Central air conditioning costs $4,000–$15,000 to install in 2026, with the national average at $6,800 for a straight replacement of a 3-ton system. First-time installations requiring new ductwork run $10,000–$18,000+. Your final price depends on system size, efficiency rating, brand, ductwork needs, and where you live.
Here's a quick look at what you'll pay based on the most common scenarios:
| Installation Type | Cost Range | Average | Includes |
|---|---|---|---|
| AC-only replacement (existing ducts) | $4,000–$8,500 | $6,200 | Outdoor unit, indoor coil, labor, thermostat |
| AC + furnace replacement | $6,500–$14,000 | $9,800 | Complete HVAC system |
| First-time AC with new ductwork | $10,000–$18,000+ | $13,500 | AC system + full duct installation |
| AC + heat pump conversion | $5,500–$12,000 | $8,500 | Heat pump, coil, labor, thermostat |
Cost Breakdown: Where Your Money Goes
Understanding exactly where your installation dollars go helps you evaluate quotes and spot overcharges. Here's the typical breakdown for a $6,800 mid-range AC replacement:
| Cost Component | Percentage | Dollar Amount | Notes |
|---|---|---|---|
| Outdoor condenser unit | 30–35% | $2,040–$2,380 | The AC unit itself |
| Indoor evaporator coil | 10–15% | $680–$1,020 | Must match outdoor unit |
| Labor | 30–40% | $2,040–$2,720 | Installation, brazing, testing |
| Thermostat | 2–4% | $136–$272 | Programmable or smart |
| Refrigerant line set | 3–5% | $204–$340 | Copper lines between units |
| Electrical work | 3–5% | $204–$340 | Disconnect, whip, breaker |
| Permits and inspection | 2–3% | $136–$204 | Required by code in most areas |
| Miscellaneous (pad, drain, etc.) | 3–5% | $204–$340 | Concrete pad, condensate line, supplies |
Cost by System Size
Tonnage is the primary driver of equipment cost. Each half-ton increase adds $300–$600 to the equipment price and $100–$300 to labor.
| System Size | Home Size (typical) | Equipment Cost | Labor Cost | Total Installed |
|---|---|---|---|---|
| 1.5 ton | 600–1,000 sq ft | $1,200–$2,800 | $2,000–$3,000 | $3,200–$5,800 |
| 2.0 ton | 1,000–1,500 sq ft | $1,400–$3,200 | $2,000–$3,200 | $3,400–$6,400 |
| 2.5 ton | 1,200–1,700 sq ft | $1,600–$3,600 | $2,200–$3,500 | $3,800–$7,100 |
| 3.0 ton | 1,500–2,100 sq ft | $1,800–$4,100 | $2,400–$3,800 | $4,200–$7,900 |
| 3.5 ton | 1,800–2,500 sq ft | $2,000–$4,600 | $2,600–$4,000 | $4,600–$8,600 |
| 4.0 ton | 2,200–3,000 sq ft | $2,200–$5,100 | $2,800–$4,200 | $5,000–$9,300 |
| 5.0 ton | 3,000–4,000 sq ft | $2,600–$6,000 | $3,000–$4,500 | $5,600–$10,500 |
These ranges cover equipment from budget (14.3 SEER2) through premium (20+ SEER2) brands. A 3-ton Goodman at 14.3 SEER2 installed will be near $4,200, while a 3-ton Carrier Infinity at 24 SEER2 runs closer to $12,000. Brand and efficiency tier matter as much as tonnage.
Cost by Efficiency Level
Higher-efficiency systems cost more upfront but save money on electricity over time. Here's how efficiency affects cost and savings for a 3-ton system:
| Efficiency Tier | SEER2 | Installed Cost | Annual Energy Cost* | 10-Year Energy Cost | 10-Year Total Cost |
|---|---|---|---|---|---|
| Minimum | 14.3 | $4,200–$5,500 | $725 | $7,250 | $11,950–$12,750 |
| ENERGY STAR | 15.2 | $4,800–$6,500 | $680 | $6,800 | $11,600–$13,300 |
| Mid-efficiency | 17 | $5,500–$7,500 | $600 | $6,000 | $11,500–$13,500 |
| High-efficiency | 20 | $7,000–$9,500 | $510 | $5,100 | $12,100–$14,600 |
| Ultra-high | 24+ | $10,000–$12,500 | $400 | $4,000 | $14,000–$16,500 |
*Based on 1,500 cooling hours/year, $0.14/kWh, 3-ton system.
