Heat Pump Cost Calculator: How Much Does a Heat Pump Cost?
Estimate the installed cost of a heat pump by your home size, system type and climate — and see your true net cost now that the federal credit has ended.
SCReviewed by Sarah Chen, Energy AnalystUpdated October 1, 2026Sources: DOE, ENERGY STAR, IRS
Cost by system type
Ducted air-source, ductless mini-split and geothermal carry very different price tags and running costs.
Updated October 2026 — federal credits have ended. The One Big Beautiful Bill Act (signed July 4, 2025) ended the 30% federal Residential Clean Energy Credit (25D: solar, batteries, geothermal) and the Energy Efficient Home Improvement Credit (25C: air-source heat pumps, up to $2,000) for anything installed after December 31, 2025. Systems completed by Dec 31, 2025 can still be claimed on a 2025 return. Any 30% or $2,000 figure on this page applies only to those installs — our calculators now default to $0 federal credit. What is still available in 2026 →
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. There is no federal tax credit for systems installed in 2026; state, utility and HEAR rebates are what remain.
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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
$0
Net cost
$12,000
Credit type
25C ended
The federal heat pump credits (25C and 25D) ended for installs after Dec 31, 2025. Check utility and state rebates, and 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 your net cost
We estimate installed cost; for 2026 installs the federal credit is $0.
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 (2026)
Best for
Ducted central air-source
$12,000–$22,000
None (25C ended 2025)
Homes with existing ductwork
Ductless mini-split (multi-zone)
$8,000–$18,000
None (25C ended 2025)
Homes without ducts; room-by-room control
Ground-source (geothermal)
$18,000–$45,000
None (25D ended 2025)
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.
What happened to the federal credit
Until the end of 2025 there were two federal credits, depending on the system. The One Big Beautiful Bill Act (signed July 4, 2025) ended both for systems installed after December 31, 2025:
Air-source heat pumps used the Energy Efficient Home Improvement Credit (25C): 30% of cost, capped at $2,000 per year. No credit for units placed in service in 2026.
Geothermal/ground-source heat pumps used the Residential Clean Energy Credit (25D): 30% of cost with no dollar cap. No credit for systems installed in 2026. On a $30,000 system, that means the full $30,000 is now your net cost, not $21,000.
If your system was installed in 2025, you can still claim it on your 2025 return (Form 5695), or amend with Form 1040-X, generally within 3 years. For 2026 installs, the IRA Home Energy Rebates were not repealed: HEAR (formerly called HEEHRA) pays up to $8,000 toward a heat pump for households at or below 150% of area median income, in states that have launched it. See energy.gov/save/rebates for your state's status.
Many states and utilities also offer their own rebates — 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. The 30% federal credits ended for systems installed after December 31, 2025, so in 2026 your net cost is the sticker price minus any state, utility or HEAR rebate you qualify for.
What federal tax credit can I get for a heat pump?
None for a heat pump installed in 2026. The One Big Beautiful Bill Act (signed July 4, 2025) ended the 25C credit (30%, up to $2,000, for air-source units) and the 25D credit (30%, no cap, for geothermal) for systems installed after December 31, 2025. If your system was installed in 2025, claim it on your 2025 return with Form 5695, or amend with Form 1040-X (generally within 3 years). For 2026 installs, look at state and utility rebates and the IRA HEAR rebate (formerly called HEEHRA), which pays up to $8,000 toward a heat pump for income-qualified households in states that have launched it.
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. With the 30% federal credit gone for 2026 installs, payback runs roughly 40% longer than it did, so geothermal now makes the most sense 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 →