Heating Guide
Heat Pump vs. Furnace Cost in Massachusetts
By Dioclecio Gomes, Founder & Owner3 min readUpdated October 8, 2026
In This Guide
This Old House puts a new furnace at about $4,799 on average and a central heat pump at about $10,575. In Massachusetts, Mass Save lists whole-home heat pump rebates of $2,650 per ton up to $8,500, which can close much of that gap, and a heat pump also replaces the air conditioner. The federal tax credit ended for installs after 2025.
Heat pump vs. furnace cost is really two questions: what you pay to install, and what you pay to run. Install prices come from This Old House heat pump and furnace cost guides, rebates from Mass Save, and efficiency from the Department of Energy.
How Much Does a Heat Pump Cost Compared to a Furnace?
| System (This Old House, 2026) | Installed cost |
|---|---|
| Furnace, average of all types | About $4,799 |
| Gas furnace | $3,800 to $10,000 |
| Oil furnace | $6,750 to $10,000 |
| Central heat pump, average | $10,575 |
| Air-source heat pump, whole home | $8,007 |
| Mini-split, single zone | $3,250 |
A furnace only heats. A heat pump heats and cools, so if your air conditioner is also near the end of its life, compare the heat pump against a furnace plus a new AC, not a furnace alone.
What Does a Heat Pump Cost After Rebates?
Mass Save lists 2026 rebates of $2,650 per ton up to $8,500 for whole-home systems and $1,125 per ton up to $8,500 for partial systems. The federal credit no longer helps: the IRS says it covered property placed in service before December 31, 2025. Rebate rules decide the final number, so read our Mass Save rebate guide and confirm amounts before signing.
Which Costs Less to Run?
The Department of Energy says modern air-source heat pumps can reduce electricity use by 50% compared to furnaces and baseboard heaters. This Old House cites typical utility bill savings of $300 to $650 a year from the National Renewable Energy Laboratory. Your result depends on your current fuel, electricity rates and how well the house is sealed. ENERGY STAR notes that a certified gas furnace in the northern U.S. can save about $160 a year over a baseline model, so a new efficient furnace narrows the gap too.
Thinking about a heat pump?
Heat pump installation is coming to Mr. Gomes Remodeling. Send us your details and we will reach out when we start booking in your town.
Ask About Heat PumpsWhich One Lasts Longer?
This Old House says furnaces typically last 15 to 25 years and heat pumps around 15 years. Because a heat pump runs in summer too, it works more hours each year. See our furnace lifespan guide for the warning signs on an older system.
Which One Fits Your Home?
- Heat pump: you want heating and cooling from one system, your AC also needs replacing, or you want to cut fossil fuel use. Pick a model on the NEEP cold-climate list.
- Furnace: you have a working gas line and good ducts, your AC is newer, and the lowest upfront cost matters most.
- Rooms without ducts: a ductless or ducted mini split can serve an addition or finished basement without new long duct runs.
The Bottom Line
A furnace costs less to install, while a heat pump adds cooling and can cost less to run. In Massachusetts, Mass Save rebates can close much of the upfront gap. Price both before your old system fails. Ask About Heat Pumps
FAQ
Is a heat pump cheaper than a furnace?
Not upfront. This Old House puts a furnace at about $4,799 and a central heat pump at $10,575. Mass Save rebates of up to $8,500 for whole-home systems, and lower running costs, can change the math.
Do heat pumps save money in Massachusetts?
The Department of Energy says modern air-source heat pumps can reduce electricity use by 50% compared to furnaces and baseboard heaters, and This Old House cites $300 to $650 a year in typical savings. Results depend on your current fuel and rates.
How long does a heat pump last compared to a furnace?
This Old House says about 15 years for a heat pump and 15 to 25 years for a furnace.
Can I keep my furnace as backup with a heat pump?
Mass Save lists a separate partial-home rebate tier with a lower amount per ton. Check the Mass Save rules for whether and how your existing system can stay before choosing a design.