Quick answer
At Puget Sound rates, a gas furnace costs meaningfully less to run than an electric furnace — resistance heat pays full price for every unit of warmth. But in 2026 the honest answer is usually neither: a cold-climate heat pump delivers two to four times the heat per kilowatt-hour, adds cooling, and is the only option Washington rebates support. Choose gas for a low-friction swap on sound venting; choose the heat pump when any electric path is on the table.
- An electric furnace is 100% efficient at the point of use — and still the most expensive common way to heat, because resistance heating pays full price for every unit of heat.
- A modern condensing gas furnace converts 90–96%+ of its fuel to heat (AFUE), and gas is the cheaper fuel per delivered BTU at representative local rates (~$1.60/therm vs ~$0.12/kWh).
- Neither furnace earns a 2026 rebate. The federal 25C credit expired December 31, 2025, and WA HEAR plus utility rebates flow only to heat pumps.
- Gas needs a sound flue, combustion air, and a gas line; an electric furnace needs a large dedicated circuit — often 60–80 amps — which is a real constraint on 100A panels.
- If you already have an electric furnace, you're the single best rebate candidate in the state: replacing electric resistance heat unlocks the strongest heat-pump incentive stack.
At a glance
| Gas furnace | Electric furnace | |
|---|---|---|
| Efficiency | 80–96%+ AFUE — some heat always leaves through the flue | 100% at the point of use — but every BTU is bought at full electric price |
| Operating cost | Lower per delivered BTU at representative Puget Sound rates | The highest common heating bill — resistance heat is 1:1, no multiplier |
| Infrastructure | Gas line, flue venting, combustion air | Dedicated 60–80A circuit; no venting |
| Cooling | None — pairs with a separate AC | None — pairs with a separate AC |
| 2026 rebates | None | None — but replacing one unlocks the best heat-pump stack |
| Typical lifespan | 15–20 years with annual service | 15–20 years — fewer moving parts, simple elements |
Efficiency framing per ENERGY STAR furnace criteria; circuit sizes are typical electric-furnace nameplate ranges — your exact circuit is confirmed by load calculation.
What does each option cost installed in the Seattle area?
These ranges match our published Puget Sound cost guides. The electric furnace looks like the simpler machine — no flue, no gas line — but its like-for-like swap price runs higher than gas because of the electrical scope, and its operating cost stays the highest in the house for the life of the unit.
| Option | Typical installed range | What that covers |
|---|---|---|
| Gas furnace (high-efficiency) | $6,000–$11,000 | 96% AFUE condensing furnace installed on serviceable ducts, venting, and gas line — permit, code items, and haul-away included. |
| Electric furnace (like-for-like swap) | $9,000–$15,000 | New cabinet, elements, and blower on the existing ducts and circuit — locks in 1:1 resistance operating cost for another 15–20 years. |
| Cold-climate heat pump system | $12,000–$20,000 | The electric option that actually wins on bills — 2–4 units of heat per unit of electricity, cooling included, and the only rebated path. |
What changes the price
- Venting condition on gas: corroded, under-sized, or orphaned flues must be corrected before a new gas furnace goes in.
- Panel capacity on electric: a 60–80A furnace circuit is a heavy ask of a 100A panel — if panel work enters the picture, WA HEAR can put up to $4,000 toward it on income-eligible heat-pump projects (not furnace swaps).
- Gas line integrity: older homes occasionally need sediment traps, shutoff replacements, or line corrections folded into the quote.
- Ductwork: both furnaces push air through the same duct tree — leaky or undersized ducts tax either machine equally.
- Rebate asymmetry: no 2026 program pays for either furnace; every dollar of incentive in Washington points at heat pumps.
Ranges are representative Seattle / Puget Sound installed prices, not a quote — your home's specifics set the real number. Eco gives you an upfront price before any work begins.
How do they work differently?
How a gas furnace works
A burner fires inside a heat exchanger, the blower pushes your home's air across that hot metal, and combustion gases vent outdoors through a flue. High-efficiency condensing models wring so much heat from the exhaust that it leaves as a cool vapor through PVC pipe. Recovery is fast and the air at the register is hot — 120–140°F — but the machine needs fuel, combustion air, and a safe exhaust path, all of which get inspected.
How an electric furnace works
Heating elements — big resistance coils, like a toaster scaled up — sit in the airstream and the blower pushes air across them. No flame, no flue, no carbon monoxide pathway, and near-silent operation. The physics are honest but unforgiving: one kilowatt-hour in, one kilowatt-hour of heat out, every hour of every cold night. That 1:1 ceiling is exactly what a heat pump breaks by moving heat instead of making it.
Pros and cons, honestly
Gas furnace
Pros
- Lower operating cost than electric resistance at representative local rates
- Fast recovery and hot register air on cold mornings
- Lower installed price than an electric furnace swap
- Proven like-for-like replacement when venting and gas line check out
Cons
- Zero rebate support in Washington in 2026
- Flue, combustion air, and gas-line requirements add inspection points and correction risk
- Keeps the home tied to a gas meter if you're otherwise electrifying
- No cooling — a separate AC is its own project
Electric furnace
Pros
- No combustion, no flue, no carbon monoxide considerations
- Simple, reliable machine with inexpensive parts
- Placement flexibility — closets and interior rooms a flue could never reach
- Its replacement unlocks Washington's strongest heat-pump rebate stack
Cons
- The most expensive common way to heat a home, period
- Needs a large dedicated circuit — a real constraint on 100A panels
- Higher installed price than a gas furnace swap
- No cooling, and no rebate will ever offset it
Which one should you choose?
