THE SHORT VERSION
- Installed, nationwide (Home Depot’s published ranges): gas or electric tank $1,600–$2,400, heat pump tank $2,500–$5,000, gas or electric tankless $2,400–$5,400. Those include the heater, permit, materials, labor and haul-away.
- The heater is often half the bill or less. ENERGY STAR’s rule of thumb for heat pump models is that installation costs about as much as the unit.
- What adds the most: switching fuel or type (new gas line, venting, a 240-volt circuit or a panel upgrade), moving the heater, hard access such as an attic, and code items your old install lacked, such as an expansion tank or seismic straps.
- Where you live matters: Home Depot’s own regional table puts tank installs anywhere from 10–20% below to 35–45% above its national average.
- Over its life, a heat pump or gas tankless unit can cost less per year than a cheaper gas tank, and electric tanks cost the most to run. In our worked example at 2025 national average energy prices, a 50-gallon electric tank costs about $1,080 a year to own versus about $500 for a heat pump.
Installed prices by type
The most useful national figures come from Home Depot, which publishes the ranges its contracted plumbers charge for a complete replacement. They are one company’s advertised prices, not a survey of every installer, but they say exactly what's included: each covers the new heater, permits, installation materials, labor by a licensed and insured plumber, and removal of the old unit.
| Type | Installed price | What usually decides where you land |
|---|---|---|
| Gas tank (atmospheric vent) | $1,600–$2,400 (average $1,950) | Tank size, warranty length, whether the vent and gas connection can be reused |
| Electric tank | $1,600–$2,400 (average $1,950) | Tank size and warranty; usually the simplest swap if the 240-volt circuit is reused |
| Heat pump (hybrid electric) tank | $2,500–$5,000 | Tank size, 120-volt or 240-volt model, condensate drain, room for air, and whether it replaces gas |
| Gas tankless | $2,400–$5,400 (average $4,300) | Gas line size, new venting, a condensate drain, and mounting location |
| Electric tankless | $2,400–$5,400 (average $4,300) | Whether your electrical service can carry it; whole-house units draw very high current |
Source: Home Depot, “Cost to Replace a Water Heater” (national ranges for its installation service; checked 2026-10-04). Home Depot publishes one range for tanks and one for tankless, without splitting gas from electric, and no average for heat pump models. Its tankless range assumes no change of fuel; it says changing fuel or moving from a tank to tankless will likely cost more.
Treat these as a reference point for a same-type replacement: the same type and fuel, in the same spot, with venting, gas and electrical that can be reused. Most of the spread inside each range comes from the heater itself (size, efficiency, warranty). Most of what lands above the range comes from changes to the house, covered below.
What’s inside the price
A replacement quote has three layers. The first is in every job. The second is code work that the inspector may require because codes have changed since your old heater went in. The third appears only when the job changes something about the house.
- Equipment
- The heater itself. On a basic tank it is often about half the installed price or less.
- Labor
- Draining and disconnecting the old heater, setting the new one, making water, gas or electrical and vent connections, filling, testing and startup. Rheem says most standard replacements take a few hours.
- Materials
- Connectors, valves, fittings, vent pipe, gas flex line, solder, strapping. Usually a single line, sometimes itemized.
- Permit and inspection
- The 2024 International Residential Code (section R105.1) requires a permit to replace plumbing, gas or mechanical systems, and most US jurisdictions adopt some version of it. Fees are set locally.
- Haul-away
- Removing and disposing of the old tank. Home Depot includes it in its ranges; Rheem says removal should always be written into the quote.
Permit fees are usually a small part of the bill
Two real fee schedules show the scale. La Mirada, California charges $47.55 to issue a plumbing permit plus $28.14 for each water heater and/or vent (2026–27 schedule), about $76 in all. Portland, Oregon lists $63 per water heater on its plumbing permit schedule effective July 10, 2026. Some jurisdictions charge separately for gas or electrical permits or add other fees. This Old House puts permits and inspections at $50–$200. Skipping the permit doesn’t save much and can leave a gas or venting mistake uninspected.
