Water Heater Cost in 2026: Replacement Prices, Rebates and What Drives the Price

Updated September 2026. Replacing a water heater usually costs $882 to $1,826 installed, with a national average of $1,347, according to Angi’s water heater replacement guide (national estimate, July 2026). Tankless systems cost more: Angi puts a tankless install in Seattle at $1,582 to $4,321. Rebates of up to $1,100 from PSE and up to $1,000 from Snohomish PUD cut the cost of a heat pump water heater.

For a quick price, get an online water heater quote from Home Comfort Alliance. We also give free, upfront replacement estimates across the Puget Sound area, with the price confirmed before any work begins.

How much does a new water heater cost by type?

A standard tank water heater is the least expensive to install; tankless and heat pump (hybrid) water heaters cost more up front but use less energy. These are third-party benchmarks, not Home Comfort Alliance prices.

Water heater type Installed cost range Source
Tank, gas $700 to $2,700 Angi national, July 2026
Tank, electric $600 to $3,500 Angi national, July 2026
Heat pump (hybrid) $1,200 to $3,500 Angi national, July 2026
Tankless (all fuels) $1,400 to $3,900 Angi national, July 2026
Tankless, natural gas (Seattle) $1,925 to $3,500 Angi Seattle, February 2026
Tankless, electric (Seattle) $550 to $2,900 Angi Seattle, February 2026

Sources: Angi, water heater replacement cost (updated July 20, 2026); Angi, tankless water heater cost in Seattle, WA (updated February 25, 2026).

How much does a water heater cost by tank size?

Most Puget Sound households need a 40- or 50-gallon tank; larger families with big tubs or several showers running at once may need 80 gallons or a tankless unit.

Tank size Installed cost range Typical household
40 gallons $800 to $2,300 1 to 4 people
50 gallons $800 to $2,500 3 to 5 people
80 gallons $1,300 to $7,500 Large households, high demand

Source: Angi, national estimate, July 2026.

What adds to the cost of a water heater replacement?

Labor is about half the cost of a water heater replacement, and code upgrades, venting and removal of the old tank make up much of the rest.

  • Labor: $150 to $450 for a tank swap and $600 to $1,900 for a tankless install (Angi national). Seattle plumbers charge about $90 to $115 an hour for tankless work, per Angi.
  • Switching types: going from tank to tankless can mean a larger gas line, new venting or a new electrical circuit.
  • Code items: seismic straps, a drain pan, and an expansion tank ($90 to $350, Angi) where the water system is closed.
  • Removal and disposal: $100 to $500 (Angi national).
  • Permit: $25 to $300 depending on the city or county.
  • Sales tax: Angi notes Seattle homeowners may pay up to 10.35% sales tax on a new water heater installation.

Home Comfort Alliance water heater service prices

Home Comfort Alliance publishes its plumbing service prices, and every job is priced upfront before work begins. Replacement estimates are free.

Service Price
Plumbing dispatch (trip) fee $99
Standard water heater flush $150
Tankless water heater flush $429
Water heater replacement estimate Free

Home Comfort Alliance prices as of September 2026. Current plumbing offer: $50 off same-day recommended plumbing work.

Water heater rebates in the Puget Sound area (updated September 2026)

Heat pump water heaters get the largest rebates in western Washington. Standard gas and electric tank replacements generally do not qualify for utility rebates. The federal 25C tax credit ended for equipment installed after December 31, 2025.

Program Rebate Key requirements
PSE $1,000 back; $1,100 with the income-qualified Efficiency Boost Tier 3 or Tier 4 heat pump water heater on PSE’s qualifying list, installed on or after January 1, 2026. Apply within 30 days of installation. One rebate per single-family home.
Snohomish County PUD Up to $1,000 Qualifying heat pump water heater replacing an existing water heater (not new construction). Apply within 90 days. One rebate per account every five years.
Washington HEAR program Varies by local administrator Households at or below 150% of area median income.

Home Comfort Alliance is a PSE Trade Ally for HVAC and water heaters. See our rebates guide for other utilities.

Tank, tankless or heat pump: which water heater should you choose?

