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Furnace Replacement Cost in New Hampshire: What Homeowners Pay in 2026

Furnace replacement cost in New Hampshire for 2026: gas, propane, and oil pricing, sizing and venting factors, NHSaves rebates, regional differences, and timing.

Furnace Replacement Cost in New Hampshire: What Homeowners Pay in 2026

Replacing a furnace in New Hampshire costs about $5,500 to $9,500 for a standard gas or propane unit installed, and $6,500 to $11,000 for an oil furnace, based on 2026 quotes from contractors across the state. High-efficiency models, ductwork repair, and oil-to-gas conversions push the number higher.

Heating is not optional here. Concord averages more than 7,000 heating degree days a year, and the North Country runs past 8,000. The furnace is the single most important piece of equipment in most New Hampshire houses, and it runs from October through April.

Below is a breakdown of what each fuel type costs, what changes the price, and what the state's rebate programs can knock off the bill.

Cost by Fuel Type

Natural gas furnaces are the cheapest to install and run, but gas service is limited to the southern tier and the Seacoast. A standard 80 percent AFUE gas furnace installed runs $4,500 to $7,000. A 95 to 98 percent condensing model runs $6,000 to $9,500 and needs a PVC vent and a condensate drain.

Propane furnaces cost about the same as gas to install, and a lot of homes in the Lakes Region, Upper Valley, and Monadnock area run on propane because gas mains do not reach them. The equipment is nearly identical to a gas furnace with a conversion kit. Propane costs more per BTU than natural gas, which matters over 15 years of winters.

Oil furnaces are still common across the state, especially in houses built before 1990. A new oil furnace installed runs $6,500 to $11,000, and the price includes a new burner, a chimney liner check, and sometimes a new oil tank if the old one is failing. A replacement tank alone adds $2,000 to $3,500.

Electric Furnaces and Heat Pumps

Electric resistance furnaces are cheap to install at $3,000 to $5,500 but expensive to run in New Hampshire, where electricity rates are among the highest in the country. Few contractors recommend them as a primary heat source here.

Cold-climate heat pumps have become a real alternative, and many homeowners are pairing a ducted heat pump with a gas or propane furnace as backup. A ducted heat pump system runs $12,000 to $20,000 installed, and NHSaves rebates can cover a meaningful piece of that.

What Moves the Price Up or Down

Size is the first variable. A 1,400 square foot ranch in Nashua might need a 60,000 BTU furnace.

A 3,000 square foot colonial in Bedford with a finished basement might need 100,000 BTUs or more. Bigger furnaces cost more, and an oversized furnace short-cycles and wears out faster, so a proper load calculation matters.

Efficiency is the second. The jump from an 80 percent furnace to a 95 percent condensing model adds $1,500 to $3,000, and in a New Hampshire winter it pays back in fuel savings over 7 to 12 years depending on fuel price.

Venting is the third. A condensing furnace vents through PVC out the side of the house and cannot use the old chimney. If the water heater also used that chimney, it may now need a liner or its own vent, which adds $800 to $2,500.

Ductwork

Older New Hampshire houses often have ductwork that leaks, is undersized, or was added in pieces over decades. If the contractor finds problems, sealing and repair runs $1,000 to $3,000.

Replacing a full duct system in a two-story house runs $5,000 to $12,000. Ask the contractor to inspect the ducts before quoting.

Regional Differences in New Hampshire

Contractors in the Manchester, Nashua, and Seacoast markets charge more for labor than those in the North Country, and quotes in Portsmouth, Exeter, and Bedford often run 10 to 20 percent above quotes for the same job in Berlin, Claremont, or Littleton.

The North Country has the opposite problem. Fewer contractors means longer waits, especially in the winter when everyone's furnace fails at once. If your furnace is on its last legs in Coos or Grafton County, replace it in September, not January.

Gas availability shapes the whole conversation. Liberty Utilities and Unitil serve gas to the Merrimack Valley, the Seacoast, and parts of the Lakes Region, and if a main runs down your street, converting from oil to gas is usually worth the extra cost.