Equipment-only prices vs installed prices
A shelf price is for the heater alone. The gap to an installed price is labor, materials, permit, disposal and the installer’s overhead and labor warranty.
| Type | Heater only | Installed (Home Depot) |
|---|---|---|
| Tank, gas or electric | $600–$1,000 (This Old House) | $1,600–$2,400 |
| Heat pump tank | $1,500–$3,000 (ENERGY STAR, 2024) | $2,500–$5,000 |
| Tankless | $1,000–$2,000 (This Old House) | $2,400–$5,400 |
Equipment-only ranges: This Old House, “How Much Does Water Heater Installation Cost?” (updated June 17, 2026) and ENERGY STAR, “What Goes into the Cost of Installing a Heat Pump Water Heater?” (Feb. 2024), which notes split-system heat pump models can cost several times more. Installed ranges: Home Depot. Different sources, different samples: use the comparison for scale, not to the dollar.
ENERGY STAR’s rule of thumb for heat pump models is that “the installation cost may be roughly equal to the cost of the water heater itself.” An informal contractor survey it cites put labor and materials at $1,000–$3,000 on top of the unit. This Old House’s tank breakdown points the same way: a $600–$1,000 unit plus $300–$800 of labor, $300–$500 of venting on gas models and $100–$200 of water connections.
What pushes the price up
Most add-ons are either code items your old installation lacked or work needed because the new heater differs from the old one. The ranges below are one publisher’s national estimates; read them as orders of magnitude.
| Item | Published range | When you need it |
|---|---|---|
| Expansion tank | $40–$150 | Where a check valve or backflow preventer “closes” the water system; the 2024 IRC (P2903.4.2) then requires thermal expansion control |
| Seismic straps | $100–$300 | All residential water heaters in California (Health and Safety Code 19211); higher seismic zones under the IRC (P2801.7) |
| Drain pan or drainage | $50–$200 | Where a tank leak would cause damage (IRC P2801.5); a replacement needn’t add a pan drain if none existed |
| Basic gas venting | $300–$500 | Replacing or correcting the vent connector of an atmospheric tank |
| Power vent or direct vent | $300–$600 plus $300–$500 electrical; or $500–$1,000 | No usable chimney, or a heater moved to an outside wall |
| Chimney liner | $500–$700 | An unlined masonry chimney that can’t safely carry exhaust |
| Larger gas line (tankless) | $500–$1,000 | Gas piping is sized on total connected load (IRC G2413.2); a big tankless burner can outgrow the line that fed a tank |
| New gas line for a fuel switch | $1,500–$2,300 | Going from electric to gas |
| Electrical work | $300–$800 | A new circuit for a heat pump or tankless unit, or power for a power-vent fan |
| Panel upgrade, 100 to 200 amps | $1,300–$3,000 | When the existing service can’t carry a whole-house electric heater |
| Attic installation | $200–$1,000 extra | Hard access, carrying a tank up and down, extra leak protection |
| Moving water lines or adding shutoffs | $200–$600 | Relocating the heater or bringing valves up to code |
Ranges: This Old House water heater installation cost guide (updated June 17, 2026), except the panel upgrade (This Old House electrical panel cost guide, updated March 31, 2026). These are a publisher’s national estimates, not quotes. Code sections: 2024 International Residential Code; your jurisdiction may use a different code or edition, and the local permit office has the final word.
Switching type or fuel is the biggest cost jump
- Gas tank to heat pump: ENERGY STAR lists checking panel capacity, bringing 240 volts to the heater, sealing the old vent and capping the gas line (“typically nominal”), plus a condensate drain and enough air around the unit or a louvered door. Rheem says a 120-volt plug-in model may avoid the new circuit, at the cost of slower recovery.
- Gas tank to gas tankless: usually new venting, a larger gas line and, on condensing models, a condensate drain. This Old House puts tankless labor alone at $800–$1,500.
- Electric tank to electric tankless: Stiebel Eltron’s 24 kW Tempra 24 Plus calls for two 50-amp double-pole breakers, 100 amps at 240 volts. Ask an electrician whether your service can carry that before you price the heater.
- Electric to gas: a new gas line ($1,500–$2,300, This Old House) and venting.
For a deeper look at each of these, including how to tell whether a recommended upgrade is required by code, by the manufacturer or just suggested, see what makes one installation cost more than another. For whether a different type is worth the conversion at all, see tank vs tankless vs heat pump.
