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Updated Oct 21, 2026 Β· By Michael Gonzales Β· Prices from HomeGuide and NerdWallet
Disclosure: 1-800Deals is a contractor directory. We don't run any rebate program, and listings never change the facts on this page.
Short answer: Replacing a standard tank water heater costs $600 to $3,100 installed, and a tankless water heater costs $1,400 to $5,600, according to HomeGuide's January 2026 guide. A same-size tank swap is the cheapest job. Switching types, sizes or fuels adds labor and parts. Most tanks last 8 to 12 years.
Get quotes from local water heater installers, and check the rebate finder by ZIP code before you buy.
How much does it cost to replace a water heater?
| Type | Unit only | Installed |
|---|---|---|
| Standard tank | Varies by size (see below) | $600 β $3,100 |
| Tankless | $600 β $2,600 | $1,400 β $5,600 |
| Hybrid heat pump | $1,500 β $3,000 | $2,000 β $4,600 |
Source: HomeGuide, water heater installation and replacement cost, January 2, 2026. Totals are before rebates.
NerdWallet gives similar ranges: $600 to $2,500 for a tank and $1,400 to $3,900 for tankless. It also notes Home Depot's listed averages of $1,950 for a tank install and $4,300 for tankless.
How much does a new tank water heater cost by size?
| Tank size | Unit only | Installed | HomeGuide says it suits |
|---|---|---|---|
| 30 gallon | $300 β $900 | $500 β $1,900 | β |
| 40 gallon | $400 β $2,000 | $600 β $3,000 | 1 to 2 people |
| 50 gallon | $500 β $2,100 | $700 β $3,100 | 3 to 4 people |
| 65 gallon | $700 β $2,400 | $900 β $3,400 | β |
| 75 gallon | $900 β $2,600 | $1,100 β $3,600 | β |
| 80 gallon | $1,000 β $3,000 | $1,200 β $4,000 | β |
Source: HomeGuide. The 40- and 50-gallon sizes are the most common.
Tank or tankless: which should you replace with?
| Tank | Tankless | |
|---|---|---|
| Installed cost | $600 β $3,100 | $1,400 β $5,600 |
| Yearly energy cost, gas | $250 β $420 | $220 β $480 |
| Yearly energy cost, electric | $530 β $600 | $340 β $540 |
| Lifespan | 8 β 12 years | 15 β 20 years |
| Labor | $200 β $1,000, 2 to 6 hours | $600 β $2,500, 3 to 10 hours |
Source: HomeGuide.
My rule of thumb: if your tank just died and you need hot water tomorrow, a same-size tank is the fast, cheap fix. If you have time to plan, price tankless and a heat pump water heater too. Our tankless water heater cost guide walks through the upgrades and the payback math.
What adds to the cost of a replacement?
HomeGuide lists these common extras:
- Expansion tank: $100 to $400. Large tanks often need one to control water pressure.
- Bringing plumbing up to code: $75 to $500 or more.
- Electric to gas conversion: $400 to $2,000 or more, depending on whether you already have a gas line.
- Tank to tankless upgrades: a dedicated circuit ($250 to $900), a new panel ($850 to $1,700) or a bigger gas line ($350 to $2,000).
- Permits: NerdWallet puts them at $25 to $300. Your town may also require separate plumbing or electrical permits.
- Emergency or after-hours service: extra charges apply.
Ask whether removing and hauling away the old unit is included. It isn't always.
How long does a water heater last?
Tank water heaters last 8 to 12 years on average, and tankless units 15 to 20, per HomeGuide. NerdWallet says a well-kept tank lasts about 10 to 15 years. Maintenance makes the difference. HomeGuide suggests flushing the tank every 6 to 12 months and replacing the anode rod every 3 to 6 years.
This Old House plumbing and heating expert Richard Trethewey puts it bluntly: "If the anode rod got changed, you could probably get 20 years, but nobody ever does it," he told This Old House.
What are the first signs a water heater is going bad?
This Old House lists these warning signs:
- Age. Over 10 years old means it's nearing the end of its expected life.
- Rusty or discolored hot water, which can mean corrosion inside the tank.
- Rumbling or banging, usually sediment built up in the bottom of the tank.
- Water pooling around the base. Treat this as urgent.
- Temperature swings or running out of hot water sooner than you used to.
Some of these, like sediment noise, can be fixed with a flush. A leak from the tank itself can't. A licensed plumber can tell you which you've got.
Should you replace a 20-year-old water heater?
In most cases, yes. A 20-year-old tank is well past HomeGuide's 8- to 12-year average, and HomeGuide suggests considering replacement for any water heater over 10 years old, or when a repair would cost more than half the price of a new one.
Replacing before it fails can prevent leaks and water damage. Trethewey's warning is that most people wait for the leak: "It's always an emergency."
Are there rebates for replacing a water heater in 2026?
The federal 25C tax credit ended for equipment installed after December 31, 2025. What's left in 2026:
- State HEAR rebates for heat pump water heaters, up to $1,750 for income-eligible households where the program is open. See heat pump water heater rebates and the HEAR rebates by state table.
- Utility rebates, which vary by company. See how to find utility rebates.
The quickest check is our rebate finder by ZIP code.
How do you get a fair replacement quote?
- Get at least three quotes from licensed water heater installers.
- Ask for the exact model, size and fuel type, plus the warranty on parts and labor.
- Ask for permits, the expansion tank, code fixes and haul-away as separate lines.
- If you're switching to tankless or a heat pump unit, ask about electrical and gas upgrades up front.
- Don't pay everything up front. Tie payments to the work.
Want us to find pros for you? Get matched with local installers.
Frequently asked questions
What is the normal cost to replace a water heater? $600 to $3,100 for a standard tank, installed, per HomeGuide. Most homes use a 40- or 50-gallon tank, at $600 to $3,000 and $700 to $3,100.
How much does it cost to replace a water heater with tankless? $1,400 to $5,600 installed, per HomeGuide, and more if you need a new circuit, panel or gas line.
How long do tank water heaters last? 8 to 12 years on average, per HomeGuide, and about 10 to 15 with good maintenance, per NerdWallet.
What are the first signs of a water heater going bad? Age over 10 years, rusty hot water, rumbling noises, water around the base and uneven temperatures, according to This Old House.
Should I replace a 20-year-old water heater? Yes, in most cases. It's far past the average lifespan, and HomeGuide suggests replacing any unit over 10 years old or when repairs cost more than half the price of a new one.
How long does it take to replace a water heater? A same-size tank swap takes a plumber about 2 to 6 hours. Switching to tankless takes longer, up to 10 hours, per HomeGuide.
Sources
HomeGuide: Water heater installation and replacement cost (Jan 2, 2026) Β· HomeGuide: Tankless water heater cost Β· NerdWallet: Water heater cost in 2026 Β· This Old House: How to replace a tank-type water heater (updated May 26, 2026) Β· 1-800Deals: Heat pump water heater rebates. Checked October 19, 2026.