The sweet spot is 16–18 SEER2 for most climates. You'll save $100–$150/year over minimum efficiency, and the extra $1,000–$2,000 in equipment cost pays for itself in 7–10 years. Ultra-high SEER2 (24+) makes financial sense only if you cool 6+ months per year or your electricity rate exceeds $0.20/kWh.
Regional Cost Differences
Installation costs vary by 20–40% depending on your location. Higher costs of living, stricter building codes, and seasonal demand all affect pricing.
| Region | Cost Modifier | Average 3-Ton Install | Key Factors |
|---|---|---|---|
| Northeast (NY, MA, CT) | +15–25% | $7,200–$9,500 | High labor rates, older homes needing modifications |
| Southeast (FL, GA, TX) | Baseline | $5,500–$7,500 | High demand, competitive market |
| Midwest (OH, IL, MI) | -5–10% | $5,200–$7,000 | Moderate labor, shorter cooling seasons |
| Southwest (AZ, NV) | +5–15% | $6,000–$8,500 | Extreme heat requires larger systems |
| Pacific Northwest (WA, OR) | -5–10% | $5,000–$7,000 | Short cooling seasons, moderate demand |
| California | +20–35% | $7,500–$10,000 | Strict Title 24 codes, high labor rates |
What Adds to Your Installation Cost
Several factors can push your total beyond the base cost:
| Add-On | Cost | When Needed |
|---|---|---|
| New ductwork (full system) | $4,000–$8,000 | No existing ducts |
| Duct modifications | $500–$2,500 | Resizing for new tonnage |
| Duct sealing | $500–$2,000 | Leaky existing ducts |
| Electrical panel upgrade | $1,500–$3,000 | Older panel can't support AC circuit |
| New circuit breaker + wiring | $300–$800 | No existing AC circuit |
| Concrete pad | $100–$300 | Replacing deteriorated pad |
| Crane or difficult access | $500–$1,500 | Rooftop units, tight spaces |
| Asbestos duct removal | $2,000–$6,000 | Pre-1980 homes with asbestos |
| Zoning system | $1,500–$3,500 | Multi-zone comfort control |
| Whole-house dehumidifier | $1,200–$2,500 | Humid climates |
| UV light | $200–$600 | Indoor air quality improvement |
Real-World Installation Examples
Example 1 — Cheapest viable install in Indiana: The Millers needed a straight AC replacement for their 1,400 sq ft ranch. They chose a 2.5-ton Goodman GSXN4 (14.3 SEER2). Equipment: $1,500. Labor: $2,200. Basic programmable thermostat: $45. Permit: $85. Total: $3,830. The contractor completed the job in 5 hours.
Example 2 — Average replacement in North Carolina: The Washingtons replaced a 15-year-old 3-ton system in their 1,800 sq ft colonial. They chose a Rheem RA16AZ (16 SEER2) with an Ecobee smart thermostat. Equipment: $2,800. Indoor coil: $700. Labor: $2,900. Thermostat: $220. Permit: $120. Minor duct sealing: $400. Total: $7,140. Job took 7 hours.
Example 3 — Premium install in Houston: The Kumars chose a Trane XV20i (20 SEER2, variable-speed) for their 2,400 sq ft home because they wanted maximum comfort in Texas heat. Equipment: $6,200. Indoor coil: $1,200. Labor: $3,800. ComfortLink thermostat: $380. Duct sealing: $800. Permit: $150. Total: $12,530. Two-day installation.
Example 4 — First-time install in Massachusetts: The Obriens added central air to a 1950s cape cod with hot water radiators and no ductwork. Equipment (2.5-ton Carrier Performance): $2,600. Air handler: $1,400. Full duct system: $6,200. Labor: $4,100. Thermostat: $250. Electrical: $600. Permit: $200. Total: $15,350. Four-day installation.
