Water Heater Replacement Cost
Water heater replacement costs between $800 and $2,200 for standard tank models, including installation. Tankless water heaters cost $1,500-$4,500 installed.
Get Free Quotes
Connect with trusted local professionals for your water heater replacement cost.
What service do you need?
Select the type of service you're looking for
Cost Breakdown
| Component | Low | High |
|---|---|---|
| Parts | $500 | $1,500 |
| Labor | $300 | $700 |
| Total | $800 | $2,200 |
| DIY (parts only) | $400 | $1,200 |
What Is a Water Heater and How Does It Work?
A water heater is an essential home appliance that heats and stores hot water for your household needs—showers, dishwashing, laundry, and more. Understanding water heater replacement cost starts with knowing how these systems work and the different types available.
Tank water heaters (the most common type) store 30-80 gallons of preheated water in an insulated tank. When you turn on a hot water tap, heated water flows from the top of the tank while cold water enters the bottom to be heated. Gas models use a burner beneath the tank, while electric models use heating elements inside the tank.
Tankless water heaters (also called on-demand water heaters) heat water only when needed. When you turn on a hot water tap, cold water travels through a pipe into the unit where a gas burner or electric element heats the water instantly. This provides continuous hot water but limits flow rate.
Why Water Heater Replacement Costs Vary
Water heater replacement cost varies significantly based on several factors. Here's what drives the price range from $600 to over $4,500:
1. Type of Water Heater
The biggest factor in water heater replacement cost is the type you choose:
- Standard tank gas: $800-$1,600 installed
- Standard tank electric: $650-$1,250 installed
- Tankless gas: $1,500-$4,000 installed
- Tankless electric: $900-$2,500 installed
- Hybrid heat pump: $1,600-$3,300 installed
- Solar water heaters: $3,000-$9,000 installed
2. Tank Size or Capacity
Larger tanks and higher-capacity tankless units cost more:
| Tank Size | Unit Cost | Total Installed |
|---|---|---|
| 30-gallon | $300-$600 | $600-$1,100 |
| 40-gallon | $400-$800 | $700-$1,300 |
| 50-gallon | $500-$1,000 | $850-$1,600 |
| 75-gallon | $900-$1,500 | $1,300-$2,200 |
3. Fuel Type Conversion
If you're switching from electric to gas (or vice versa), expect additional costs:
- Electric to gas conversion: $1,500-$3,000 extra (gas line + venting)
- Gas to electric conversion: $500-$1,000 extra (electrical upgrades)
4. Installation Complexity
Additional factors that increase water heater replacement cost:
- Relocating the water heater: $500-$2,000
- Bringing unit up to code: $200-$1,000
- Permit and inspection fees: $25-$150
- Disposal of old unit: $25-$100
- Expansion tank installation: $100-$300
- Earthquake strapping: $20-$50
Tank vs Tankless: Complete Cost Comparison
One of the biggest decisions when budgeting for water heater replacement cost is choosing between tank and tankless models. Here's a detailed comparison:
Tank Water Heaters
Pros:
- Lower upfront cost ($650-$1,600 installed)
- Simple, proven technology
- Works with existing gas/electric infrastructure
- No flow rate limitations during peak usage
- Easy to find replacement parts
Cons:
- Takes up significant floor space (18-24 inch diameter, 48-60 inches tall)
- Standby heat loss wastes energy
- Limited hot water supply (can run out during heavy use)
- Shorter lifespan (8-12 years)
- Higher monthly energy costs
Tankless Water Heaters
Pros:
- Endless hot water supply
- 30-50% more energy efficient
- Compact size (wall-mounted)
- Longer lifespan (15-20 years)
- Lower monthly energy bills
- Qualifies for energy tax credits
Cons:
- Higher upfront cost ($900-$4,000 installed)
- May require gas line upgrade or electrical panel upgrade
- Limited flow rate (2-5 GPM typical)
- Cold water sandwich effect
- More expensive repairs
- May need multiple units for large homes
10-Year Cost Comparison
| Factor | 50-Gallon Gas Tank | Tankless Gas |
|---|---|---|
| Equipment | $700 | $1,200 |
| Installation | $500 | $1,500 |
| Annual operating cost | $300 | $200 |
| 10-year energy cost | $3,000 | $2,000 |
| 10-Year Total | $4,200 | $4,700 |
For most households, the long-term costs are comparable. Tankless makes more financial sense if:
- Your tank is in an inconvenient location (tankless can mount on wall)
