How much does it cost to replace a water heater?
A water heater replacement typically runs about $1,500 installed, with most jobs between $874 and $5,500 depending on tank vs. tankless.
Key takeaways
- A standard tank swap runs about $1,100-$2,600 installed; national averages land near $1,293 (Bob Vila) to $1,950 (This Old House).
- Tankless units cost more up front: roughly $2,100-$4,000 per This Old House and up to $5,500 per WaterHeaterChecker.
- Tank size drives price: This Old House lists 40-gallon units at $600-$1,200 and 80-gallon units at $1,000-$3,000 installed.
- Labor is a big share: plumbers charge $40-$200 an hour, and a standard install adds roughly $150-$450 (Bob Vila).
- Switching fuel (electric to gas) or adding code upgrades such as an expansion tank and permits can add hundreds to a few thousand dollars.
Replacing a water heater typically costs about $1,500 installed for a like-for-like tank swap, with the overall range running roughly $874 to $5,500 depending on tank vs. tankless, tank size, and fuel type. Bob Vila puts the national average at $1,293, while This Old House reports an average closer to $1,950.
What a water heater replacement costs
The bill depends first on the kind of unit. A conventional storage-tank heater is the cheapest to buy and install, while a tankless (on-demand) unit costs more up front but can trim energy bills. WaterHeaterChecker pegs a standard like-for-like tank swap at $1,100-$2,600 for most homes, and This Old House puts overall installation between $1,600 and $5,400, averaging about $1,950. Bob Vila reports a tighter national average of $1,293, with a typical range of $874 to $1,765 for straightforward jobs.
| Type / scenario | Typical installed cost | Source |
|---|---|---|
| Standard tank (like-for-like) | $1,100-$2,600 | WaterHeaterChecker |
| Tank by size (40-80 gal) | $600-$3,000 | This Old House |
| Tankless | $2,100-$4,000 (avg ~$2,800) | This Old House |
| Tankless (broader range) | $2,200-$5,500 | WaterHeaterChecker |
| Heat pump / hybrid | $1,200-$3,500 | Bob Vila / This Old House |
| National average (all types) | $1,293-$1,950 | Bob Vila / This Old House |
| Labor | $40-$200/hr; $150-$450 standard | This Old House / Bob Vila |
Size matters within the tank category. This Old House lists installed prices of $600-$1,200 for a 40-gallon unit, $700-$1,800 for 50 gallons, $900-$2,300 for 75 gallons, and $1,000-$3,000 for 80 gallons. Fuel type shifts the equipment cost too: Bob Vila cites electric units at $600-$3,500, gas at $700-$2,700, propane at $700-$2,500, and hybrid heat-pump models at $1,200-$3,500 for materials and labor. This Old House puts the unit-only cost of a basic electric heater around $850 and a gas model around $800 before venting, with propane starting near $700.
Heat-pump (hybrid) and high-efficiency units sit in the middle to upper part of the range. This Old House lists heat-pump models at $2,500-$3,500, while WaterHeaterChecker puts them at $1,900-$4,600 before rebates. They cost more up front than a plain electric tank but use far less energy, which is why federal tax credits and utility rebates often target them. Tankless systems land highest of the mainstream options: This Old House averages about $2,800 installed ($2,100-$4,000), and WaterHeaterChecker’s broader range reaches $5,500, especially when you are converting from a tank and need new venting or gas capacity.
What moves the price
- Tank vs. tankless: tankless units cost more to buy and install; This Old House notes tankless installs take 4-6 hours versus 1-3 for a tank.
- Tank size: jumping from 40 to 80 gallons roughly doubles the installed cost (This Old House).
- Fuel type: electric, gas, propane, heat-pump, and solar units carry different equipment prices; solar can reach $5,500 (This Old House).
- Fuel switching: converting to gas can add $1,500-$2,300 for new gas lines (This Old House); WaterHeaterChecker cites $500-$1,200 for fuel switching.
- Code upgrades and permits: expansion tanks, pans, and straps plus permits ($25-$300 per Bob Vila) add to nearly every quote.
- Removal and access: hauling the old unit runs $100-$500 (Bob Vila); WaterHeaterChecker adds $150-$350 for difficult access and $300-$600 to relocate the unit.
- Timing: emergency or after-hours service can add $200-$500 (This Old House), so replacing a heater before it fails is usually cheaper.
Bottom line: budget around $1,500 for a routine tank replacement, closer to $2,800 for a tankless upgrade, and more if you switch fuel types or bring old plumbing up to code. Rebates and tax credits can offset $100-$2,500 on efficient models, according to This Old House. Because averages diverge (Bob Vila’s $1,293 versus This Old House’s $1,950), collect two or three itemized quotes and confirm what each includes: permit, expansion tank, disposal, and warranty.
Frequently asked questions
How much does it cost to replace a water heater?
A like-for-like tank swap typically runs about $1,500 installed. Bob Vila lists a national average of $1,293 (range $874-$1,765), while This Old House reports an average near $1,950 with an overall range of $1,600-$5,400.
Is a tankless water heater more expensive to install?
Yes. This Old House puts tankless installation around $2,800 on average ($2,100-$4,000), and WaterHeaterChecker cites $2,200-$5,500. Tank units are cheaper up front but tankless can lower energy bills.
How much does a water heater cost by tank size?
This Old House lists installed costs of $600-$1,200 for 40 gallons, $700-$1,800 for 50 gallons, $900-$2,300 for 75 gallons, and $1,000-$3,000 for 80 gallons.
How much is labor to install a water heater?
Plumbers charge $40-$200 per hour (This Old House). Bob Vila estimates $150-$450 for a standard replacement, with more for tankless or conversions.
What adds to the cost of a water heater replacement?
Switching fuel types ($1,500-$2,300 for new gas lines per This Old House), code upgrades like expansion tanks, permits ($25-$300), old-unit removal ($100-$500), and difficult access all raise the price.
Can rebates lower the cost?
Yes. This Old House notes tax credits and utility rebates can offset installation by $100-$2,500, especially on high-efficiency or heat-pump models.
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