Oil-to-Gas Conversion

A conversion means a new gas furnace, a gas line from the street or a new service, removal of the oil tank, and often a chimney liner. All in, expect $8,000 to $15,000. Some gas utilities offer incentives for new customers that offset part of that, and the fuel savings over an oil furnace are substantial in most years.

NHSaves Rebates and Federal Credits

NHSaves, the joint efficiency program run by the state's utilities, offers rebates on high-efficiency furnaces and heat pumps. The amounts change each year, but rebates on a 95 percent or better gas or propane furnace have run in the hundreds of dollars, and rebates on cold-climate heat pumps have run into the thousands.

The federal energy efficient home improvement credit covers 30 percent of the cost of a qualifying high-efficiency furnace up to $600, and 30 percent of a qualifying heat pump up to $2,000. Ask the contractor for the AHRI certificate for the model so you can claim it.

Low-income households can also check with the state's weatherization program, which can cover furnace replacement in some cases.

How to Get Good Quotes

Get three quotes from licensed contractors, and make sure each one includes a Manual J load calculation or at least a clear sizing method. A contractor who quotes a furnace size based on what was there before is guessing, and the old furnace was often oversized to begin with.

Ask for the make, model, and AFUE rating in writing. Ask what the quote includes: permit, disposal of the old unit, thermostat, venting, condensate pump, and any duct work.

Ask what the labor warranty is. Most New Hampshire HVAC companies give one to two years on labor, and the better ones give five or ten.

Check the license. New Hampshire requires gas fitters to be licensed by the state, and oil heat technicians need certification.

Ask for the number and verify it. The town will also require a mechanical permit, which the contractor should pull.

When to Replace Instead of Repair

A furnace over 15 years old that needs a $1,200 repair is usually worth replacing. A heat exchanger crack in a furnace of any age is a replacement, because it is a carbon monoxide risk and the repair costs almost as much as a new unit.

If the furnace is under 10 years old and the repair is under $800, fixing it usually makes sense. In between, weigh the repair cost against the efficiency gain of a new unit and the cost of running the old one for a few more winters.

Timing the Job

Furnace replacement in New Hampshire is a one to two day job in most houses. Contractors are busiest from late October through February and most flexible on price from April through August. A homeowner who schedules a planned replacement in June often pays less and gets a better crew than one who calls during a cold snap.

If your furnace fails in January, most contractors can install a new one within a few days and will often set up temporary electric heat in the meantime.

Ask about maintenance plans at the same time. An annual tune-up runs $120 to $250 in New Hampshire and keeps the manufacturer warranty valid, which matters when a control board fails in year six.

To compare options, look through the heating contractors listed for New Hampshire in our directory, and check more cost guides for home systems on the blog if you are budgeting for other work this year.

Frequently Asked Questions

How much does a new oil furnace cost in New Hampshire?

An oil furnace installed runs about $6,500 to $11,000 in 2026. If the oil tank also needs replacement, add $2,000 to $3,500, and a chimney liner adds $800 to $2,500 if required.

Is a high-efficiency furnace worth it in New Hampshire?

Usually yes. The extra $1,500 to $3,000 for a 95 percent condensing furnace pays back in 7 to 12 years of fuel savings in a climate with 7,000 or more heating degree days, and rebates shorten that.

Does NHSaves offer rebates on furnaces?

Yes. NHSaves offers rebates on qualifying high-efficiency gas and propane furnaces and larger rebates on cold-climate heat pumps. Amounts change yearly, so ask your contractor for the current figures.

How long does a furnace last in New Hampshire?

A well-maintained gas or propane furnace lasts 15 to 20 years. Oil furnaces often last 20 to 25 years with annual cleaning. Heavy winter use shortens the lifespan compared with milder climates.

Should I convert from oil to gas?

If a gas main runs down your street, converting usually pays off. The conversion costs $8,000 to $15,000 all in, but natural gas costs far less per BTU than heating oil in most years, and utility incentives can reduce the up-front cost.