What is the labor cost to install a water heater?
What is the labor cost to install a water heater?
$200 – $1,000 labor cost to replace water heater tank
$600 – $3,100 total installation cost (tank + labor)
$800 –$3,000 labor cost to install tankless water heater
$1,400 – $5,600 total installation cost (tankless unit + labor)
Average labor cost to install a water heater
The labor cost to install a water heater is $200 to $1,000 for a traditional tank style unit, for a total cost of $600 to $3,100 including the tank and labor. The labor cost to install a tankless water heater is $800 to $3,000, with a total cost of $1,400 to $5,600 for the unit and labor.
Besides the unit type, the cost of labor to install a water heater depends on the location, accessibility, and whether the project involves plumbing, electrical, or gas line modifications.
| Water heater type | Average labor cost | Total installed cost* |
|---|---|---|
| Standard tank electric (40 – 50 gallon) |
$200 – $600 | $600 – $1,800 |
| Standard tank gas (40 – 50 gallon) |
$400 – $1,000 | $900 – $3,100 |
| Tankless electric | $800 – $2,000 | $1,400 – $3,000 |
| Tankless gas | $600 – $3,000 | $2,100 – $5,600 |
| Hybrid heat pump | $500 – $1,600 | $2,000 – $4,600 |
| Solar | $2,000 – $3,000 | $3,000 – $9,000 |
*Total cost for unit and installation labor, before tax incentives or rebates
Traditional tank water heater
The labor cost to install a tank water heater is lowest when replacing an existing unit with one of the same design. For these jobs, most contractors charge $200 to $1,000 for labor alone and complete them within half a day. They disconnect the old unit, install the new one, and test all the connections.
Bottom line price: For the unit and labor combined, the total cost to replace a tank water heater is $600 to $3,100, depending on the size and whether it's gas or electric.
Tankless water heater
The labor cost to install a tankless water heater is $800 to $3,000, not including the cost of the unit itself. This cost higher than traditional tank installations due to the added complexity. Contractors must install new mounting brackets, possibly upgrade electrical systems, and potentially reroute gas lines.
Bottom line price: When you include the unit itself, the total cost to install a tankless water heater is $1,400 to $5,600.
If you're replacing an existing tankless water heater with a new tankless water heater, the labor cost will be at the lower end of the range.
Hybrid heat pump water heater
Hybrid heat pump water heater units need adequate clearance and proper ventilation. Installation labor costs $500 to $1,600 on average, higher than traditional tank installations as contractors must ensure proper airflow and drainage systems. Installation requires both plumbing and HVAC expertise.
Bottom line price: The total cost for a hybrid heat pump water heater and installation labor is $2,000 to $4,600.
Solar water heater
Solar water heater installations require the most labor-intensive work of all water heater types, with the labor alone reaching $2,000 to $3,000+. Contractors must install roof collectors, run piping between the roof and storage tank, and integrate control systems, all requiring experienced and specialized expertise.
Bottom line price: The total cost for a solar water heater is $3,000 to $9,000, including the unit and labor.
What affects water heater installation labor costs?
Several factors influence how much contractors charge to install a water heater:
Ease of access: Hard-to-reach installations cost more in labor, with rates often increasing by $125 to $300 per hour for difficult jobs. Basement installations, tight crawl spaces, and locations requiring extensive pipe rerouting significantly increase the work time.
Relocation: Installations that involve moving a water heater tank to a different location can cost anywhere from $500 to $2,500 more than standard replacements, depending on the tank's size and how easy it is to access.
Disposal fees: Removing and disposing of an old water heater adds $75 to $500, with charges on the lower end if the unit is already disconnected and pre-drained.
Emergency premiums: Most contractors charge more for same-day, after-hours, weekend, and holiday installations. If your water heater fails unexpectedly and you need an immediate solution, expect to pay more.
Tax incentives: New water heater installations may qualify for the federal Energy Efficient Home Improvement Tax credit, which allows homeowners to claim 30% of the project cost, up to $2,000 total. This credit can substantially reduce your overall installation cost.
Water heater & installation type
Different water heater technologies require varying amounts of labor and expertise, directly affecting your installation costs. The table below shows various water heater installation projects and the approximate labor hours required.
| Installation type | Time required (hours) |
Complexity level |
|---|---|---|
| Standard tank replacement | 2 – 4 | Low |
| New tank installation | 4 – 6 | Medium |
| Tankless electric installation | 4 – 8 | Medium-high |
| Tankless gas installation | 6 – 10 | High |
| Tank to tankless conversion | 8 – 12 | Very high |
| Solar water heater installation | 8 – 16 | Very high |
The labor cost to install a gas water heater runs higher than electric models due to the additional safety requirements and gas line connections.
