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Heat pump vs. gas furnace: the honest comparison
In 48 of the 50 states and DC, a new gas furnace costs less to run than a basic heat pump. An efficient heat pump is cheaper in 17, and it also cools your home. Pick your state below to see the yearly bill.
Yearly heating bill in Alabama, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $594 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $792 |
| New gas furnace (95%) | $640 |
| Older gas furnace (80%) | $760 |
Cheaper to run here: an efficient heat pump, by about $46 a year over a new furnace.
Yearly heating bill in Alaska, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $973 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $1,297 |
| New gas furnace (95%) | $473 |
| Older gas furnace (80%) | $561 |
Cheaper to run here: a new gas furnace, by about $501 a year over an efficient heat pump.
Yearly heating bill in Arizona, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $555 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $739 |
| New gas furnace (95%) | $677 |
| Older gas furnace (80%) | $804 |
Cheaper to run here: an efficient heat pump, by about $123 a year over a new furnace.
Yearly heating bill in Arkansas, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $489 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $652 |
| New gas furnace (95%) | $702 |
| Older gas furnace (80%) | $833 |
Cheaper to run here: an efficient heat pump, by about $213 a year over a new furnace.
Yearly heating bill in California, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $1,194 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $1,592 |
| New gas furnace (95%) | $803 |
| Older gas furnace (80%) | $953 |
Cheaper to run here: a new gas furnace, by about $392 a year over an efficient heat pump.
Yearly heating bill in Colorado, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $601 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $801 |
| New gas furnace (95%) | $407 |
| Older gas furnace (80%) | $484 |
Cheaper to run here: a new gas furnace, by about $193 a year over an efficient heat pump.
Yearly heating bill in Connecticut, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $1,005 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $1,340 |
| New gas furnace (95%) | $614 |
| Older gas furnace (80%) | $729 |
Cheaper to run here: a new gas furnace, by about $391 a year over an efficient heat pump.
Yearly heating bill in Delaware, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $642 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $855 |
| New gas furnace (95%) | $582 |
| Older gas furnace (80%) | $691 |
Cheaper to run here: a new gas furnace, by about $59 a year over an efficient heat pump.
Yearly heating bill in District of Columbia, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $886 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $1,181 |
| New gas furnace (95%) | $608 |
| Older gas furnace (80%) | $722 |
Cheaper to run here: a new gas furnace, by about $278 a year over an efficient heat pump.
Yearly heating bill in Florida, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $550 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $733 |
| New gas furnace (95%) | $929 |
| Older gas furnace (80%) | $1,103 |
Cheaper to run here: an efficient heat pump, by about $379 a year over a new furnace.
Yearly heating bill in Georgia, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $553 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $738 |
| New gas furnace (95%) | $745 |
| Older gas furnace (80%) | $884 |
Cheaper to run here: an efficient heat pump, by about $191 a year over a new furnace.
Yearly heating bill in Hawaii, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $1,662 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $2,217 |
| New gas furnace (95%) | $1,910 |
| Older gas furnace (80%) | $2,268 |
Cheaper to run here: an efficient heat pump, by about $247 a year over a new furnace.
Yearly heating bill in Idaho, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $466 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $621 |
| New gas furnace (95%) | $280 |
| Older gas furnace (80%) | $333 |
Cheaper to run here: a new gas furnace, by about $185 a year over an efficient heat pump.
Yearly heating bill in Illinois, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $690 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $921 |
| New gas furnace (95%) | $410 |
| Older gas furnace (80%) | $487 |
Cheaper to run here: a new gas furnace, by about $280 a year over an efficient heat pump.
Yearly heating bill in Indiana, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $612 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $816 |
| New gas furnace (95%) | $419 |
| Older gas furnace (80%) | $497 |
Cheaper to run here: a new gas furnace, by about $193 a year over an efficient heat pump.
Yearly heating bill in Iowa, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $510 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $680 |
| New gas furnace (95%) | $387 |
| Older gas furnace (80%) | $459 |
Cheaper to run here: a new gas furnace, by about $123 a year over an efficient heat pump.
