HVACMatch
Furnace replacement · California

What has to happen before a new furnace goes in?

Short answer

A furnace replacement takes a C-20 contractor, a mechanical permit from your city or county, and a written contract whose deposit can't exceed $1,000 or 10 percent of the price. The South Coast and Bay Area air districts also set a 14 nanograms per joule NOx limit on gas furnaces. It's estimated at $3,825 to $8,475 per installed furnace, permit included.

From the HVACMatch heating and cooling deskLast reviewed Oct 23, 2026Prices as of Oct 23, 2026How we check

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Who issues the permit, and what some cities charge

CSLB's letter to C-20 contractors says a furnace replacement needs a building permit under the California Mechanical Code, and that skipping it violates B&P 7110 and 7090. Los Angeles issues express permits, with no plan check, for gas furnaces under 500,000 Btu/h. In San Diego a furnace in a single-family home takes a Simple MEP permit, applied for online.

San Francisco's fee table puts a single-unit mechanical gas appliance, furnace included, at $290 for permits issued from July 12, 2026. Fresno lists a $107.99 simple mechanical permit and a $26.23 issuance fee, with a forced-air unit on its complex list at $172.29 (effective July 1, 2025). Long Beach adds $16 per furnace to a $104 issuance fee under the schedule in force since October 1, 2026.

Sacramento's change-out page names four fees but shows no amounts, so ask the counter for the total before you compare quotes.

What a furnace replacement costs in California

Our California estimate for this job comes to $3,825 to $8,475 per installed furnace. That's a model, not a quote, built from national published cost ranges, adjusted by California's wage ratio to the US (1.16), with a typical permit fee added for the work.

An installed furnace is estimated at $3,825 to $8,475 per installed furnace, including a median California permit fee of $148. It's built from 2 national published ranges adjusted by California's technician wage ratio of 1.16. Call it an estimate, not a quote. Ask each company to list the furnace, the labor, the permit and any duct changes as separate lines.

Furnace replacement cost estimates and permit fees, California, prices as of Oct 23, 2026
ItemFigureWhat it is
Estimated range, not a quote$3,825 to $8,475 per installed furnaceBuilt from 2 national published ranges, adjusted by the California HVAC technician wage ratio (1.16) plus a typical permit fee ($148). California company prices are shown separately. Basis: no state company sample (no counted California company price for this job), national estimate only.
Technician wage, California mean$36.24 an hourTechnician pay from BLS, May 2025; the labor on your quote will differ.
Furnace changeout permit, California middle of published fees$148The middle of the equipment-replacement permit totals on 24 California city fee schedules; fee structures differ, so it is indicative.
Furnace permit, San Francisco (mechanical gas appliance)$290Category 1M, furnace, hydronic heat or heat pump; permits issued from July 12, 2026.
Forced-air unit permit, Fresno$172.29 plus a $26.23 issuance feeMaster Fee Schedule effective July 1, 2025.
Furnace permit, Long Beach$16 per furnace plus a $104 issuance feeMechanical fee schedule effective October 1, 2026.
Estimated range, not a quote$3,825 to $8,475 per installed furnace
Built from 2 national published ranges, adjusted by the California HVAC technician wage ratio (1.16) plus a typical permit fee ($148). California company prices are shown separately. Basis: no state company sample (no counted California company price for this job), national estimate only.
Technician wage, California mean$36.24 an hour
Technician pay from BLS, May 2025; the labor on your quote will differ.
Furnace changeout permit, California middle of published fees$148
The middle of the equipment-replacement permit totals on 24 California city fee schedules; fee structures differ, so it is indicative.
Furnace permit, San Francisco (mechanical gas appliance)$290
Category 1M, furnace, hydronic heat or heat pump; permits issued from July 12, 2026.
Forced-air unit permit, Fresno$172.29 plus a $26.23 issuance fee
Master Fee Schedule effective July 1, 2025.
Furnace permit, Long Beach$16 per furnace plus a $104 issuance fee
Mechanical fee schedule effective October 1, 2026.

