUE high-efficiency: $6,500–$9,500 installed.
- Variable-speed and modulating furnaces add $1,200–$2,500 over single-stage but improve comfort and lower the electric blower bill.
- Xcel Energy + CenterPoint rebates total $200–$600 on qualifying 96%+ AFUE installs and arrive 6–10 weeks post-install.
- Permits, gas-line resizing, chimney liners, and PVC re-venting can each add $300–$1,200 — get them in writing on the quote.
- If a single repair exceeds 50% of replacement cost and the furnace is over 12 years old, replace.
If your furnace is 15+ years old and limping into another Minnesota winter, the replacement-cost question is the only one that matters. Here's what real installs are costing Twin Cities homeowners in 2026.
The honest range: $4,500–$9,500 installed
That's a wide spread, and it's accurate. The variables that move you up or down the band:
AFUE rating (efficiency)
A baseline 80% AFUE furnace runs roughly $4,500–$6,000 installed. A 96–98% AFUE high-efficiency unit runs $6,500–$9,500 installed. The $2,000–$3,000 premium pays back in about 6–9 winters on a typical Twin Cities gas bill — and qualifies for utility rebates that close the gap. We break this down further in our guide to 96% vs 98% AFUE furnaces.
BTU size and Manual J
Bigger isn't better. An oversized furnace short-cycles, wears out faster, and leaves cold spots. We size every replacement with a Manual J load calculation — square footage, window count, insulation grade, and orientation — not a guess off your old nameplate. Typical Twin Cities homes land between 60,000 and 100,000 BTU.
Venting changes
If you're moving from an 80% AFUE to a 95%+ unit, the venting changes from metal B-vent to PVC and you need a fresh-air intake. That's a 4–8 hour add to the install and $400–$900 in materials.
Brand and warranty
Trane XV/S series, Carrier Infinity, and Lennox SLP run at the top of the range with 10-year parts and our 2-year labor warranty. Goodman and Amana hit a value sweet spot with the same parts warranty for less up-front cost.
What's included in every quote
Every {SITE.name}-style honest quote covers:
- New furnace, fully installed by a NATE-certified tech
- Manual J load calculation and Manual D duct check
- New thermostat (smart upgrade optional)
- New flue/venting and combustion-air intake
- City permits and code inspection
- Old equipment haul-away
- 2-year labor warranty on top of factory parts coverage
If your written quote doesn't list those line items, ask why.
Rebates that actually land
Xcel Energy and CenterPoint Energy run rebate programs on qualifying high-efficiency furnaces. In 2026, expect $200–$600 in combined utility rebates on a 96%+ AFUE install in their service territories. We file the paperwork as part of the install — see our Xcel and CenterPoint rebates guide for the current amounts and eligibility.
Repair vs replace
The rough rule: if a single repair quote is more than 50% of the cost of a new furnace and your unit is over 12 years old, replace. Common deal-breakers are cracked heat exchangers (safety, not repairable), failed inducer/board combos, and recurring no-heat lockouts. Our furnace troubleshooting walkthrough helps you spot a bad sign before it leaves you cold.
Financing
0% APR for 12 months on qualifying installs through our financing partner, with longer-term plans for full system replacements. A 60-second soft-pull pre-qual won't touch your credit score.
What a Twin Cities install actually looks like
A single-stage 96% AFUE replacement in a Saint Paul rambler — 80,000 BTU Trane, new PVC venting, new thermostat, permit, and haul-away — landed at $7,400 in December 2025, less a $400 CenterPoint rebate, net $7,000. That's a representative middle-of-the-band install, and it's the number to anchor your expectations against.
Schedule a free in-home Manual J and quote any day of the week.
— Frequently asked
Quick answers on pricing
How much does a new furnace cost in Minneapolis or Saint Paul?
$4,500–$9,500 fully installed in 2026, depending on AFUE, blower stage, and venting/permit scope. A modulating 98% AFUE install with a chimney liner lands at the top of that range; a single-stage 80% replacement on existing venting at the bottom.
How long does a furnace install take?
Most single-day, 6–9 hours including permit pull, old-unit removal, vent reconfiguration, and combustion test-out. Chimney-liner work or gas-line resizing adds a half day.
Do you handle the Xcel and CenterPoint rebate paperwork?
Yes — we file the rebate forms as a participating Trade Ally. The rebate is mailed directly to you 6–10 weeks after install.
— Tags
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