Short answer
A tank water heater typically costs $600 to $2,500 installed (Fixr, 2026). By fuel, Fixr lists $700 to $2,700 for natural gas, $500 to $3,500 for electric and $1,200 to $4,600 for a heat pump. Angi’s tank replacement range is about $600 to $2,500. Expect the top of the range when the job adds venting, a fuel switch, a larger tank or code upgrades such as an expansion tank or drain pan.
Installed cost by fuel
Water heater installed cost by fuel
| Type | Installed cost | Source |
|---|---|---|
| Tank, all fuels | $600 to $2,500 | Fixr 2026 |
| Natural gas tank | $700 to $2,700 | Fixr 2026 |
| Propane tank | $700 to $2,500 | Fixr 2026 |
| Electric tank | $500 to $3,500 | Fixr 2026 |
| Heat pump (hybrid) | $1,200 to $4,600 | Fixr 2026 |
| Tank replacement | About $600 to $2,500 | Angi |
Installed cost by size
Water heater installed cost by tank size
| Size | Fixr (all fuels) | HomeGuide electric | HomeGuide gas | HomeGuide hybrid |
|---|---|---|---|---|
| 30 gallon | $550 to $2,100 | |||
| 40 gallon | $550 to $2,300 | $600 to $1,600 | $900 to $3,000+ | $2,100 to $4,200 |
| 50 gallon | $700 to $2,500 | $700 to $1,800 | $1,000 to $3,100+ | $2,300 to $4,400 |
| 75 gallon | $1,100 to $3,400 | |||
| 80 gallon | $1,200 to $3,600 |
HomeGuide figures from its 40 gallon and 50 gallon cost guides. Blank cells: that guide does not list the size.
What adds to the bill
Extra costs on a water heater replacement
| Item | Typical cost (Fixr) | When it applies |
|---|---|---|
| Labor | $300 to $1,500 (18 to 50% of the total); $45 to $200 an hour | Every job; more in tight spaces and high cost areas |
| Old tank haul away | $75 to $500 | When not included in the quote |
| Permit | $25 to $1,500 | Most areas for a replacement; all for a first time install |
| Power vent | $300 to $1,000 | Gas tank without a usable flue |
| Utility rough in | $400 to $1,800 extra | Installing where there was no heater before |
Code items that often come up on a replacement, with no single published price: an expansion tank on a closed system, a drain pan where a leak would cause damage, a relief valve discharge pipe to code, seismic straps in some states, and a thermostatic mixing valve where local code asks for one.
How to keep the cost down
- Replace like for like. Same fuel, similar size, same spot. Fixr calls this the most affordable option upfront.
- Replace before it fails. A planned swap avoids emergency call rates and water damage. Check the age on the lifespan guide.
- Get two or three written quotes that list the permit, haul away and code items separately.
- Look for rebates on heat pump models from your utility. The federal tax credit ended for property placed in service after 2025 (IRS).
Questions people ask
How much does it cost to replace a 40 gallon water heater?
Fixr lists a 40 gallon tank at $550 to $2,300 installed. HomeGuide puts 40 gallon electric at about $600 to $1,600 and gas at about $900 to $3,000 or more.
How much does it cost to replace a 50 gallon water heater?
Fixr lists a 50 gallon tank at $700 to $2,500 installed. HomeGuide puts 50 gallon electric at about $700 to $1,800 and gas at about $1,000 to $3,100 or more, and hybrid heat pump at about $2,300 to $4,400.
How much is labor to install a water heater?
Fixr says labor averages $300 to $1,500, or 18 to 50 percent of the total, and $45 to $200 an hour where plumbers charge hourly.
Does the price include removing the old tank?
Often, but not always. Fixr says plumbers who charge separately ask $75 to $500 for disconnecting and hauling the old tank, including dumping fees.
Is it cheaper to repair or replace?
Parts like a T&P valve, element, thermostat or anode rod are worth replacing on a sound tank. A tank leaking from its body or bottom cannot be repaired and needs replacing.
Sources
Last reviewed October 29, 2026. Models, codes and listings change; check your heater’s manual and your local code, and follow the maker’s instructions.