Cost by heater type
What a new heater costs with installation, from three national cost guides:
| New heater, installed | Angi (Jul 2026) | HomeGuide | Fixr (Jan 2026) | Our median |
|---|---|---|---|---|
| Standard tank, 40–50 gal | $882 to $1,826 | $600 to $3,100 | $600 to $2,500 | $600 to $2,500 |
| Gas tank | $882 to $1,826 (tank-style; Angi doesn’t split tank costs by fuel) | $900 to $3,100+ | $700 to $2,500 | $882 to $2,500 |
| Electric tank | $882 to $1,826 (tank-style; Angi doesn’t split tank costs by fuel) | $600 to $1,800 | $700 to $1,900 | $700 to $1,826 |
| Tankless | $1,400 to $3,900 | $1,400 to $5,600 | $1,000 to $4,000 | $1,400 to $4,000 |
| Hybrid heat pump | $3,200 to $4,700 (its heat pump page, Jul 2026) | $2,000 to $4,600 | $1,200 to $4,600 | $2,000 to $4,600 |
Basis: trade estimates (Angi, HomeGuide, Fixr), heater plus labor. “Our median” is the median of the three low ends and of the three high ends. Angi’s page gives two tank figures: “Tank-style water heater replacement costs $882 to $1,826”, and elsewhere $600 to $2,500 “depending on tank size”; we use the first, which is also its headline range for all replacements. HomeGuide’s main page is dated January 2026; its gas and electric rows span its 40- and 50-gallon pages, dated January 2024. Fixr’s gas and electric rows span the 40- and 50-gallon figures on its gas and electric pages (January 2026). For heat pumps we use the headline range on Angi’s dedicated heat pump water heater page: installation “costs between $3,200 and $4,700”, and “The cost to install a heat pump water heater is $4,200 on average.” The same page says costs run from as low as $2,800 to as high as $8,000, depending on the heater’s size and type; its general replacement page gives $1,200 to $3,500. With either Angi range, our median stays $2,000 to $4,600.
Going tankless? See tankless water heater cost for gas vs electric, the conversion extras and upkeep.
A.O. Smith’s figure for comparison:
- A.O. Smith says “The total cost to replace a water heater typically ranges from $600 to $4,500 depending on the type and installation complexity.”
Home Depot’s and Lowe’s figures are in their own section below.
Cost by size and fuel: 40 vs 50 gallon
Use these rows for budgeting once capacity has been assessed. Our water heater sizing guide explains first-hour ratings and includes a household-demand worksheet to take to an installer.
| Tank size and fuel | Angi (any fuel) | HomeGuide (2024) | Fixr (2026) | Our median |
|---|---|---|---|---|
| 40-gallon gas | $800 to $2,300 | $900 to $3,000+ | $700 to $2,300 | $800 to $2,300 |
| 40-gallon electric | $800 to $2,300 | $600 to $1,600 | $700 to $1,650 | $700 to $1,650 |
| 50-gallon gas | $800 to $2,500 | $1,000 to $3,100+ | $900 to $2,500 | $900 to $2,500 |
| 50-gallon electric | $800 to $2,500 | $700 to $1,800 | $700 to $1,900 | $700 to $1,900 |
Basis: trade estimates, installed. Angi’s size table doesn’t split by fuel, so its size range is used for both fuels. “Our median” is worked out the same way as above. In every guide the top of the range is higher for 50 gallons than for 40, and in both guides that split by fuel, gas costs more than electric.
