Furnace Replacement Cost in Memphis 2026

What furnace replacement includes in Memphis

Removal of the old furnace and installation of a new high efficiency gas or electric unit with new venting and a gas or electrical connection. Includes thermostat setup and combustion testing.

Typical time on site: 1 day. Local labor rate: $23/hour for an experienced hvac pro.

What changes the price of furnace replacement in Memphis

• Furnace AFUE efficiency
• Gas versus electric
• Venting modifications
• Heating capacity in BTU
• Old unit removal

A furnace replacement quote priced off statewide averages will be off by 10 to 20 percent for Memphis, because the metro has its own labor pool, material delivery distances, and permit timelines.

Memphis climate and demand for hvac

Hot humid summers; mild winters; mosquitoes drive pest control market; aging housing stock

Memphis permits for furnace replacement

Building department: City of Memphis Construction Code Enforcement. https://memphistn.gov/government/divisions/general_services

Typical permit cost: $100 - $1,200 residential. Inspection time: 5-12 business days. Memphis rule: Memphis uses City + Shelby County jurisdictions depending on location. TN contractor license required for projects over $25K. EPA RRP enforcement strict due to pre-1978 housing stock.

Tennessee sales tax and licensing for HVAC

Tennessee sales tax: 7% + local (~9.5% combined avg, highest base in US). Real property labor exempt. Tennessee has some of the highest combined state+local sales tax rates in the US.

State license: Tennessee Board for Licensing Contractors, required: $250 + exam + financial statement.

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