Installing a water heater is time-consuming and costly because water or electricity connections must be made. The complexity of ensuring a safe and effective setup adds to the overall cost of installing a water heater. In addition, the installation of some heaters may require a permit.

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We recommend hiring a professional to get your water heater installed or repaired. DIY installation can save on labor costs but requires technical expertise and may void warranty coverage. Hiring a professional ensures proper installation, reduces the risk of errors or safety hazards and often comes with warranty protection for the work performed.

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Tank water heaters are the traditional option, storing and constantly heating a supply of water. Storage tank water heaters are usually easier to install than tankless water heaters, which means they’re also typically less expensive. Storage tank water heaters can cost around $600 to $800, but costs vary on the size of the tank. Installing a tank-style water heater will cost between $900 and $2,500 on average.

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Properly connecting the water heater to the existing plumbing and gas supply is essential for safe and efficient operation. If your home’s water and gas lines require modifications or extensions to accommodate the new water heater, this can add to the overall installation cost. It is necessary to hire a qualified professional to ensure that the water and gas line installations are performed safely and in compliance with building codes and regulations.

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The size of your water heater is determined by the number of people in your household and can impact water heater replacement costs. Tank-style water heaters range in size from 20 gallons to over 100 gallons, with a 40-gallon tank being the most common for a two-person household. Homes with more than five people may require a larger tank, such as a 60-gallon or 80-gallon unit. Unit Size In Gallons Average Price 30 $550 – $1,700 40 $550 – $2,000 50 $700 – $2,200 75 $1,200 – $3,400 80 $1,300 – $3,600 See More See Less

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When it comes to water heater installation and replacement costs, several factors come into play, such as the labor cost per hour, parts and materials and the size of the unit. Let’s explore the key components contributing to the overall cost.

Power vent water heaters use a fan or blower to assist in venting combustion gasses out of the unit. Power vent water heaters are suitable for situations where a traditional chimney or natural draft venting is not available or practical. The power vent water heater installation cost may vary based on the venting setup and additional electrical requirements. Expect to pay between $500 and $1,000 for vent pipe installation. Water Heater Type Average Price Range Tank $900 – $2,500 Tankless $1,000 – $3,500 Gas $500 – $2,500 Electric $500 – $3,500 Direct vent $500 – $1,000 Power vent $500 – $1,000 See More See Less

Tankless water heaters warm water on demand, eliminating the need for a storage tank. These units tend to be more energy-efficient but may require additional installation considerations. Tankless water heaters can range in price from $600 to $1,500. A tankless water heater installation costs between $1,000 and $3,500.

Featured PartnersAdvertisementTHIS IS AN ADVERTISEMENT AND NOT EDITORIAL CONTENT. Please note that we do receive compensation for any products you buy or sign up to via this advertisement, and that compensation impacts the ranking and placement of any offers listed herein. We do not present information about every offer available. The information and savings numbers depicted above are for demonstration purposes only, and your results may vary.1AngiTask TypeHVACEstimation FeeNone, Free EstimatesResponse TimeExcellent1AngiGet Free Estimates On Angi's Website Average Water Heater Installation Cost Average Cost $1,400 Highest Cost $3,000 Lowest Cost $900 See More See Less

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Most plumbers will provide a flat rate that covers both labor and materials, but others may bill you by the hour. Hiring a local plumber will cost between $50 and $200 per hour. If you need additional electrical work, hiring an electrician will cost between $50 and $150 per hour.

Laura has worked in the plumbing industry for over 12 years. She uses her National Center for Construction Education and Research plumbing certification to teach her craft to others as well. Her journey originally began in general construction, but she was eventually captivated by the unique combination of physical and mental challenges found in the plumbing industry. In addition to being a plumber, she co-owns a plumbing company and also shares her dedication and passion for the trades with the next generation as a plumbing instructor. Professional Memberships: - NCCER Plumbing Instructor - NCCER Core Instructor

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Rosanne is an interior design and home improvement writer with 8 years of experience. During that time she has worked with numerous businesses and publications. Rosanne has been with Forbes Home for nearly a year and has explored topics ranging from solar energy and flooring to HVAC, roofing and pest control.