A tank water heater is the lowest-cost replacement, a tankless unit suits households that run out of hot water or want to save space, and a heat pump water heater gives the lowest running cost for electric homes and qualifies for the biggest rebates.

Type Best for Watch for
Tank (gas or electric) Lowest upfront cost, like-for-like swaps Limited hot water; takes floor space
Tankless Endless hot water, small spaces Higher install cost; yearly flush needed
Heat pump (hybrid) Electric homes; garages or basements with room Needs space and airflow; rebate models only

Compare them in tank vs tankless water heaters for Seattle and tankless water heater costs, or see our water heater services.

Paying for a new water heater

Home Comfort Alliance offers financing through Salal Credit Union and Synchrony, with low monthly payment plans starting at $179/month*, 0% interest options for qualifying customers and instant online approval. See financing options.

*Financing through Salal Credit Union or Synchrony, subject to credit approval. Rates, terms and monthly payments depend on the amount financed, the plan and your credit. 0% interest options are available to qualifying customers. See lender for full terms.

Why homeowners choose Home Comfort Alliance for water heater replacement

  • Serving Puget Sound homeowners since 1977, rated 4.8 stars from 5,000+ reviews.
  • Licensed, bonded and insured in Washington: WA Contractor Reg. #HOMECCA785BD and WA Plumbing Contractor Lic. #HOMECCA751QG.
  • Upfront, transparent pricing before any work begins, free replacement estimates and an online water heater quote.
  • We pull the required permits and install to code, including seismic straps.
  • PSE Trade Ally for water heaters.
  • Book 24/7 by phone or online. Our plumbers work Monday to Friday, 8 AM to 5 PM, with same-day service when possible.

Water heater cost FAQ

How much does it cost to replace a water heater in Seattle?

Angi puts a typical water heater replacement at $882 to $1,826 nationally (national estimate, July 2026). A tankless water heater in Seattle averages $2,915 installed, per Angi. Home Comfort Alliance gives free, upfront replacement estimates.

How much does a 50-gallon water heater cost to install?

Angi lists $800 to $2,500 installed for a 50-gallon water heater (national estimate, July 2026). Gas or electric, venting, code upgrades such as seismic straps or an expansion tank, and haul-away of the old tank move the price within that range.

Is a tankless water heater worth the extra cost?

A tankless water heater costs more up front (Angi: $1,582 to $4,321 in Seattle) but gives endless hot water and saves floor space. It needs a yearly flush; Home Comfort Alliance charges $429 for a tankless flush.

Are there rebates for heat pump water heaters in Washington?

Yes. PSE pays $1,000 back on qualifying Tier 3 or Tier 4 heat pump water heaters ($1,100 for income-qualified customers), and Snohomish PUD pays up to $1,000 when a heat pump water heater replaces an existing one. The federal 25C tax credit ended December 31, 2025.

Should I repair or replace my water heater?

Replace it when the tank itself is leaking, when repairs keep adding up, or when the unit is near the end of its life. Repair makes sense for a single failed part such as a thermostat, element, igniter or valve on a newer unit. A licensed plumber can tell you which in one visit.

How often should a water heater be flushed?

Once a year is the common recommendation, especially in homes with hard water, because sediment builds up in the tank or heat exchanger. Home Comfort Alliance charges $150 for a standard tank flush and $429 for a tankless flush.

Do I need a permit to replace a water heater?

Many cities and counties in Washington require a permit to replace a water heater, and Angi lists permit fees of $25 to $300 nationally. Home Comfort Alliance pulls the required permit for every water heater replacement and installs to code, including seismic strapping.

Get a water heater replacement estimate

A comfort advisor will help you choose the right water heater, check your rebates and give you an upfront price at an in-home visit.

Call (425) 645-0404

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Sources: Angi, water heater replacement cost (July 20, 2026); Angi, tankless water heater cost in Seattle (Feb. 25, 2026); PSE heat pump water heater rebate; Snohomish PUD heat pump water heater rebates; WA Commerce HEAR program; IRS Energy Efficient Home Improvement Credit. Checked September 29, 2026. Home Comfort Alliance pricing is current as of September 2026 and may change.