Home Repair Decoded

Water Heater Replacement Cost

$750 – $2,050A typical water heater replacement costs about $750 to $2,050 in the U.S. That covers a 40 to 50 gallon gas or electric tank in the same location. The range reflects parts, job difficulty and local labor rates.
Part of the jobLowHigh
Parts and materials (our assumption)$600$1,500
Labor hours (our assumption)24
Billed labor rate per hour$77$138
Estimated total$750$2,050

Our estimate, not a quote. Billed rate is the national median wage from BLS (2025, $30.67 an hour) times 2.5 to 4.5 to cover payroll costs, overhead, travel and profit. How we estimate

What our assumptions are based on

ItemSourced figureBasisSource
Labor hours1 – 31 to 3 hours for a standard tank installation.This Old House

What other publishers report

National figures as published by each source, checked 2026-11-03. Their scope can differ from ours.
PublisherLowHighScope
Fixr$550$2,30040-gallon tank installed. Page dated January 2026.
Fixr$700$2,50050-gallon tank installed. Page dated January 2026.
This Old House$600$1,20040-gallon tank installed. Page dated June 2026.
This Old House$700$1,80050-gallon tank installed. Page dated June 2026.

Having this problem?

This job often needs a permit. Check with your local building department before work starts.

Estimated cost by state

StatePlumber median wageLowHigh
Alabama$28.21$740$2,000
Alaska$45.15$830$2,300
Arizona$29.84$750$2,050
Arkansas$23.39$720$1,900
California$35.01$780$2,150
Colorado$30.40$750$2,050
Connecticut$37.16$790$2,150
Delaware$31.11$760$2,050
District of Columbia$48.57$840$2,350
Florida$25.44$730$1,950
Georgia$27.50$740$2,000
Hawaii$37.53$790$2,200
Idaho$25.18$730$1,950
Illinois$48.05$840$2,350
Indiana$36.69$780$2,150
Iowa$30.72$750$2,050
Kansas$31.36$760$2,050
Kentucky$30.84$750$2,050
Louisiana$30.62$750$2,050
Maine$30.77$750$2,050
Maryland$31.44$760$2,050
Massachusetts$45.14$830$2,300
Michigan$38.56$790$2,200
Minnesota$45.39$830$2,300
Mississippi$26.67$730$2,000
Missouri$32.11$760$2,100
Montana$38.44$790$2,200
Nebraska$29.31$750$2,050
Nevada$29.62$750$2,050
New Hampshire$32.12$760$2,100
New Jersey$37.61$790$2,200
New Mexico$29.54$750$2,050
New York$37.26$790$2,150
North Carolina$27.44$740$2,000
North Dakota$30.56$750$2,050
Ohio$30.45$750$2,050
Oklahoma$27.87$740$2,000
Oregon$46.66$830$2,350
Pennsylvania$32.73$760$2,100
Rhode Island$36.77$780$2,150
South Carolina$25.93$730$1,950
South Dakota$24.82$720$1,950
Tennessee$28.17$740$2,000
Texas$28.77$740$2,000
Utah$29.76$750$2,050
Vermont$29.89$750$2,050
Virginia$29.07$750$2,000
Washington$38.96$790$2,200
West Virginia$27.39$740$2,000
Wisconsin$39.04$800$2,200
Wyoming$30.01$750$2,050

Download this table (CSV)

Common questions

How much does water heater replacement cost?
A typical water heater replacement costs about $750 to $2,050 in the U.S. That covers a 40 to 50 gallon gas or electric tank in the same location. The range reflects parts, job difficulty and local labor rates.
Which states cost the most for water heater replacement?
Labor is the part that changes by state. See the table on this page for each state's estimate.
How long does it take to replace a water heater?
This Old House says a standard tank installation typically takes 1 to 3 hours. Changing fuel type or moving the heater adds time. Source
Am I allowed to install my own water heater?
It depends on your city, so call your building department first. Grapevine, Texas, for example, says it is illegal for anyone, even a homeowner, to replace a water heater without a permit, because improper installations cause injuries and deaths. We recommend a licensed professional for anything involving gas, and if you smell gas, leave first and call from outside. Source
What happens if you don't pull a permit for a water heater?
Rules are local. Broomfield, Colorado, for example, says work started without a permit may bring a special investigation fee, you stay responsible for permits and inspections after the job is done, and unpermitted work often comes to light when a buyer or inspector checks. It also says to ask your insurer whether the work is still covered. Source
Sources

General information, not professional advice. Conditions, codes and prices vary. Turn off power, gas or water before any work, and hire a licensed professional when in doubt. Cost figures are our estimates, not quotes.