Average Furnace Installation Cost in Tennessee
$3,713
Low End
$2,445
Average
$3,713
High End
$5,156
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Use our free HVAC calculatorHere's how furnace installation costs typically break down in Tennessee:
Furnace Installation in Tennessee is 16% below the national average of $4,434. This makes Tennessee one of the more affordable states for furnace installation.
Tennessee experiences a humid subtropical climate with hot, humid summers and cool winters, plus a meaningful severe-weather season. Ice storms sweep across the state several times per decade and can stall exterior work for days, and west Tennessee sits in a highly active tornado corridor that shapes wind and anchoring details. For furnace installation projects specifically, this means timing and material selection are key factors in both cost and quality.
Less regulatory burden and simpler permitting processes help keep overall project costs down.
Tennessee requires a Board for Licensing Contractors license for any residential job over $25,000 (BC-A, BC-B, or BC-C classification), plus home improvement registration for jobs $3,000-$24,999
TVA and local power companies (Nashville Electric Service, MLGW, Knoxville Utilities Board) run active 2026 rebates under eScore for heat pumps and weatherization
West Tennessee (Memphis area) faces significant tornado and severe storm exposure, consider Class 4 impact roofing for insurance premium discounts
Nashville permit volume has stretched timelines to 8-16 weeks for significant remodels, factor municipal review time into project schedules
Most furnace installation projects in Tennessee require a building permit, especially if structural changes are involved. Estimated permit cost: $116.
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Furnace Installation in Tennessee typically costs between $2,445 and $5,156, with an average of $3,713 for a typical project in 2026.
No, furnace installation in Tennessee is about 16% below the national average, making it more affordable than many other states.
Permit requirements vary by city and county in Tennessee. Most furnace installation projects that involve structural changes require a building permit. Check our permit guide for Tennessee for specific requirements.
A typical furnace installation project takes 2-7 days depending on the scope, weather conditions, and contractor availability in your area.
Get at least 3 quotes from licensed contractors, consider scheduling during off-peak seasons (fall/winter), ask about financing options, and make sure to compare material options as they significantly affect the total cost.
Cost estimates are based on publicly available data and industry averages for Tennessee. Actual costs vary significantly based on project specifics, contractor pricing, material choices, and local market conditions. These estimates are for informational purposes only. Always get multiple quotes from licensed contractors.