How we estimate costs: the Estimated range row is a model, not a quote. We have no counted California company price for this job, so the range is our national estimate alone. Our national estimate takes two published national ranges for this job (cost guides from third-party sites that we have not verified and do not cite) and multiplies them by California's HVAC technician wage ratio to the US (1.16, BLS OEWS May 2025, heating, air conditioning and refrigeration mechanics and installers) and adds a typical permit fee ($148). The wage and permit rows below are what HVAC technicians are paid and what a city charges, and neither is a price. We have not collected quotes. Full method. Prices as of Oct 23, 2026.

Replace now or keep repairing

No California source we cite gives an age at which a furnace must go. Price the next step instead. Compare the repair estimates on the furnace repair page with the replacement estimate here, and get the finding behind any heat exchanger repair in writing.

Usually a repair
  • The failed part is small and the company names its price apart from the labor.
Usually a replacement
  • A heat exchanger has failed and a second company agrees.
  • Repairs are stacking up and each estimate approaches the replacement figure.

The air-district rule on which gas furnace you can buy

South Coast AQMD Rule 1111 limits natural-gas fan-type central furnaces sold or installed in its district to 14 nanograms of NOx per joule of useful heat, for condensing models since April 1, 2015 and non-condensing ones since October 1, 2015. Manufacturers may pay a per-unit mitigation fee instead. In the Bay Area, Regulation 9, Rule 4 applies the same 14 nanogram limit to gas furnaces made after January 1, 2024, and a zero-NOx limit to those made after January 1, 2029.

Ask for the model number on the quote, and ask the company to confirm it meets your district's rule.

What rebates pay for a furnace

SoCalGas rebates an ENERGY STAR certified furnace with an AFUE of 92 percent or higher at $1.40 to $25 per kBTUh. A licensed contractor has to install it and show proof of permit closure, and there's a limit of one per household. SDG&E's rebates page lists no furnace rebate, and PG&E's listed no residential furnace rebate as of October 20, 2026.

The contract and the deposit

B&P 7159.5 holds any down payment to $1,000 or 10 percent of the contract, whichever is less. Past the deposit, the contractor can't ask for or accept more than the value of the work done or the material delivered. CSLB says change orders must be written and signed, and the three-day cancel notice becomes five days if you're 65 or older. Lien releases are yours on request.

Furnace trouble that can't wait for quotes

Call right away
  • You smell gas at the furnace: leave first, then call 911 and your gas utility.
  • A carbon monoxide alarm is sounding, or a soft yellow flame shows at the burner: stop using the furnace and get outside if the alarm is going.
Can usually wait for a regular appointment
  • You're planning a replacement for next season and want quotes to compare.
  • The furnace works but is aging, and you'd like it assessed.
SoCalGas wants you to evacuate and call 1-800-427-2200 from a safe place, PG&E wants 911 and then 1-800-743-5000, and SDG&E offers 911 or 1-800-611-7343.

Gather these before the first quote

  1. Photograph the furnace's model plate so each company quotes against the same unit.
  2. Ask each company for the model number it would install and the permit fee it expects.
  3. Check each license number on CSLB's lookup before the visit.

HERS testing and owner-builder permits

San Diego's bulletin requires a HERS evaluation for major HVAC system changes or replacements. The CEC says hiring your own HERS rater is your right, and you can ask the rater or installer to show you the completed forms.

An owner who signs a permit application as owner-builder takes on full responsibility for every phase of the project, which CSLB warns about in its owner-builder leaflet.

Before any work starts, get the license number and check it with your state's licensing board; our state pages link the lookup.

Questions people ask

Does replacing a furnace need a permit in California?

