Water Heater Replacement Cost: Tank vs. Tankless (2026 Cost Guide)

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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

TypeTypical 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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