Tank vs tankless water heater: what each really costs
By Our research team · Last verified · Methodology
Tank
Homes with a gas line. About $275 a year to run; lasts 8–12 years.
Tankless
Endless hot water in less space. About $185 a year to run; often lasts 20 years or more with yearly descaling.
Tank runs $1,100–$3,100 installed and tankless runs $2,000–$5,600 installed in the US (November 2026). See prices for your city ↓
Prices verified November 2026 · Cross-referenced against 36+ American pricing sources · See methodology
Tank vs Tankless vs Heat Pump: Water Heater Types Compared
A gas or electric tank is the cheapest to install at $800–$3,100. Tankless and heat pump models cost more up front and less to run. Running costs below use US average rates for a typical home.
| Water heater type | Cost | Best for |
|---|---|---|
| Electric tank (40–50 gal) | $800–$2,500 installed | Homes without gas. About $645 a year to run at the US average rate; lasts 8–12 years. |
| Gas tank (40–50 gal) | $1,100–$3,100 installed | Homes with a gas line. About $275 a year to run; lasts 8–12 years. |
| Large tank (75–80 gal) | $1,200–$4,000 installed | Five or more people or a big tub. A big household on gas spends about $425 a year; lasts 8–12 years. |
| Whole-home tankless gas | $2,000–$5,600 installed | Endless hot water in less space. About $185 a year to run; often lasts 20 years or more with yearly descaling. |
| Whole-home tankless electric | $1,000–$4,500 installed | Small homes with spare electric capacity. About $605 a year; needs heavy circuits; often lasts 20 years or more. |
| Heat pump water heater (50 gal), switching from gas | $2,300–$7,500 installed | Gas homes going electric: usually adds a new 240V circuit. About $215 a year to run. |
| Heat pump water heater (50 gal) | $2,000–$5,500 installed | Electric homes with a garage or basement. About $215 a year to run; stores water in a tank, so it needs the same anode and flush care. |
| Solar with backup tank | $2,500–$9,000 installed | Sunny areas. Backup heat about $255 a year; the storage tank lasts about as long as a standard tank. |
| Point-of-use electric (one sink) | $400–$1,500 installed | A far bathroom or kitchen sink that waits too long for hot water. Pennies a day to run; tankless units often last 20 years or more. |
Tank vs tankless comes down to space and how much hot water you use at once. A gas tank at $2,000 and about $275 a year is the low-cost choice for most gas homes; tankless gas at $3,500 gives endless hot water and lasts longer, but takes many years to pay back on fuel savings alone. In an all-electric home, a heat pump model saves the most on running costs.
Tank vs tankless water heater: prices in the largest US cities
Local installed prices for each option, November 2026. Open a city for its full price list and a free quote.
| City | Tank | Tankless |
|---|---|---|
| New York, NY | $1,250–$3,550 installed | $2,200–$6,150 installed |
| Los Angeles, CA | $1,450–$4,050 installed | $2,450–$6,800 installed |
| Chicago, IL | $1,100–$3,100 installed | $2,000–$5,600 installed |
| Dallas, TX | $1,100–$3,100 installed | $2,000–$5,600 installed |
| Houston, TX | $1,100–$3,100 installed | $2,000–$5,600 installed |
| Washington, DC | $1,250–$3,550 installed | $2,200–$6,150 installed |
| Atlanta, GA | $1,050–$3,000 installed | $1,950–$5,500 installed |
| Philadelphia, PA | $1,100–$3,100 installed | $2,000–$5,600 installed |
| Miami, FL | $1,250–$3,550 installed | $2,200–$6,150 installed |
| Phoenix, AZ | $1,050–$2,950 installed | $1,900–$5,400 installed |
| Boston, MA | $1,250–$3,550 installed | $2,200–$6,150 installed |
| San Francisco, CA | $1,250–$3,550 installed | $2,200–$6,150 installed |
| Riverside, CA | $1,000–$2,850 installed | $1,900–$5,250 installed |
| Detroit, MI | $1,100–$3,100 installed | $2,000–$5,600 installed |
| Seattle, WA | $1,250–$3,550 installed | $2,200–$6,150 installed |
| Minneapolis, MN | $1,200–$3,450 installed | $2,150–$6,050 installed |
| San Diego, CA | $1,100–$3,100 installed | $2,000–$5,600 installed |
| Tampa, FL | $1,100–$3,100 installed | $2,000–$5,600 installed |
| Orange County, CA | $1,100–$3,100 installed | $2,000–$5,600 installed |
| Denver, CO | $1,200–$3,450 installed | $2,150–$6,050 installed |
| Oakland, CA | $1,100–$3,100 installed | $2,000–$5,600 installed |
| Charlotte, NC | $1,100–$3,100 installed | $2,000–$5,600 installed |
| Baltimore, MD | $1,100–$3,100 installed | $2,000–$5,600 installed |
| St. Louis, MO | $1,100–$3,100 installed | $2,000–$5,600 installed |
| Orlando, FL | $1,100–$3,100 installed | $2,000–$5,600 installed |
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- New York, NY →$900–$3,550 installed
- Los Angeles, CA →$1,050–$4,050 installed
- Chicago, IL →$800–$3,050 installed
- Dallas, TX →$800–$3,100 installed
- Houston, TX →$800–$3,100 installed
- Washington, DC →$900–$3,550 installed
- Atlanta, GA →$750–$3,000 installed
- Philadelphia, PA →$800–$3,100 installed
- Water heater cost: full US guide →