Estimate the installed cost of a heat pump by your home size, system type and climate — and see your federal credit and true net cost.
SCReviewed by Sarah Chen, Energy AnalystUpdated May 28, 2026Sources: DOE, ENERGY STAR, IRS
Cost by system type
Ducted air-source, ductless mini-split and geothermal carry very different price tags and federal credits.
Quick answerA heat pump costs about $12,000–$22,000 installed for a typical ducted air-source system, $8,000–$18,000 for a multi-zone mini-split, and $18,000–$45,000 for geothermal. Air-source gets a 30% federal credit up to $2,000; geothermal gets 30% with no cap.
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Your home
2,000 sq ft
Ducted reuses existing ductwork; mini-splits suit homes without ducts; geothermal is priciest but most efficient.
Colder climates need larger, cold-climate-rated equipment.
Estimated installed cost
$14,000
typical range $12,000–$16,000
Federal credit
$2,000
Net cost
$12,000
Credit type
25C cap
Air-source heat pumps get a 30% federal credit capped at $2,000 (25C). Geothermal gets 30% with no cap (25D). Get 3 local quotes before deciding.
How this calculator works
1
Enter your home size
Conditioned square footage drives the equipment size and price.
2
Pick a system type
Ducted, ductless mini-split or geothermal.
3
Set your climate
Colder climates need larger, cold-rated equipment.
4
See cost and credit
We estimate installed cost and apply the correct federal credit.
How much does a heat pump cost in 2026?
For a typical 2,000 sq ft US home, expect these installed price ranges before incentives:
System type
Installed cost
Federal credit
Best for
Ducted central air-source
$12,000–$22,000
30% up to $2,000
Homes with existing ductwork
Ductless mini-split (multi-zone)
$8,000–$18,000
30% up to $2,000
Homes without ducts; room-by-room control
Ground-source (geothermal)
$18,000–$45,000
30%, no cap
Long-term owners; lowest running cost
The single biggest cost driver is system type, followed by your home's size and climate. Cold-climate homes need larger, hyper-heat-rated equipment, which adds cost but keeps efficiency high below freezing.
The federal credit, explained simply
There are two different federal credits, and which one you get depends on the system:
Air-source heat pumps use the Energy Efficient Home Improvement Credit (25C): 30% of cost, capped at $2,000 per year. The unit must meet the CEE's highest efficiency tier.
Geothermal/ground-source heat pumps use the Residential Clean Energy Credit (25D): 30% of cost with no dollar cap, the same uncapped credit solar gets. On a $30,000 system that's a $9,000 credit.
Many states and utilities stack rebates on top — check the ENERGY STAR rebate finder and DSIRE. To project what you'll save each year, use the Savings Calculator.
Questions
Frequently asked questions
How much does a heat pump cost in 2026?
For a typical home, a ducted air-source heat pump runs $12,000–$22,000 installed, a ductless multi-zone mini-split $8,000–$18,000, and a geothermal system $18,000–$45,000. Air-source units get a 30% federal credit up to $2,000; geothermal gets 30% with no cap, so net costs are lower than the sticker price.
What federal tax credit can I get for a heat pump?
Air-source heat pumps qualify for the Energy Efficient Home Improvement Credit (25C): 30% of cost, capped at $2,000 per year, for units meeting the CEE's highest efficiency tier. Geothermal heat pumps qualify for the Residential Clean Energy Credit (25D): 30% of cost with no dollar cap, through 2032.
Is a ductless mini-split cheaper than a ducted heat pump?
A single-zone mini-split is usually the cheapest entry point, but a whole-home multi-zone mini-split system can cost as much as a ducted system once you add several indoor heads. If you already have good ductwork, a ducted central heat pump is often the better value for whole-home comfort.
Why is geothermal so much more expensive?
Geothermal (ground-source) systems require drilling boreholes or burying a ground loop, which is a major excavation expense. That pushes installed costs to $18,000–$45,000. The payoff is the lowest running cost of any system and the uncapped 30% federal credit, so payback can still be attractive for long-term owners.
Do heat pump prices include removing my old furnace?
Reputable quotes usually include removal and disposal of the old equipment, electrical work, and a new thermostat, but always confirm. Ask each installer for an itemized quote so you can compare equipment, labor and any electrical panel upgrades on equal terms.
Sarah has spent 12 years modeling US residential solar economics, including 4 years contributing to NREL's Distributed Generation Market Demand model. She holds a BS in Mechanical Engineering from UC Berkeley and reviews every calculator and state guide on GreenCalcs against current IRS, DSIRE and EIA data. Read our methodology →