Typical installed cost for a standard tank heater
$600 – $2,500
That covers the unit and installation for a like-for-like swap. Switching fuel type, moving the heater or going tankless costs more.
Cost by type
| Type | What to know | Typical cost |
|---|---|---|
| Tank, gas or electric | The most common setup. Similar unit prices; gas lines or electrical upgrades add cost. | $600 – $2,500 |
| Tankless | Heats on demand. Often needs new venting, a larger gas line or a new circuit. | $1,400 – $3,900 |
| Labor only, tank | Removing the old tank and installing a like-for-like replacement. | $150 – $450 |
| Labor only, tankless | More work than a tank swap. | $600 – $1,900 |
What makes a quote higher
- Size. More gallons, or a higher flow rate for tankless, costs more.
- Fuel and venting. A new gas line, power venting or an electrical upgrade adds to the job.
- Location. An attic, crawlspace or tight closet takes longer.
- Permits. Often $25 to $300 depending on where you live.
- Features. Smart controls, anti-scale systems and high-efficiency models cost more up front.
Repair or replace?
A leaking fitting, a worn drain valve or a bad heating element can usually be repaired. A tank that leaks from its body can't be. Age matters too: on an older tank with rust in the hot water or a rumbling sound, money spent on repairs often goes further toward a replacement. Ask the plumber for the tank's age, which is usually printed in the serial number on the label.
Water on the floor right now? Start with what to do when a water heater leaks.
Sources
- NerdWallet, Water Heater Cost, updated September 2025