Choose a gas furnace when
Your existing gas furnace died, the flue and gas line pass inspection, and you want the fastest, most affordable path back to heat. It's also the pragmatic call when the panel is genuinely full, no electrification plans are on the horizon, and you value hot, fast register air. Go in knowing it's the last generation of rebate-free equipment — and that its ducts will happily carry a heat pump later.
Choose the electric path when
Your home has no gas service, or you're electrifying anyway — but in 2026 the electric path that makes financial sense is almost never a new resistance furnace. If you currently heat with an electric furnace, you're the best rebate candidate in Washington: WA HEAR offers up to $8,000 point-of-sale for income-eligible households and PSE pays on qualifying heat pumps for everyone else. Buy the heat pump; keep the elements only as backup.
Also consider: dual-fuel
If you like gas's cold-snap muscle but want heat-pump economics the other 95% of the season, a dual-fuel system pairs a heat pump with a gas furnace as backup. The heat pump carries the mild Puget Sound shoulder seasons at a fraction of the cost, and the furnace takes over only when temperatures dive. See our heat pump with backup heat comparison for the full math.
The verdict, by situation
Gas furnace
The pragmatic swap on sound venting
Lowest installed price, lowest gas-era operating cost, fastest recovery. The right call for a died-on-Tuesday replacement in a gas home with no electrification plans.
Electric furnace
Simple machine, punishing bills
Only defensible where gas doesn't exist, loads are tiny, or it's serving as backup strips inside a heat pump air handler — not as a primary heater you choose on purpose in 2026.
Cold-climate heat pump
The electric option that actually wins
2–4× the heat per kilowatt-hour, cooling included, and the only path Washington rebates fund. If the question is gas vs electric, this is usually the real answer.
Which Washington homes this fits
1990s gas-furnace home, Kent or Renton
Sound flue and gas line make the gas swap cheap and fast — but price the dual-fuel option before signing; the ducts are already heat-pump-ready.
1970s all-electric rambler, Everett or Lynnwood
An electric-furnace home is Washington's best rebate candidate. Don't replace resistance with resistance — the heat-pump stack was built for exactly this house.
Condo or small home with no gas service
Trenching gas in never pencils. A ductless or ducted heat pump beats a new electric furnace on bills from day one.
Whole-home electrification project, Seattle
The furnace decision is the anchor: go heat pump, keep resistance only as integrated backup, and stack HEAR, utility rebates, and the panel/wiring allowances in one project.
Ready to compare for your home?
Get honest numbers for both options side by side — an upfront range, the considerations, and the rebates you qualify for, before any work begins.
Continue exploring
- BookFurnace installation & replacement
- BookHeating services
- BookElectrical panel upgrades
- CompareHeat Pump vs Electric Furnace: The All-Electric Showdown
- CompareHigh-Efficiency vs Standard Furnace: Is 95%+ Worth It Here?
- CompareHeat Pump With Backup Heat vs Furnace: Does Seattle Need Dual Fuel?
- CompareGas vs Electric Appliances: An Honest Appliance-by-Appliance Guide
- GuideHeat pump vs gas furnace — the full Puget Sound evaluation
- GuideHVAC system cost guide
- GuideElectrical load calculator
- CompareAll heating & air comparisons
Common questions
Is an electric furnace really 100% efficient?
Yes — and that's the trap. Every watt becomes heat inside your home, so nothing is wasted, but every watt is also purchased at full electric rates. A heat pump moves two to four units of heat per unit of electricity, which is why a '100% efficient' electric furnace still produces the highest heating bills of any common system.
Which is cheaper to run in the Puget Sound — gas or electric furnace?
Gas, and it isn't close. At representative local rates (~$1.60/therm, ~$0.12/kWh), a gas furnace delivers heat at a meaningfully lower cost per BTU than electric resistance. The only electric equipment that beats gas on operating cost here is a heat pump.
Are there rebates for a new furnace in Washington in 2026?
No — for either fuel. The federal 25C tax credit expired December 31, 2025, and Washington's live programs (WA HEAR point-of-sale rebates plus PSE, Seattle City Light, SnoPUD, and Tacoma Power utility rebates) fund heat pumps, not furnaces.
Can my panel handle an electric furnace?
Maybe — a typical electric furnace wants a dedicated 60–80 amp circuit, which is a heavy ask of a 100A panel that's also running a range, dryer, and water heater. We run the NEC load calculation before quoting; if panel work is unavoidable, it's usually smarter to point that investment at a heat pump, where HEAR can help pay for the panel.
I have an electric furnace now. What should replace it?
Almost certainly a heat pump, and you're in the best position in the state to buy one: replacing electric resistance heat is the scenario Washington's rebate stack was designed for. The new air handler can keep electric elements as automatic backup for cold snaps, so you lose nothing on the coldest nights.
Last updated: 2026-07-17
Sources & references
Equipment ratings, program details, and industry figures on this page come from manufacturers and primary sources, linked below. Verify program status and requirements for your home where applicable.
Equipment & efficiency
- Gas furnace efficiency is rated by AFUE; ENERGY STAR certifies high-efficiency models — ENERGY STAR — Furnaces
- Cold-climate air-source heat pumps are specified and listed for low-temperature performance — NEEP — Cold-Climate ASHP List
Permits & rebates
- Electrical circuit and service work in Washington requires permits and inspection — WA L&I — Electrical permits, fees & inspections
- WA HEAR point-of-sale rebates fund heat pumps, panel, and wiring work for income-eligible households — WA Commerce — HEAR program
- PSE pays utility rebates on qualifying air-source heat pumps — PSE — Rebates