- You plan to stay in your home 15+ years
- You qualify for energy rebates or tax credits
- You have moderate hot water usage patterns
Gas vs Electric vs Hybrid: Fuel Type Comparison
Gas Water Heaters
Typical cost: $800-$1,600 installed (tank), $1,500-$4,000 installed (tankless)
Best for:
- Homes with existing natural gas service
- High hot water demand households
- Areas with low natural gas prices
- Quick recovery time needs
Considerations:
- Requires venting (direct vent or power vent)
- Annual maintenance recommended
- Pilot light or electronic ignition
- Produces combustion byproducts
Electric Water Heaters
Typical cost: $650-$1,250 installed (tank), $900-$2,500 installed (tankless)
Best for:
- Homes without gas service
- Locations where venting is difficult
- Lower upfront budget
- Safety-conscious homeowners (no combustion)
Considerations:
- Higher operating costs ($400-$500/year vs $200-$300 for gas)
- Slower recovery rate than gas
- May require 240V circuit upgrade
- Simpler installation
Hybrid Heat Pump Water Heaters
Typical cost: $1,600-$3,300 installed
Best for:
- Homes in moderate to warm climates
- Homeowners seeking maximum efficiency
- Those who qualify for utility rebates
- Garages, basements, or utility rooms with adequate space and airflow
Considerations:
- 2-3x more efficient than standard electric
- Requires more installation space (needs airflow)
- Makes some noise (similar to window AC unit)
- May struggle in very cold environments
- Eligible for federal tax credits (up to $2,000)
Water Heater Replacement Cost by State
Labor rates and permit costs vary significantly by location. Here's what to expect in the top 10 most populous states:
| State | Avg. Tank Install | Avg. Tankless Install | Permit Cost |
|---|---|---|---|
| California | $1,200-$2,000 | $2,500-$4,500 | $75-$250 |
| Texas | $900-$1,500 | $1,800-$3,500 | $50-$150 |
| Florida | $950-$1,600 | $1,900-$3,600 | $50-$175 |
| New York | $1,300-$2,200 | $2,800-$5,000 | $100-$300 |
| Pennsylvania | $900-$1,500 | $1,800-$3,500 | $50-$125 |
| Illinois | $950-$1,600 | $1,900-$3,700 | $50-$150 |
| Ohio | $800-$1,400 | $1,600-$3,200 | $40-$100 |
| Georgia | $850-$1,450 | $1,700-$3,300 | $50-$150 |
| North Carolina | $850-$1,400 | $1,700-$3,200 | $40-$125 |
| Michigan | $850-$1,450 | $1,700-$3,400 | $50-$125 |
Note: Costs vary within each state. Urban areas typically have higher labor rates than rural regions.
Brand Comparison and Pricing
When evaluating water heater replacement cost, brand selection impacts both initial price and long-term reliability:
Budget Brands ($300-$600 for tank units)
- Whirlpool: Widely available at home improvement stores
- GE: Good basic performance, limited features
- Reliance: Budget option with standard warranties
Mid-Range Brands ($500-$1,000 for tank units)
- Rheem: Excellent balance of price and quality
- A.O. Smith: Strong reliability record
- State: Good regional brand with solid warranties
Premium Brands ($700-$1,500+ for tank units)
- Bradford White: Professional-grade, sold through plumbers only
- Navien: Premium tankless with advanced features
- Rinnai: Industry leader in tankless technology
- Noritz: High-efficiency tankless specialist
Brand Warranty Comparison
| Brand | Tank Warranty | Parts Warranty |
|---|---|---|
| Rheem | 6-12 years | 1-2 years |
| A.O. Smith | 6-12 years | 1-6 years |
| Bradford White | 6-10 years | 1-6 years |
| Rinnai (tankless) | 12 years heat exchanger | 5 years parts |
| Navien (tankless) | 15 years heat exchanger | 5 years parts |
Signs You Need Water Heater Replacement
Knowing when to replace your water heater helps you budget for water heater replacement cost before an emergency:
Replace Soon (Within 6-12 Months)
- Water heater is over 10 years old
- Rust-colored water from hot taps only
- Popping or rumbling noises (sediment buildup)
- Pilot light frequently goes out
- Energy bills increasing without explanation
Replace Immediately
- Visible leaking from the tank
- Standing water around the base
- No hot water despite functioning elements/burner
- Rotten egg smell (failing anode rod)
- Visible rust or corrosion on tank
Minor Issues (Repair Instead)
- Thermostat problems: $150-$300 repair
- Heating element replacement: $150-$300
- Pilot light assembly: $100-$200
- Pressure relief valve: $50-$150
- Anode rod replacement: $100-$200
DIY vs Professional Replacement
DIY Difficulty
Can you do this yourself?
