waterheaterreplacecost.com is a cost reference, not a plumbing contractor, retailer, or manufacturer. Prices shown are dated and sourced on each page, and installed costs vary by home and location. Always get multiple quotes from licensed plumbers in your area.
Prices checked 21 October 2026Home Depot listed prices + BLS plumber wages

Water Heater Replacement Cost in 2026

Replacing a water heater costs the heater plus installation labor, the permit and any parts. The heater price is published: Home Depot lists Rheem tanks from $459 to $1,149. Labor is not: Home Depot and Lowe's both quote it after a consultation, so add the rate and hours from your quote in the calculator.

Tank (gas or electric)
$459 - $1,149
Heater only. Rheem Performance, 30 to 75 gal
Gas tankless
$653.77 - $1,299
Heater only. Rheem, 7.0 to 9.5 GPM
Heat pump
$1,699 - $2,798
Heater only. Rheem ProTerra, 40 to 80 gal
Add My Labor QuoteIs It Time to Replace?

What a Water Heater Replacement Bill Is Made Of

Home Depot's installation page splits the price into four parts: the product, basic installation, permit charges, and bringing the system up to code. Only the first is published. Use this to read any quote.

Line on the quotePublished?Where the number comes from
HeaterYesRetailer and supplier listings (table below)
Basic installation laborNoQuoted after a consultation by Home Depot, Lowe's and independent plumbers. Home Depot puts a basic swap at two to three hours.
PermitLocallyYour city or county building department fee schedule
Code upgrades and partsNoQuoted per home: expansion tank, drain pan, venting, gas or electrical changes
Haul-away of the old heaterRetailer termsHome Depot and Lowe's include it on their installations; ask an independent plumber

Retailer detail: Home Depot water heater installation cost and Lowe's water heater installation cost.

Published Heater Prices by Type and Size

One brand across every type, so sizes and types compare like for like. These are heater prices only, as listed on homedepot.com on 21 October 2026. Prices change and vary by store. For more sizes see cost by size.

HeaterTypeModelListed price
Rheem Performance 30 gal medium, 4500WElectric tankXE30M06ST45U1$459
Rheem Performance 40 gal medium, 4500WElectric tankon install page$499
Rheem Performance 50 gal medium, 4500WElectric tankon install page$569
Rheem Performance 50 gal tall, 4500WElectric tankon install page$599
Rheem Performance 40 gal tall, 36,000 BTUGas tankXG40T06EC36U1$649
Rheem Performance 50 gal tall, 38,000 BTUGas tankon install page$749
Rheem Performance 75 gal tall, 76,000 BTUGas tankXG75T06ST76U0$1,149
Rheem Performance Plus 7.0 GPM indoor, non-condensingGas tanklessECO160DVLN-3$653.77
Rheem Performance Plus 9.5 GPM indoor, non-condensingGas tanklessECO200DVELN-3$1,149
Rheem Performance Platinum 9.5 GPM, condensingGas tanklessECOH200DVELN-3$1,299
Rheem ProTerra 40 gal hybrid heat pumpHeat pump (hybrid)XE40T10HS45U1$1,699
Rheem ProTerra 50 gal hybrid heat pumpHeat pump (hybrid)XE50T10HS45U1$1,950
Rheem Performance Platinum ProTerra 50 gal, 120V plug-inHeat pump (hybrid)XE50T10HM00U0$2,119
Rheem ProTerra 65 gal hybrid heat pumpHeat pump (hybrid)XE65T10HS45U1$2,199
Rheem ProTerra 80 gal hybrid heat pumpHeat pump (hybrid)XE80T10HS45U1$2,798

Source: homedepot.com product listings, checked 21 October 2026; rows without a model number are from Home Depot's water heater installation page, checked 17 October 2026.

What Plumbers Are Paid, by State

No public source publishes what plumbing companies bill per hour, so we do not print a rate. What is published is what plumbers earn. A company's billed rate sits above this, because it also covers the van, insurance, licensing, overhead and margin. Use these to see how labor costs differ between states, then put your own quoted rate into the calculator.

AreaMedian plumber wage
United States$30.67/hr
Florida$25.44/hr
Texas$28.77/hr
California$35.01/hr
New York$37.26/hr
Massachusetts$45.14/hr

Source: Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2025, plumbers, pipefitters and steamfitters (SOC 47-2152), median hourly wage. More in the labor cost guide.

