Water heater replacement cost
Replacing a tank-style water heater typically costs $882 to $1,826 installed, according to Angi's July 2026 data, and a tankless heater $1,400 to $3,900. Other publishers' ranges are wider. Below: what each source says, what's in the price, and an estimator you can fill in with your own quotes.
Published cost ranges
These are national ranges for the heater plus installation, as each source publishes them. None are our own prices.
| Source (date) | Tank | Tankless |
|---|---|---|
| Angi (updated Jul 20, 2026) | $882–$1,826 (avg. $1,348) | $1,400–$3,900 |
| HomeGuide (Jan 2, 2026) | $600–$3,100 (40–50 gal) | $1,400–$5,600 |
| Fixr (updated Jan 27, 2026) | $900–$3,000 (gas tank), avg. $1,400 | $2,500–$4,500 (Fixr tankless page, Jan 31, 2025) |
The sources measure different things. Angi's headline figure is mostly one-for-one tank swaps; HomeGuide's ranges run from small tanks to premium models; Fixr's average is for a natural-gas tank. That's why the ranges overlap but don't match.
By tank size
| Size | Heater only (HomeGuide) | Installed (HomeGuide) | Installed (Angi) |
|---|---|---|---|
| 30 gal | $300–$900 | $500–$1,900 | $700–$2,100 |
| 40 gal | $400–$2,000 | $600–$3,000 | $800–$2,300 |
| 50 gal | $500–$2,100 | $700–$3,100 | $800–$2,500 |
| 65 gal | $700–$2,400 | $900–$3,400 | – |
| 75 gal | $900–$2,600 | $1,100–$3,600 | $1,100–$4,000 |
| 80 gal | $1,000–$3,000 | $1,200–$4,000 | $1,300–$7,500 |
By fuel and type (installed, Angi, Jul 2026)
- Electric: $600–$3,500. Gas: $700–$2,700. Propane: $700–$2,500.
- Hybrid heat pump: $1,200–$3,500 (HomeGuide: $2,000–$4,600).
Estimate your own job
Each line starts at a published range. Type in a figure from your own quote, store price or building department and that line uses your number instead. Leave a box blank to keep the published range.
What's in the price
- The heater: size, fuel, efficiency and brand. HomeGuide puts a 40–50 gal tank at $400–$2,100 for the unit alone, and a tankless unit at $600–$2,600.
- Labor: Angi says it's usually around half the total. Like-for-like tank swaps are the cheapest; HomeGuide says they take a plumber 2–6 hours, and a tank-to-tankless upgrade a half to a full day.
- Permit: $25–$300 (Angi). Fixr gives $25–$1,500, the top end where new gas lines, electrical or major plumbing changes are involved.
- Removal: often included. If not, $100–$500 (Angi) or $75–$500 including dumping fees (Fixr).
- Code upgrades: venting ($500–$1,500 new, $100–$600 to replace, HomeGuide), an expansion tank ($90–$350, Angi), a gas line ($260–$820, Angi) or a new electrical line or sub-panel ($500–$1,000, Angi). Angi notes that electric tankless units can draw 120 to 160 amps and may need a 200 amp service.
- Location: attics, closets and tight stairs cost more. Angi puts relocating a water heater at $150–$3,400.
Tank or tankless?
Tankless costs more up front (see our tankless water heater cost page for details): Angi's ranges are $1,400–$3,900 against $882–$1,826 for a tank. Converting usually means new venting, a bigger gas line or a new electrical circuit. Angi gives tankless heaters about a 20-year life, against 8–12 years for a tank. For an electric home, ENERGY STAR estimates a certified heat pump water heater saves a household of four about $550 a year compared with a standard electric heater (at $0.146 per kWh), with a payback of about 2.7 years.
The federal Energy Efficient Home Improvement Credit no longer applies: the IRS says it covers qualifying property placed in service through December 31, 2025. Utility and state rebates may still apply; see ENERGY STAR's rebate finder.