Where you live can move the price by a third or more
Labor rates and local codes vary by region. Home Depot publishes how its installed prices in 18 regions compare with its national average. The two columns don’t move together: some regions are expensive for tanks and cheap for tankless. Home Depot doesn’t say why.
| Region | Tank | Tankless |
|---|---|---|
| Pacific North | 35–45% above | 15–25% above |
| Pacific South | 15–25% above | 15–25% above |
| Pacific Central | 10–20% above | 5–15% above |
| Pacific Northwest | 10–20% above | 5–15% below |
| Gulf | 10–20% above | 20–30% above |
| Central | 1–10% above | 1–10% below |
| New Jersey Metro | 1–10% above | 35–45% below |
| New York Metro | 1–10% below | 35–45% below |
| New England | 1–10% below | 20–30% below |
| Mid-Atlantic | 1–10% below | 10–20% below |
| Midwest | 1–10% below | 1–10% below |
| Mid-South | 1–10% below | 1–10% above |
| Ohio Valley | 10–20% below | 20–30% below |
| Northern Plains | 10–20% below | 1–10% below |
| Southwest | 10–20% below | 5–10% above |
| Pacific Mountain Desert | 10–20% below | 20–30% above |
| South Atlantic | 10–20% below | 10–20% below |
| Southeast | 10–20% below | 15–25% below |
| South Florida / Puerto Rico | 10–20% below | 50–60% below |
Source: Home Depot’s regional price table and map on its water heater cost guide (checked 2026-10-04). Region boundaries are drawn on Home Depot’s map: for example, Pacific Northwest covers Washington, Oregon, Idaho and Montana; Northern Plains runs from the Dakotas to Wisconsin and Kansas; New England is the six New England states. Applied to the $1,950 tank average, 35–45% above is about $2,630–$2,830, and 10–20% below is about $1,560–$1,760.
Source: Bureau of Labor Statistics 2025 wage data for occupation 47-2152, as published by O*NET OnLine. These are what plumbers earn, not what companies bill, but they show why the same job costs more in some states.
Emergency vs planned replacement
ENERGY STAR warns that a sudden failure can force “an emergency replacement with the plumber, which can be more expensive,” and can “typically limit your replacement options to inefficient models with high operating costs.” This Old House lists $200–$500 for after-hours or weekend installation, and $500–$2,500 for water damage repair if a failing tank floods the house. Not every company charges a rush premium; Home Depot, for example, says it offers same-day tank installation at no extra charge. Ask before you agree.
The bigger cost of an emergency is usually the decision you don’t get to make. A heat pump model may need a new circuit and a condensate drain, and ENERGY STAR recommends planning that replacement before the old heater fails. That doesn’t fit a no-hot-water Saturday, so an emergency tends to lock you into another standard tank for another 10–15 years.
Find your heater’s age
The manufacture date is on the rating plate or coded in the serial number. ENERGY STAR suggests considering replacement once a heater passes about 10 years.
Get one or two quotes while it still works
Send photos of the heater, its label and the space around it (see the photo checklist). Ask for prices on a same-type swap and on the upgrade you are considering.
Check incentives before you need them
Utility rebates can come with model lists, paperwork and deadlines that are hard to manage in an emergency.
Decide what happens if it fails tomorrow
Keep the quote you prefer. If the old tank fails, you can call that installer with the decision already made.
Not sure whether to replace yet? A leak from the tank itself usually means replacement; a failed element, thermostat or valve often doesn’t. See repair or replace.
Lifetime cost: purchase plus years of energy
The installed price is paid once; the energy bill arrives every month for 10–20 years. To compare types fairly, we spread each installed price over the heater’s expected life and added a year of energy, giving a cost per year of service. That way a tankless unit that lasts 20 years isn’t compared with a 12-year tank as if they were the same purchase.
Assumptions (hypothetical; swap in your own):
- Hot water use: DOE’s high-usage test day, 84 gallons heated from 58°F to 125°F, or 16.9 million Btu a year (365 × 84 gallons × 8.24 lb per gallon × 67°F). Annual energy is that divided by each heater’s Uniform Energy Factor (UEF), as in DOE’s test procedure.
- Heaters: 50-gallon gas tank (Rheem XG50T06EC38U1, UEF 0.63); 50-gallon electric tank (Rheem XE50T09EL45U1, UEF 0.93); 240-volt heat pump at the median of ENERGY STAR’s high-usage listings (1,240 kWh a year); gas tankless at ENERGY STAR’s median UEF, 0.95; 24 kW electric tankless (Stiebel Eltron Tempra 24 Plus, UEF 0.97).
- Energy prices: DOE’s 2025 residential averages used for EnergyGuide labels, 17.22¢ per kWh and $1.43 per therm.