Yearly heating bill in Kansas, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $546 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $728 |
| New gas furnace (95%) | $540 |
| Older gas furnace (80%) | $641 |
Cheaper to run here: a new gas furnace, by about $6 a year over an efficient heat pump.
Yearly heating bill in Kentucky, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $513 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $683 |
| New gas furnace (95%) | $519 |
| Older gas furnace (80%) | $616 |
Cheaper to run here: an efficient heat pump, by about $6 a year over a new furnace.
Yearly heating bill in Louisiana, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $480 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $639 |
| New gas furnace (95%) | $634 |
| Older gas furnace (80%) | $753 |
Cheaper to run here: an efficient heat pump, by about $155 a year over a new furnace.
Yearly heating bill in Maine, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $1,077 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $1,436 |
| New gas furnace (95%) | $691 |
| Older gas furnace (80%) | $820 |
Cheaper to run here: a new gas furnace, by about $386 a year over an efficient heat pump.
Yearly heating bill in Maryland, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $765 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $1,020 |
| New gas furnace (95%) | $588 |
| Older gas furnace (80%) | $699 |
Cheaper to run here: a new gas furnace, by about $177 a year over an efficient heat pump.
Yearly heating bill in Massachusetts, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $1,083 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $1,444 |
| New gas furnace (95%) | $914 |
| Older gas furnace (80%) | $1,085 |
Cheaper to run here: a new gas furnace, by about $169 a year over an efficient heat pump.
Yearly heating bill in Michigan, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $773 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $1,031 |
| New gas furnace (95%) | $398 |
| Older gas furnace (80%) | $473 |
Cheaper to run here: a new gas furnace, by about $375 a year over an efficient heat pump.
Yearly heating bill in Minnesota, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $584 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $778 |
| New gas furnace (95%) | $400 |
| Older gas furnace (80%) | $475 |
Cheaper to run here: a new gas furnace, by about $183 a year over an efficient heat pump.
Yearly heating bill in Mississippi, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $546 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $727 |
| New gas furnace (95%) | $607 |
| Older gas furnace (80%) | $721 |
Cheaper to run here: an efficient heat pump, by about $61 a year over a new furnace.
Yearly heating bill in Missouri, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $501 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $669 |
| New gas furnace (95%) | $545 |
| Older gas furnace (80%) | $647 |
Cheaper to run here: an efficient heat pump, by about $43 a year over a new furnace.
Yearly heating bill in Montana, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $501 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $668 |
| New gas furnace (95%) | $328 |
| Older gas furnace (80%) | $389 |
Cheaper to run here: a new gas furnace, by about $173 a year over an efficient heat pump.
Yearly heating bill in Nebraska, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $463 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $618 |
| New gas furnace (95%) | $416 |
| Older gas furnace (80%) | $494 |
Cheaper to run here: a new gas furnace, by about $48 a year over an efficient heat pump.
Yearly heating bill in Nevada, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $486 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $648 |
| New gas furnace (95%) | $479 |
| Older gas furnace (80%) | $569 |
Cheaper to run here: a new gas furnace, by about $7 a year over an efficient heat pump.
Yearly heating bill in New Hampshire, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $962 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $1,283 |
| New gas furnace (95%) | $679 |
| Older gas furnace (80%) | $806 |
Cheaper to run here: a new gas furnace, by about $284 a year over an efficient heat pump.
Yearly heating bill in New Jersey, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $861 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $1,148 |
| New gas furnace (95%) | $518 |
| Older gas furnace (80%) | $615 |
Cheaper to run here: a new gas furnace, by about $343 a year over an efficient heat pump.
Yearly heating bill in New Mexico, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $542 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $722 |
| New gas furnace (95%) | $358 |
| Older gas furnace (80%) | $426 |
Cheaper to run here: a new gas furnace, by about $183 a year over an efficient heat pump.
