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.
How to save on water heater replacement
- Stick with the same fuel type and tank size you already have, since switching from gas to electric or resizing can add venting, wiring, or plumbing costs.
- Choose a standard tank model over a tankless unit if upfront cost matters most, as tankless installs require more labor and often gas or electrical upgrades.
- Get itemized quotes from several licensed plumbers and compare the unit cost separately from the labor.
- Check for utility rebates or federal tax credits on high-efficiency and heat-pump water heaters, which can offset the higher purchase price.
- Buy the unit during a holiday sale and ask your installer whether they will fit a customer-supplied heater.
- Replace it proactively before it fails, so you avoid emergency-call surcharges and water damage cleanup.
Cost scenarios
Budget (around $874): A like-for-like swap of a standard electric or gas tank in an easily accessible spot, with minimal code updates and quick labor.
Typical (around $1,500): A mid-range tank replacement including permits, new fittings, disposal of the old unit, and standard installation.
Premium (around $5,500): A tankless or high-capacity system with new gas lines, venting, or electrical upgrades and more complex installation.
Cost by state
Prices vary by where you live. These estimates scale the national typical ($1,500) by each state's overall price level, so treat them as a regional guide rather than a quote for how much does it cost to replace a water heater?.
See all 50 states + DC
| State | Estimated typical | vs U.S. |
|---|---|---|
| Alabama | $1,330 | -11% |
| Alaska | $1,540 | +2% |
| Arizona | $1,510 | +1% |
| Arkansas | $1,300 | -13% |
| California | $1,660 | +11% |
| Colorado | $1,550 | +3% |
| Connecticut | $1,550 | +4% |
| Delaware | $1,500 | 0% |
| District of Columbia | $1,650 | +10% |
| Florida | $1,550 | +3% |
| Georgia | $1,440 | -4% |
| Hawaii | $1,650 | +10% |
| Idaho | $1,430 | -5% |
| Illinois | $1,500 | 0% |
| Indiana | $1,400 | -7% |
| Iowa | $1,320 | -12% |
| Kansas | $1,350 | -10% |
| Kentucky | $1,350 | -10% |
| Louisiana | $1,320 | -12% |
| Maine | $1,460 | -3% |
| Maryland | $1,570 | +5% |
| Massachusetts | $1,590 | +6% |
| Michigan | $1,440 | -4% |
| Minnesota | $1,480 | -1% |
| Mississippi | $1,300 | -13% |
| Missouri | $1,360 | -9% |
| Montana | $1,420 | -5% |
| Nebraska | $1,350 | -10% |
| Nevada | $1,500 | 0% |
| New Hampshire | $1,560 | +4% |
| New Jersey | $1,630 | +9% |
| New Mexico | $1,380 | -8% |
| New York | $1,620 | +8% |
| North Carolina | $1,410 | -6% |
| North Dakota | $1,330 | -11% |
| Ohio | $1,390 | -7% |
| Oklahoma | $1,320 | -12% |
| Oregon | $1,550 | +3% |
| Pennsylvania | $1,460 | -2% |
| Rhode Island | $1,530 | +2% |
| South Carolina | $1,410 | -6% |
| South Dakota | $1,330 | -11% |
| Tennessee | $1,380 | -8% |
| Texas | $1,460 | -3% |
| Utah | $1,480 | -1% |
| Vermont | $1,470 | -2% |
| Virginia | $1,520 | +1% |
| Washington | $1,610 | +7% |
| West Virginia | $1,340 | -11% |
| Wisconsin | $1,410 | -6% |
| Wyoming | $1,390 | -7% |
Regional estimates scale our national typical by BEA Regional Price Parities (2024), an index of overall state price levels — actual variation for this specific service differs. Source: BEA.
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.
Sources
How we estimate this
Every figure on this page is compiled from the public sources cited above and given as a low–typical–high range rather than a single false-precise number. Where costs vary by location we scale the national typical using published state price levels. We recheck figures on a set schedule and stamp each report with the date last verified. We are independent and are never paid to change a number — see how we price things.