- Price and life: Home Depot’s averages ($1,950 tank, $4,300 tankless) and the midpoint of its heat pump range ($3,750). Tanks 12 years (DOE says 10–15, ENERGY STAR 10–12), heat pump 13 (ENERGY STAR’s assumption), tankless 20 (DOE: most last more than 20).
- Left out: maintenance, repairs, rebates, financing and future price changes.
| Type | Energy per year | Energy cost per year | Installed price ÷ life | Cost per year of service | Total over its life |
|---|---|---|---|---|---|
| Gas tankless | 178 therms | $255 | $4,300 ÷ 20 = $215 | $470 | $9,396 over 20 years |
| Heat pump tank | 1,240 kWh | $214 | $3,750 ÷ 13 = $288 | $502 | $6,529 over 13 years |
| Gas tank | 269 therms | $384 | $1,950 ÷ 12 = $163 | $547 | $6,561 over 12 years |
| Electric tank | 5,334 kWh | $919 | $1,950 ÷ 12 = $163 | $1,081 | $12,973 over 12 years |
| Electric tankless | 5,114 kWh | $881 | $4,300 ÷ 20 = $215 | $1,096 | $21,914 over 20 years |
Ember & Tank calculation. Sources: DOE test procedure (10 CFR 430, Subpart B, Appendix E) for the 84-gallon day and annual-energy formula; manufacturer spec sheets and ENERGY STAR’s certified product data for efficiency; DOE’s 2025 representative average unit costs of energy (Federal Register, March 26, 2026); Home Depot for prices; DOE and ENERGY STAR for service life. Totals may differ by a dollar from rounding.
What the example shows, and what it doesn’t
- Electric resistance is the expensive way to heat water at national average prices. A tankless electric unit saves little over an electric tank, because both turn electricity into heat about one for one. A heat pump moves heat from the air instead; in this example it uses less than a quarter of the electric tank’s electricity.
- Gas tank, gas tankless and heat pump finish close together. Small changes in your rates reorder them. At 30¢ per kWh, the heat pump’s energy bill rises to $372 and its yearly cost to about $660. At $2.00 per therm, the gas tank’s rises to $538 and its yearly cost to about $700.
- Lighter use shrinks the energy column. At DOE’s medium-usage day (55 gallons), every energy figure drops by about a third, which favors the cheaper-to-buy tank.
- Rebates change the purchase column. A utility rebate on a heat pump water heater, which ENERGY STAR said in 2024 typically ran $300–$1,000, comes straight off its installed price.
- Cold climates change the tankless picture. At 3 gallons a minute, the 24 kW electric unit in this example raises water only 54°F, according to Stiebel Eltron’s table; with 50°F incoming water that means about 104°F at the tap. See choosing the right size.
Rebates and tax credits
The federal Energy Efficient Home Improvement Credit (section 25C), which covered heat pump water heaters, ended for improvements made after December 31, 2025, according to the IRS. Some retailer and manufacturer pages, including Home Depot’s cost guide as of October 2026, still say heat pump models “may qualify for a federal tax credit.” Don’t count on it for a 2026 installation.
Utility and state programs are separate and still exist in many areas, with their own model lists, income rules and deadlines. Check them before you sign; see water heater rebates.
How to get an accurate price for your house
Ask every installer to quote this
- The exact model number, its size and first-hour rating (or gpm for tankless), and the warranty on tank, parts and labor
- One total that includes the heater, labor, materials, permit and haul-away, with each priced separately
- Every code item they plan to add (expansion tank, pan, straps, valves) and why it is needed at your house
- Any venting, gas, electrical or relocation work, as separate lines
- Whether the price is fixed, or what could change it once the old heater is out
- Who pulls the permit and schedules the inspection
- Whether after-hours or same-day work costs extra
Two quotes for the same heater can differ by hundreds of dollars because one includes code work the other leaves out. Lay them side by side with our guide to comparing water heater quotes.
Common questions
How much does it cost to replace a 50-gallon water heater?
Home Depot’s published national range for a gas or electric tank replacement, including the heater, permit, materials, labor and haul-away, is $1,600–$2,400, with an average of $1,950. Expect more if the job needs new venting, a gas line, electrical work or code upgrades, and more or less depending on your region.
Is a gas or electric water heater cheaper to replace?
For a same-type replacement, they cost about the same: Home Depot uses one $1,600–$2,400 range for both. This Old House puts the heaters themselves within about $50 of each other, before venting on gas models. The bigger difference is running cost: at 2025 national average prices, a 50-gallon electric tank in a high-use home costs more than twice as much a year to run as a gas one.
