Water heater replacement: tank, tankless or heat pump

The figures here are published national ranges from cost guides, and permit fees from three cities' schedules. They aren't quotes, and local prices vary. Use them to plan, then get quotes from plumbers near you if you'd like to compare.

Gas: if you smell gas, leave the house and call your gas utility or 911 from outside. Don't use the quote form for a gas leak.

What a new water heater costs, installed

There's no range here for a standard electric tank. We list a range only when two independent cost guides support it, and only one prices an electric tank on its own, so ask plumbers to quote it.

The plumbing and HVAC cost estimator gives a planning range for each of these types.

Choosing a type

The ranges above name what can add to the price: gas line and venting work for a gas tankless unit, a panel upgrade for an electric one, and replacing a gas heater with a heat pump model. Before you choose, ask each plumber:

• Whether your gas line, venting or electrical panel would need to change for the type you're considering, and what that adds.
• What size or capacity they'd recommend for your household, and how they worked it out.
• Where the new heater would go, and whether it fits where the old one is.
• Whether the price includes removing and disposing of the old heater.
• What the warranty covers on the heater and on the installation.

Permits and fees

Whether a swap needs a permit depends on where you live, so ask your local building department. Delaware's plumbing code, for example, requires no permit or fee from the Division of Public Health to replace existing equipment, and it names water heaters. Moving a water heater or adding a new one still needs a permit there.⁷ The permit guide lists what we've confirmed for other states.

Three city fee schedules show what a permit can cost. Winston-Salem, North Carolina charges a flat $100 for a water heater changeout permit, electrical included.⁸ San Diego charges $122.97 for a water heater,⁹ and Spring Lake Park, Minnesota lists a $75 plumbing permit.¹⁰

Ask who applies for the permit and whether the fee is in the quote.

Tax credits and rebates

The federal credit for energy efficient home improvements covered improvements made through December 31, 2025,¹¹ so a water heater installed in 2026 doesn't qualify for it. The residential clean energy credit isn't available for property placed in service after December 31, 2025.¹²

The Department of Energy's home energy rebates are available in select states.¹³ Check with your state whether it offers them before you buy, and ask your plumber whether the model they're quoting would qualify.