Water Heater Replacement Cost (2026): Tank vs. Tankless

National average (tank)$1,34840–50 gal tank; tankless averages $2,641 (Angi [3]). Source: Angi [1], see Sources below.

Texas hard water shortens tank life, so many homeowners replace a heater every 8–12 years. Here's what national 2026 data shows.

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Type	Installed cost
Standard tank (40–50 gal)	National average $1,348; most pay $882–$1,826 [1]; $600–$3,100 [2]
Tankless	Average $2,641; $1,406–$3,902 [3]; $1,400–$5,600 [2]
Hybrid heat pump	$2,000–$4,600 [2]

Switching from tank to tankless adds work

Gas tankless units usually need a larger gas line and new venting; electric units often need a dedicated circuit or a panel upgrade [4]. Get those items itemized in the quote.

Repair first?

A bad thermostat, heating element or thermocouple is often a cheap fix. A leaking tank body cannot be repaired; replace it.

Flushing sediment once a year helps with Texas hard water. Installation of a water heater in Texas should be done by a TSBPE-licensed plumber, and many cities require a permit. Check a plumber's license.

Sources

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