Yearly heating bill in New York, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $1,055 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $1,407 |
| New gas furnace (95%) | $641 |
| Older gas furnace (80%) | $761 |
Cheaper to run here: a new gas furnace, by about $414 a year over an efficient heat pump.
Yearly heating bill in North Carolina, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $537 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $716 |
| New gas furnace (95%) | $599 |
| Older gas furnace (80%) | $711 |
Cheaper to run here: an efficient heat pump, by about $62 a year over a new furnace.
Yearly heating bill in North Dakota, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $444 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $592 |
| New gas furnace (95%) | $346 |
| Older gas furnace (80%) | $411 |
Cheaper to run here: a new gas furnace, by about $98 a year over an efficient heat pump.
Yearly heating bill in Ohio, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $672 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $896 |
| New gas furnace (95%) | $505 |
| Older gas furnace (80%) | $600 |
Cheaper to run here: a new gas furnace, by about $167 a year over an efficient heat pump.
Yearly heating bill in Oklahoma, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $488 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $650 |
| New gas furnace (95%) | $524 |
| Older gas furnace (80%) | $623 |
Cheaper to run here: an efficient heat pump, by about $37 a year over a new furnace.
Yearly heating bill in Oregon, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $553 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $738 |
| New gas furnace (95%) | $609 |
| Older gas furnace (80%) | $724 |
Cheaper to run here: an efficient heat pump, by about $56 a year over a new furnace.
Yearly heating bill in Pennsylvania, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $756 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $1,008 |
| New gas furnace (95%) | $548 |
| Older gas furnace (80%) | $651 |
Cheaper to run here: a new gas furnace, by about $207 a year over an efficient heat pump.
Yearly heating bill in Rhode Island, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $1,050 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $1,399 |
| New gas furnace (95%) | $790 |
| Older gas furnace (80%) | $938 |
Cheaper to run here: a new gas furnace, by about $260 a year over an efficient heat pump.
Yearly heating bill in South Carolina, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $572 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $763 |
| New gas furnace (95%) | $617 |
| Older gas furnace (80%) | $732 |
Cheaper to run here: an efficient heat pump, by about $44 a year over a new furnace.
Yearly heating bill in South Dakota, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $521 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $694 |
| New gas furnace (95%) | $360 |
| Older gas furnace (80%) | $427 |
Cheaper to run here: a new gas furnace, by about $161 a year over an efficient heat pump.
Yearly heating bill in Tennessee, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $498 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $664 |
| New gas furnace (95%) | $432 |
| Older gas furnace (80%) | $513 |
Cheaper to run here: a new gas furnace, by about $67 a year over an efficient heat pump.
Yearly heating bill in Texas, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $577 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $769 |
| New gas furnace (95%) | $708 |
| Older gas furnace (80%) | $841 |
Cheaper to run here: an efficient heat pump, by about $131 a year over a new furnace.
Yearly heating bill in Utah, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $473 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $630 |
| New gas furnace (95%) | $372 |
| Older gas furnace (80%) | $441 |
Cheaper to run here: a new gas furnace, by about $101 a year over an efficient heat pump.
Yearly heating bill in Vermont, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $860 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $1,147 |
| New gas furnace (95%) | $656 |
| Older gas furnace (80%) | $779 |
Cheaper to run here: a new gas furnace, by about $204 a year over an efficient heat pump.
Yearly heating bill in Virginia, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $605 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $806 |
| New gas furnace (95%) | $612 |
| Older gas furnace (80%) | $727 |
Cheaper to run here: an efficient heat pump, by about $8 a year over a new furnace.
Yearly heating bill in Washington, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $517 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $690 |
| New gas furnace (95%) | $642 |
| Older gas furnace (80%) | $763 |
Cheaper to run here: an efficient heat pump, by about $125 a year over a new furnace.
Yearly heating bill in West Virginia, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $556 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $741 |
| New gas furnace (95%) | $503 |
| Older gas furnace (80%) | $598 |
Cheaper to run here: a new gas furnace, by about $53 a year over an efficient heat pump.