Tools Needed
PROS
- Save $300-$700 on labor costs
- Learn valuable plumbing skills
- Complete on your own schedule
- Control over parts quality
CONS
- Risk of gas leaks if improperly connected (gas models)
- Electric shock hazard if wiring is incorrect
- Water damage risk from connection leaks
- May void manufacturer warranty
- Permit and inspection requirements vary by location
- Disposing of old unit can be challenging
Our Recommendation: Tank water heater replacement is manageable for experienced DIYers, especially electric models. Gas water heaters require careful attention to gas line connections—consider hiring a professional if you lack gas line experience. Tankless installations typically require electrical upgrades or gas line modifications that should be done by licensed professionals.
Installation Process: What to Expect
Understanding the installation process helps you evaluate quotes and ensures work is done correctly:
1. Preparation (30 minutes)
- Turn off water supply
- Turn off gas or electricity
- Drain old water heater
- Disconnect fittings
2. Removal (30-60 minutes)
- Disconnect water lines
- Disconnect gas line or electrical connections
- Remove venting (gas models)
- Transport old unit out
3. Installation (1-2 hours)
- Position new unit on drain pan
- Connect cold water inlet and hot water outlet
- Connect gas line or electrical wiring
- Install expansion tank if required
- Connect venting (gas models)
- Install earthquake straps (required in some areas)
4. Testing and Completion (30 minutes)
- Fill tank and check for leaks
- Light pilot or turn on power
- Adjust temperature (120°F recommended)
- Test pressure relief valve
- Verify proper venting (gas models)
- Clean up work area
How to Save on Water Heater Replacement Cost
Follow these tips to reduce your water heater replacement cost without sacrificing quality:
1. Get Multiple Quotes
- Obtain at least 3 quotes from licensed plumbers
- Ask for itemized estimates showing equipment, labor, and materials separately
- Compare warranties offered by different installers
2. Time Your Purchase
- Shop during off-peak seasons (spring and fall)
- Look for holiday sales at home improvement stores
- Check for utility company rebates and incentives
3. Consider Rebates and Tax Credits
- Federal tax credit: Up to $2,000 for heat pump water heaters (through 2032)
- Utility rebates: $200-$1,000 for high-efficiency models
- State incentives: Vary by location
4. Choose the Right Size
- Don't over-buy capacity you won't use
- Consider lifestyle changes (kids leaving home)
- Right-sizing saves on both purchase price and operating costs
5. Ask About Package Deals
- Many plumbers offer discounts when combining water heater replacement with other work
- Consider replacing water supply lines during installation
- Install a water softener at the same time for bundled pricing
Maintenance Tips to Extend Water Heater Life
Proper maintenance can extend your water heater's lifespan and delay water heater replacement cost:
Annual Maintenance Tasks
- Drain and flush the tank to remove sediment
- Test the pressure relief valve
- Inspect the anode rod (replace when depleted)
- Check for leaks around fittings
- Verify proper venting (gas models)
- Clean burner or inspect heating elements
Maintenance Schedule by Type
Tank water heaters:
- Flush tank: Every 6-12 months
- Replace anode rod: Every 3-5 years
- Professional inspection: Every 1-2 years
Tankless water heaters:
- Descale/flush: Every 12-24 months (more often with hard water)
- Clean inlet filter: Every 6 months
- Professional inspection: Every 1-2 years
Conclusion
Water heater replacement cost ranges from $600 for a basic electric tank to over $4,500 for a premium tankless installation. The best choice depends on your household's hot water needs, existing utility infrastructure, available space, and budget. For most homes, a standard 50-gallon gas or electric tank offers the best balance of upfront cost and performance. If you're staying in your home long-term and value efficiency, tankless or hybrid heat pump models provide significant energy savings despite higher initial costs.
Get quotes from at least three licensed plumbers before making a decision, and don't forget to ask about available rebates and tax credits that can substantially reduce your water heater replacement cost.
Cost by Vehicle Type
| Vehicle Type | Parts | Labor | Total |
|---|---|---|---|
| Standard 40-Gallon Tank (Gas) | $500-$900 | $300-$500 | $800-$1,400 |
| Standard 50-Gallon Tank (Gas) | $600-$1,100 | $300-$500 | $900-$1,600 |
| Electric Tank Water Heater (40-50 gal) | $400-$800 | $250-$450 | $650-$1,250 |
| Tankless Gas Water Heater | $1,000-$2,500 | $500-$1,500 | $1,500-$4,000 |
| Tankless Electric Water Heater | $500-$1,500 | $400-$1,000 | $900-$2,500 |
| Hybrid Heat Pump Water Heater | $1,200-$2,500 | $400-$800 | $1,600-$3,300 |