How Much Does It Cost to Replace a Water Heater?

By Matt Schmitz

June 19, 2024

The good news is: With any luck, after this, you won’t have to replace your water heater again for at least a decade. We suppose that makes the bad news pretty obvious: We regret to inform you that you're not gonna be able to buy yourself any more time with ye olde water heater. It’s time for a total replacement. Of course, your first question is, “How much is this gonna cost me?” And, of course — we’ve got the answer.

This May Also Interest You: Hot Water Ran Out While You’re in the Shower? 5 Reasons You're Freezin’

Replacing your water heater is a little pricier than some other appliances because installation involves several different elements and variables, including:

The cost of the unit itself
Materials for installation
Labor from a licensed plumber
Permits for installation
The current state of your plumbing
The positioning of your pipes
Hauling away your old unit (optional)
Whether you wish to install a water heater in a new spot
If you want to convert from electric to gas or from tank to tankless, necessitating rewiring your home or adding a gas line
Anything else that increases the number of hours it takes to complete the job

According to HomeServe data, the national average cost to replace a water heater is almost $1,400. But don’t forget to factor in another hundred bucks or so for the diagnosis fee, which your chosen contractor will almost certainly charge to come to your house, determine what the issue is and recommend a course of action, regardless of what you wind up doing.

Additional expenses such as a new drain pan, earthquake strapping or exhaust venting could tack on several hundred more dollars. Meanwhile, regional pricing and cost-of-living variations where you live could raise or lower your replacement price: A Michigan household, for example, could pay about 1,300 bucks, all told, while a homeowner in Colorado might fork over $1,800 for the same-size unit.

The good news? We're seeing prices that are, on the national level, lower than when we first reported this data in 2021. National average diagnosis fees are up just $2 in four years, while average water heater replacement costs are down 20%.

Below, you can find national and state-by-state average totals for water heater replacement and, beyond that, price ranges for the different types of water heaters you might be installing as well as a list of the most common additional expenses and their average costs — all to help you estimate how much your new water heater’s going to set you back.

For a broader look at water heater pricing, check out our cost guide covering pricing averages for both repair and replacement state by state. And for a deeper dive into what factors into how much you’ll pay to get your water heater fixed without a full replacement, go to our state-by-state repair cost guide.

All figures are based on aggregated HomeServe data reported by our network of thousands of contractors across the nation. Where insufficient data was available to determine a verifiable average, we’ve noted so. Also note that the following regional averages should generally be assumed to refer to conventional “tanked” models — the most common type — as opposed to tankless or “on-demand” models, which can cost roughly twice as much.

National Average Cost for Water Heater Diagnoses and Replacement

Diagnosis:
$101
Replace:
$1,396

State by State Average Cost for Water Heater Diagnoses and Replacement

1. Alabama

Diagnosis:
$111
Repair:
$424
Replace:
$1,084

2. Alaska

Diagnosis:
Insufficient data
Repair:
Insufficient data
Replace:
Insufficient data

3. Arizona

Diagnosis:
Insufficient data
Repair:
Insufficient data
Replace:
Insufficient data

4. Arkansas

Diagnosis:
$109
Repair:
$362
Replace:
$1,248

5. California

Diagnosis:
$107
Repair:
$360
Replace:
$1,300

6. Colorado

Diagnosis:
$124
Repair:
$334
Replace:
$1,801

7. Connecticut

Diagnosis:
$110
Repair:
$361
Replace:
$1,802

8. Delaware

Diagnosis:
$92
Repair:
$359
Replace:
$1,457

9. District of Columbia

Diagnosis:
$97
Repair:
$439
Replace:
$1,642

10. Florida

Diagnosis:
$112
Repair:
$506
Replace:
$1,216

11. Georgia

Diagnosis:
$104
Repair:
$404
Replace:
$1,361

12. Hawaii

Diagnosis:
Insufficient data
Repair:
Insufficient data
Replace:
Insufficient data

13. Idaho

Diagnosis:
Insufficient data
Repair:
$215
Replace:
$1,516

14. Illinois

Diagnosis:
$91
Repair:
$341
Replace:
$1,541

15. Indiana

Diagnosis:
$97
Repair:
$362
Replace:
$1,471

16. Iowa

Diagnosis:
$85
Repair:
$261
Replace:
$1,520

17. Kansas

Diagnosis:
$91
Repair:
$279
Replace:
$1,796

18. Kentucky

Diagnosis:
$106
Repair:
$354
Replace:
$1,395

19. Louisiana

Diagnosis:
$114
Repair:
$334
Replace:
$1,507

20. Maine

Diagnosis:
Insufficient data
Repair:
Insufficient data
Replace:
Insufficient data