Yearly heating bill in Wisconsin, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $682 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $910 |
| New gas furnace (95%) | $392 |
| Older gas furnace (80%) | $465 |
Cheaper to run here: a new gas furnace, by about $291 a year over an efficient heat pump.
Yearly heating bill in Wyoming, typical gas-heated home
| Efficient heat pump (HSPF2 10) | $501 |
|---|---|
| Basic heat pump (HSPF2 7.5, the legal minimum) | $668 |
| New gas furnace (95%) | $428 |
| Older gas furnace (80%) | $508 |
Cheaper to run here: a new gas furnace, by about $73 a year over an efficient heat pump.
Based on 36 million Btu of heat a year, the typical U.S. gas-heated home (EIA, 2020). Colder states use more, so their bills run higher. Use your own rates.
How we compare: a heat pump's heating rating is called HSPF2, and the lowest the law allows is 7.5. At 2026 prices, a heat pump at 7.5 heats more cheaply than a 95% gas furnace in only 3 states (Arkansas, Florida and Georgia). An efficient heat pump (HSPF2 10) wins in 17 states, and in 25 against an older 80% furnace. A heat pump also cools, so it can replace your AC too.
The 30-second answer
Lean heat pump if…
- You need air conditioning too — a heat pump is one system for both.
- Your electricity isn't expensive relative to gas (or you have no gas line).
- You want the 2026 rebate money — it targets heat pumps.
- You live somewhere mild-to-cold; modern cold-climate units hold up.
Lean gas furnace if…
- You're in a genuinely cold climate with cheap natural gas.
- Your electricity is expensive and gas is cheap where you live.
- Your central AC still works and you only need to replace heat.
- You want the lowest possible upfront price for heating alone.
One cold room? See what a space heater costs to run in your state, and when it beats the furnace. Dry air in winter? See 54 humidifiers checked against their own numbers.
Running cost in every state
Cost to deliver one million Btu of heat at each state's average home energy prices. Lower is cheaper.
| State | Power ¢/kWh | Gas $/Mcf | Heat pump, minimum | Heat pump, HSPF2 10 | Gas 95% | Gas 80% | Cheaper to run |
|---|---|---|---|---|---|---|---|
| Alabama | 16.5 | $17.56 | $22.05 | $16.54 | $17.82 | $21.17 | Heat pump (HSPF2 10) |
| Alaska | 27.1 | $12.96 | $36.12 | $27.09 | $13.16 | $15.62 | Gas furnace (95%) |
| Arizona | 15.4 | $18.58 | $20.59 | $15.44 | $18.86 | $22.40 | Heat pump (HSPF2 10) |
| Arkansas | 13.6 | $19.25 | $18.15 | $13.61 | $19.54 | $23.20 | Heat pump (HSPF2 10) |
| California | 33.3 | $22.01 | $44.33 | $33.25 | $22.34 | $26.53 | Gas furnace (95%) |
| Colorado | 16.7 | $11.17 | $22.29 | $16.72 | $11.34 | $13.46 | Gas furnace (95%) |
| Connecticut | 28.0 | $16.83* | $37.29 | $27.97 | $17.08 | $20.29 | Gas furnace (95%) |
| Delaware | 17.9 | $15.97 | $23.81 | $17.86 | $16.21 | $19.25 | Gas furnace (95%) |
| District of Columbia | 24.7 | $16.68 | $32.88 | $24.66 | $16.93 | $20.11 | Gas furnace (95%) |
| Florida | 15.3 | $25.48 | $20.40 | $15.30 | $25.86 | $30.71 | Heat pump (HSPF2 10) |