Water heater installation costs are significantly higher when converting to a different type of water heater or fuel source, as these updates can add several hours to the installation time.
Existing infrastructure
Older homes often need infrastructure updates during installation to comply with current building codes. Replacing outdated electrical panels, insufficient gas lines, or corroded plumbing connections can increase labor time and expenses significantly.
Electrical upgrades: Tankless electric water heaters often require electrical panel upgrades or modifications. Even gas models require some electrical connections for proper operation.
Installing a dedicated circuit costs $250 to $900.
Full electrical panel replacements costs $850 to $1,700+.
Plumbing modifications:
Converting from a tank to tankless water heater often requires rerouting pipes. New water lines, shut-off valves, and pressure relief systems can increase total project costs.
Expansion tanks, water softener connections, and recirculation pumps add complexity. These upgrades improve performance but increase the overall investment.
Gas line work:
New gas water heaters might need larger gas lines. Upgrading from a 1/2-inch to 3/4-inch gas line costs $350 to $750 for materials and labor.
High-demand tankless units may require a gas meter upgrade. Utility companies handle meter work, but coordination affects the project timing.
Electric to gas conversions
Converting from an electric to gas water heater requires extensive infrastructure work. Contractors must install new gas lines, add proper ventilation, and modify existing electrical connections.
Labor costs increase substantially if there is no existing gas service. New gas line installation costs $500 to $2,000+ to run a new service line from the meter to your water heater location.
Regional cost variations
Water heater installation costs vary based on your geographic location, local market conditions, and contractor availability, ranging anywhere from $45 to $150 per hour or more.
Labor rates and material costs are highest in major metropolitan areas. Homeowners in cities like San Francisco, New York, and Seattle see significantly higher installation costs.
Rural installations might cost more due to limited contractor availability, travel time, or reduced competition. However, lower overhead costs in rural areas sometimes offset the transportation expenses.
Permits and inspections
Many cities require permits for water heater installations. Your contractor handles permit applications, but this administrative work gets factored into the labor cost. Permit fees range from $50 to $200+ depending on the location. Inspection scheduling and compliance checks add time to the project.
Additional costs beyond labor
Besides the actual installation time, the labor cost may also include equipment fees and additional job supplies. Basic installation materials include pipes, fittings, valves, and connection hardware. These supplies often add $150 to $500 to your total project cost.
Water heater installation FAQs
How long does water heater installation take?
Standard tank replacements take 2 to 6 hours, while tankless water heater installations require 6 to 10 hours. Complex conversions from tank to tankless can take a full day. Replacing a water heater with a new unit of the same model goes much faster than a retrofit installation.
Can I install a water heater myself to save on labor costs?
DIY installation voids manufacturer warranties and violates most local codes. Gas installations pose serious safety risks, and electrical work requires proper expertise. Professional installation costs more up front but prevents expensive problems and ensures your new water heater's warranty coverage.
When should I replace my water heater to avoid emergency costs?
Replace a traditional tank water heater after 8 to 12 years or when you notice declining performance. Most tankless water heaters last up to 20 years with proper maintenance. Emergency installations cost 25% to 50% more in labor charges. Replacing your water heater proactively also lets you schedule during off-peak seasons for better pricing.
Getting estimates for water heater installation
The cost of labor to install a water heater varies significantly between different plumbing companies. When searching for water heater installation near you, follow these guidelines to get accurate quotes from qualified professionals:
Verify the contractors are licensed and insured before requesting estimates.
Check out their customer reviews and ratings on HomeGuide and Google.
Schedule in-person visits so they can see your current setup, access points, and existing infrastructure.
Share details about your current water heater, desired replacement type, and any known plumbing or electrical issues.
Ask for itemized quotes with separate pricing on labor, equipment, materials, permits, and additional work like electrical upgrades.
Ask how long the installation will take and when contractors can schedule your project.
Confirm whether the estimate includes old water heater removal and disposal.
Clarify which parts of the installation are covered under warranty and for how long.
Questions to ask a water heater installation pro
Asking the right questions helps you compare contractors effectively and avoid surprises during your project:
Are you licensed and insured?
What's your experience with this type of installation?
What is included in your labor rate?
What additional costs should I expect?
Do you handle permits and inspections?
How do you handle unexpected problems?
Can you provide recent references?
What warranty do you provide on labor?
What warranty does the new unit come with?
When can you start and finish the project?
What payment schedule do you require?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.