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Water heater FAQ

The most common water heater questions come down to five: what it costs (tank $600-$2,500 installed, tankless $1,400-$3,900, per NerdWallet), how long it lasts (roughly 10-15 years for a tank, about 20 for tankless), whether tankless pays back, whether a permit is needed, and what to do about gas safety.

This page collects the questions homeowners actually ask before spending money on a water heater. The short version of all of them: age and leak location decide repair versus replace, first hour rating decides sizing, and gas work decides who is allowed to touch it.

One theme runs through the honest answers: the pressure to upgrade is usually stronger than the case for upgrading. Tankless and heat pump units are genuinely better in specific situations. They are not universally better, and an emergency replacement is the worst moment to be sold one.

Where an answer depends on your address — permits, licensing, rebates, code requirements — we point you at the office that can actually tell you, rather than guessing. That is not evasion; a national answer to a local question is worse than no answer.

How to choose

Start with the data plate
Age, capacity, fuel type, and model number answer most of the diagnostic questions before anyone visits.
Get three itemized quotes when you are not in an emergency
Lump sums cannot be compared. Line items can.
Treat anything involving gas or venting as licensed-only
This is the one category where saving money on the contractor can cost you more than money.
Check rebates at your utility, not in an article
Programs are local and get exhausted mid-year. The federal 25C credit is gone for 2026 installs.
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NerdWallet puts a traditional tank at $600-$2,500 installed and tankless at $1,400-$3,900 installed. Labor within that is $150-$450 for a tank swap and $600-$1,900 for tankless, with permits typically $25-$300.
About 10-15 years for a tank with proper maintenance, per NerdWallet. ENERGY STAR gives tankless models a life expectancy of about 20 years. Hard water and skipped maintenance shorten both.
It depends on your situation. ENERGY STAR estimates about $95 a year in savings for a certified gas tankless versus a standard gas storage model. Set that against $1,400-$3,900 install plus $150-$2,500 of conversion work and decide whether the payback fits how long you will own the house.
Usually, but it is a local rule. Call your city or county building department. Do not let an installer talk you out of one on a gas unit — the inspection is checking venting and combustion.
No. Gas piping and venting are life-safety work with carbon monoxide risk, and in most jurisdictions they are legally restricted to licensed professionals. CPSC has recalled gas tankless water heaters for CO hazards, including a 2026 VST-brand recall. Do not attempt it.
Sources

Where these figures come from

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