Labor vs the heater itself
| Source | Labor for a replacement | Labor share of the total |
|---|---|---|
| Angi (Jul 2026) | $150 to $450 (tank-style); $600 to $1,900 (tankless) | “around 50% of your total” |
| HomeGuide (Jan 2026) | $200 to $1,000 (standard tank); $600 to $2,500 (tank to tankless) | about a third (our calculation, against its $600 to $3,100 installed range) |
| HomeGuide 50-gallon page (2024) | $200 to $600 (electric); $400 to $1,000+ (gas) | not stated |
| Fixr (Jan 2026) | $300 to $1,500 on average; $200 to $650 (gas tank) | “between 18% and 50%”; 20% to 25% for a gas tank |
| A.O. Smith | “around $200 to $400” for a one-for-one replacement | about a third (our calculation, with its $400 to $750 tank prices) |
Basis: trade estimates (Angi, HomeGuide, Fixr) and manufacturer (A.O. Smith). Angi and Fixr put plumbers at $45 to $200 an hour. For the heater alone, HomeGuide gives $400 to $2,000 for a 40-gallon tank and $500 to $2,100 for a 50-gallon tank (unit only), and A.O. Smith says “A 36-gallon electric tank heater costs around $400, and larger 55-gallon units cost up to $750.”
Why replacement costs more than the heater
The installed price includes work and parts you don’t see on the shelf tag. Home Depot notes that “Permits are required in most areas in the United States to install a new water heater.” A.O. Smith says the work “requires proper gas or electrical connections, knowledge of local building codes, and handling various installation scenarios,” and HomeGuide says a basic same-size swap takes a plumber 2 to 6 hours.
| Extra | Angi | HomeGuide | Fixr | A.O. Smith |
|---|---|---|---|---|
| Permit | $25 to $300 | $50 to $200 (for gas line or electrical work) | $25 to $1,500 | $100 to $500 (with inspection) |
| Removing and hauling away the old heater | $100 to $500 | $75 to $500 | $75 to $500 (many plumbers include it) | $100 to $400 |
| Expansion tank | $150 to $450 (expansion tank page; $90 to $350 on its replacement page) | $100 to $400 installed | $150 to $400 (50-gallon page) | under $100 (the tank) |
| New vent | $300 to $600 for a power-vent unit, plus $300 to $500 of electrical work | $500 to $1,500 (first vent); $100 to $600 (replacing one) | $300 to $1,000 (power vent with wiring) | $500 to $1,000 |
| New or upsized gas line | $260 to $820 (new line); upwards of $1,500 to switch from electric to gas | $350 to $2,000 (larger supply line) | n/a | n/a |
| New electrical line and sub-panel | $500 to $1,000 | n/a | n/a | n/a |
| Moving the heater | $150 to $3,400 | $500 to $2,500 | n/a | n/a |
Basis: trade estimates (Angi, HomeGuide, Fixr) and manufacturer (A.O. Smith), as of September 2026. n/a: no figure on the page we used. On expansion tanks, A.O. Smith says: “You must have one if there’s a check valve or pressure-reducing valve on the water line.” Fixr adds that “Recent building code updates may require additional work” and that optional safety upgrades, “such as drain pans or seismic straps,” raise the upfront price.
Replacing a water heater means working on gas or electrical connections, venting and safety valves. Hire a licensed plumber (and a licensed electrician for electrical upgrades). We don’t give installation instructions.
Cost by state: our estimate
Labor costs differ a lot by state. This table adjusts the national tank ranges for local plumber pay. It covers all 50 states and the District of Columbia.
| State | Median plumber wage (per hour) | vs US median | Gas tank, installed | Electric tank, installed |
|---|---|---|---|---|
| United States | $30.67 | $882 to $2,500 | $700 to $1,826 | |
| Alabama | $28.21 | −8% | $860 to $2,430 | $680 to $1,780 |
| Alaska | $45.15 | +47% | $1,020 to $2,890 | $810 to $2,110 |
| Arizona | $29.84 | −3% | $870 to $2,480 | $690 to $1,810 |
| Arkansas | $23.39 | −24% | $810 to $2,300 | $640 to $1,680 |
| California | $35.01 | +14% | $920 to $2,620 | $730 to $1,910 |
| Colorado | $30.40 | −1% | $880 to $2,490 | $700 to $1,820 |
| Connecticut | $37.16 | +21% | $940 to $2,680 | $750 to $1,950 |
| Delaware | $31.11 | +1% | $890 to $2,510 | $700 to $1,830 |
| District of Columbia | $48.57 | +58% | $1,050 to $2,990 | $840 to $2,180 |
| Florida | $25.44 | −17% | $830 to $2,360 | $660 to $1,720 |
| Georgia | $27.50 | −10% | $850 to $2,410 | $680 to $1,760 |
| Hawaii | $37.53 | +22% | $950 to $2,690 | $750 to $1,960 |
| Idaho | $25.18 | −18% | $830 to $2,350 | $660 to $1,720 |
| Illinois | $48.05 | +57% | $1,050 to $2,970 | $830 to $2,170 |
| Indiana | $36.69 | +20% | $940 to $2,660 | $750 to $1,950 |
| Iowa | $30.72 | 0% | $880 to $2,500 | $700 to $1,830 |
| Kansas | $31.36 | +2% | $890 to $2,520 | $710 to $1,840 |
| Kentucky | $30.84 | +1% | $880 to $2,500 | $700 to $1,830 |
| Louisiana | $30.62 | 0% | $880 to $2,500 | $700 to $1,830 |
| Maine | $30.77 | 0% | $880 to $2,500 | $700 to $1,830 |
| Maryland | $31.44 | +3% | $890 to $2,520 | $710 to $1,840 |
| Massachusetts | $45.14 | +47% | $1,020 to $2,890 | $810 to $2,110 |
| Michigan | $38.56 | +26% | $960 to $2,710 | $760 to $1,980 |
| Minnesota | $45.39 | +48% | $1,020 to $2,900 | $810 to $2,120 |
| Mississippi | $26.67 | −13% | $840 to $2,390 | $670 to $1,750 |
| Missouri | $32.11 | +5% | $900 to $2,540 | $710 to $1,850 |
| Montana | $38.44 | +25% | $960 to $2,710 | $760 to $1,980 |
| Nebraska | $29.31 | −4% | $870 to $2,460 | $690 to $1,800 |
| Nevada | $29.62 | −3% | $870 to $2,470 | $690 to $1,810 |
| New Hampshire | $32.12 | +5% | $900 to $2,540 | $710 to $1,850 |
| New Jersey | $37.61 | +23% | $950 to $2,690 | $750 to $1,960 |
| New Mexico | $29.54 | −4% | $870 to $2,470 | $690 to $1,800 |
| New York | $37.26 | +21% | $950 to $2,680 | $750 to $1,960 |
| North Carolina | $27.44 | −11% | $850 to $2,410 | $680 to $1,760 |
| North Dakota | $30.56 | 0% | $880 to $2,500 | $700 to $1,820 |
| Ohio | $30.45 | −1% | $880 to $2,490 | $700 to $1,820 |
| Oklahoma | $27.87 | −9% | $860 to $2,420 | $680 to $1,770 |
| Oregon | $46.66 | +52% | $1,040 to $2,930 | $820 to $2,140 |
| Pennsylvania | $32.73 | +7% | $900 to $2,560 | $720 to $1,870 |
| Rhode Island | $36.77 | +20% | $940 to $2,670 | $750 to $1,950 |
| South Carolina | $25.93 | −15% | $840 to $2,370 | $660 to $1,730 |
| South Dakota | $24.82 | −19% | $830 to $2,340 | $660 to $1,710 |
| Tennessee | $28.17 | −8% | $860 to $2,430 | $680 to $1,780 |
| Texas | $28.77 | −6% | $860 to $2,450 | $690 to $1,790 |
| Utah | $29.76 | −3% | $870 to $2,480 | $690 to $1,810 |
| Vermont | $29.89 | −3% | $870 to $2,480 | $690 to $1,810 |
| Virginia | $29.07 | −5% | $870 to $2,460 | $690 to $1,790 |
| Washington | $38.96 | +27% | $960 to $2,730 | $760 to $1,990 |
| West Virginia | $27.39 | −11% | $850 to $2,410 | $680 to $1,760 |
| Wisconsin | $39.04 | +27% | $960 to $2,730 | $760 to $1,990 |
| Wyoming | $30.01 | −2% | $880 to $2,480 | $690 to $1,810 |
Basis: wages are official: the hourly medians for plumbers, pipefitters and steamfitters (SOC 47-2152) as published by the US Department of Labor’s O*NET OnLine and My Next Move (BLS May 2025 wage data; every state re-checked on O*NET OnLine on 6 October 2026); installed ranges are our estimate, rounded to $10. The national median, $30.67 an hour ($63,800 a year), matches BLS’s Occupational Outlook Handbook for May 2025.
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How the state estimate works
- Start with the national installed range for the heater type (the medians above).
- Treat one third of that price as labor. The guides disagree on the share: Angi says about 50%, Fixr 18% to 50% (20% to 25% for gas tanks), and HomeGuide’s and A.O. Smith’s labor figures both work out to about a third. We use one third, the middle of that spread.
- Scale only the labor third by the state’s median plumber wage divided by the national median. The heater, parts and permits stay at the national figure.
The formula is national range × (2/3 + 1/3 × state wage ÷ $30.67).
Worked example: gas tank in Illinois. $48.05 ÷ $30.67 = 1.567, so the multiplier is 2/3 + 1/3 × 1.567 = 1.189. $882 × 1.189 ≈ $1,050 and $2,500 × 1.189 ≈ $2,970.
Worked example: electric tank in Florida. $25.44 ÷ $30.67 = 0.829, so the multiplier is 2/3 + 1/3 × 0.829 = 0.943. $700 × 0.943 ≈ $660 and $1,826 × 0.943 ≈ $1,720.
We use medians rather than averages because they’re what the Labor Department’s state pages publish, and the median is less pulled up by a few very high earners. The estimator above applies the same method to tankless and heat pump models.
Repair or replace?
- A leaking tank can’t be repaired. Bradford White: “Even a small leak means that a water heater will need to be replaced, because leaks are unable to be fixed.” A.O. Smith says corrosion from hard water “cannot be repaired and will eventually require tank replacement.” A leak from a valve or fitting is different and can often be fixed.
- The 50% rule. Rheem: “If repair costs exceed 50% of the price of a new unit, replacement is almost always the better investment.” Bradford White says the same. Compare your repair quote with the installed price, not the shelf price: use the repair-or-replace calculator.
- Age matters too. Rheem says repair makes sense when a heater is “under 6–8 years old, shows no signs of tank corrosion or structural leaks, and repair costs fall well below 50% of replacement.”
When to replace
Bradford White says “Most traditional tank water heaters last about 8–12 years,” and Rheem “recommends beginning replacement planning around year 10.” The US Department of Energy puts tankless heaters at about 20 years, in its Energy Saver guide (now archived) and in the analysis for its 2024 gas tankless rule, which was withdrawn in 2025. Across published sources, a tank typically lasts about 11 years (our summary); see how long water heaters last.
Don’t know how old yours is? The date is coded in the serial number. Check your water heater’s age with our free decoder. Planning ahead gives you time to compare quotes.
Home Depot and Lowe’s installation prices
Home Depot says “The cost to replace a water heater is between $1,600 and $5,400”: tanks $1,600 to $2,400 (average $1,950), tankless $2,400 to $5,400 (average $4,300) and hybrid heat pumps $2,500 to $5,000. Its figures come from its own sales and include permits, materials, labor by a licensed plumber and removal of the old unit.
Lowe’s doesn’t publish a price. Its installation page says an independent installer calls to arrange a consultation and then gives a quote, and that the cost depends on the heater type, the fuel and local labor and permit fees. Its basic installation covers “Basic replacement of an electric or gas water heater in the same location with the same power source.”