| Georgia | 15.4 | $20.42 | $20.53 | $15.40 | $20.73 | $24.61 | Heat pump (HSPF2 10) |
| Hawaii | 46.3 | $52.38 | $61.71 | $46.28 | $53.17 | $63.14 | Heat pump (HSPF2 10) |
| Idaho | 13.0 | $7.69 | $17.28 | $12.96 | $7.81 | $9.27 | Gas furnace (95%) |
| Illinois | 19.2 | $11.25 | $25.63 | $19.22 | $11.42 | $13.56 | Gas furnace (95%) |
| Indiana | 17.0 | $11.49 | $22.72 | $17.04 | $11.66 | $13.85 | Gas furnace (95%) |
| Iowa | 14.2 | $10.61 | $18.93 | $14.20 | $10.77 | $12.79 | Gas furnace (95%) |
| Kansas | 15.2 | $14.81 | $20.28 | $15.21 | $15.03 | $17.85 | Gas furnace (95%) |
| Kentucky | 14.3 | $14.23 | $19.03 | $14.27 | $14.44 | $17.15 | Heat pump (HSPF2 10) |
| Louisiana | 13.3 | $17.39 | $17.80 | $13.35 | $17.65 | $20.96 | Heat pump (HSPF2 10) |
| Maine | 30.0 | $18.95* | $39.99 | $29.99 | $19.24 | $22.84 | Gas furnace (95%) |
| Maryland | 21.3 | $16.14* | $28.40 | $21.30 | $16.38 | $19.46 | Gas furnace (95%) |
| Massachusetts | 30.1 | $25.06 | $40.19 | $30.14 | $25.44 | $30.21 | Gas furnace (95%) |
| Michigan | 21.5 | $10.92 | $28.71 | $21.53 | $11.08 | $13.16 | Gas furnace (95%) |
| Minnesota | 16.3 | $10.98 | $21.67 | $16.25 | $11.15 | $13.24 | Gas furnace (95%) |
| Mississippi | 15.2 | $16.65 | $20.25 | $15.19 | $16.90 | $20.07 | Heat pump (HSPF2 10) |
| Missouri | 14.0 | $14.94 | $18.61 | $13.96 | $15.17 | $18.01 | Heat pump (HSPF2 10) |
| Montana | 13.9 | $8.99 | $18.60 | $13.95 | $9.13 | $10.84 | Gas furnace (95%) |
| Nebraska | 12.9 | $11.40 | $17.20 | $12.90 | $11.57 | $13.74 | Gas furnace (95%) |
| Nevada | 13.5 | $13.14 | $18.04 | $13.53 | $13.34 | $15.84 | Gas furnace (95%) |
| New Hampshire | 26.8 | $18.61 | $35.72 | $26.79 | $18.89 | $22.43 | Gas furnace (95%) |
| New Jersey | 24.0 | $14.21 | $31.97 | $23.98 | $14.42 | $17.13 | Gas furnace (95%) |
| New Mexico | 15.1 | $9.83 | $20.11 | $15.08 | $9.98 | $11.85 | Gas furnace (95%) |
| New York | 29.4 | $17.58 | $39.17 | $29.38 | $17.84 | $21.19 | Gas furnace (95%) |
| North Carolina | 14.9 | $16.42* | $19.92 | $14.94 | $16.67 | $19.79 | Heat pump (HSPF2 10) |
| North Dakota | 12.4 | $9.50 | $16.48 | $12.36 | $9.64 | $11.45 | Gas furnace (95%) |
| Ohio | 18.7 | $13.85 | $24.93 | $18.70 | $14.06 | $16.69 | Gas furnace (95%) |
| Oklahoma | 13.6 | $14.38 | $18.11 | $13.58 | $14.60 | $17.33 | Heat pump (HSPF2 10) |
| Oregon | 15.4 | $16.71 | $20.53 | $15.40 | $16.96 | $20.14 | Heat pump (HSPF2 10) |
| Pennsylvania | 21.0 | $15.04 | $28.05 | $21.04 | $15.27 | $18.13 | Gas furnace (95%) |
| Rhode Island | 29.2 | $21.66* | $38.96 | $29.22 | $21.99 | $26.11 | Gas furnace (95%) |
| South Carolina | 15.9 | $16.91* | $21.24 | $15.93 | $17.16 | $20.38 | Heat pump (HSPF2 10) |
| South Dakota | 14.5 | $9.86 | $19.33 | $14.50 | $10.01 | $11.89 | Gas furnace (95%) |
| Tennessee | 13.9 | $11.84 | $18.49 | $13.87 | $12.02 | $14.27 | Gas furnace (95%) |
| Texas | 16.1 | $19.42 | $21.41 | $16.06 | $19.71 | $23.41 | Heat pump (HSPF2 10) |
| Utah | 13.2 | $10.19 | $17.55 | $13.16 | $10.34 | $12.28 | Gas furnace (95%) |
| Vermont | 23.9 | $18.00 | $31.93 | $23.95 | $18.27 | $21.70 | Gas furnace (95%) |
