How much does a heat pump cost in 2025?

Heat pump prices can be all over the map—and that’s actually a good thing. There’s no one-size-fits-all price, because what you pay depends on your home, your climate, the type of system you choose, and the incentives you can tap into.

Across the country, a typical whole-home heat pump setup costs roughly $10,000 in Florida and $25,000 in New York, with a national average around $16,500 after state and local incentives, according to real-world quotes from the EnergySage Marketplace. That number covers everything from ducted systems to ductless mini-splits and hybrid setups. Additionally, the federal tax credit can reduce your costs by up to $2,000, although it’s only available for systems installed by December 31, 2025.

For homes that require extra work to accommodate a new system, costs can exceed $40,000. Ultimately, the total cost of your heat pump system depends on a combination of system type, home size, location, and the incentives you can take advantage of. Here’s a closer look at how those costs break down.

Type of heat pump system

*After state and local incentives. Does not include the federal tax credit, which expires for systems installed after December 31, 2025.

Central ducted heat pumps

Ducted heat pumps connect to ductwork through an air handler, which typically includes a large fan to circulate air. On the EnergySage Marketplace, if your home already has existing ductwork that you can reuse, this type of system is generally the most affordable option.

Ductless mini-splits

Ductless mini-splits utilize a separate indoor unit, or “head,” in each room, connected to the outdoor unit via a small tube that runs through a small hole in the wall. Multi-zone systems—with multiple indoor units—can drive costs higher, since each additional head adds both equipment and labor expenses. There’s no significant discount for adding zones, so a full-house ductless setup can often cost more than a ducted system.

Hybrid heat pump systems

Hybrid systems pair a furnace with a heat pump, providing efficient heat pump heating in most conditions while keeping the furnace available for use in very cold weather, if desired. Modern cold-climate heat pumps are designed to deliver strong heating performance even in extreme temperatures, making the furnace more of a backup option than a necessity. After factoring in state incentives, the cost is comparable to a ducted system, despite being smaller in average size. On a per-ton basis, hybrid systems are more similar in price to ductless mini-splits.

System size and capacity

Naturally, bigger heat pumps for bigger, draftier houses tend to cost more than smaller systems, but the relationship isn't perfectly linear. Here’s a look at average system costs by capacity in 2025:

You’ll notice the average price for a 5-ton system is less than a 4-ton system. Though the reason isn’t entirely clear, it’s likely due to regional differences in system size, type, and cost. The jump at 6 tons, however, makes sense: Once you exceed the largest single residential unit (5 tons), you'll need multiple outdoor units, which will double equipment costs and significantly increase labor costs. 

Your location and climate

Where you live affects heat pump costs in a couple of important ways. In colder climates, homes often need more powerful systems with higher efficiency ratings, and sometimes backup heat sources—features that naturally increase the price. Cold-climate heat pumps are engineered to perform reliably even in subfreezing temperatures, which is why they tend to carry a premium price. 

Local labor rates and permitting also play a role. Areas with a higher cost of living typically have higher installation costs, while regions with more competition among installers often see more competitive pricing. 

Your home’s infrastructure

If you’re retrofitting a heat pump into an older home, you may need to update parts of your home’s infrastructure to ensure the system runs efficiently. Common upgrades can include:

• Duct sealing and modifications: High-performance heat pumps are extra-sensitive to leaky ductwork, and they need bigger ducts than furnaces do

• Electrical panel upgrades: Homes with a 100-amp breaker box may need an upgrade to fully support a heat pump and other electric appliances.

• Insulation and air sealing: While not strictly required, improving insulation and sealing drafts can help your heat pump work more efficiently and make your home more comfortable.

• Removing old equipment or capping the gas line: Many contractors include the removal of old HVAC equipment in the installation cost. However, hauling away additional equipment—like an old boiler, oil tank, or radiators—or disconnecting the gas line may add extra costs.

Most of our quotes come from Massachusetts, where cold weather and strong local incentive programs favor high-end, cold-climate heat pumps. That's why average costs run higher than in warm-weather states like Florida, where simpler, less expensive heat pumps are sufficient.

California's high median cost likely reflects its high labor costs.

State and local programs offer valuable rebates that can substantially lower the cost of installing a heat pump. For instance, homeowners in Massachusetts may qualify for up to $10,000 in Mass Save rebates, while contractors in Colorado can take advantage of a $1,500 tax credit per air source heat pump. 

These programs vary by location. To find current offers in your area, check with your local utility or state energy office.

Federal tax credits end after December 31, 2025

In addition to state and local incentives, the federal tax credit can further reduce costs. The Energy Efficient Home Improvement Credit (Section 25C) provides a 30% tax credit on qualified equipment and installation costs, up to $2,000, for eligible air-source heat pumps. However, this credit is set to expire earlier than initially planned—it’s only available for systems installed through December 31, 2025, and installer capacity is filling up fast.

Heat pumps are a smart choice for many homeowners, offering efficient heating and cooling while replacing expensive fuels, supporting ductless or hybrid setups, and pairing effectively with solar panels. Beyond energy savings, they enhance comfort, improve indoor air quality, and reduce carbon emissions. Understanding the factors that drive heat pump costs—from system type and climate to incentives—helps you select a system that fits both your home and your budget.