How much does water heater replacement cost?+
A standard gas tank water heater replacement (40–50 gallon) including equipment, installation, and permit typically ranges from $900 to $1,800 nationally. Electric water heater replacements typically run $700–$1,500. Tankless water heater installations cost $2,500–$5,500 due to venting, gas line, and electrical requirements.
How long does water heater installation take?+
A standard tank-for-tank swap typically takes 2–4 hours. If the job involves changing the fuel type, moving the unit, upgrading venting, or adding a new gas line, it can take a full day.
Do I need a permit for water heater replacement?+
Yes, in most US jurisdictions. A mechanical permit is required because water heater installation involves gas lines, venting, and plumbing connections that must be inspected for safety. The permit fee should be included in your estimate. If a contractor does not mention a permit, ask directly.
What is an expansion tank and do I need one?+
An expansion tank absorbs the increased pressure that occurs in a closed plumbing system when water heats and expands. Many jurisdictions now require them for all water heater replacements. If your plumber does not mention it and your local code requires it, it may appear as a surprise charge after signing - always ask upfront.
Is a tankless water heater worth the higher cost?+
Tankless water heaters cost $2,500–$5,500 installed versus $900–$1,800 for a standard tank unit. They last longer (20+ years vs. 10–15 years for tank), use less energy, and provide endless hot water. The payback period is typically 8–15 years depending on usage. For homes with high hot water demand or older gas lines that need upgrading anyway, the premium is more justifiable.