| Virginia | 16.8 | $16.79 | $22.44 | $16.83 | $17.04 | $20.24 | Heat pump (HSPF2 10) |
| Washington | 14.4 | $17.62 | $19.20 | $14.40 | $17.89 | $21.24 | Heat pump (HSPF2 10) |
| West Virginia | 15.5 | $13.80 | $20.63 | $15.47 | $14.01 | $16.63 | Gas furnace (95%) |
| Wisconsin | 19.0 | $10.74 | $25.33 | $19.00 | $10.90 | $12.95 | Gas furnace (95%) |
| Wyoming | 13.9 | $11.74 | $18.60 | $13.95 | $11.92 | $14.15 | Gas furnace (95%) |
Prices: U.S. EIA average home electricity price by state (January to July 2026) and home natural gas price by state (2025 annual average); * = latest year EIA has for that state. Heat pump: one million Btu ÷ 3,412 Btu per kWh ÷ (HSPF2 ÷ 3.412), times the power price. HSPF2 is a seasonal rating for a mid-U.S. climate; in very cold states a standard heat pump does worse than this, so see cold-climate heat pumps. Gas: one million Btu ÷ 1,037 Btu per cubic foot ÷ AFUE, times the gas price. Same formulas as our space heater cost page. Yearly bills: 44.9 million Btu of gas a year for heating in homes that heat with gas (EIA RECS 2020, Table CE4.6), at an assumed 80% furnace = 35.9 million Btu of heat, times each cost above.
Running cost — the number vendors skip
The sticker price is once; the running cost is every month for 15 years. Here's the cost to deliver the same million BTU of heat (one MMBtu) at U.S. average energy prices (EIA US avg 2026: $0.19/kWh, $1.68/therm):
| System | $/MMBtu |
|---|---|
| Efficient heat pump (best in our data) | $10.76 |
| 95% AFUE gas furnace | $17.68 |
| Typical heat pump (median of our corpus) | $19.82 |
| 80% AFUE gas furnace | $21.00 |
| Worst-matched heat pump (corpus max) | $26.15 |
| Electric resistance (baseboard / strips) | $55.19 |
Read that honestly. AFUE is a furnace's efficiency rating — higher burns less fuel. At U.S. average prices, only the more efficient heat pumps beat gas: a 95% furnace ($17.68) actually runs cheaper than the typical heat pump ($19.82), and a badly matched one can cost more than any furnace. So this isn't a slam dunk either way at the national average — but two things swing it hard: your electricity price and your gas price. Cheap gas and pricey power favor the furnace; cheap power or no gas line favors the heat pump, and many regions land there. Don't take our average — run it with your own rates →
Upfront cost — compare the whole job, not the box
A gas furnace is the cheapest single box to install, but it only heats. A heat pump heats and cools, so the fair comparison is a heat pump against a furnace plus a central AC:
| What you install | Installed |
|---|---|
| Heat pump (heats + cools, one system) | $9,000–$16,000 |
| Gas furnace + central AC (bought together) | $8,800–$21,500 |
| Gas furnace alone (keep working AC) | $3,800–$12,000 |
So if you need both heating and cooling, a heat pump is often comparable to or cheaper than a furnace-plus-AC — and rebates then lean heavily its way. If your AC still works and you only need heat, a furnace alone is the cheapest fix. See the full installed-cost ranges, and size it first.
