What should I look for when buying water heater budget & price ranges?

Budget installation cost equal to unit cost for tank replacements. Get 2-3 quotes -- prices vary significantly. Ask about permits. Many areas require them.

What are common mistakes when buying water heater budget & price ranges?

Budgeting for unit only and being surprised by installation cost. Choosing cheapest plumber without verifying licensing. Not budgeting for code-required upgrades.

Water Heater Budget & Price Ranges

Buying Guide

Created by Ryan Pietrzak Illinois Licensed Plumber · In the plumbing industry since 2009

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

Unit Costs

Basic gas tank (40-50 gal): $400-700. High-efficiency gas: $700-1200. Standard electric: $300-600. Heat pump: $1200-2500. Gas tankless: $800-1500. Premium tankless: $1500-2200.

Installation Costs

Standard tank replacement (same fuel, same location): $300-700 labor. Gas tankless new install: $1000-2000 (gas line upgrade, venting). Heat pump new install: $500-1000 (electrical, condensate). Fuel type switch: $1500-3000+.

Hidden Costs

Expansion tank ($30-50 + $100-200 installed). Permit and inspection ($50-200). Old unit disposal ($25-50). Pan and drain ($20-50). Code upgrades if existing install does not meet current requirements.

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.