Why is a tankless water heater so much more expensive to install?
The unit costs more, and switching from a tank usually means new venting, a larger gas line and a condensate drain for gas models, or a very large electrical circuit for electric ones. Home Depot’s range is $2,400–$5,400 installed, average $4,300, and it says changing from a tank to tankless will likely cost more.
How much does labor cost to install a water heater?
This Old House estimates plumbers charge $40–$200 an hour and most standard installs take 1–3 hours; it puts tank labor at $300–$800 and tankless labor at $800–$1,500. ENERGY STAR’s rule of thumb for heat pump models is that installation costs about as much as the heater.
How long does a water heater replacement take?
Rheem says most standard replacements take a few hours, and more complex installations take longer. A change of type or fuel, new venting or electrical work, or a permit inspection that has to be scheduled can stretch the job over more than one visit.
Does a water heater replacement need a permit?
In most places, yes. The 2024 International Residential Code requires a permit to replace plumbing or gas systems, and most US jurisdictions adopt a version of it. Fees are local and usually modest: La Mirada, California charges about $76 and Portland, Oregon $63 for a water heater.
Is a heat pump water heater worth the extra cost?
Often, if you are replacing an electric tank. In our worked example the heat pump costs about $500 a year to own versus about $1,080 for an electric tank. Against a gas tank it is close and depends on your electricity and gas rates. Rebates, where available, tilt it further.
Sources
Sources checked October 4, 2026. Prices, codes and rebates change. Check current details with your installer and local permit office.
- Cost to Replace a Water Heater (national ranges, averages and regional price table) ↗ · Home Depot
- What Goes into the Cost of Installing a Heat Pump Water Heater? ↗ · ENERGY STAR
- When Should You Replace Your Water Heater? ↗ · ENERGY STAR
- ENERGY STAR Certified Water Heaters (product data) ↗ · U.S. EPA, ENERGY STAR
- Tankless or Demand-Type Water Heaters (archived copy, June 2026) ↗ · U.S. Department of Energy, Energy Saver
- 10 CFR 430 Subpart B, Appendix E: test procedure for water heaters (draw patterns, annual energy) ↗ · U.S. Department of Energy, via eCFR
- 10 CFR 430.32(d): energy conservation standards for water heaters ↗ · U.S. Department of Energy, via eCFR
- Representative Average Unit Costs of Energy for 2025 (Federal Register notice 2026-05899) ↗ · U.S. Department of Energy
- Electric Power Monthly, Table 5.3: average price of electricity by sector ↗ · U.S. Energy Information Administration
- Performance atmospheric gas water heaters spec sheet (XG50T06EC38U1) ↗ · Rheem, hosted by Home Depot
- Performance Plus electric water heater spec sheet (XE50T09EL45U1) ↗ · Rheem, hosted by Home Depot
- Tempra Trend / Tempra Plus submittal sheet ↗ · Stiebel Eltron
- How Much Does Water Heater Installation Cost? (updated June 17, 2026) ↗ · This Old House
- How Much Does It Cost to Upgrade an Electrical Panel? (updated March 31, 2026) ↗ · This Old House
- What to Ask Your Installer Before a Water Heater Replacement ↗ · Rheem
- 120V vs. 240V heat pump water heaters ↗ · Rheem
- Local wages: plumbers, pipefitters and steamfitters (BLS 2025 data), Massachusetts ↗ · O*NET OnLine, U.S. Department of Labor
- Local wages: plumbers, pipefitters and steamfitters (BLS 2025 data), Florida ↗ · O*NET OnLine, U.S. Department of Labor
- 2026–27 City of La Mirada plumbing code fees ↗ · Los Angeles County Public Works
- Plumbing permit fee schedule, effective July 10, 2026 ↗ · City of Portland, Portland Permitting & Development
- 2024 IRC Chapter 1, Scope and Administration (R105.1 permits) ↗ · International Code Council
- 2024 IRC Chapter 28, Water Heaters (P2801.5–P2801.7) ↗ · International Code Council
- 2024 IRC Chapter 29, Water Supply and Distribution (P2903.4.2) ↗ · International Code Council
- 2024 IRC Chapter 24, Fuel Gas (G2413 pipe sizing) ↗ · International Code Council
- California Health and Safety Code §19211 (water heater strapping) ↗ · California Legislative Information
- Energy Efficient Home Improvement Credit ↗ · IRS