The license class, and cooling load across Texas
TDLR's Class A license allows work on any size unit, and Class B covers cooling systems of 25 tons and under. Insurance minimums differ by class: Class A holders carry $300,000 per occurrence for property damage and bodily injury, Class B holders $100,000.
The cooling load differs across the state. NOAA's 1991 to 2020 normals give 3147.8 cooling degree days a year at San Antonio, 2671.4 at Midland Odessa, 2661.9 at El Paso and 1950.3 at Lubbock, each from one airport station.
What a new central AC costs in Texas
In Texas we put this job at $3,950 to $8,800 per installed system. That's a model, not a quote: one national published cost range, widened by 15 percent each side, adjusted by the Texas wage ratio to the US (0.91), with a typical city permit fee added for the work.
An installed system is estimated at $3,950 to $8,800 per installed system, including a median Texas permit fee of $75 from 11 city schedules. That is an estimate, not a quote, so ask each company for the equipment, the labor and the permit as separate lines.
| Item | Figure | What it is |
|---|---|---|
| Estimated range, not a quote | $3,950 to $8,800 per installed system | Built from one national published range, adjusted by the Texas HVAC technician wage ratio (0.91) plus a typical permit fee ($75). Three Texas HVAC companies publish a price we could count on their own websites; where five or more price the same job, the range is the middle half of their prices, and where two to four do, the estimate is widened to take them in. Coupons, specials and figures a page gives as an average are not counted. Basis: no state company sample (one counted Texas company price for this job), national estimate only. |
| Technician wage, Texas mean | $28.43 an hour | Average Texas pay for the trade in BLS's May 2025 survey; equipment and markup aren't in it. |
| AC changeout permit, middle of Texas city fees | $75 | The middle of the equipment-replacement permit totals on 11 Texas city fee schedules; fee structures differ, so it is indicative. |
| Mechanical permit not tied to a building permit, Arlington | $100 base plus $25 for the first DX component | Schedule effective Sept 1, 2025; $7.50 for each additional component at the address. |
| Heating and air conditioning equipment replacement permit, Lubbock | $75 | Fiscal year Oct 1, 2025 to Sept 30, 2026. |
| Central AC rebate, Brownsville Public Utilities Board | $400 to $600 by SEER2 | As of Oct 16, 2026; two units per address per fiscal year. |
How we estimate costs: the Estimated range row is a model, not a quote. Only one Texas company publishes a price we could count for this job, so the range is our national estimate alone. Our national estimate takes one published national range for this job (a cost guide from a third-party site that we have not verified and do not cite) and multiplies it by Texas's HVAC technician mean wage ratio to the US (0.91, BLS OEWS May 2025, heating, air conditioning and refrigeration mechanics and installers) and adds a typical permit fee ($75). 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.
Permits and codes for a new system
San Antonio's mechanical permit application asks for the equipment's SEER2 rating and whether it's new or a replacement. Its fee form, which carries no effective date, prints $57.50 as the base fee with $7.19 for a condensing unit. Arlington's schedule effective Sept 1, 2025 lists a $100 base permit fee and $25 for the first DX system component, and Lubbock charged $75 for heating and air conditioning equipment replacement in the fiscal year that ended Sept 30, 2026.
Fort Worth adopted the 2021 ICC codes effective Apr 1, 2022 but kept the 2015 energy code. SECO's statewide residential energy standard is Chapter 11 of the 2015 IRC, enforced locally.
Utility rebates for a Texas AC, with their caveats
Austin Energy's residential rebates page says you can earn a rebate averaging $800 to install a new, energy efficient air conditioning system, and it prints no program year. CPS Energy lists central A/C at $90 to $310 per ton, also with no program year printed. As of Oct 16, 2026, Brownsville Public Utilities Board paid $400 at 14.3 SEER2, $500 at 15.2 and $600 at 16.2 or higher, limited to two units per address, with a TACL license number required on the application.
