Before
AfterRaleigh, NC
Insulated water heater replaced in a utility closet
HomeCloud replaced the old insulated-wrapped water heater with a new tank water heater. The new unit sits on a drain pan with new flexible water connections.
Water heater replacement cost
What a new water heater costs, what drives the price, and when it's time to replace one.
Recent HomeCloud projects
Real HomeCloud jobs, before and after. Click through to see more.
BeforeAfter
Before
AfterGrayson, GA
Gas water heater replaced with an expansion tank added
HomeCloud replaced the old water heater with a new gas unit and added an expansion tank above it on the water lines.
Before
AfterDenton, TX
Water heater replaced in a hall closet
HomeCloud replaced the old water heater with a new unit. The new tank sits on a drain pan in the same closet.
A water heater near the end of its life came up in 27% of the homes HomeCloud evaluated. When our reports recommended a replacement, it was usually priced at $2,000 to $2,800.
Where your price lands depends mostly on the type and size of heater, whether it runs on gas or electricity, and how easy it is to get to. Smaller problems, like a missing expansion tank or a temperature that's set wrong, are water heater repairs.
HomeCloud prices the new heater and any safety parts it needs, and manages the install from start to finish. A licensed plumber does the install. You're without hot water while the old heater is drained, taken out and replaced, so we plan that time with you.
What our reports priced it at
| Work | Most homes | Middle price | Based on |
|---|---|---|---|
| Replace water heater | $2,000 to $2,800 | $2,400 | The 29% of homes where it was priced |
What HomeCloud reports priced this fix at in homes we evaluated Sep 2025 to Oct 2026. The range is the middle half of homes; the middle price is the median. Your price comes from a written estimate for your home.
What affects the price
- Tank or tankless
- Swapping a tank heater for another tank heater is usually the simplest job. Switching to a tankless heater often means new gas lines, venting or electrical work, so it costs more up front.
- Gas or electric
- Gas heaters need a gas connection and a safe exhaust vent. Electric heaters need the right circuit. Changing from one to the other adds work.
- Size
- A bigger tank costs more. The right size depends on how many people and bathrooms the heater serves.
- Where it sits
- A heater in an attic, a tight closet or a crawl space takes longer to remove and install than one in a garage or basement.
- Parts the old heater didn't have
- A new install may also need an expansion tank, a drain pan or a pipe on the relief valve. See water heater repairs.
- Removing the old heater
- The old tank has to be drained, disconnected and hauled away.
Repair or replace?
A water heater that's leaking from the tank itself can't be repaired and needs to be replaced. Problems with the parts around the tank, like the relief valve, a thermostat or a fitting, can often be fixed.
When a heater is near the end of its life, the report flags it as one to plan for, so you can budget for a replacement before it fails.
How HomeCloud does it
- 1
Remove the old heater
The water and the gas or power are shut off, and the old tank is drained, disconnected and hauled away.
- 2
Install the new heater
The new heater is connected to the water lines and to its gas line and exhaust vent, or its electrical circuit. Gas, venting and wiring follow your local building code, which may require a permit.
- 3
Add the safety parts
A new install may also need parts the old heater didn't have, like an expansion tank, a drain pan or a pipe on the relief valve. They're priced as part of the job.
Common questions
How do I find out how old my water heater is?
The label on the side of the heater lists its model and serial number. Many makers build the manufacture date into the serial number, and the maker's website or customer service can tell you how to read it.
Should I switch to a tankless water heater?
Tankless heaters heat water as it flows through, so they don't run out the way a tank can, and they take up less space. Their limit is how much hot water they can make at once, so they have to be sized for everything you'd run at the same time. They cost more to buy and install, especially when gas lines, venting or wiring have to be upgraded. A standard tank is usually the lower-cost replacement. See tank vs. tankless water heaters.
What size water heater do I need?
For a tank heater, look at the first hour rating on the EnergyGuide label. It tells you how much hot water the heater can supply in a busy hour, and it should cover your household's busiest hour. For a tankless heater, add up the flow of everything you'd run at the same time. An installer should confirm the size for your home.
Is sales tax charged on a new water heater?
In North Carolina, replacing a water heater is taxed as a repair and installation, even though some bigger projects, like a new HVAC system, aren't. See how sales tax works on home repairs.
Can I pay for a new water heater over time?
See your financing options.
More plumbing resources
Tank vs. tankless water heatersHow tank, tankless and heat pump water heaters work, gas vs. electric, sizing one for your household, and the brands you'll see most.What kind of pipes do I have?How to tell copper, PEX, CPVC, polybutylene, galvanized steel and cast iron pipes apart, and which ones to plan to replace.How to find and use your water shutoffWhere the main water shutoff and the valves under sinks and toilets usually are, how to close them in a leak, and simple upkeep like flushing the water heater.
Other plumbing repairs
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