How Much Does Gas Water Heater Replacement Cost?

Nobody feels particularly excited about spending money on a new water heater, but a replacement could be in your future if you notice discolored water, unusual sounds or other signs of an old, worn-out unit. Knowing how much a gas water heater replacement costs can help you feel prepared.

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Below, we'll outline the average cost of gas water heater replacement and explain what factors could affect the price tag.

How Much Does Gas Water Heater Replacement Cost?

According to Consumer Affairs, water heater replacement costs $882 to $1,816 (CAD 1,226 to CAD 2,523) on average, including the unit itself and professional installation. Gas water heaters cost $100 to $200 (CAD 139 to CAD 278) more than electric units, so you should expect to pay toward the upper end of this scale or more for a large or premium unit.

Typical gas water heater prices range between $700 and $2,700 (CAD 973 and CAD 3,752). Most professional plumbers charge between $150 and $900 (CAD 208 and CAD 1,251) for installation labor.

What Factors Impact the Average Cost of Installing a Gas Water Heater?

Several factors impact the cost of gas water heater replacement, including the type of heater, the water heater's capacity and the complexity of installation.

Gas Water Heater Capacity

Traditional tank gas water heaters vary in price by capacity, with high-capacity heaters costing more than smaller units. The larger your household, the greater the capacity required to meet your hot water needs.

A smaller 40-gallon gas water heater replacement costs $600 to $3,000 (CAD 834 to CAD 4,169) for the water heater, materials and installation labor. This capacity is often sufficient for one to two people living in a small apartment or house. A 50-gallon tank water heater for a household with three to four people typically costs $700 to $3,100 (CAD 973 to CAD 4,308) installed. Units with larger capacities can cost as much as $4,000 (CAD 5,558).

Tankless Gas Water Heaters

Tankless water heaters heat water on demand without a storage tank. They're more energy-efficient than traditional tank models, making them cheaper to run. However, they're often more time-consuming and challenging to install, and the upfront cost of the heater itself is usually higher.

Expect to pay around $1,400 to $5,600 (CAD 1,945 to CAD 7,782) for a tankless gas water heater and installation labor.

Installation Complexity and Labor Costs

Plumbers usually charge more for complex installations. For example, replacing a gas water heater in a confined or hard-to-access area like a closet often costs more per hour.

HomeGuide says that difficult installations typically cost $125 to $300 (CAD 174 to CAD 417) more per hour. For a job taking two to six hours, challenging conditions could increase your costs by $250 to $1800 (CAD 347 to CAD 2,501).

Gas Line Repair

If your existing gas line is in poor condition, your plumber may recommend repairing or replacing the worn-out section before installing your new water heater. Minor gas line repairs, such as sealing small leaks, cost between $150 and $300 (CAD 208 and CAD 417). More extensive work, such as replacing a broken section, can cost up to $3,000 (CAD 4,169) or more.

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Frequently Asked Questions

Here are some questions homeowners often ask about gas water heater replacement costs.

Are Permits and Inspections Required?

Most cities and counties require homeowners to obtain permits before replacing gas water heaters. Permit fees vary between jurisdictions but usually cost between $50 and $200 (CAD 69 and CAD 278).

How Much Does It Cost to Remove or Dispose of the Old Water Heater?

Water heater removal costs around $75 to $500 (CAD 104 to CAD 695), including proper disposal of the unit. Most professional installers include removal and disposal when they provide an estimate for gas water heater replacement, so you won't usually pay for this service separately. However, it's worth checking what your plumber's estimate includes to avoid unexpected fees later.

How Long Does a Water Heater Last?

The lifespan of a gas water heater depends on the type, make and installation quality. According to Today's Homeowner, tank water heaters usually last between 8 and twelve years, while tankless models last between 15 and 20 years. Incorrect installation can cause your water heater to fail prematurely, so choosing an experienced plumber is essential. Regular maintenance can help catch minor issues before they escalate to more serious faults and prolong your heater's lifespan.

What Are the Signs a Water Heater Needs to Be Replaced?

Tank gas water heaters reach the end of their lifespan around the 10-year mark, so you should start considering replacement if an older unit shows signs of failing. Symptoms of a failing gas water heater include discolored water, unusual rumbling or popping sounds and inconsistent water temperatures. Frequent repairs can also signify a water heater nearing the end of its lifespan.

Should You Repair or Replace an Aging Water Heater Before It Fails?

Generally, you should consider replacing an older gas water heater if it needs constant repairs or shows signs of tank corrosion, such as leaks or rusty-colored water. However, minor issues like faulty valves could be worth fixing if your unit is otherwise in good working order. While replacing a failing water heater usually costs more upfront, it can often be more economical over time than paying for frequent repairs.