Quick answer: replacing a standard tank water heater usually costs about $600 to $2,500 installed. A tankless water heater costs about $1,400 to $3,900 installed.
Installed price ranges
| Type | Typical installed price |
|---|---|
| Tank (gas or electric) | $600 to $2,500 |
| Tankless | $1,400 to $3,900 |
| Heat pump (hybrid) | at the high end of the range |
Source: NerdWallet, water heater cost guide, updated September 2025.
What changes the price
- Tank size: a family of four often needs about 50 gallons; bigger tanks cost more.
- Fuel type: adding a gas line or upgrading electrical service adds cost.
- Switching to tankless: converting can add about $150 to $2,500 in extra labor for new venting, gas or electrical work.
- Location: water heaters in attics or tight closets take more time to replace.
- Permits: usually about $25 to $300.
Tank, tankless or heat pump?
- Tank: lowest upfront cost and simplest swap.
- Tankless: endless hot water and saves space, but costs more to install.
- Heat pump: costs more upfront, but works very efficiently in a warm climate like Florida’s.
Warning signs it is time to replace
Rusty water, rumbling noises, not enough hot water, leaks around the base, or a tank older than about 8 to 12 years. If the tank itself is leaking, shut off the water supply and power or gas, and call a licensed plumber. Water heater replacements in Florida typically require a permit.
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