How much does a new electric water heater cost installed?

Prices checked October 2026. Wages: BLS, May 2025.

Electric tanks are the simplest water heaters to replace. No gas line, no flue, no combustion air to plan for. The figure above prices a swap for a new tank of the same type: a 40 or 50 gallon resistance-element heater on the circuit you already have. The tank price comes from listings at public online retailers. The installation part is the Department of Energy's average from its 2024 water heater rule, which covers labor, fittings, delivery, removal of the old unit and a typical permit, adjusted for what plumbers earn in your area.

That simplicity is why DOE's installation figure for electric tanks is much lower than for gas. It also means labor is nearly all of the installation cost (about nine tenths, in DOE's breakdown), so your local wage level moves the total more than it does for other systems. An expansion tank and a drain pan, if your home needs them, appear as separate lines.

Installed price by size, national

Size	Unit (list)	Low	Typical	High
40 gallon	$744	$800	$1,200	$1,650
50 gallon	$894	$1,000	$1,350	$1,800

Installation averages $448 nationally for the common size (DOE, inflated to August 2026); about 90% of that is labor, which we scale to local wages.

Extras that may be added

Item	Typical	Range
Thermal expansion tank (where code requires it)	$200	$150–$360
Drain pan with drain line	$50	$36–$85

What moves the price

40 or 50 gallons

Both sizes share the same installation figure in DOE's model, so the gap between them is the tank price. A taller, wider 50 gallon model sometimes won't fit a closet that held a 40. Measure the space, door opening included, before you pick a size.

Labor rates where you live

Because an electric swap is mostly a plumber's time, the regional wage factor has a big effect. The estimate uses the 25th, median and 75th percentile plumber wages for your metro or state, so the low and high ends show how much the same job can vary between shops in one area.

Electrical condition

A like-for-like replacement reuses the existing 240 volt circuit. If the old wiring is undersized, damaged or lacks a disconnect where local code wants one, an electrician may need to visit. That is not in the base figure and should appear as its own line if it applies.

Location and access

An attic, crawlspace or tight closet takes longer than a garage floor. Upstairs and attic installs are also where a drain pan earns its keep, since a leak there comes through the ceiling below. A.O. Smith's guide notes most codes require a pan piped to a drain.

Closed plumbing systems

Some water services have a check valve, backflow preventer or pressure regulator, and then heated water cannot push back toward the street. Codes call for a thermal expansion tank on the cold line in that case. It is a small part, and one of the most common add-ons on a replacement quote.

Repair or replace?

Electric tanks fail in two ways. Parts outside the water, mainly the heating elements and their thermostats, wear out and can be swapped at modest cost. The tank itself eventually rusts through, and nothing fixes that. A heater under about ten years old with lukewarm or no hot water and no leak usually just needs an element or thermostat repair. Water pooling under the tank, or a unit near DOE's average life of about 15 years, means it is time to put the money toward a new heater. It may also be the moment to move to a heat pump water heater, which DOE says can be two to three times as efficient as a standard electric tank, provided you have the space and air volume for one.

Run the numbers for your unit.

What a complete quote lists

Brand, model number and capacity of the new tank
Draining, disconnecting and hauling away the old heater
New water supply connectors and shutoff valve if the old one is worn
New temperature and pressure relief valve and discharge line to an approved spot
Reconnection to the existing 240 volt circuit, with any electrical upgrades listed separately
Thermal expansion tank where the system is closed
Drain pan with a drain line for attic, upstairs or finished-space installs
Seismic strapping in California and other areas that require it
Permit and inspection fee
Tank warranty years from the manufacturer and the installer's workmanship warranty

Paste your quote and we'll tick these off for you.

Common questions

Why is installation such a large part of the cost?

The tank itself is inexpensive compared with gas or heat pump models, and the job is mostly a plumber's time: draining, disconnecting, carrying, setting, connecting and testing. DOE's labor breakdown for electric tanks puts the hands-on time at about three hours plus travel.

How long does an electric tank last?

DOE's 2024 analysis uses an average of about 15.1 years for electric storage water heaters, with a sensitivity range of about 13 to 17 years. An older builders' survey put it at 11 years.

Can I just replace the heating element instead?

On a tank that is not leaking, yes, an element or thermostat replacement is often worthwhile. The manufacturer's manual describes it as work for a qualified person because it involves 240 volt wiring. Hire a plumber or electrician.

Is a heat pump water heater a better replacement?

It uses much less electricity, but it costs more up front and needs room. DOE recommends at least 1,000 cubic feet of air space and a location that stays between 40 and 90 degrees year round. See the heat pump water heater page for that estimate.

Do I need a permit to replace an electric water heater?

Most cities require one, even for a direct swap, because the relief valve, expansion control and electrical connection are safety items. DOE's average includes typical permit fees. Check your city's permit page or ask the plumber to pull it.