How to Save on Central AC Installation
Legitimate Ways to Reduce Cost
| Strategy | Potential Savings | Notes |
|---|---|---|
| Get 3+ quotes | $500–$2,000 | Prices vary 30–50% between contractors |
| Install in shoulder season (spring/fall) | $200–$800 | Less demand = lower labor rates |
| Federal tax credits (25C) | Up to $2,000 | For heat pumps meeting efficiency thresholds |
| Utility rebates | $200–$1,000 | Check DSIRE database for local programs |
| Manufacturer rebates | $100–$500 | Seasonal promotions from Carrier, Trane, etc. |
| Finance at 0% APR | Saves on interest | Many contractors offer 12–36 month 0% |
| Skip unnecessary upgrades | $500–$2,000 | UV lights and humidifiers are nice-to-haves |
Red flags in quotes: Be wary of any contractor who sizes your system based only on square footage (Manual J is required), quotes significantly below competitors (may be cutting corners), pressures you to decide immediately ("this price is only good today"), or doesn't include permit costs in the quote. A low bid that skips the Manual J, doesn't pull permits, or uses a mismatched indoor coil will cost you more in the long run.
Federal Tax Credits in 2026
Under the Inflation Reduction Act's Section 25C credits:
- Heat pumps meeting CEE Tier requirements: up to $2,000 tax credit (not a deduction — a dollar-for-dollar credit)
- Central AC units meeting efficiency thresholds: up to $600 tax credit
- Electrical panel upgrades needed for installation: up to $600 credit
- These credits reset annually — you can claim them again each year you make qualifying improvements
Note: Standard central AC units qualify for a smaller credit than heat pumps. If you're considering either, the larger heat pump credit can offset most or all of the cost difference. A qualifying heat pump provides both heating and cooling, potentially replacing your AC and furnace with a single system.
What to Expect During Installation
A standard AC replacement takes 4–8 hours. Here's the timeline:
| Phase | Time | What Happens |
|---|---|---|
| Prep and protection | 30 min | Lay drop cloths, disconnect old system |
| Remove old equipment | 1–2 hours | Recover refrigerant, disconnect, remove old condenser and coil |
| Install indoor coil | 1–2 hours | Mount coil on furnace, connect drain |
| Set outdoor unit | 1 hour | Place on pad, level, connect refrigerant lines |
| Electrical connections | 30–60 min | Wire disconnect, run control wiring |
| Vacuum and charge | 1 hour | Evacuate lines, charge with refrigerant |
| Thermostat and testing | 30–60 min | Install thermostat, verify operation, check temperatures |
| Cleanup and walkthrough | 30 min | Clean up, explain operation, register warranty |
Questions to Ask Your Installer
Before signing a contract, ask these questions:
- Will you perform a Manual J load calculation?
- What is the exact model number of every component being installed?
- Is the indoor coil AHRI-rated to match the outdoor unit?
- Are permits included in the price?
- What is the warranty on both equipment and labor?
- Who will the warranty be registered with?
- What does your labor warranty cover, and for how long?
- Will you provide a start-up checklist showing superheat, subcooling, and airflow measurements?
Financing Options
Most HVAC contractors offer financing. Here are the common options:
| Financing Type | Typical Terms | Best For |
|---|---|---|
| Dealer 0% APR | 12–36 months, no interest | Homeowners who can pay it off in time |
| Dealer financing | 6.9–12.9% APR, 36–120 months | Spreading cost over many years |
| Home equity loan/HELOC | 6–9% APR, tax-deductible interest | Large projects ($10K+) |
| Personal loan | 8–15% APR | Homeowners without home equity |
| Credit card | 15–25% APR | Last resort — avoid if possible |
| PACE financing | Varies by program | Energy efficiency upgrades, repaid through property tax |
Watch out for deferred interest promotions. Some "0% for 18 months" offers are actually deferred interest — if you don't pay in full by the end of the promotion period, you owe all the accumulated interest retroactively (often 25%+ APR). True "same-as-cash" or "no interest if paid in full" promotions work differently. Read the fine print carefully.
Key Takeaways:
- Budget $4,000–$8,500 for a standard AC replacement, $10,000–$18,000 if you need new ductwork
- Get at least 3 written quotes — prices vary 30–50% between contractors
- Require a Manual J load calculation — never accept square-footage-only sizing
- Target 16–18 SEER2 for the best cost-to-savings ratio in most climates
- Install in spring or fall for the best pricing and scheduling flexibility
- Claim federal tax credits: up to $600 for AC, up to $2,000 for qualifying heat pumps
- A quality installation matters more than brand — verify NATE certification and check references