Gas furnace to heat pump cost in Seattle (2026):
prices, the PSE $4,000 rebate and what to check
HOW MUCH DOES IT COST TO REPLACE A GAS FURNACE WITH A HEAT PUMP IN SEATTLE?
Angi puts a heat pump installation in Seattle at $6,667 to $13,852, with an average of $10,218. Replacing gas heat can add the cost of removing the old furnace (HomeGuide: $200 to $500) and sometimes ductwork or panel work. Puget Sound Energy (PSE) offers a $4,000 rebate to income-qualified PSE gas customers who switch to a heat pump, and Seattle City Light gives $300 to $600 instant rebates on qualifying equipment.
Heat pump cost when replacing gas heat
| Home size (heat pump size) | Angi Seattle |
|---|---|
| 1,000 sq ft (2 tons) | $3,160–$9,240 |
| 1,500 sq ft (2.5 tons) | $5,560–$11,550 |
| 2,000 sq ft (3 tons) | $6,670–$13,850 |
| 2,500 sq ft (3.5 tons) | $7,780–$16,160 |
| 3,000 sq ft (4 tons) | $8,890–$18,470 |
| System type | HomeGuide (U.S.) |
|---|---|
| Ducted air-source heat pump, including air handler | $10,000–$25,000+ |
| Ductless mini-split, 1 zone | $2,000–$4,000 |
| Ductless mini-split, 3 zones | $7,000–$11,000 |
More on ducted vs ductless prices: heat pump installation cost in Seattle and mini split installation cost.
Extra costs when switching from gas
| Item | Reported cost | Source |
|---|---|---|
| Removing the old equipment | $200–$500 | HomeGuide |
| Ductwork replacement | $620–$2,100 | Angi Seattle |
| New ductwork | $40–$65 per linear foot | HomeGuide |
| Electrical panel upgrade | $1,800–$2,500 | HomeGuide |
| Thermostat | $200–$500 | HomeGuide |
| Concrete pad for the outdoor unit | $300–$500 | HomeGuide |
HomeGuide lists a panel upgrade among the possible extra costs of a heat pump, and its ductless guide lists a new electrical circuit at $250 to $900. See electrical panel upgrade cost in Seattle.
Rebates for switching from gas
PSE Moderate-Income Fuel-Switching Heat Pump rebate: $4,000
- You must be a current PSE single-family residential natural gas customer, and your primary heat (a gas furnace, boiler or wall heater) must run on PSE gas.
- You must meet PSE's income requirements. PSE checks them by household income, household size and county.
- A PSE Trade Ally or REP contractor must do the install, and the application is due within 30 days of installation.
- The old gas heating equipment must be removed or decommissioned; PSE allows cut-and-cap.
- Ductless systems must be variable-speed inverter mini- or multi-splits of at least ¾ ton, with an indoor head in the main living area.
- The rebate can't exceed the pre-tax price of the equipment. Energy Advisor: 1-800-562-1482.
Seattle City Light instant rebates: $300–$600
| Tier | Minimum efficiency | Rebate |
|---|---|---|
| 1 (retrofits only) | 15.2 SEER2, 8.1 HSPF2 | $300 |
| 2 (mini- or multi-splits only) | 15.2 SEER2, 8.5 HSPF2 | $400 |
| 3 | 16.0 SEER2, 9.5 HSPF2 | $600 |
The IRS says the federal energy efficient home improvement credit (25C) applied to property placed in service before December 31, 2025, so it no longer covers new installs. Seattle's Clean Heat rebate is for homes heated with oil, not gas. All rebates in one place: heat pump rebates in Washington.
Example: an average Seattle heat pump with the PSE rebate
| Line | Amount |
|---|---|
| Angi's Seattle average heat pump installation | $10,218 |
| With Seattle's 10.55% sales tax | $11,296 |
| PSE fuel-switching rebate, if you qualify | −$4,000 |
| Net cost | $7,296 |
Seattle permit
Angi says a heat pump permit in Seattle runs about $130, issued by SDCI. Seattle requires a refrigeration permit for split-system heat pumps, and only licensed refrigeration contractors can get it; see mini split installation cost for the City's rules.
Before you sign
- Check PSE's income eligibility before choosing a contractor, then hire a PSE Trade Ally or REP contractor.
- Ask whether your existing ducts can be reused and what sealing or repairs they need.
- Ask whether your electrical panel has room for the heat pump circuit.
- Ask what happens to the gas furnace and gas line: removal, or cut-and-cap.
- Make sure the equipment model meets the rebate efficiency tier you're counting on.
- Look the contractor up on L&I's Verify a Contractor tool. For jobs of $1,000 or more on a home, they must give you a written disclosure statement (RCW 18.27.114).
Frequently asked questions
How much does it cost to replace a gas furnace with a heat pump in Seattle?
Angi puts a heat pump installation in Seattle at $6,667 to $13,852, with an average of $10,218. Removing the old equipment adds about $200 to $500 (HomeGuide), and ductwork or panel work can add more.
Is there a rebate for switching from gas to a heat pump in Washington?
PSE offers a $4,000 rebate to income-qualified single-family PSE gas customers who replace gas heat with a heat pump installed by a PSE Trade Ally or REP contractor. Seattle City Light customers can also get $300 to $600 instant rebates on qualifying equipment.
Can I keep my ducts when I switch to a heat pump?
Ask your contractor to check them. Angi lists Seattle ductwork replacement at $620 to $2,100 when it's needed, and HomeGuide puts new ductwork at $40 to $65 per linear foot.
Do I need to remove my gas furnace to get the PSE rebate?
PSE requires the old gas heating equipment to be removed or decommissioned, and it allows cut-and-cap.
Is there still a federal tax credit for heat pumps?
No. The IRS says the energy efficient home improvement credit applied to property placed in service before December 31, 2025.
Want the whole system priced? Use the furnace and AC cost calculator to compare.
Sources
- Puget Sound Energy — Moderate-Income Fuel-Switching Heat Pump rebate
- Seattle City Light — 2026 heat pump rebates and minimum efficiencies (contractor table)
- Angi — Heat pump cost in Seattle (July 8, 2026)
- HomeGuide — Heat Pump Cost (October 30, 2025) and Ductless Heat Pump Cost
- IRS — Energy efficient home improvement credit
- RCW 82.04.050; DOR — Local sales tax rates, Q4 2026
- RCW 18.27.114 and L&I — Hiring a contractor
PSE and City Light rebate pages accessed October 27, 2026; Angi, HomeGuide and IRS checked October 8, 2026.
This guide summarizes published cost estimates and utility rebate rules. It is not a quote, and rebate terms can change; confirm eligibility with PSE or Seattle City Light before you buy. See our disclosure and disclaimer.