Water Heater Replacement Cost: $882 to $1,826 by Type (2026)

How much does it cost to replace a water heater

Published US installed prices. HomeAdvisor's electric tank range excludes electrical work, and Fixr's gas figures assume the house already has gas to the heater.

A like-for-like swap is the cheapest job: the same fuel, the same size, in the same spot, on the existing gas line, vent or circuit. HomeAdvisor puts labor for that at $150 to $450. Prices go up when something has to change. Moving the heater, upsizing the tank, bringing vents or connections up to current code, switching from electric to gas, or going tankless all add work. Fixr says switching from electric or oil to gas can add $3,500 or more for new gas lines.

Gas vs electric water heater replacement cost

The published ranges overlap. HomeAdvisor gives $700 to $2,700 for a gas tank and $600 to $3,500 for electric, noting the electric high end does not include electrical work. Fixr's gas average, for homes that already have gas to the heater, is $1,900. Stay with the fuel you have unless there is a reason to switch; a fuel change means new gas piping and permits, or a new electrical circuit, on top of the heater.

Heat pump water heater installation

A heat pump water heater (also called a hybrid) pulls heat from the surrounding air instead of making it with a burner or element. DOE says heat pump models "can be two to three times more energy efficient than conventional electric resistance water heaters." HomeAdvisor puts a hybrid installed at $1,200 to $3,500.

They do not fit everywhere. DOE says the unit needs a space that stays between 40 and 90 F year-round with at least 1,000 cubic feet of air around it, which rules out many closets. Ask whether your electrical panel has room for the heater's circuit before you sign; if it does not, an electrical panel upgrade comes first and adds to the job.

How long does a water heater last

DOE says a storage (tank) water heater lasts 10 to 15 years and a tankless unit about 20. HomeAdvisor's figure for conventional tanks is shorter, 8 to 12 years. Rheem says tanks last around 10 years and recommends planning replacement around year 10, so the swap happens on your schedule rather than after a flood.

Signs your water heater is failing

• Water at the base of the tank. Rheem says water pooling at the tank body suggests internal corrosion, which usually means replacement. If water has spread into walls or flooring, see leak detection and water damage restoration.
• Rumbling or popping. Sediment on the bottom of the tank (Rheem). A flush can help on a younger tank.
• Rusty water or a rotten-egg smell. Rheem points to a worn anode rod or bacteria in the tank.
• Less hot water than before. Often a thermostat, heating element or dip tube (Rheem).
• Higher energy bills with no other change in use (Rheem).

Water heater repair vs replacement: repair costs

Installed prices for tank water heaters. HomeGuide puts tankless repair at $300 to $1,300.

Repair when the tank is younger than about 10 years and the problem is a part: a thermostat, element, thermocouple, gas control valve, anode rod or relief valve. Replace when the tank itself leaks, when it is past 10 years and needs anything significant, or when a repair quote approaches the $882 to $1,826 typical replacement price. A major repair on a 12-year-old tank buys a short reprieve on a heater that DOE expects to last 10 to 15 years.

Do you need a permit to replace a water heater

Usually, yes. HomeAdvisor puts water heater permits at $25 to $300, with a separate gas permit adding $50 to $300. Ask who pulls the permit and whether an inspection follows; a company that offers to skip the permit is skipping the local check.

Federal tax credits for water heaters ended after 2025

Two federal credits covered water heaters, and both are gone for 2026 installs. Under Public Law 119-21, signed July 4, 2025, the IRS says the Energy Efficient Home Improvement Credit (25C) "will not be allowed for any property placed in service after December 31, 2025." That credit covered heat pump water heaters. The Residential Clean Energy Credit (25D), which covered solar water heaters, "will not be allowed for any expenditures made after December 31, 2025." For a 2026 install, check your state and your electric or gas utility for rebates instead.

Solar water heater repair and solar pool heater repair

Solar water heaters use roof collectors, a pump and a storage tank, so they fail in more places than a standard tank. Fixr's average repair is $400, in a range of $150 to $750:

Solar water heater repair prices from Fixr (January 2025).

For solar pool heaters, Angi says homeowners average $480 to fix a pool heater and that electric units cost more to fix than solar ones, though it gives no solar-only figure. Solar thermal systems are a different trade from solar panels that make electricity; when you call, say it is a solar water heater so the company can tell you whether it works on them. For panels that make power, see solar panel repair.

Water heater installation near me: what to ask

1. What is the total installed price? It should include the unit, labor, fittings, permit and haul-away of the old tank (Fixr puts haul-away at $100 to $500).
2. Is anything about my setup out of code? Venting, gas connection, relief valve discharge and drain pan are where surprises come from. Get them priced before the work starts.
3. Who pulls the permit, and when is the inspection?
4. What warranty comes with the labor? The tank warranty comes from the manufacturer; the installation warranty comes from the company.
5. Which license does the work need here? Water heater rules vary by state and city. Ask for the license number and check it with your state's licensing board.

Calls go to an independent company that serves your area and takes water heater work. Some take emergency calls; hours vary. How calls work.