Labor cost to replace gas water heater

Typical domestic tank-type water heaters range from 30 to 50 gallons and they require floor space to be installed. Tankless units are rated in gallons per minute (GPM) and range from 2 to 10 GPM. They can be wall mounted and located in reduced spaces.

You will find that gas water heaters are more expensive to buy than electric types even before considering the cost of gas ventilation and gas pipe requirements, but in most regions gas is the less costly heat source. Tankless heaters may cost more, but are considered lower cost to operate with their higher efficiency.

The cost to install average gas water heating depends upon type, heating flow and tank capacity, preparation and special needs, and the labor rate.

In the following table the Labor Cost figure is what the able and prepared DIY persons should expect to save by performing the corresponding tasks.

Gas water heater replacement: for 4 or 5 person home; includes old material removal and disposal, transport, new material and installation, equipment, and waste.

Other considerations and costs

• These prices are for service in the immediate area of the provider.
• Taxes and permit fees are not included.
• Warranty extensions are available at extra cost.
• Higher end models include Wi-Fi based monitoring and control devices.
• Gas heaters require the installation of both an exterior vent and a gas-pipe supply.
• Some gas heaters can be installed outdoors, saving the cost of a vent to the exterior.
• The cost to operate the heater follows the cost of gas in the region.
• All types require strict compliance with all pertinent local codes and regulations.
• Often times when a water heater requires replacement it turns out that the installation will need to be upgraded to latest codes and regulations regarding ventilation or earthquake preparation.
• During contractor inspection the homeowner should be informed of any repair concerns like rot, and any cost to adapt the existing structure.

DIY considerations

• In the very best of cases this installation may be suitable for the able DIY persons, but home insurance or local codes may require a licensed or certified installer.
• In all cases there can arise issues best left to professionals to resolve on the spot.
• A fairly complete plumbing tool set will be required, perhaps including a torch.

References

• Craftsman Estimator Costbook, complete series year 2015.
• Latest prices found on Home Depot and other vendor Web sites.
• Literature review of DIY Web sites.

How much does it cost to install gas water heating in your city?
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Cost by city

(gas w/ 50 gallon tank, 5 persons)

• New York, NY$1,327
• Bronx, NY$1,090
• Brooklyn, NY$909
• Philadelphia, PA$1,134
• Washington, DC$984
• Atlanta, GA$890
• Miami, FL$809
• Fort Lauderdale, FL$848
• Minneapolis, MN$995
• Chicago, IL$1,159
• Houston, TX$1,195
• San Antonio, TX$802
• Austin, TX$909
• Denver, CO$768
• Phoenix, AZ$810
• Las Vegas, NV$889
• Los Angeles, CA$1,002
• San Diego, CA$909
• San Jose, CA$1,098
• Seattle, WA$804

Local costs have been calculated by accounting for labor and material cost differences across different cities. To get accurate cost estimates, indicate yours:

Power venting a water heater costs about $500 to $1,000 more than a passive system. “A direct vent system brings combustion air from outside and exhausts directly to the outside of the building,” says Botelho. Direct vent heaters use two pipes—one for combustion and makeup air and the other for exhaust.

Permits

Most locations require permits to replace a water heater, typically costing $50 to $150. Check with your local requirements before you begin; some limit installation or replacement to a licensed plumber. 

Adding an Expansion Tank

A water heater expansion tank costs $100 to $350 for both parts and labor. When water heats up and enters the system, it increases the pressure. The expansion tank then absorbs some of that pressure and overflow to keep pressure in the system down.

Relocating a water heater means adding water lines, electrical outlets, or gas lines (if they are not preexisting in the new location). Here are the average costs of those factors: 

Changing Fuel Types

Changing fuel types means running new lines to the home or expanding on what’s already there so you can change the fuel powering your water heater. 

• Going from gas to electric costs $500–$2,000 and involves adding a new circuit. 

• Going from electric to gas costs $500–$1,500 and involves adding new gas pipes.

Optional Warranties

Optional warranties run anywhere from $100 to $300. It can extend the coverage of your water heater, add free inspections if you purchase it through your plumber, and extend the protection of your investment. Some manufacturers offer a warranty, or your plumber might offer additional coverage through their shop. 

Removal

Removing the water heater currently in your home costs between $100 and $500. The price will depend on your contractor’s hourly rate. If the unit is hard to access or difficult to remove, expect to pay more for removal.

DIY vs. Hiring a Plumber to Replace a Water Heater

Leave water heater installation to the pros. You’re hooking up two major utilities—water and gas or electric—to an appliance. If done incorrectly, you can cause water damage to your home, electrical system, and yourself. Hire a local plumber to install your water heater. Not only will it get done properly, but reputable, licensed plumbers warranty their work and carry insurance in case anything goes wrong. 

"As a licensed plumber with nearly twenty years in the field, I've seen and repaired dozens of DIY-installed water heaters,” said Botelho. “It has long been my opinion that a knack for mechanical work is no substitute for professional training. Installing a water heater—or any plumbing appliance or fixture—is not a hobby project to be tackled on a Sunday. Any time a job involves connections to major utilities (including gas, oil, or line voltage electricity) it should be done by a licensed and trained professional."

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