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Water Heater Replacement Cost (2026): Tank vs Tankless, Gas vs Electric

A tank-style water heater replacement typically costs $882 to $1,825 installed (Angi, average $1,346), while a tankless system runs $1,400 to $3,900 installed. Installation labor alone is $150-$450 for a tank swap or $600-$1,900 for tankless. A 50-gallon tank replacement lands around $600-$1,650 complete (hotwater.com/A.O. Smith). Use the estimator below for your fuel type, size and installation complexity.

Choose your fuel/tank type, the size or output tier your household needs, the installation labor category, and whether you need permits, an expansion tank, or a fuel-source conversion. The result combines unit price with the labor and code costs that vendor calculators often bury in a single "drive-away" number.

$690 – $3,600

Estimated installed cost for your selections, before local quotes.

This range covers the unit, standard installation labor, permits, and a code-required expansion tank if selected. It does NOT include: removal and disposal of your old unit ($100-$400 per hotwater.com/A.O. Smith), a new gas line if you're switching fuel sources ($260-$820 per Angi, and possibly more for a full electric-to-gas conversion), electrical panel upgrades for an electric tankless unit (100-140 amp draw), or venting work for a power-vent system ($500-$1,000 per hotwater.com). Get an itemized quote for any of these before comparing bids.

Ranges compiled from the published sources listed at the bottom of this page (accessed July 2026). How we build and check our tools →

Tank vs tankless: the headline numbers

A complete tank-style water heater replacement costs $882 to $1,825 installed, averaging $1,346, according to Angi's 2026 cost data pulled from over 30,000 real customer projects. NerdWallet's independent estimate is broader — $600 to $2,500 — reflecting the same tank-vs-features spread. A tankless system costs more upfront: $1,400 to $3,900 installed per both Angi and NerdWallet, but tankless units last up to 20 years versus 8-12 years for a typical tank, and use less standby energy.

Angi's own data point worth flagging: professional labor is usually about half the total bill — replacing a tank-style unit runs $150-$450 in labor alone, while a tankless swap runs $600-$1,900, and converting from tank to tankless can run $150-$2,500 in labor because of the replumbing and remounting involved.

Gas vs electric: what actually changes the price

By fuel/type (unit cost, per Angi's cost-by-type table): electric $600-$3,500, gas $700-$2,700, propane $700-$2,500, high-efficiency $1,500-$3,000, indirect $1,200-$3,500, solar $1,700-$5,500, and hybrid heat pump $1,200-$3,500. For tankless units specifically, A.O. Smith/hotwater.com lists electric tankless at $400-$700 and gas tankless at $700-$1,800 for the unit — gas tankless costs more up front partly because it needs a venting system that electric models don't.

Gas water heaters cost more to buy but less to run: NerdWallet notes gas and electric units have similar starting prices, but switching fuel sources (running a new gas line, or upgrading electrical service for an electric tankless model requiring 100-140 amps) adds materially to the installed total — see the extras field above.

50-gallon replacements: the most common household size

A.O. Smith/hotwater.com's direct answer: a 50-gallon water heater replacement typically costs $600 to $1,650 for complete installation — the size that suits families of up to four people with medium-to-high hot water demand. Angi's size-based table shows a similar 50-gallon range of $800-$2,500 (its figures skew higher, reflecting a wider mix of premium brands in its customer-reported data), while NerdWallet's unit-only price for a 50-gallon tank is $530-$2,900. The gap between these numbers is exactly why this page separates unit cost, size multiplier, and labor instead of quoting one blended number.

Tankless conversions: why the labor line jumps

Converting an existing tank-style setup to tankless is the single most expensive labor category on this page: $150 to $2,500 in labor alone, per Angi and NerdWallet, because the job typically takes twice as long as a straight swap and requires replumbing to a new mounting location (tankless units mount on a wall, not a floor pad) plus new venting. Add a full fuel conversion — electric tank to gas tankless, for example — and you're also budgeting a new gas line ($260-$820 per Angi) and, in the reverse direction, possibly an electrical panel upgrade for a 120-160 amp electric tankless unit.