Comfort and what you actually get
- Heat pump: one system for heating and cooling. It delivers steady, gentle warm air rather than the on-off blast of a furnace, and it uses far less energy for the same heat because it moves heat instead of burning fuel. Whether that also costs less depends on your power and gas prices (see the state table above). In deep cold its output drops — see the certified performance at 5°F before you commit in a cold climate.
- Gas furnace: strong, hot air fast, and unbothered by outdoor temperature — a real advantage on the coldest nights. But it's heat only; you still need a separate AC for summer, and it burns fossil fuel on-site with the venting and combustion-safety that involves.
- The hybrid: you don't have to choose. A "dual-fuel" system pairs a heat pump with a gas furnace, running the efficient heat pump most of the year and switching to the furnace only below a set outdoor temperature (its "balance point"), where the heat pump's output and efficiency fall off.
Rebates & the refrigerant transition
The federal 25C tax credit expired December 31, 2025, but the remaining incentive money in 2026 — state, utility and HEEHRA — overwhelmingly favors heat pumps. That can swing the upfront comparison by thousands; check what applies where you live. Separately, 2025's refrigerant transition (R-410A → R-454B / R-32) affects new heat pumps and AC units, not gas furnaces — newer models increasingly ship with the lower-GWP refrigerant, but it isn't a reason to delay a purchase you need now.
The verdict, by situation
| Your situation | Lean toward |
|---|---|
| Mild / moderate climate, need AC too | Heat pump |
| Cold climate, cheap natural gas, AC still works | Gas furnace |
| Cold climate, want efficiency + AC | Dual-fuel hybrid |
| No gas line / all-electric home | Heat pump |
| Expensive electricity, cheap gas | Gas furnace |
| Chasing rebates + lower carbon | Heat pump |
"Lean toward" is a starting point, not a verdict on your house — your actual energy prices decide it. Run them below.
Frequently asked questions
Is a heat pump cheaper to run than a gas furnace?
It depends on your unit and your prices. At U.S. average energy prices, the most efficient heat pumps deliver heat for about $10.76/MMBtu versus roughly $17.68 for a 95% AFUE gas furnace — a clear heat-pump win. But a typical heat pump runs closer to $19.82/MMBtu, a bit more than efficient gas, and a poorly matched one can top $26.15 — more than any furnace. Cheap natural gas or expensive electricity tips it toward the furnace; cheap electricity or no gas line tips it to the heat pump. Run your own rates in the operating-cost calculator to see which side you land on.
Do I still need a furnace as backup for a heat pump in cold climates?
Often some backup, yes — a heat pump’s heating capacity shrinks as it gets colder, so a system sized for a mild day can fall short on the coldest night. Most cold-climate installs pair the heat pump with electric strip heat or keep the existing gas furnace as backup that only runs on the rare extreme day (a "dual-fuel" or "hybrid" system). A strong cold-climate heat pump covers the large majority of the season on its own.
Is a heat pump or furnace cheaper to install?
A gas furnace alone is the cheapest box to install — but it only heats. A heat pump both heats and cools, so the honest comparison is a heat pump (about $9,000–$16,000 for a 3-ton) against a furnace plus a central AC (about $8,800–$21,500 together). Bought as a pair, the heat pump is often comparable or cheaper — and rebates widen the gap in its favor.
Which qualifies for more rebates in 2026?
Heat pumps. The federal 25C tax credit expired December 31, 2025, but the remaining state, utility and HEEHRA incentive money in 2026 overwhelmingly targets heat pumps, not gas furnaces. Check what applies where you live on our rebates page.
Settle it — run your energy prices → Best cold-climate heat pumps → Best gas furnaces →
Running costs are computed at build time from published SEER2 / HSPF2 / AFUE ratings × EIA U.S. average energy prices (EIA US avg 2026); installed ranges are national figures reconciled from 2026 market data (see costs). Formulas and sources in our methodology. We don't take a manufacturer position — the calculator uses your numbers, not ours.