Is It Time to Replace Your Water Heater?

Four warning signs that replacement is likely the right call:

Age over 10-12 years
Replace soon
Leaking from the base
Replace immediately
Rusty or discolored hot water
Replace soon
Rumbling or popping noises
Evaluate now
See all 8 warning signs with severity ratings →
State and Utility Rebates

Heat Pump Rebates Still Available in 2026

The 25C federal credit (30%, up to $2,000) ended for heat pump water heaters placed in service after December 31, 2025. State and utility programs still pay: Mass Save $750 for a qualifying unit, NY Clean Heat up to $1,250, and Energize CT a $900 instant discount at purchase. Check the model before you buy: Mass Save and Energize CT both set minimum efficiency (UEF) ratings for the units they pay on.

See All Savings

Frequently Asked Questions

How much does it cost to replace a water heater?
Your total is the heater plus installation labor, the permit and any parts or code work. The heater part is published: on 21 October 2026 Home Depot listed Rheem Performance tank water heaters from $459 (30 gallon electric) to $1,149 (75 gallon gas), Rheem gas tankless models from $653.77 to $1,299, and Rheem ProTerra heat pump water heaters from $1,699 (40 gallon) to $2,798 (80 gallon). Neither Home Depot nor Lowe's publishes an installation labor price; both quote after a consultation. Add the labor rate, hours and permit fee from your quote in our calculator to get your installed total.
How long does it take to replace a water heater?
Home Depot says a basic installation, where the new heater goes in the same spot and connects to existing code-approved venting, electrical, gas and water lines, typically takes two to three hours. Moving the heater, changing fuel, adding venting or converting to tankless is extra work, so use the hours on your installer's quote.
What is the federal tax credit for water heaters in 2026?
There is no federal tax credit for water heaters installed in 2026. The 25C Energy Efficient Home Improvement Credit (30% up to $2,000 for qualifying heat pump water heaters) ended for property placed in service after December 31, 2025 under the One Big Beautiful Bill Act. Equipment placed in service on or before that date is claimed on IRS Form 5695 for the 2025 tax year. State and utility rebates remain: Mass Save pays $750 for a qualifying heat pump water heater, NY Clean Heat up to $1,250, and Energize CT gives a $900 instant discount.
Is it cheaper to repair or replace a water heater?
A common rule of thumb is to replace when a repair would cost more than half of a new installed heater. Price the replacement first: take the published heater price, add the labor and permit on a quote, then compare the repair quote with half of that total. Age matters too, because an old tank that needs one repair is often close to needing the next.
Do you need a permit to replace a water heater?
Many cities and counties require a permit to replace a water heater, especially a gas one, and the fee is set by the local building department. Home Depot says it obtains the permits on its installations and lists permit charges as a separate part of the price. Ask any installer whether the permit is on the quote and what it costs.
What is the cheapest water heater to replace?
A small electric tank swapped like for like is usually the cheapest job, because it needs no gas line or venting. The cheapest heater on our Home Depot list on 21 October 2026 was the Rheem Performance 30 gallon medium electric tank at $459. Your labor quote still decides most of the difference between installers.

Dive Deeper

Cost by Tank Size
30, 40, 50, 75, 80 gallon pricing
50 Gallon Cost
Installed + annual operating cost
Gas vs Electric
10-year cost of ownership comparison
Element Replacement
Heating element, thermostat, anode rod
Labor Cost Guide
What the labor line covers
Emergency Pricing
Same-day and after-hours premiums
Lifespan Guide
How long your heater should last
Signs to Replace
8 symptoms with severity ratings
Repair vs Replace
The 50% rule and decision matrix
Save on Replacement
State rebates and money-saving strategies
Cost Calculator
Published heater price + your labor quote
Reader Questions

Something here we have not covered?

Write to us. A person reads every email and we answer what we can, with the sources shown so you can check the figures for yourself. If a question would be useful to other readers we may publish an anonymised version on the site, and only with your say so.

Everything on this site is a general cost reference, not plumbing or gas advice. A leaking tank, a T and P relief valve that is weeping, or any work on a gas connection needs a licensed plumber on site, not an email.

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Updated 2026-10-21