21. Maryland

Diagnosis:
$99
Repair:
$349
Replace:
$1,594

22. Massachusetts

Diagnosis:
$69
Repair:
$439
Replace:
$1,669

23. Michigan

Diagnosis:
$92
Repair:
$292
Replace:
$1,299

24. Minnesota

Diagnosis:
$111
Repair:
$396
Replace:
$1,732

25. Mississippi

Diagnosis:
$96
Repair:
$322
Replace:
$1,537

26. Missouri

Diagnosis:
$86
Repair:
$304
Replace:
$1,736

27. Montana

Diagnosis:
$100
Repair:
$400
Replace:
$1,301

28. Nebraska

Diagnosis:
$107
Repair:
$369
Replace:
$1,299

29. Nevada

Diagnosis:
$85
Repair:
$320
Replace:
$1,515

30. New Hampshire

Diagnosis:
Insufficient data
Repair:
$468
Replace:
$1,968

31. New Jersey

Diagnosis:
$105
Repair:
$351
Replace:
$1,601

32. New Mexico

Diagnosis:
$110
Repair:
$396
Replace:
$1,760

33. New York

Diagnosis:
$95
Repair:
$326
Replace:
$1,670

34. North Carolina

Diagnosis:
Insufficient Data
Repair:
$380
Replace:
$1,587

35. North Dakota

Diagnosis:
$102
Repair:
$288
Replace:
$1,611

36. Ohio

Diagnosis:
$104
Repair:
$356
Replace:
$1,384

37. Oklahoma

Diagnosis:
$104
Repair:
$356
Replace:
$1,444

38. Oregon

Diagnosis:
$116
Repair:
$424
Replace:
$1,529

39. Pennsylvania

Diagnosis:
$87
Repair:
$374
Replace:
$1,411

40. Rhode Island

Diagnosis:
$81
Repair:
Insufficient data
Replace:
Insufficient data

41. South Carolina

Diagnosis:
$101
Repair:
$326
Replace:
$1,770

42. South Dakota

Diagnosis:
$112
Repair:
$410
Replace:
$1,272

43. Tennessee

Diagnosis:
$101
Repair:
$479
Replace:
$1,387

44. Texas

Diagnosis:
$95
Repair:
$282
Replace:
$1,613

45. Utah

Diagnosis:
$124
Repair:
$455
Replace:
$1,537

46. Vermont

Diagnosis:
Insufficient data
Repair:
Insufficient data
Replace:
Insufficient data

47. Virginia

Diagnosis:
$102
Repair:
$338
Replace:
$1,533

48. Washington

Diagnosis:
$104
Repair:
$306
Replace:
$1,797

49. West Virginia

Diagnosis:
$90
Repair:
$399
Replace:
$1,226

50. Wisconsin

Diagnosis:
$88
Repair:
$363
Replace:
$1,667

51. Wyoming

Diagnosis:
Insufficient data
Repair:
$317
Replace:
$1,588

What Goes Into the Price You Pay for Installation?

As you can see, the biggest price for a water heater is simply the unit itself. However, when calculating overall costs, you also need to remember the price of installation. Installation costs for a water heater replacement will include the price for materials like pipe fittings, the price of permits and the price of labor.

Permit fees vary widely. Some regions don’t require a permit at all, while others may charge a fee of up to a few hundred dollars to get a permit for the installation. When calculating labor costs, some plumbers may charge per hour while others may provide a flat rate for water heater installations. When you call the professionals to install your tank, expect it to take about one to three hours to install.

Are Energy-Efficient Models Worth It?

When trying to calculate water heater prices, many homeowners wonder whether they should bother thinking about energy efficiency. Most energy-efficient models will be a little pricier than standard models, but purport to offset that cost via reduced monthly utility bills.To determine if an energy-efficient model is worth it, you need to look at its annual operation expenses compared with the operating costs for cheaper, non-energy-efficient models. Multiply these annual savings by the projected lifespan of the water heater to estimate whether it’ll be cheaper to get an energy-efficient model in the long run.Generally, savings will depend on factors like your local energy rates and the level of energy efficiency.

According to Energy Star, a high-efficiency tank water heater will save you somewhere between 10% and 20% on energy costs. A high-efficiency tankless water heater could provide even bigger savings of 45% to 60%. This can add up to as much as $1,800 in savings over the lifetime of the tank, making energy-efficient models cheaper overall.

How Long Before You Need to Replace Your Water Heater Again?

When calculating total water heater costs, it's helpful to take into account the average lifespan for the product. The typical hot water heater tank will last about eight to 12 years. Meanwhile, the average tankless water heater will last around 15 years to 18 years. Because tankless water heaters do not corrode as much, they last far longer. If you're able to pay the higher price up front, you may find that the annual price of the tank ends up being lower due to its longer life span.

Signs of Trouble (and How to Avoid Them)

Potential signs your water heater is going out include:

Banging or rumbling noises from the tank
Hot water that looks red or yellow
Unusually high energy bills
A sudden decline in hot water temperature
Leaking around the tank

Performing regular maintenance, like flushing your hot water tank and replacing your sacrificial anode rod, will help your tank last as long as possible. If you notice any problems, call for water heater repair promptly before the damage gets worse. With a little regular care of your tank, you can avoid having to pay water heater replacement costs any more often than is absolutely necessary.

Follow us