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Water Heater Installation Cost — Get Accurate Local Estimates

Installing a water heater is a planned project, not an emergency. Whether it's for a new home, a remodel, or an upgrade, homeowners want to know how much a water heater installation really costs — and what affects the final price.

On this page, you'll find:

  • Average water heater installation costs
  • Cost differences by system type
  • Factors that impact pricing
  • When installation costs more than replacement

All estimates are adjusted by location.

Average Cost to Install a Water Heater

The cost to install a water heater typically ranges from:

$1,200 – $2,500

for standard tank systems

$2,500 – $5,500

for tankless water heaters

Installation costs are usually higher than replacement because they often involve:

  • New connections
  • Code compliance upgrades
  • Permits and inspections

Prices vary significantly by city and state.

What's Included in a Water Heater Installation

A full water heater installation may include:

  • New water heater unit
  • Labor and setup
  • Plumbing and electrical connections
  • Venting or gas line adjustments
  • Permit handling and inspection prep

Unlike replacement, installation often requires structural or system changes.

Get a Local Water Heater Installation Quote

Planning ahead helps you control costs and avoid surprises. Get accurate installation pricing based on your city and home setup.

Get Local QuoteView Cost By State

Water Heater Installation vs Replacement Cost

Water Heater Replacement

  • Existing unit swapped
  • Uses current connections
  • Lower cost in most cases
View Replacement Costs →

Tankless Water Heater Replacement

  • On-demand hot water system
  • Higher upfront installation cost
  • Long-term energy savings
View Tankless Costs →

Emergency Water Heater Service

  • Same-day or after-hours response
  • Urgent repairs or replacement
  • Higher cost for immediate service
View Emergency Costs →

Installation

  • New system or major upgrade
  • Often part of remodel or new construction
  • Higher labor and permit costs

If your current water heater is already in place, replacement may be more cost-effective.

Water Heater Installation Cost by Type

Tank Water Heater Installation

  • Lower upfront cost
  • Simpler installation
  • Common in most homes

Tankless Water Heater Installation

  • Higher installation cost
  • Requires venting and gas/electrical upgrades
  • Long-term efficiency benefits

Electric Water Heater Installation

  • Lower installation complexity
  • May require panel capacity check

Gas Water Heater Installation

  • Higher labor due to venting and gas line work
  • Often higher permit requirements

What Impacts Water Heater Installation Cost

Installation pricing depends heavily on:

  • Local labor rates
  • Permit and inspection fees
  • Fuel type availability
  • Code and safety requirements
  • Home layout and access

That's why installation costs differ from city to city.

Always check local installation pricing.

When Water Heater Installation Costs Increase

Your installation cost may be higher if:

  • You're switching from tank to tankless
  • Electrical or gas lines need upgrades
  • Venting must be added or modified
  • Permits are required for new systems
  • Installation is part of a remodel

These factors are normal — and expected — for installation projects.

What This Page Is NOT

This page focuses on planned installation only.

For other intents, see:

Each service has different pricing logic.

Water Heater Installation Cost by State

Select your state to find installation costs in your area: