Water Heater Replacement — Cost Guide
Cost to replace a residential water heater, tank or tankless.
Overview
Water heater replacement cost depends mainly on whether you're staying with a traditional tank unit or upgrading to a tankless system, plus fuel type and tank size.
What affects the cost
- Tank vs tankless
- Fuel type (gas, electric, propane)
- Tank size / flow rate needed
- Venting changes required
- Removal and disposal of old unit
- Code-required upgrades (expansion tanks, seismic straps)
Labor vs. material costs
Labor
Labor for a straightforward tank swap runs $300-$600. Tankless conversions requiring new gas lines or venting cost significantly more.
Materials
A basic 40-50 gallon tank unit costs $600-$1,200. Tankless units run $1,000-$3,000+ before installation.
Typical timeline
A like-for-like tank replacement usually takes 2-3 hours. Tankless conversions can take a full day.
Permits
Most areas require a plumbing permit for water heater replacement, especially for tankless conversions.
Regional price differences
Colder climates often need larger tanks; areas with stricter energy codes may require higher-efficiency (and pricier) units.
Ways to save money
- Replace before it fails — emergency same-day service costs more
- Check utility rebates for high-efficiency and tankless units
- Get quotes that clearly separate unit cost from labor
Pros & cons
Pros
- Prevents sudden flooding from tank failure
- Tankless units can lower long-term energy costs
- New units carry manufacturer warranties
Cons
- Tankless has a higher upfront cost
- May require electrical or gas line upgrades
- Some downtime without hot water during install
Frequently asked questions
How long do water heaters typically last?
Tank water heaters typically last 8-12 years; tankless units can last 15-20 years with proper maintenance.
Is a tankless water heater worth the extra cost?
It depends on usage — tankless units cost more upfront but use less energy over time and provide continuous hot water.
Cost by state
See adjusted pricing for Water Heater Replacement in your state.