Cost to Install HVAC System with Ductwork in 2025
Imagine it’s the middle of summer, and your window units just aren’t cutting it. Or maybe winter is creeping in, and your old electric baseboard heat is driving up your utility bill. Whether you’re building a new home or upgrading an old one, installing a central HVAC system with ductwork is one of the smartest investments you can make for year-round comfort. But let’s be honest: it’s also one of the most expensive.
So, how much does it actually cost to install an HVAC system with ductwork in 2025? The short answer: anywhere from $9,000 to over $20,000. But the real answer depends on multiple factors like your home size, region, equipment type, labor, and whether you need new ductwork or are replacing existing lines.
In this guide, we’ll break down everything you need to know, costs, variables, insider tips, and even how to save money on your project.
What Does HVAC with Ductwork Installation Include?
When you hear “HVAC system with ductwork,” it usually refers to a complete heating and cooling setup for your entire home. Here’s what’s typically included:
- Central air conditioner or heat pump
- Furnace (gas or electric)
- Air handler and blower motor
- Thermostat
- New ductwork (supply and return lines)
- Vent registers and grilles
- Installation labor and permit fees
According to the U.S. Department of Energy, a properly installed HVAC system can save homeowners up to 20% on energy bills compared to inefficient older units or piecemeal setups.
Average Cost to Install HVAC with Ductwork in 2025
If you’re replacing an old AC system rather than installing a brand-new setup, this detailed AC replacement cost guide can help you understand what to expect.
| Home Size (sq. ft.) | HVAC Equipment Cost | Ductwork Cost | Labor & Permits | Total Installed Cost |
| 1,000 – 1,500 | $3,800 – $5,500 | $2,000 – $3,500 | $2,000 – $3,000 | $7,800 – $12,000 |
| 1,500 – 2,500 | $5,000 – $7,500 | $2,800 – $5,000 | $2,500 – $3,500 | $10,300 – $16,000 |
| 2,500+ | $6,500+ | $4,000+ | $3,000+ | $14,000 – $20,000+ |
Cost Per Hour for Labor: $80 to $150 per hour, depending on local rates and complexity.
Cost Per Square Yard for Ductwork: $20 to $35 per square yard, factoring in materials and labor.
Source: HomeAdvisor, Energy.gov, ACCA (Air Conditioning Contractors of America)
What Impacts the Cost of HVAC and Ductwork Installation?
Let’s break down the key variables that affect how much you’ll pay:
1. System Type (Gas Furnace, Electric, Heat Pump)
- Gas furnace + AC combo: Most common; efficient for colder climates
- Heat pump: Heats and cools; ideal for mild climates
- Electric systems: Easier to install, but often cost more to run
2. SEER2 Rating (Efficiency Level)
Higher SEER2-rated units are more efficient but cost more up front.
| SEER2 Rating | Efficiency Level | Cost Increase |
| 14.3 (Minimum) | Standard | Baseline |
| 16 – 18 | High | +$800 to $1,200 |
| 20+ | Ultra High | +$1,500 to $2,500 |
ENERGY STAR-certified equipment is often eligible for rebates and tax incentives.
3. Home Size and Layout
- More square footage means larger equipment and more ductwork
- Two-story homes or homes with tight crawl spaces raise labor costs
4. Condition of Existing Infrastructure
- No existing ducts? You’ll pay more.
- If old ducts need to be removed or sealed, that adds labor hours
5. Zoning and Thermostats
- Multi-zone systems cost more but allow room-by-room control
- Smart thermostats ($150–$300) add to the upfront cost but can reduce long-term energy bills
6. Labor and Permits
- Licensed HVAC contractors typically charge $80–$150/hour
- Permits can range from $100 to $500 depending on your location
The Cost of New Ductwork Explained
New ductwork installation alone can cost $2,000 to $7,500 depending on:
- Square footage covered
- Number of vents and returns
- Material type (flexible duct vs. rigid sheet metal)
- Labor hours involved
EPA Note: Poorly installed or leaking ductwork can reduce HVAC efficiency by up to 30%.
| Component | Average Cost (Installed) |
| Flexible Duct (per sq. yard) | $20 – $25 |
| Sheet Metal Duct (per sq. yard) | $30 – $35 |
| Return Vent Installation | $150 – $300 each |
| Supply Vent Installation | $100 – $250 each |
Sealing and insulating ducts is highly recommended and may add $500 to $1,200 to the total, but it significantly improves efficiency.
Can You Reuse Existing Ductwork?
Yes, but only if it’s in good shape. Here’s when you can consider keeping your current ducts:
Keep existing ducts if:
- They are properly sized for your new system
- They show no signs of leaks, rust, or mold
- You’ve had them pressure-tested and inspected
Replace them if:
- Airflow is uneven throughout your home
- Ducts are damaged, leaking, or contaminated
- You’re upgrading to a zoned system or different HVAC type
Rebates, Incentives, and Tax Credits
In 2025, there are multiple ways to offset the cost of a new HVAC system:
- Federal Tax Credit: Up to $2,000 for qualifying ENERGY STAR heat pumps (Inflation Reduction Act)
- Local Utility Rebates: Often $150 – $800 per system
- Manufacturer Rebates: Brands like Lennox, Trane, and Carrier may offer seasonal promotions
Tip: Use EnergyStar.gov and DSIREUSA.org to check current rebate programs in your state.
Tips to Save on HVAC Installation with Ductwork
- Schedule Off-Season Installations: Spring or fall installs often come with contractor discounts and better availability.
- Compare at Least 3 Quotes: Prices can vary drastically between contractors for the same system and scope.
- Bundle Installations: Combine HVAC work with other home upgrades to qualify for multi-service discounts.
- Finance Wisely: Take advantage of 0% APR offers from HVAC providers for manageable monthly payments.
- Do Your Prep: Clear access to attics, basements, or crawlspaces to help crews save time and reduce labor charges.
Real-World Cost Examples (Scenarios)
Scenario 1: 1,500 sq ft Home, New HVAC + Ductwork
- System: 3-ton AC + 80% AFUE gas furnace
- Ductwork: All new, 9 vents, 1 return
- Location: Dallas, TX
- Total cost: $10,800
Scenario 2: 2,200 sq ft Home, Replace HVAC + Seal Existing Ducts
- System: Heat pump, 17 SEER2
- Ducts: Pressure-tested and sealed
- Location: Raleigh, NC
- Total cost: $12,400
Scenario 3: 3,000 sq ft Home, Zoned HVAC + Custom Ductwork
- System: Zoned dual-stage AC, gas furnace
- Ducts: Custom metal + 2 returns per floor
- Location: San Francisco, CA
- Total cost: $18,900
Budget Smart, Breathe Easier
Installing an HVAC system with ductwork is a major home improvement, and a major investment. But it’s one that pays off in comfort, efficiency, and long-term home value. By understanding where your money goes, what factors influence the price, and how to take advantage of rebates and energy credits, you can make a smart decision that fits your home and budget.
Need help deciding? Get a professional load calculation and a few detailed quotes from local, licensed HVAC pros. It’s the best way to ensure your system is sized right, priced fairly, and built to last.
Need Expert Help with HVAC Installation?
If you’re planning an upgrade or building new, Osborne Heating & Cooling can help. Our licensed technicians specialize in energy-efficient HVAC systems and custom ductwork solutions tailored to your home.
Call 804-985-3057 or schedule a consultation online to get a detailed quote today.