If you're simply replacing a failing tankless unit with the same type in the same location, expect the lower end of the tankless labor range ($600-$1,900) rather than the conversion figure.

Permits, expansion tanks and other code-required costs

Permits for water heater replacement run $25-$300 depending on your locality and the scope of work, per both Angi and NerdWallet — required whenever you're altering plumbing, gas or electrical connections. Many cities also require a thermal expansion tank if your home has a check valve or pressure-reducing valve on the water line; A.O. Smith/hotwater.com prices these at $90-$350 installed. Removal and disposal of your old unit is a separate line item most homeowners forget to budget: $100-$400, rising toward the top of that range if the unit is in a hard-to-access basement or loft.

Sanity-check your quote before you sign

Angi's guidance for saving money: repair instead of replace when the fix is simple (a gas valve replacement runs $150-$500 versus a full swap), keep the same fuel type and tank/tankless format to avoid conversion labor, buy the unit directly rather than through a contractor markup where possible, and schedule outside emergency hours. If your quote includes major renovation-adjacent work — moving the unit, opening a wall, upgrading a full electrical sub-panel — that's a materially different, larger project than a like-for-like swap, and it's worth getting a second opinion. If a failed water heater damaged flooring nearby, that repair (typically $3.75-$7 per square foot per Angi) is a separate cost entirely from replacement. For the plumbing side of a hard-water household, see the water softener cost breakdown — softening reduces the scale buildup that shortens a water heater's life in the first place.

Frequently asked questions

How much does it cost to replace a water heater?

A tank-style replacement typically costs $882-$1,825 installed, averaging $1,346 (Angi). A tankless replacement runs $1,400-$3,900 installed (Angi, NerdWallet). Labor alone is usually about half the total — $150-$450 for a tank swap, $600-$1,900 for tankless.

How much does a hot water heater replacement cost for gas vs electric?

By unit type (Angi): electric $600-$3,500, gas $700-$2,700, propane $700-$2,500. For tankless units specifically, A.O. Smith/hotwater.com lists electric tankless at $400-$700 and gas tankless at $700-$1,800 for the unit before installation.

How much does it cost to replace a 50-gallon water heater?

A.O. Smith/hotwater.com states a 50-gallon replacement typically costs $600-$1,650 for complete installation — the common size for households of up to four people. Angi's size table shows a broader $800-$2,500 range for the same size, reflecting more premium-brand data points.

How much does it cost to convert a tank water heater to tankless?

Labor for a tank-to-tankless conversion runs $150-$2,500 (Angi, NerdWallet) — roughly double a like-for-like tankless swap ($600-$1,900) — because the job requires replumbing to a new wall-mounted location and installing new venting.

Is a tankless water heater worth the extra cost?

Tankless units cost more upfront ($1,400-$3,900 installed vs $882-$1,825 for tank) but last up to 20 years versus 8-12 years for a typical tank-style unit, and use less standby energy since they only heat water on demand.

How much does it cost to install a heat pump / hybrid water heater?

Angi's type table lists hybrid heat pump water heaters at $1,200-$3,500 for the unit; A.O. Smith/hotwater.com quotes $2,000-$3,000. They cost more upfront but can cut water-heating energy costs to roughly a quarter of a standard electric tank unit, per A.O. Smith's running-cost estimate.

Do I need a permit to replace a water heater?

Usually yes for any plumbing, gas or electrical alteration. Angi and NerdWallet both estimate permit costs at $25-$300 depending on your locality and the scope of the work.

How much does removing an old water heater cost?

A.O. Smith/hotwater.com estimates $100-$400 for removal and disposal of the old unit, with costs rising toward the top of that range if the unit is in a hard-to-access basement, attic or crawlspace.

What's the labor cost to install a water heater?

Angi and NerdWallet both cite: $150-$450 for a tank-style swap, $600-$1,900 for a tankless swap, and $150-$2,500 for converting tank to tankless. Labor typically accounts for roughly half the total installed cost.

Sources

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Researched & verified by the Calcuris Data & Research Team. How we build and check our tools →