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Types of furnace: which one fits your home?

Choose Non-condensing gas (Category I) for a replacement that reuses the home's existing furnace venting, which DOE's analysis assumes a non-condensing furnace does unless that venting needs replacing; Condensing gas (Category IV) for reaching 95% AFUE in a gas furnace, a level DOE says gas furnaces reach with condensing technology; Oil for homes in locations where natural gas is not readily available, where BASC says fuel oil (and propane) furnaces are used for new homes; Electric for homes that want an alternative to a fuel-fired furnace, which BASC says fully electric systems such as electric furnaces can offer.

The right choice depends on whether natural gas reaches your home, whether you can keep your existing furnace venting, the AFUE level you want from a gas furnace, and whether your home's electrical service can take a separate circuit for an electric furnace.

How we know: By . · Sources read: 17 October 2026 · Updated 27 October 2026

AFUE, in ENERGY STAR's words, is in general the percentage of the heat in the incoming fuel which is converted to space heat instead of being lost
TypeBest forMain advantagesMain drawbacks
Non-condensing gas (Category I)a replacement that reuses the home's existing furnace venting, which DOE's analysis assumes a non-condensing furnace does unless that venting needs replacingno official source names oneBASC: a Category I (non-condensing) furnace with an induced draft fan still draws combustion air from inside the home and can still backdraft if that room becomes depressurized
Condensing gas (Category IV)reaching 95% AFUE in a gas furnace, a level DOE says gas furnaces reach with condensing technologyBASC: installed as a sealed-combustion, direct-vent appliance that takes its combustion air from outside, a Category IV (condensing) furnace cannot backdraft into the living spaceDOE: a condensing furnace that replaces a non-condensing one does not use the existing venting system and needs new, dedicated plastic venting; DOE counts condensate removal for condensing installs: when applicable, a condensate drain, condensate pump and freeze protection (heat tape)
Oilhomes in locations where natural gas is not readily available, where BASC says fuel oil (and propane) furnaces are used for new homesBASC: Category III furnaces, mostly oil furnaces, can be installed as sealed-combustion, direct-vent appliances that take all their combustion air from outdoors through a sealed pipeBASC: oil furnaces are slightly less efficient than gas furnaces; DOE (2023 final rule) notes an overall market shift away from oil-fired furnaces
Electrichomes that want an alternative to a fuel-fired furnace, which BASC says fully electric systems such as electric furnaces can offerno official source names onein a home switching from a gas furnace, DOE counts a separate circuit of up to 100 amps to power the electric resistance heater

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What are the four types of furnaces?

No official source on this page names four furnace types; the four on this page are sorted by fuel and venting. The Building America Solution Center (BASC) says the National Fuel Gas Code “(NFPA 54) categorizes furnaces based on pressures in the exhaust flue” and flue gas temperature, into Categories I to IV, and that “Category II applies to some commercial furnaces but not residential furnaces.”

Of the other three, BASC says “Category 1 induced draft furnaces typically have efficiencies of 80% to 86%”; for Category III, “Most Category III furnaces are oil furnaces with gun type burners” and “These oil furnaces have an efficiency range of 82% to 88%.” For Category IV, the condensing type, BASC says the heat recovered from condensing water vapor ends up “enabling gas-fired Category IV furnaces to achieve efficiencies of >90% AFUE”.

Electric furnaces sit outside those combustion categories. BASC lists them among fully electric heating systems, “such as electric furnaces, traditional split heat pumps , ductless heat pumps , and ground-source heat pumps”, that “can offer an alternative to fuel-fired furnaces”.

What is the most common type of furnace?

A forced air gas furnace. BASC says: “Forced air furnaces are the most common heating source in America ( EIA 2020 ). Forced air furnaces are typically fueled by natural gas”.

For new and replacement systems, EIA (2024) says: “Most new and replacement heating systems in homes use natural gas or electricity.”

My furnace is 25 years old. Should I replace it?

Age alone does not settle it: no official source on this page sets an age at which a furnace must be replaced. For its 2023 furnace rule, DOE estimated an average lifetime from shipments and survey data, which places a furnace of that age past the average: “DOE estimates the average product lifetime to be 21.5 years for NWGFs and MHGFs.” (NWGF means a non-weatherized gas furnace.) DOE also used “a median lifetime of 16 years (low lifetime scenario) and 27 years (high lifetime scenario)”, and says “Electric furnaces are estimated to have the same lifetime as NWGFs (21.5 years)”. These are DOE planning estimates, not a measure of any one furnace.

If you do replace a gas furnace, the federal minimum efficiency is scheduled to change. The federal furnace standards in the eCFR list “(A) Non-weatherized gas furnaces (not including mobile home furnaces) 80.0” percent AFUE today and “(A) Non-weatherized gas furnaces (not including mobile home gas furnaces) 95.0” for units manufactured on and after December 18, 2028, a level DOE says effectively requires condensing technology. Treat that date as scheduled, not settled: a petition DOE published for comment asks it to move the compliance date for “consumer furnaces (currently December 18, 2028) until January 1, 2030, at a minimum.”

If your priority is...
PriorityChoose
a gas furnace at 95% AFUE, the level DOE says takes condensing technologyCondensing gas (Category IV)
reusing the home's existing furnace ventingNon-condensing gas (Category I)
a home in a location where natural gas is not readily available (BASC names propane furnaces here too)Oil

What does furnace installation cost?

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