Cost by water heater type (2026)
National typical installed prices for a like-for-like replacement, before state adjustment and add-ons.
| Type | Low | Typical | High | Lifespan |
|---|---|---|---|---|
| Gas tank, 50 gal | $1,700 | $2,400 | $3,300 | 8–12 yrs |
| Electric tank, 50 gal | $1,300 | $1,950 | $2,700 | 10–15 yrs |
| Heat pump tank, 50 gal | $2,900 | $4,050 | $5,400 | 13–15 yrs |
| Tankless gas, whole-house | $3,200 | $4,550 | $6,200 | 18–20 yrs |
| Tankless electric, whole-house | $1,700 | $2,650 | $3,800 | 18–20 yrs |
What size tank do you need?
Tank heaters are sized by first-hour rating: how much hot water they deliver in the busiest hour. These capacities suit most households.
| Household | Gas tank | Electric tank | Heat pump tank |
|---|---|---|---|
| 1–2 people | 30–40 gal | 40 gal | 50 gal |
| 3–4 people | 40–50 gal | 50 gal | 50–65 gal |
| 5 people | 50 gal | 65 gal | 65–80 gal |
| 6 or more | 65–80 gal | 80 gal | 80 gal |
Electric and heat pump tanks recover more slowly than gas, so they are usually one size larger for the same household.
The cost of switching types
- Gas tank to tankless gas: usually needs new PVC venting and a larger 3/4 inch gas line, adding $600–$2,400.
- Gas to heat pump: needs a 240 V circuit, a condensate drain and enough room air around the unit. The gas line is capped.
- Electric tank to tankless electric: usually needs much larger wiring and breakers, and sometimes a panel upgrade.
- Electric tank to heat pump: often the simplest switch, since the 240 V circuit is already there.
Signs it is time to replace
- The tank is more than 10–12 years old (gas) or 12–15 years old (electric).
- Water pools around the base, or the tank itself is leaking. Tanks cannot be repaired once they leak.
- Rusty water from the hot tap only, or rumbling and popping noises from sediment.
- You run out of hot water sooner than you used to.
Frequently asked questions
How much does it cost to replace a water heater in 2026?
A like-for-like 50-gallon gas tank typically costs $1,700 to $3,300 installed, and an electric tank $1,300 to $2,700. Heat pump and tankless models cost more.
Is a heat pump water heater worth it?
Heat pump water heaters use about 60–70% less electricity than standard electric tanks. Replacing an electric tank, the savings often repay the higher price in 3 to 6 years, and many utilities offer rebates.
How long does a water heater replacement take?
Two to three hours for a like-for-like tank. Switching to tankless or a heat pump can take a full day.
Do I need a permit to replace a water heater?
Most cities require one, especially for gas units, because of venting and combustion safety. The installer usually pulls it.
Is tankless worth it?
Tankless heaters last longer (about 20 years) and never run out, but cost more to install. They pay off best when you would otherwise need a large tank or are building new.
These estimates are for budgeting only. Final prices depend on the brand, your venting, gas and electrical setup, and local rates.