Water heater replacement cost: tank, tankless and heat pump

Water heater prices by tank size

These are Angi’s 2026 ranges for a tank water heater with installation (Angi):

• 30 gallons: $700 to $2,100
• 40 gallons: $800 to $2,300
• 50 gallons: $800 to $2,500
• 75 gallons: $1,100 to $4,000
• 80 gallons: $1,300 to $7,500

Prices by type

• Standard tank. Angi puts tank swap labor at about $150 to $450 (Angi).
• Tankless. About $1,400 to $3,900 installed, with labor of $600 to $1,900 because gas lines, venting or wiring often change (Angi).
• Hybrid heat pump. About $1,200 to $3,500 (Angi). ENERGY STAR says these units need a space that stays between 40 and 90 degrees F year-round with about 1,000 cubic feet of air around them, and they can cool the room they’re in (ENERGY STAR).

Costs that can surprise you

The heater is only part of the bill. Angi’s 2026 ranges for common add-ons (Angi):

• Permit: $25 to $300
• Haul-away of the old unit: $100 to $500
• New gas line: $260 to $820

Repair or replace?

Angi puts most water heater repairs at $230 to $1,000; a gas control valve alone runs $150 to $500 (Angi). If your tank is near the 8 to 12 year mark or leaking from the tank itself, replacement is usually the better value. See our water heater repair guide for troubleshooting first.

Safety first

• Gas units need venting. Angi advises proper ventilation, a yearly inspection and a working carbon monoxide detector (Angi). CPSC says to put CO alarms outside each sleeping area and on every level of the home (CPSC).
• Smell gas? Leave the house right away and call your gas company from outside. Nicor Gas customers can find emergency steps here.

How to pay less

• Stick with the same type and spot. Angi says a like-for-like swap avoids new gas lines, venting and relocation costs (Angi).
• Schedule it on a weekday if your old unit is still limping along. (Angi)
• Check rebates. Search the ENERGY STAR Rebate Finder for utility rebates on heat pump and other efficient models. The federal home improvement credit only covered work through Dec. 31, 2025 (IRS).

Would a home warranty help with the next water heater bill?

A home warranty is a service contract that helps pay to repair or replace some home systems and appliances. Know these numbers before you buy:

• Price. The DC Attorney General says a basic home warranty costs $500 a year or more (DC Attorney General). NerdWallet’s average was about $876 a year (NerdWallet).
• Service fee. You usually pay a fee for each repair visit, typically $75 or more (DC Attorney General). NerdWallet found an average of about $108 (NerdWallet).
• Is the item covered? Some plans exclude kitchen appliances, water heaters, furnaces and other major appliances, or charge extra to cover them (DC Attorney General).
• Caps and exclusions. Claims can be capped. Contracts can exclude wear and tear, manufacturer defects and problems from skipped maintenance. The company may repair rather than replace, and may pick the contractor (DC Attorney General).

Some plans cover water heaters in a base plan and others don’t, so check the cap for a full replacement. Don’t count on a brand-new plan to pay for something that’s already broken; read when coverage starts and what it excludes. See our home warranty cost guide.