Water Heater Replacement Cost in 2026
Updated 2026-10-14. All figures were checked on that date.
Short answer: a standard 40–50 gallon tank costs $600–$3,100 installed; tankless runs $1,400–$5,600 (HomeGuide, as of 2026-10-14).
Installed cost by type
| 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 | $1,500–$3,000 | $2,000–$4,500 |
| Solar | $1,000–$6,000 | $3,000–$9,000 |
Source: HomeGuide, water heater installation cost, as of 2026-10-14.
AD SLOT PLACEHOLDER: in-article 300x250
Labor and permits
| Item | Cost |
|---|---|
| Labor, tank-style | $150–$450 |
| Labor, tankless | $600–$1,900 |
| Labor, switching tank to tankless | $150–$2,500 |
| Permit | $25–$300 |
Source: NerdWallet, water heater cost, as of 2026-10-14.
Tank or tankless?
| Tankless | Tank | |
|---|---|---|
| Lifespan | 15–20 years | 8–12 years |
| Annual operating cost, gas | $220–$480 | $250–$420 |
| Annual operating cost, electric | $340–$540 | $530–$600 |
Source: HomeGuide, as of 2026-10-14.
DIY notes
- Like-for-like swaps (same fuel, size and location) are the cheapest. Moving to tankless often needs gas line, venting or electrical upgrades.
- Gas and electrical work usually needs a permit. Check yours before you start.