Heat Pump or Gas Furnace: Which One Fits Your Puget Sound Home
Short answer. Most homes around Seattle and Tacoma can be heated by a heat pump alone, and the same unit cools the house in summer. If you already have gas and a furnace that still has years left, adding a heat pump to it is often the best of both: the heat pump carries most of the season and the furnace takes over on the coldest days. A gas furnace with central air is still the most dependable setup we install, but it costs more to run in the shoulder seasons and needs a separate air conditioner for summer.
Key facts
- Heat pump, 3 ton
- from $7,500 installed
- Gas furnace, 80%
- from $3,300
- Gas furnace, 96%
- from $4,400
- Central AC, 3 ton
- from $6,900
Prices from our published price list, valid through December 31, 2026. Your quote is itemized after a free in-home assessment.
The right choice depends on the house, not on a trend. Below is how we work it out at an assessment, with prices from our own price list.
What each system actually does
A gas furnace burns natural gas to make heat and a blower pushes that warm air through your ducts. It heats fast and keeps heating no matter how cold it gets outside. It does not cool. For summer you need a separate central air conditioner sitting outside, sharing the same ducts and blower.
A heat pump does not burn anything. It moves heat. In winter it pulls heat out of the outdoor air and brings it inside; in summer it runs the other way and works as an air conditioner. One outdoor unit, one indoor air handler or furnace, both seasons covered.
That second point matters when you also want cooling: a central heat pump starts at $7,200, a central AC at $6,700, and only the heat pump also heats.
Three setups we install, and who each one suits
1. Heat pump with an air handler (all electric)
The heat pump does all the heating and cooling. The indoor part is an air handler instead of a furnace, with an electric backup heater for the rare deep freeze.
This suits homes without gas, homes heated today by baseboard or wall heaters, and owners who want to drop the gas bill completely. In Shoreline we replaced old electric heaters with a Mitsubishi heat pump and an air handler in the crawl space; in Lakewood a worn out heat pump and air handler were replaced as a pair with Carrier equipment.
2. Heat pump added to a gas furnace (dual fuel)
The heat pump sits outside and runs most of the year. The gas furnace stays inside as the second stage. The thermostat switches from the heat pump to the furnace below an outdoor temperature we set at the install, so the furnace only works when it is really cold.
This suits homes with gas and a furnace that is not near the end of its life. In Bothell we put an American Standard heat pump and coil on top of the existing gas furnace, so the furnace stays as the second stage instead of being replaced.
3. Gas furnace with central air
The classic setup. The furnace heats, a central AC cools. In our experience it is the most reliable combination: two simple machines, each doing one job. It makes sense when gas is already in the house, the ducts are good and the priority is heat that never hesitates.
The trade off is that you pay for gas through the mild months when a heat pump could have heated the house on electricity, and you maintain two separate systems instead of one.
What it costs to install
These are starting prices from our published price list. Every quote is itemized at the free in-home assessment before any work starts.
| Setup | Starting price, installed |
|---|---|
| Heat pump, 3 ton | from $7,500 (a typical 3 ton job lands around $8,000) |
| Gas furnace, 80% AFUE | from $3,300 |
| Gas furnace, 96% AFUE | from $4,400 |
| Central AC, 3 ton | from $6,900 |
| Furnace replaced at the same time as a heat pump install | +$3,300 (80%) or +$4,500 (96%) |
| 240V circuit for a new heat pump or AC | +$1,400 |
Heat Pump Cost See your price range
Two things move the number most often. A home that never had a heat pump or AC usually needs a new 240V circuit. And if the furnace is old, doing the furnace and the heat pump together costs less than two separate visits.
What it costs to run
We will not print a monthly figure here, because it depends on two numbers that are different in every home: your electric rate and your gas rate, plus how the house holds heat. What we can say from the jobs we have done:
- In the mild, damp months that make up most of our heating season, a heat pump can heat the house for less than a furnace burning gas, depending on your electric and gas rates.
- On the coldest nights a heat pump works harder for every degree, which is exactly when a dual fuel system hands off to the furnace.
- When a heat pump replaces electric baseboard or wall heaters, homeowners usually notice the difference on the bill.
At the assessment we look at your last winter of bills and tell you which way your house leans.
Questions we ask before recommending anything
- Is there gas in the house, and how old is the furnace? A furnace under about 15 years old is usually worth keeping and pairing with a heat pump. Past 15 years we usually suggest replacing it, with or without a heat pump.
- Are the ducts in usable shape? A central heat pump uses the same ducts as a furnace. If the ducts are missing or poor, a ductless mini-split may be the better route; we cover that choice in Mini-Split or Central Heat Pump.
- Does the electrical panel have room? A heat pump needs its own 240V circuit.
- Where can the outdoor unit go? It needs a solid pad or wall bracket, airflow around it and a short, tidy path for the line set.
- How long will you stay? A shorter stay favours the lower install cost; a longer stay favours lower running cost.
Real installs behind these answers
- Bothell: American Standard heat pump and coil added to an existing gas furnace. Bothell job
- Shoreline: Mitsubishi heat pump with an air handler in the crawl space, replacing electric heaters. Shoreline job
- Lakewood: an old heat pump and air handler replaced together with a Carrier pair. Lakewood job
- Bellevue: a gas furnace over 15 years old replaced with a 96% American Standard furnace. Bellevue job
Video: Bothell: The crew finishing upOur crew finishing the outdoor side of the job, talking it through as they work.Watch it on its own page Talk it through with us
The assessment is free and happens in your home, because the answer depends on your ducts, your panel and your bills. Book a free in-home assessment or see your price range online.
FAQ
Can a heat pump heat my house on its own through a Seattle winter?
In most homes, yes. Modern heat pumps keep heating well below freezing, and lowland Puget Sound winters are mostly mild and wet. An all electric system keeps a built in backup heater for the few hours when it is not enough.
What is a dual fuel system?
A heat pump and a gas furnace on the same ducts and the same thermostat. The heat pump runs most of the time; below a set outdoor temperature the thermostat switches to the furnace.
Do I need new ductwork for a heat pump?
Not if your existing ducts are in usable shape. A central heat pump uses the same supply and return ducts as your furnace. We check them during the assessment.
Which is more reliable, a heat pump or a gas furnace?
A gas furnace with central AC is the most dependable setup we install. A dual fuel system gets close, because if either half needs a repair the other one can still heat the house.
Can I keep my furnace and only add cooling?
Yes. That is exactly the dual fuel setup, and it usually costs less than replacing everything at once.
Related: Heat pump installation cost · Furnaces · Heat pumps · Repair or replace your furnace
What changed: October 25, 2026: Published. October 26, 2026: Starting prices now include the 2 ton size: a central heat pump from $7,200, a central AC from $6,700.
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