Water Heater Installation Cost
Last updated February 1, 2026A water heater is essential for every home, and choosing the right type affects both upfront cost and long-term energy bills. Tank, tankless, and heat pump models each have different price points and efficiency profiles. Here are 2026 installed costs.
Typical Costs
Tank Water Heater (40 gallon)
Tank Water Heater (50 gallon)
Tankless Water Heater
Heat Pump Water Heater
What Affects the Cost?
- Type (Tank vs. Tankless vs. Heat Pump)
- Tank heaters are cheapest upfront. Tankless units save 20-30% on water heating bills. Heat pumps save 50-70% but need space and mild ambient temps.
- Fuel Source
- Gas and electric models have different costs. Switching fuel types (gas to electric or vice versa) adds $500-$2,000 for new lines or venting.
- Installation Complexity
- A straight swap of the same type is simplest. Switching to tankless or heat pump may require electrical upgrades, new venting, or gas line modifications.
- Permit Requirements
- Most jurisdictions require permits for water heater installation. Permit costs range from $50-$300 and ensure code-compliant work.
Frequently Asked Questions
Tank water heaters last 8-12 years. Tankless units last 15-20 years. Heat pump water heaters last 12-15 years with proper maintenance.
Tankless heaters cost $1,000-$2,000 more than tank models but save $100-$200/year on energy. They pay for themselves in 7-12 years and last nearly twice as long.
Yes. The Inflation Reduction Act offers up to $1,750 in rebates for heat pump water heaters. Many utilities offer additional $200-$500 incentives.
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