Sami Allen is an editor with a decade of experience in editorial and who is currently the managing editor at Forbes Home. She got her start in lifestyle writing and editing at Oprah Magazine and more recently sharpened her home repair and design skills at websites like The Spruce and HomeAdvisor.

Yearly maintenance such as inspections and flushing can keep your water heater working as efficiently as possible and greatly increase its lifespan.

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While labor costs to install a standard replacement water heater typically range from $150 to $500, they can reach $2,500 when switching from a tank-style water heater to a tankless unit.

To arrive at the average costs in this article, we surveyed two retailers as well as five local and national cost databases. All averaged figures were correct at the time of publication and may be subject to change.

The Forbes Home editorial team is independent and objective. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Home site. This compensation comes from two main sources. First, we provide paid placements to advertisers to present their offers. The compensation we receive for those placements affects how and where advertisers’ offers appear on the site. This site does not include all companies or products available within the market. Second, we also include links to advertisers’ offers in some of our articles; these “affiliate links” may generate income for our site when you click on them. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Home. While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Home does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof.

This article will delve into the factors that influence these prices, explore different water heater types and provide valuable money-saving tips.

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Various materials are needed to ensure a successful and efficient water heater installation. These materials include discharge pipes, fittings, pipe thread compound, pressure release valves, solder, venting pipes and connectors, as well as water and gas piping. Remember that more complex installations may require additional materials, which can impact the overall water heater replacement cost.

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Recognizing the signs that indicate the need for a new water heater can save you from unexpected breakdowns and costly repairs. Look out for these indications:

Water HeaterElectric

Electric water heaters use electricity to heat the water. The installation starts at the same price as gas water heaters; from $500. But they can be more expensive, with high-end electric options that can cost up to $3,500. Remember that the monthly costs of electrical and gas heaters are different—electric models tend to be more expensive than their gas counterparts.

Direct vent water heaters bring combustion air from outside and exhaust gasses directly outside your home. Installing a vent pipe when switching from an electric direct vent tank-style water heater to a direct vent gas model usually costs between $500 and $1,000.

Different types of water heaters are available on the market and the installation costs can vary depending on the specific type you choose. Below are the different types of water heaters and their average prices, so you can make the best decision for your home.

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Water heaters are essential for our daily routines, supplying hot water for activities like bathing, dishwashing and laundry, so it’s important to understand the costs involved. Water heater installation costs range from $900 to $3,000, with $1,400 being the national average.

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Obtaining permits and undergoing inspections are essential for water heater installation or replacement projects. Local building codes may require permits to ensure the installation meets safety and environmental standards. To install a gas appliance or change the plumbing and electricity, you’ll need a permit at the very least. The costs of permits vary from $100 to $1,500.

The suitability of a 40-gallon water heater depends on factors such as the number of persons in the household, water usage patterns and lifestyle. In many cases, a 40-gallon unit should be sufficient for a three-bedroom house.

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Gas water heaters rely on natural gas or propane to heat the water. The installation cost for a gas water heater can range from $500 to $2,500. Installation costs depend on the tank size and any additional work needed. But remember that while gas models are less expensive to operate, you do need an existing natural gas line to be able to use them.

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Aside from labor, parts and the type of water heater unit itself, there may be additional costs to consider when installing or replacing a water heater:

Installing the water heater in a hard-to-reach area like the basement or a corner of the attic may increase the complexity and cost of the installation. Consider the accessibility of the chosen location and discuss any potential challenges with the installation professional to anticipate any additional expenses. Advertisement THIS IS AN ADVERTISEMENT AND NOT EDITORIAL CONTENT. Please note that we do receive compensation for any products you buy or sign up to via this advertisement, and that compensation impacts the ranking and placement of any offers listed herein. We do not present information about every offer available. The information and savings numbers depicted above are for demonstration purposes only, and your results may vary. Compare Quotes From Top-rated Local HVAC Contractors Select a State To Get Started With Your No Commitment, Free Estimate Find a HVAC Contractor