The True Cost of Replacing a Water Heater in 2025
Water Heaters
Pricing for water heater replacement can vary wildly based on location and the type of unit. Here are the national averages to help you budget.
Traditional Tank Costs
For a standard 40-50 gallon tank replacement, expect to pay between $1,200 and $2,000 installed. This includes the unit ($500-$900), labor, removal of the old unit, and basic code upgrades.
Tankless Costs
Tankless units are more expensive. Expect to pay between $2,500 and $4,500 installed. The unit itself costs more ($1,000+), but the installation often requires upgrading gas lines, venting, and electrical outlets, which drives up the labor cost significantly.
Hidden Factors
- Permits: Most cities require a permit ($50-$200) for installation.
- Code Upgrades: If your old setup doesn't meet current code (e.g., needs an expansion tank or earthquake straps), this will add to the cost.
- Location: If the heater is in a difficult-to-access attic or crawlspace, labor costs will rise.