El Paso Electric pays for matched systems that meet its minimums, starting with split Tier 1 at 15.2 SEER2, and says the equipment must be bought and installed in the current program year. Garland Power & Light credits central A/C at 15.3 SEER2 or better with a total system change-out.
When the old AC has already failed
- You smell gas near the equipment: leave, then call 911 from outside.
- Smoke or a burning smell comes from the unit: leave the house and call 911.
- The old system still cools and you are comparing quotes.
Before you collect quotes
- Ask your electric utility whether it has a current-year rebate and what SEER2 rating it requires.
- Ask each company for its TDLR license number and class and look both up.
- Ask who applies for the permit and what the city charges.
The permit for a new or replacement AC
Houston lists new air conditioning installations, including replacement of an A/C, as permit-and-inspection work, and Garland requires a permit when a condensing unit is replaced. Fees differ by city. Some cities also still describe a registration for A/C contractors, though TDLR says Occupations Code section 1302.304 has barred municipal registration fees since Sept 1, 2021.
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
What TDLR license class is needed to install a house AC?
Class A or Class B; Class B stops at cooling systems of 25 tons and under. The license number shows the class, as in TACL/A/000000/C. A company holding both classes receives one document with two license numbers.
Are there rebates for a new AC in Texas?
From some city utilities, not from the state yet. SECO's Aug 21, 2026 update says the state rebate programs are not available. Austin Energy, CPS Energy, Brownsville Public Utilities Board, El Paso Electric and Garland Power & Light each describe their own.
What insurance must the installer carry?
Commercial general liability, with minimums that depend on the license class. TDLR sets $300,000 per occurrence, $600,000 aggregate and $300,000 for products and completed operations for Class A, and $100,000, $200,000 and $100,000 for Class B.
Is there a statewide energy code for a new AC?
For houses, the state standard is Chapter 11 of the 2015 IRC. SECO says local governments enforce it and may adopt amendments in a home rule state. Fort Worth, for one, kept the 2015 energy code while adopting other 2021 codes.
- BLS Public Data API v1, OEWS Read Oct 23, 2026.
- HVACMatch: how we estimate costs, Texas (editorial policy) Read Oct 23, 2026.
- City of Arlington: Fee Schedule effective 9-1-25 Read Oct 23, 2026.
- City of Lubbock: Building Safety Fee Schedule 2025-2026 Read Oct 23, 2026.
- BPUB: Go Green Rebates Read Oct 23, 2026.
- TDLR: Apply for a Contractor License Read Oct 23, 2026.
- TDLR: ACR frequently asked questions Read Oct 23, 2026.
- SECO: Single-Family Construction Read Oct 23, 2026.
- SECO: Local Ordinances Read Oct 23, 2026.
- SECO: Inflation Reduction Act Rebates and Tax Credits (Texas Home Energy Rebates) Read Oct 23, 2026.
- San Antonio DSD: Mechanical Permit Application (PDF) Read Oct 23, 2026.
- City of Fort Worth: Development Services Permits Read Oct 23, 2026.
- Houston Permitting Center: Mechanical Inspections Read Oct 23, 2026.
- City of Garland: Air Conditioning Repairs Read Oct 23, 2026.
- Garland Power & Light: EnergySaver Program Read Oct 23, 2026.
- Austin Energy: Residential Rebates Read Oct 23, 2026.
- CPS Energy: HVAC Rebates Read Oct 23, 2026.
- El Paso Electric: Refrigerated Cooling rebate (Texas) Read Oct 23, 2026.
- NCEI U.S. Climate Normals 1991-2020, annual/seasonal station file Read Oct 23, 2026.
- NCEI U.S. Climate Normals 1991-2020, annual/seasonal station file Read Oct 23, 2026.
- NCEI U.S. Climate Normals 1991-2020, annual/seasonal station file Read Oct 23, 2026.
- NCEI U.S. Climate Normals 1991-2020, annual/seasonal station file Read Oct 23, 2026.