IQHab › United States › Plumbing › Water Heater Replacement Cost (2026)
Water Heater Replacement Cost
Replacing a water heater is a common home project. Here's what it costs by type.
Per water heater · USD
What's included
Labor
$400–$900
Materials / equipment
$600–$2,200
What changes the price
- Tank vs. tankless water heater
- Fuel type — gas or electric
- Capacity (gallons)
- Location and venting
Regional notes
- Tankless units cost more up front but can be more efficient.
- Codes vary; some areas require expansion tanks or upgrades.
Questions
How long does a water heater last?
Typically 8–12 years for a tank unit, longer for a well-maintained tankless system.
Cost by state
Costs vary by regional labor market. See local estimates for your state:
Browse all U.S. statesHow to get an accurate quote
- Get several quotes and compare, not just price.
- Be specific about size, materials and any existing issues.
- Ask whether the quote includes labor, materials, permits and cleanup.
- Confirm the contractor is licensed and insured before you hire.
Cost by type
The type of water heater drives the cost. Here's the typical installed range:
| Type | Typical cost |
|---|---|
| Electric tank (40–50 gal) | $900 – $1,600 |
| Gas tank (40–50 gal) | $1,000 – $1,900 |
| Tankless | $1,800 – $3,500 |
Tankless units cost more up front but last longer and only heat water on demand, so they can lower monthly bills — especially in a home with high hot-water use.
Example
Replacing a 50-gallon gas tank water heater, including haul-away and a permit, typically runs around $1,300. Upgrading the same home to tankless adds roughly $1,000–$1,600 more.
How to save
- Replace same-type for the simplest install.
- Look for utility rebates on tankless or high-efficiency units.
- Flush the tank annually to extend its life.
- Insulate hot-water pipes and lower the setpoint.