Water Heater Budget & Price Ranges
Updated February 20, 2026
Key Takeaway
Water heater costs range from $300 basic tank to $3,500+ premium tankless installed. Installation often equals the unit cost. Understanding price tiers helps budget realistically.
Overview
Water heater costs range from $300 basic tank to $3,500+ premium tankless installed. Installation often equals the unit cost. Understanding price tiers helps budget realistically.
What to Know
Buying Tips
- Budget installation cost equal to unit cost for tank replacements.
- Get 2-3 quotes -- prices vary significantly.
- Ask about permits. Many areas require them.
- Factor in federal tax credit (30%, up to $2,000) for heat pump models.
Common Mistakes
- Budgeting for unit only and being surprised by installation cost.
- Choosing cheapest plumber without verifying licensing.
- Not budgeting for code-required upgrades.
- Comparing purchase price only without 10-year operating cost.
Bottom Line
$800-1500 total for standard tank replacement. $2000-3500 for gas tankless install. $1500-2500 for heat pump after tax credits. Get multiple quotes. Factor in lifetime cost.