Furnace Replacement Cost in Minnesota (2026)
A new furnace installed in Minnesota runs $4,500–$9,500 with us: 80% vs 96–98% AFUE prices, what moves a quote, and rebates now that 25C has ended.
Read the guide
Mahtomedi furnace replacement costs $4,500–$9,500 installed with us, with 80% furnaces around $4,500–$6,000 and 96–98% condensing furnaces around $6,500–$9,500. Xcel Energy supplies gas citywide and runs rebates on high-efficiency furnaces. We quote in writing at a flat rate, with the size set by a Manual J rather than the old nameplate.
Many Mahtomedi houses have already gone through one furnace swap, so the replacement job often means cleaning up after the last one: PVC that was never pitched right, a condensate line strung across the basement to a distant floor drain, or a water heater left in a chimney sized for two appliances. A new 96–98% furnace gets its own properly sized intake and exhaust, a trap and drain that won't freeze or clog, and a liner or power-vent answer for the orphaned water heater.
Sizing is the other half. Lake homes that were remodeled, reinsulated or rebuilt around an old cottage have loads nothing like their original equipment, and a Manual J often lands on a smaller furnace with two-stage or modulating burners. For the rebate, Xcel Energy's heating equipment program is the one that applies here; confirm its current rules, including whether a participating contractor is needed. The mechanical permit is part of our price.
Updated September 26, 2026
An installed furnace from us runs about $4,500–$9,500 in Mahtomedi: 80% AFUE roughly $4,500–$6,000, 96–98% AFUE roughly $6,500–$9,500. Same prices in Mahtomedi as in every town we serve. See the furnace replacement cost guide.
With Xcel Energy on both meters, Mahtomedi homeowners work from one utility's list: rebates on high-efficiency gas furnaces, on central air, and on standard and cold-climate heat pumps, plus Saver's Switch and AC Rewards. Ductless mini-splits, cold-climate versions included, are on Xcel's rebate list too, and they suit lake-house additions. Because Xcel ties its heat pump rebates to Trade Partner Network contractors, confirm who can install before you sign. Minnesota's HEAR and HOMES rebates haven't launched. Rebate programs change every year, so check the utility's current terms before you buy.
Our guides: Xcel and CenterPoint rebates, heat pump rebates.

More detail on our furnace installation page.
It may need its own fix. Once the furnace vents through PVC, the water heater becomes the only appliance in a chimney flue sized for two, and a lone water heater often can't keep that flue warm enough to draft well; condensation can also damage the chimney. The usual answers are a properly sized liner or a power-vent water heater. We check the chimney during the quote and include the fix in writing.
Probably. New windows, insulation and air sealing can cut the heat loss well below what the original furnace was sized for, and an oversized furnace short-cycles, wears faster and leaves the house swinging between warm and cool. A Manual J based on the house as it is now sets the right size. A two-stage or modulating furnace then runs long, gentle cycles that suit a tighter home.
A new furnace installed in Minnesota runs $4,500–$9,500 with us: 80% vs 96–98% AFUE prices, what moves a quote, and rebates now that 25C has ended.
Read the guideWhat AFUE measures, the gas math from 80% to 96% to 98% using your own bill, and what a 98% furnace really buys you in a cold Minnesota house.
Read the guideA red tag means a technician or the gas utility found your furnace unsafe and shut it off. Common reasons, what not to do, and how to get a second opinion.
Read the guideFurnace replacement in Mahtomedi? Call or send a request.