Cost to Install a Heat Pump
The average cost to install a heat pump is $6,087, with most homeowners paying between $4,237 and $7,943 depending on system type. Note: the federal 25C tax credit for heat pumps expired for installations after December 31, 2025 — see the FAQ below.
What's included in the cost
| Item | Typical cost |
|---|---|
| Labor (installation) | $75–$125 per hour |
| Building permits | $50–$300 |
| New ductwork (if needed) | $3,000–$7,500 |
Cost by system type
| System type | Typical installed cost |
|---|---|
| Ductless mini-split | $1,300–$8,000 |
| Air-source (ducted) | $4,500–$8,000 |
| Hybrid (dual-fuel) | $2,500–$10,000+ |
| Geothermal | $6,000–$20,000+ |
Source: HomeAdvisor (updated June 19-20, 2026).
What affects the cost
- Home size. HomeAdvisor notes that larger homes need higher-capacity pumps to heat and cool properly, which pushes the installed cost up.
- SEER rating. Energy efficiency has a real price tag: HomeAdvisor prices a SEER 14 system at $1,600–$4,900 versus $3,600–$9,500 for a SEER 20 system — roughly double for the most efficient tier.
- Existing ductwork. If your home doesn't have ducts compatible with the new system, HomeAdvisor prices new ductwork at $3,000–$7,500 for around 300 linear feet.
- Climate. HomeAdvisor notes that heat pumps work most efficiently where winter temperatures stay above 40°F; below 25°F they typically need backup heating, which can add to the system spec and cost.
Common mistakes and getting quotes
The mistake HomeAdvisor calls out most is undersizing: an undersized heat pump has to run constantly to keep up, which erases the energy savings that were probably a big part of the reason to switch to a heat pump in the first place. Sizing should be based on your home's actual heating and cooling load, not just square footage or the size of the unit you're replacing.
On the buying side, HomeAdvisor recommends gathering at least three quotes from local heat pump installers before deciding, since installed cost varies widely by system type and region. It also suggests booking installation in the off-season, when contractor labor rates tend to dip, and scheduling annual tune-ups afterward to catch small issues before they turn into expensive repairs over the unit's 12-20 year lifespan.
Frequently asked questions
How much does it cost to install a heat pump on average?
The national average cost to install a heat pump is $6,087, with most homeowners paying between $4,237 and $7,943, according to HomeAdvisor (updated June 19, 2026).
How much does a heat pump cost by type?
Per HomeAdvisor, an air-source heat pump typically costs $4,500-$8,000 installed, a ductless mini-split $1,300-$8,000, a hybrid (dual-fuel) system $2,500-$10,000+, and a geothermal system $6,000-$20,000 or more.
Is there a federal tax credit for installing a heat pump in 2026?
No, not the federal one that used to apply. The Section 25C Energy Efficient Home Improvement Credit, which covered up to $2,000 per year for qualifying heat pumps, was terminated by the One Big Beautiful Bill Act for equipment placed in service after December 31, 2025, according to the IRS. Heat pumps installed in 2026 do not qualify for the 25C credit, though separately funded programs and state or utility rebates may still be available.
Does a heat pump installation require new ductwork?
Only if your home doesn't already have compatible ducts, or a ductless mini-split isn't a good fit. HomeAdvisor lists ductwork installation at $3,000 to $7,500 when it's needed, on top of the heat pump itself.
How long does a heat pump last?
With proper maintenance, HomeAdvisor reports that heat pumps typically last 12 to 20 years.
What affects the labor cost of a heat pump installation?
HomeAdvisor lists labor at $75 to $125 per hour, with home size, climate zone, the unit's energy efficiency (SEER) rating, and existing ductwork all affecting how much labor a given job needs.
Does a higher SEER rating cost more?
Yes, significantly. HomeAdvisor prices a SEER 14 system at $1,600 to $4,900 installed, compared to $3,600 to $9,500 for a SEER 20 system — roughly double for the most energy-efficient tier.
Related projects
Have a specific heat pump question, or think one of these numbers is out of date? Contact us and we'll look into it.