Basis: retailer pages (Home Depot, Lowe’s), as of September 2026. Big-box figures bundle the heater with installation, so compare them with the installed ranges above, not with labor alone.
Tax credits and rebates in 2026
- The federal tax credit has ended. The IRS says the Energy Efficient Home Improvement Credit (30%, up to $2,000 for a heat pump water heater) “will not be allowed for any property placed in service after December 31, 2025.” A heat pump water heater installed in 2026 doesn’t qualify; one placed in service in 2025 is claimed on the 2025 return.
- State rebates may apply, but generally not for switching from gas. The US Department of Energy’s Home Energy Rebates, run by states, include up to $1,750 for an ENERGY STAR heat pump water heater for income-qualified households. DOE’s Program Notice 26-2 (effective May 29, 2026) renamed the program that pays it, now the High-Efficiency Electric Home Rebate (HEEHR) program (formerly Home Electrification and Appliance Rebates), and removed rebates for fuel switching: for appliances and heating and cooling in existing homes, it now allows rebates only for replacing electric equipment with more efficient electric equipment. States that had already launched were given three months to make the change; reservations approved under the old rules can still be paid, but no new ones can be approved for projects that don’t fit. So swapping an electric tank for a heat pump model can still qualify where your state’s program is open, but replacing a gas, propane or oil heater generally can’t. Check your state energy office.
- Utilities sometimes offer their own rebates. Ask your electric utility before you buy.
Basis: official (IRS, ENERGY STAR, US Department of Energy), as of September 2026; the Home Energy Rebates rules were re-checked on 6 October 2026. Rules change: confirm before you buy.
What raises or lowers the cost
Raises it:
- Changing type. HomeGuide puts the labor alone for a tank-to-tankless upgrade at $600 to $2,500. Electric tankless models can need a bigger electrical service: Angi says they “use 120 to 160 amps, so you might have to upgrade your electrical service to 200 amps or more.”
- Changing fuel. A new gas line runs $260 to $820, or upwards of $1,500 to switch from electric to gas (Angi).
- A bigger tank. Every guide’s range tops out higher for a 50-gallon tank than for a 40-gallon one. Angi puts 75-gallon tanks at $1,100 to $4,000 installed.
- Moving the heater, new venting or hard access. See the extras table above.
- Where you live. Plumber pay ranges from about 24% below the national median (Arkansas) to 58% above it (District of Columbia; Illinois +57%).
Keeps it down:
- A like-for-like swap: same size, same fuel, same spot. That’s what Lowe’s basic installation covers: “Basic replacement of an electric or gas water heater in the same location with the same power source.”
- Quotes that include everything. Ask each plumber whether the permit, haul-away and any code parts are included, so you compare like with like.
Limitations
- These are national trade-guide ranges, not quotes. Your price depends on your home, the model you pick and local rules.
- HomeGuide’s gas and electric splits come from 2024 pages. Angi, Fixr and HomeGuide’s main page are from 2026; A.O. Smith’s and Home Depot’s pages are undated.
- The state figures are our estimate. For a simple tank swap, labor may be less than a third: Angi’s tank labor figure ($150 to $450) and Fixr’s gas-tank share (20% to 25%) suggest so, which would make the state swings smaller. The state figures assume labor is one third of the price for every heater type, and they adjust for plumber pay only, not for local heater prices, permit fees or demand.
- We don’t include rebates, tax credits or emergency call-out fees.
What to do next
- Get two or three written quotes from licensed plumbers.
- Decide which options to discuss using our tank vs tankless household checklist.
- Have a repair quote instead? Run it through the repair-or-replace calculator.
- Check how old the current heater is: water heater age checker, or by brand: Bradford White, A.O. Smith, Rheem.
- See how long water heaters last by type.
- Budgeting for the rest of the house? Check the age of the AC or furnace as well (Trane, Carrier, Goodman).
Checked against the sources below on 30 September 2026; sources added or changed on 6 October 2026 were checked that day.
