What a replacement involves under Texas rules
A TDLR license is required to install heating systems. Its Class A covers any size and its Class B covers heating systems of 1.5 million BTUs per hour and under, and the license class shows in the number on the contractor's document.
The state's energy rules also apply. SECO says Chapter 11 of the 2015 International Residential Code has been the state standard for one- and two-family homes since Sept 1, 2016, and that local governments enforce it. Denton's furnace page adds that a replacement that isn't same for same must meet the energy code, and that an energy code report test form is uploaded before the final inspection.
What a new furnace costs in Texas
Our Texas estimate for this job comes to $2,950 to $6,625 per installed furnace. That's a model, not a quote, built from national published cost ranges, adjusted by the Texas wage ratio to the US (0.91), with a typical city permit fee added for the work.
An installed furnace is estimated at $2,950 to $6,625 per installed furnace, including a median Texas permit fee of $75 taken from 11 city schedules. Treat it as an estimate, not a quote.
| Item | Figure | What it is |
|---|---|---|
| Estimated range, not a quote | $2,950 to $6,625 per installed furnace | Built from 2 national published ranges, 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 (no counted Texas company price for this job), national estimate only. |
| Technician wage, Texas mean | $28.43 an hour | Texas technicians' mean pay, May 2025 BLS; an installed furnace price is set by the company. |
| Replacement 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. |
| Hot air furnace permit, Waco | $20 per unit up to 250,000 BTU, $45 above | Waco's schedule prints no effective date; air handler rows on the same schedule are separate. |
| Mechanical permit including furnace replacement, Mesquite | $75 | Residential schedule titled 2026-2027; the text prints no date. |
| State home energy rebates (HOMES and HEAR), SECO | Not open | Status updated Aug 21, 2026; waits on DOE approval, with HOMES up to $8,000 and HEAR up to $14,000 per household once launched. |
How we estimate costs: the Estimated range row is a model, not a quote. We have no counted Texas 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 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 what the cities charge
Houston lists furnace replacement among the work needing a mechanical permit and inspection, and its homeowner permit option leaves the inspection scheduling to the homeowner. Houston's permit stays valid 180 days. Grand Prairie says all mechanical work needs an approved permit, with processing in about 5 to 10 business days. Garland requires a permit when the condensing unit or heating unit is replaced.
Fees follow no common pattern. Mesquite's 2026-2027 residential schedule charges $75 for a mechanical permit that includes condenser and furnace replacement, and Waco's charges $20 for each hot air furnace up to 250,000 BTU. Fort Worth's table lists $6.10 per forced-air furnace up to 100,000 BTU input, as an item fee. Waco doubles its fees when work begins before the permit.
Rebates for a furnace in Texas as of Oct 23, 2026
SECO's Texas Home Energy Rebates page, updated Aug 21, 2026, says rebates are not currently available and the programs are in planning and design. When they launch, HOMES pays up to $8,000 by income and expected savings and HEAR up to $14,000 per household for income-qualified homes, and the page adds that your local utility or municipality may have incentives of its own. The utility rebate pages cited on this site cover air conditioners and heat pumps, and none of them names a furnace.
What the quote should list
Ask for the furnace's BTU input, the permit and who applies for it, the TDLR license number and any duct changes as separate lines.
When the furnace has already quit
- The house smells of gas: go out first, then phone 911.
- Your CO alarm is going off: get out of the house and call 911.
- The furnace still heats and you are only pricing an upgrade.
Before you ask for bids
- Read the BTU input off the data plate of the furnace you have now.
- Call your city's permit office and ask what a furnace replacement needs.
- Ask each company for its TDLR license number and the permit line in writing.
Permit rules for swapping out a furnace
Houston, Garland, Denton and Grand Prairie require one, and your own city's permit office decides for yours. Garland says the state allows homeowners to install an HVAC system on property they own, live in and homestead, verified through the Dallas Central Appraisal District. TDLR says cities may not charge TDLR-licensed A/C contractors a registration fee since Sept 1, 2021, though some city pages still describe one, and permit fees remain allowed.
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
Do I need a permit to replace a furnace in Texas?
Yes in Houston, Garland, Denton and Grand Prairie, and the rule is set city by city. Each city runs its own mechanical permits, so ask your city's permit office what a furnace replacement requires.
Are there Texas rebates for a new furnace?
Not from the state right now. SECO's Aug 21, 2026 update says the HOMES and HEAR programs aren't available yet, and it adds that a local utility or city may have its own incentives.
Which energy code applies to my new furnace?
The state standard for houses is Chapter 11 of the 2015 IRC, and your city may amend it. SECO says Texas is a home rule state, so local governments may adopt amendments. Denton requires energy code compliance when the replacement isn't same for same.
Can I replace my own furnace in Texas?
Garland says homeowners may on property they own, live in and homestead. The Occupations Code, in its 2018 wording, exempts work in a building owned solely as the person's home but keeps municipal permits in force. Your city decides what it accepts.
- BLS Public Data API v1, OEWS Read Oct 23, 2026.
- HVACMatch: how we estimate costs, Texas (editorial policy) Read Oct 23, 2026.
- City of Waco: Permit Fee Schedules Read Oct 23, 2026.
- City of Mesquite: Residential Fee Schedule 2026-2027 Read Oct 23, 2026.
- SECO: Inflation Reduction Act Rebates and Tax Credits (Texas Home Energy Rebates) Read Oct 23, 2026.
- TDLR: Apply for a Contractor License Read Oct 23, 2026.
- TDLR: Air Conditioning and Refrigeration Contractors Read Oct 23, 2026.
- TDLR: ACR frequently asked questions Read Oct 23, 2026.
- Texas Occupations Code ch. 1302 (Wayback 2018-03-06) Read Oct 23, 2026.
- SECO: Single-Family Construction Read Oct 23, 2026.
- SECO: Local Ordinances Read Oct 23, 2026.
- City of Denton: HVAC / Furnace Read Oct 23, 2026.
- Houston Permitting Center: Mechanical Inspections Read Oct 23, 2026.
- City of Grand Prairie: Residential Mechanical Work Permit Read Oct 23, 2026.
- City of Garland: Air Conditioning Repairs Read Oct 23, 2026.
- City of Fort Worth: Fee Schedule October 2026 (Ordinance 26-28781) Read Oct 23, 2026.