Cost of New Hot Water Heater

Generally, it costs around $2,000 for 40-50 gallon gas fired water heater these days. Going through a warranty will save you around $400 and that’s it since there’s a handling charge from the wholesaler and labor is whatever it is.

MasterPlvmber

in Plumbing 4 months ago

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zlt99 | 7 months ago

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I was wondering what I should expect to pay to replace a hot water heater. It is a 40 gallon A.O. Smith and we will probably just get the same kind to make it easy. The last time we replace one it was around $1200 parts and labor but that was several years ago so I wanted to get an idea of how much people are charging now. Thank you!

BobMarvin | 7 months ago

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These things usually have. a ten year warranty, so you just might be eligible for a free replacement where you only pay for labor. I had that happen once, although they usually fail just after the warranty expires.

amister | 7 months ago

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Just replaced a commercial grade 50 gallon A.O. Smith 40k BTU. I got the 10 yr warranty (having had the previous 6 year break it’s dip tube less than 6 months after it came off warranty).
Anyway that was about $2k all in of which about half was the heater. My plumber bought it, so maybe he gets discounts or benefits from his supplier which I don’t mind cause he handled transport and everything.

One thing to note: I have heard of people who always find that their heater reliably breaks 6 months to a year before the warranty is up. Helps to have a good relationship with your plumber who will submit the warranty for reimbursement.

palmplumb | 4 months ago

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You’re right to check—prices have definitely crept up over the past few years. For a standard 40-gallon A.O. Smith electric or gas water heater, you can expect to pay around $1,400 to $2,000 total, depending on your location, access, and whether any plumbing or venting needs updating.

Here’s a rough breakdown:

Unit cost: $500–$800 (depending on model and energy efficiency)

Labor: $600–$1,000

Permit & haul-away fees: $100–$200 (varies by city/county)

If you’re swapping out the same brand and model type, you’ll likely save a bit on labor since there’s no major rework. That $1,200 you paid years ago was a solid price, but today, you’re probably looking at closer to $1,600 average in most areas.

If you’re in a place with high labor rates or stricter code requirements (like California), it might go higher. Always worth getting 2–3 quotes just to compare.

Brownstone Home Inspection | 4 months ago

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my neighbor replaced his a few years back and it was covered under warranty.