Yes; CSLB's letter to C-20 contractors lists a furnace change-out as permit work. The letter cites the California Mechanical Code and names the air handler, coil, furnace and condenser, and skipping the permit violates B&P 7110 and 7090, with civil penalties of up to $5,000 per violation. Your city or county building department issues it.

How much does a furnace replacement cost in California?

We estimate $3,825 to $8,475 per installed furnace, permit included, and it's a model, not a quote. No California company price for a furnace install is in our count yet, so the estimate adds the median published city permit fee, about $148, to a wage-adjusted national range. Get written quotes that itemize the permit.

Is there a California rebate for a new gas furnace?

SoCalGas pays $1.40 to $25 per kBTUh for a 92 percent AFUE furnace installed with a permit closed out. It's limited to one per household and needs a licensed installer. SDG&E's rebate page lists no furnace rebate, and PG&E's listed none as of October 20, 2026.

What is South Coast AQMD Rule 1111?

A limit of 14 nanograms of NOx per joule of useful heat on gas furnaces sold or installed in its district. It applies to natural-gas fan-type central furnaces, with dates running from 2015 to 2018 depending on type. Manufacturers can pay a per-unit mitigation fee instead, so ask the company to confirm the model meets the rule where you live.

How much can a contractor ask for as a deposit?

$1,000 or 10 percent of the contract price, whichever is smaller. B&P 7159.5 sets the cap, and CSLB lists one exception: a contractor holding a Blanket Performance and Payment Bond, only about two dozen companies. Anything after the deposit has to track work performed.

Sources on this page
  1. U.S. Bureau of Labor Statistics, OEWS May 2025: Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), California, mean hourly wage Read Oct 23, 2026.
  2. HVACMatch: how we estimate costs, California (editorial policy) Read Oct 23, 2026.
  3. SF DBI Table 1A-C (July 2026) Read Oct 20, 2026.
  4. City of Fresno: Building Permit Center Read Oct 20, 2026.
  5. City of Long Beach: Building Permits Read Oct 20, 2026.
  6. CSLB: C-20 Permit Enforcement Letter (PDF, 2010) Read Oct 20, 2026.
  7. CSLB: Filing a Building Permit Violation Form Read Oct 20, 2026.
  8. CSLB: Do I need a building permit for my project? Read Oct 20, 2026.
  9. LADBS: Mechanical HVAC Permits Read Oct 20, 2026.
  10. City of San Diego DSD: What Permits Do I Need? Read Oct 20, 2026.
  11. City of Sacramento: Residential HVAC Change Outs Read Oct 20, 2026.
  12. South Coast AQMD: Rule 1111 (PDF) Read Oct 20, 2026.
  13. Federal Register 2024-27518 (Nov 29, 2024): BAAQMD Rules 9-4 and 9-6 Read Oct 20, 2026.
  14. Rebates & Incentives | SoCalGas Read Oct 20, 2026.
  15. Rebates | San Diego Gas & Electric Read Oct 20, 2026.
  16. PG&E: Rebates and incentives Read Oct 20, 2026.
  17. California Legislative Information: BPC 7159.5 Read Oct 20, 2026.
  18. CSLB: What Should I Look for in a Contract and Binding Agreements? Read Oct 20, 2026.
  19. California Legislative Information: BPC 7159 Read Oct 20, 2026.
  20. CEC: Home Energy Rating System (HERS) Program Read Oct 20, 2026.
  21. CSLB: Owner/builders take note (PDF) Read Oct 20, 2026.
  22. CSLB: Licensing Classifications Detail, C-20 Read Oct 20, 2026.
  23. CSLB: Check a License Read Oct 20, 2026.
  24. Emergency Information | SoCalGas Read Oct 20, 2026.
  25. Gas Safety | PG&E Read Oct 20, 2026.
  26. Gas safety | San Diego Gas & Electric Read Oct 20, 2026.
  27. Carbon monoxide | San Diego Gas & Electric Read Oct 20, 2026.
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