Water heater installation cost
Installing a standard 40 or 50 gallon tank water heater costs $600 to $3,100 with labor. Tankless units cost $1,400 to $5,600 installed. The size, fuel type and how much your plumber has to change around the old unit decide where you land.
Quick answer
$600 – $3,100standard tank, installed
Most homeowners pay $600 to $3,100 for a new tank water heater with installation. Small 30 gallon units start around $500, and tankless systems that need new gas lines or venting reach $5,600.
Cost by tank size
Size is the first thing that moves the price. A household of one or two people usually needs 30 to 40 gallons; three to four people, 40 to 50 gallons; five or more, 50 to 80 gallons.
| Tank size | Unit only | Installed |
|---|---|---|
| 30 gallons | $300 – $900 | $500 – $1,900 |
| 40 gallons | $400 – $2,000 | $600 – $3,000 |
| 50 gallons | $500 – $2,100 | $700 – $3,100 |
| 65 gallons | $700 – $2,400 | $900 – $3,400 |
| 75 gallons | $900 – $2,600 | $1,100 – $3,600 |
| 80 gallons | $1,000 – $3,000 | $1,200 – $4,000 |
Cost by type of water heater
Tank heaters are the cheapest to buy and install. Tankless and heat pump models cost more upfront but use less energy. Compare them in Tank vs. tankless water heater cost.
| Type | Unit only | Installed |
|---|---|---|
| Standard tank (40–50 gal) | $400 – $2,100 | $600 – $3,100 |
| Tankless | $600 – $2,600 | $1,400 – $5,600 |
| Hybrid heat pump | $1,500 – $3,000 | $2,000 – $4,600 |
| Indirect (boiler-fed) | $1,500 – $3,000 | $2,000 – $4,500 |
| Solar | $1,000 – $6,000 | $3,000 – $9,000 |
What plumbers charge for this job
Most of the price of a plumbing job is labor. Licensed plumbers in the U.S. typically charge $45 to $150 per hour, and many add a $50 to $200 service call fee that often covers the first hour. Expect evening, weekend and holiday visits to cost noticeably more; emergency hourly rates commonly run $150 to $350. Master plumbers and plumbers in high-cost metro areas sit at the top of these ranges.
Before work starts, ask whether the quote is a flat price for the whole job or an hourly estimate, and whether parts, permits and haul-away are included. See Plumber rates per hour and Emergency plumber cost for the full breakdown.
What affects installation cost
- Fuel type. Gas units need venting and a gas connection; electric units may need a dedicated 240-volt circuit.
- Changing type or fuel. Converting from tank to tankless or electric to gas adds new lines, venting and labor.
- Code updates. Older installs often need an expansion tank, seismic straps, a drain pan or new venting to pass inspection.
- Location. An attic or tight closet takes more labor than a garage or basement.
- Brand and warranty. 9 to 12 year warranty models cost more than 6 year models.
| Item | Typical cost |
|---|---|
| Permit | $50 – $200 |
| Haul away old water heater | $75 – $500 |
| Expansion tank | $100 – $400 |
| Replace existing venting | $100 – $600 |
| New venting | $500 – $1,500 |
| Gas line upgrade | $350 – $2,000 |
| Dedicated electrical circuit | $250 – $900 |
| Electrical panel upgrade | $850 – $1,700 |
| Code compliance updates | $75 – $500+ |
| Relocating the water heater | $500 – $2,500 |
Labor cost
Labor is usually a third to half of the total. A straight swap of the same size and fuel is the cheapest job.
| Job | Labor |
|---|---|
| Like-for-like tank swap | $200 – $1,000 |
| Tank to tankless upgrade | $600 – $2,500 |
| Difficult installs | $125 – $300 per hour |
Can you install a water heater yourself?
Water heater installation involves gas connections or high-voltage wiring, venting carbon monoxide safely and setting a pressure relief valve. Most areas require a permit and inspection. Unless you are experienced, hire a licensed plumber. A bad installation can void the manufacturer's warranty and create a fire, gas or flooding risk.
How to save on a new water heater
- Replace with the same size and fuel type to avoid conversion costs.
- Ask whether the quote includes the permit, haul-away and code updates.
- Check utility and state rebates for heat pump and high-efficiency models with the ENERGY STAR rebate finder.
- Replace before the tank fails, so you can shop around instead of paying emergency rates.
- Compare at least three quotes; installation prices vary widely between companies.
The federal energy efficiency tax credit (25C) that covered efficient water heaters ended for equipment installed after December 31, 2025. State and utility rebates may still apply.
Frequently asked questions
How much does it cost to install a 50 gallon water heater?
A 50 gallon tank water heater costs $700 to $3,100 installed. The unit itself runs $500 to $2,100.
How long does water heater installation take?
A like-for-like tank swap takes 2 to 3 hours. A tankless conversion can take a full day or more if gas lines, venting or electrical work are needed.
Do you need a permit to replace a water heater?
In most U.S. cities, yes. Permits typically cost $50 to $200, and a licensed plumber normally pulls it for you.
Is it cheaper to install a gas or electric water heater?
Electric tanks are usually cheaper to install, but gas units cost less to run each year. If you would need a new gas line, electric is often the lower upfront option.
Sources
Prices are national estimates for 2026 based on published cost surveys and labor data. Your local price can be higher or lower. FairFix Costs is not a plumbing contractor; read our disclaimer.