Signs it's time to replace
ENERGY STAR lists rust or corrosion on the tank or water lines, leaks from joints or seams, rusty hot water, running out of hot water sooner, and rumbling noises. Angi says the average water heater lasts about ten years.
- Gas: a gas water heater means disconnecting and reconnecting a gas line and testing for leaks. If you smell gas, leave the building and call your gas utility or 911 from outside.
- Venting and carbon monoxide: gas and propane heaters must vent correctly. Angi warns that poor venting can expose you to carbon monoxide; fit a CO alarm nearby. A.O. Smith's manuals warn that gasoline, solvents and other flammable vapors near a gas heater can be ignited by its burner, so never store them nearby.
- T&P relief valve: A.O. Smith says it must be fitted directly into the heater's relief opening, never plugged or removed, with no valve between it and the tank. The discharge pipe must be at least as big as the valve outlet, end no more than 6 in above a floor drain or outside, and not exceed 30 ft or four elbows.
- Electrical: electric heaters are hard-wired to their own circuit. Turn off the breaker before any work, and have a licensed electrician add or upsize circuits.
- Scalding: the CPSC recommends setting the heater no higher than 120°F.
- Permits and the weight: many jurisdictions require a permit, and a full tank is very heavy, so drain it first. Hire a licensed plumber for gas work, venting changes, relocations and tankless conversions; in many places the law requires one.
Getting quotes
- Ask for an itemized quote: heater (make, model, size), labor, permit, removal and any code upgrades.
- Check whether the price includes the expansion tank, new connectors, the drain pan and the permit inspection.
- Compare the warranty on the tank and on the labor.
- Check the installer's license with your state licensing board.
Thinking of switching? See tankless water heater cost for conversion costs, GPM sizing and lifetime cost. For whole-home HVAC, see heat pump installation cost. More plumbing help: how to fix a leaky faucet, how to fix a running toilet, and the plumbing guides.
FAQ
How much does it cost to replace a water heater?
Angi's July 2026 data puts a tank-style replacement at $882 to $1,826, averaging $1,348, and tankless at $1,400 to $3,900. HomeGuide (January 2026) gives wider ranges: $600 to $3,100 for a standard tank and $1,400 to $5,600 for tankless.
Is labor included in those prices?
Yes, the installed ranges include the heater and labor. Angi puts labor alone at $150 to $450 to replace a tank-style heater and $600 to $1,900 for a tankless one; it says labor is usually around half the total.
Do I need a permit to replace a water heater?
Often, yes. Fixr says most local building departments require a permit to replace a water heater, and Angi says you'll need one at least to install a gas appliance or alter plumbing or electrical. Angi puts permits at $25 to $300. Your building department sets the rules and fee.
Is there still a federal tax credit for a heat pump water heater?
Not for new installs. The IRS says the Energy Efficient Home Improvement Credit applies to qualifying property placed in service through December 31, 2025. Check ENERGY STAR's rebate finder and your utility for local rebates.
Sources
All checked October 12, 2026. Dates are each page's own published or updated date.
- Angi, How much does water heater replacement cost?, updated July 20, 2026: installed ranges by type, size and fuel; labor, hourly rates, permits, removal, gas line, electrical, expansion tank, relocation; lifespan.
- HomeGuide, Water heater installation cost, January 2, 2026: unit and installed prices by type and size, labor hours, venting.
- Fixr, How much does water heater installation cost?, updated January 27, 2026: gas tank range and average, permits, removal, hourly rates.
- Fixr, Tankless water heater installation cost, updated January 31, 2025: tankless labor by fuel.
- ENERGY STAR, Save more with ENERGY STAR certified heat pump water heaters and the heat pump water heater fact sheet (PDF, December 2024): savings and signs of failure.
- IRS, Energy Efficient Home Improvement Credit: applies to property placed in service through December 31, 2025.
- A.O. Smith, Residential gas water heater instruction manual (PDF): T&P valve, discharge piping and flammable vapors.
- US CPSC, Avoiding tap water scalds (PDF).