House Project Cost

Water heater replacement cost calculator

The new unit, removing the old one and installation, at your state's plumber wages.

Water heater details

On the yellow EnergyGuide label

Estimated cost

Typical installed cost

$2,250

Water heater:
$1,350
Labor, removal, fittings:
$900

8 in 10 jobsLow$1,800High$3,150

Labor at the US median wage for plumbers, $30.67 an hour (BLS, May 2025).

How is this calculated?

The range runs from the 10th to the 90th percentile of prices in the National Renewable Energy Laboratory's cost data, so 8 in 10 jobs of this kind fall inside it. The methodology shows every formula and source.

Replacement cost by type

Water heater replacement cost by type, US average, installed
Water heaterTypicalRange
Gas tank, 50 gal, UEF 0.64$2,250$1,800 - $3,150
Electric tank, 50 gal, UEF 0.93$2,050$1,750 - $2,350
Heat pump (hybrid), 50 gal, UEF 3.75$3,500$3,150 - $4,350
Gas tankless, UEF 0.93$2,600$2,250 - $3,250
Electric tankless, UEF 0.98$1,500$1,300 - $1,850

US average, typical size and efficiency for each type, installed, in today's dollars.

What the estimate includes

NREL prices a "retrofit": a new water heater replacing an old one. That covers the unit, removing and hauling the old heater, connecting water, gas or power, and the labor to do it. It does not cover changes to the house itself. These are the items NREL lists as the main reasons a real quote lands above or below the typical price:

Tank, tankless or heat pump?

A gas or electric tank is the cheapest to buy and the simplest swap, because it usually goes where the old tank was with the same connections. NREL puts the typical life of a gas tank at 14 years and an electric tank at 15 years.

A tankless heater heats water as it flows, so it never runs out but has a limit on how many showers and taps it can serve at once. It lasts longer, about 20 years in NREL's data, but switching from a tank often means new venting, a bigger gas line or a heavy electric circuit.

A heat pump water heater moves heat from the surrounding air into the tank. A UEF of 3.75 means it delivers almost four times as much hot water energy as it uses in electricity, against about 0.93 for a standard electric tank. In the table it costs about $1,250 more than a gas tank of the same size up front, and it needs space and air around it, a drain and usually a 240 V circuit.

How your state changes the price

Labor is about 40% of a typical gas tank replacement, so wages matter. Plumbers earn a median $30.67 an hour nationwide (May 2025, Bureau of Labor Statistics), and the calculator scales the labor part of each estimate by the median in your state. The unit itself is priced at national retail levels.

Gas tank water heater (50 gal) replacement cost in all 50 states and DC
StateTypicalRange
Arkansas$2,050$1,600 - $2,950
South Dakota$2,100$1,600 - $3,000
Idaho$2,100$1,650 - $3,000
Florida$2,100$1,650 - $3,000
South Carolina$2,100$1,650 - $3,000
Mississippi$2,150$1,700 - $3,050
West Virginia$2,150$1,700 - $3,050
North Carolina$2,150$1,700 - $3,050
Georgia$2,150$1,700 - $3,050
Oklahoma$2,150$1,700 - $3,050
Tennessee$2,200$1,700 - $3,050
Alabama$2,200$1,700 - $3,050
Texas$2,200$1,750 - $3,100
Virginia$2,200$1,750 - $3,100
Nebraska$2,200$1,750 - $3,100
New Mexico$2,200$1,750 - $3,100
Nevada$2,200$1,750 - $3,100
Utah$2,250$1,750 - $3,100
Arizona$2,250$1,750 - $3,100
Vermont$2,250$1,750 - $3,100
Wyoming$2,250$1,750 - $3,150
Colorado$2,250$1,800 - $3,150
Ohio$2,250$1,800 - $3,150
North Dakota$2,250$1,800 - $3,150
Louisiana$2,250$1,800 - $3,150
Iowa$2,250$1,800 - $3,150
Maine$2,250$1,800 - $3,150
Kentucky$2,250$1,800 - $3,150
Delaware$2,250$1,800 - $3,150
Kansas$2,250$1,800 - $3,150
Maryland$2,250$1,800 - $3,150
Missouri$2,300$1,850 - $3,200
New Hampshire$2,300$1,850 - $3,200
Pennsylvania$2,300$1,850 - $3,200
California$2,400$1,900 - $3,250
Indiana$2,450$1,950 - $3,300
Rhode Island$2,450$1,950 - $3,300
Connecticut$2,450$2,000 - $3,350
New York$2,450$2,000 - $3,350
Hawaii$2,450$2,000 - $3,350
New Jersey$2,450$2,000 - $3,350
Montana$2,500$2,000 - $3,350
Michigan$2,500$2,000 - $3,350
Washington$2,500$2,050 - $3,400
Wisconsin$2,500$2,050 - $3,400
Massachusetts$2,650$2,200 - $3,550
Alaska$2,650$2,200 - $3,550
Minnesota$2,650$2,200 - $3,550
Oregon$2,700$2,250 - $3,600
Illinois$2,750$2,300 - $3,650
District of Columbia$2,750$2,300 - $3,650

Tax credits and rebates

The federal Energy Efficient Home Improvement Credit, which covered 30% of a qualifying heat pump water heater up to $2,000 a year, applies only to improvements made through 31st Dec. 2025, according to the IRS. Some utilities and states still offer their own rebates, especially for heat pump water heaters, so check your utility's website before you buy. The estimates here are before any rebate.

How to get a fair quote

  1. Ask two or three licensed plumbers to quote the same thing: type, gallons and UEF.
  2. Ask what is included: removal and disposal of the old heater, the permit, new valves and connectors, an expansion tank if your system needs one, and any venting or electrical work.
  3. Compare each quote with the range above. A quote far above it should come with a reason you can see, such as new venting or a move to a new spot.

Questions and answers

How much does it cost to replace a water heater?

A 50 gallon gas tank costs about $2,250 installed at the US average, with 8 in 10 jobs between $1,800 and $3,150, in NREL's cost data adjusted to today's dollars. Electric tanks cost less, while tankless and heat pump models cost more. Use the calculator for your state and model.

Is a tankless water heater worth the extra cost?

It lasts longer (about 20 years against 14 for a gas tank in NREL's data) and never runs out of hot water, but it costs more to buy, and switching from a tank often adds venting, gas line or electrical work. It pays off best when you keep the house for a long time.

How long does a water heater last?

NREL's database puts typical lifetimes at about 14 years for a gas tank, 15 years for an electric tank and heat pump tank, and 20 years for tankless heaters. Hard water and skipped maintenance shorten them.

Can I still get a tax credit for a heat pump water heater?

Not the federal one. The IRS says the Energy Efficient Home Improvement Credit applies only to improvements made through 31st Dec. 2025. Check your utility and state for rebates, which some still offer.

Why is labor such a big part of the price?

Replacing a water heater means draining and removing the old one, hauling it away, fitting new connections and testing gas, venting or power. In NREL's data labor is about 40% of a typical gas tank replacement, and the calculator scales it to your state's plumber wages.

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