Heat pumps are usually the better choice now.

Unless you live somewhere that regularly sees -20°F, a modern heat pump will outperform gas for most homes.

The big advantage: heat pumps are ridiculously efficient. They move heat instead of creating it, so you get 3–4x more heating per unit of electricity than gas gives per unit of fuel. That translates to lower bills in most climates, especially if you have decent electricity rates. They also cool your house, so you don’t need a separate AC unit.

Gas still has a few edges. It works better in extreme cold—older heat pumps struggle below freezing, though newer cold-climate models handle -15°F or lower just fine. Gas also heats the house faster if you like cranking the thermostat up quickly. And gas water heaters can be cheaper than heat pump water heaters upfront.

But gas has downsides: combustion byproducts (carbon monoxide, nitrogen dioxide), venting requirements, and price volatility. Heat pumps are simpler to maintain and emit nothing at your house.

The decision really comes down to your climate and local energy prices. If you’re in the South or Pacific Northwest, heat pump is a no-brainer. If you’re in northern Minnesota or Maine, I’d still lean toward a cold-climate heat pump—they’re surprisingly good now—but gas isn’t crazy if electricity is expensive.

Check your utility’s rates and see if there are rebates. That often tips the scale.