Running out of hot water too quickly or hearing strange noises when you call for hot water? Use this water heater repair cost guide to see what a fix will cost in Phoenix, AZ.
How Much Does a Water Heater Replacement Cost in Phoenix? [2026 Data]
Water heater service costs depend on your project and location. Check with a local pro for your specific job.
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Cost Insights
The cost to replace a water heater in Phoenix depends on the type and size of the water heater.
Phoenix’s hot desert climate makes both tankless and solar water heaters good options.
Installing a water heater can pose safety risks, so you’ll need to hire a licensed pro and obtain a permit before replacing your water heater.
Replacing a water heater in Phoenix costs an average of $797 to $1,659, with most homeowners paying around $1,224. The cost of a water heater replacement is based primarily on the size and type of the heater, as well as labor costs. We break down some of the things that contribute to the cost of a water heater so you can budget for a replacement.
Water Heater Replacement Cost Factors
The cost to replace a water heater in Phoenix, AZ, depends on various factors, including water heater size, tank-style or tankless, the fuel source, and more. Take a look at some of the main factors that influence how much you’ll pay for a water heater in Phoenix.
Size
Hot water heaters come in different sizes, measured by gallons (for tank-style systems) or gallons per minute (for tankless systems). The total amount of your water heater replacement cost will largely depend on the size of your new water heater, and that will depend on the size of your household. Your water heater installation pro can help you determine what size you need.
| Hot Water Heater Size (Gallons) | Household Size | Average Cost |
|---|---|---|
| 30 | 1–2 people | $650–$1,925 |
| 40 | 1–4 people | $750–$2,100 |
| 50 | 3–5 people | $750–$2,300 |
| 75 | 4–6 people | $1,000–$3,675 |
| 80 | 6 or more people, and households with high-demand appliances | $1,200–$6,900 |
Tank vs. Tankless Water Heaters
A traditional tank-style water heater stores water in a large tank that holds anywhere from 20 to 100 gallons. If you’re like 90% of households, you have a tank hot water heater sitting on a concrete pad in a basement, laundry room, or utility room.
In comparison, a tankless water heater is the size of a small suitcase, has a coil system for heating water, and is usually mounted on the wall. Your water heater installation pro can help you decide which type of water heater is best for your replacement. A tankless water heater costs around twice that of a tank-style heater, but can last twice as long.
| Type | Average Cost | Pros | Cons |
|---|---|---|---|
| Tank | $550–$2,300 | Cost-effective, larger range of fuel options | Shorter lifespan, less energy efficient |
| Tankless | $1,275–$3,600 | Long lifespan, takes up less space | Limited fuel options, may require new utility lines |
Types of Water Heaters
Most electric and gas water heaters cost between $550 and $1,500, but the type of water heater will significantly impact your cost. A light-duty commercial heater is more durable but costs about $1,000 more than a residential unit.
| Type of Water Heater | Average Cost | Best For |
|---|---|---|
| Electric | $550–$3,225 | Small apartments |
| Gas | $650–$2,450 | Areas with high electricity costs |
| Propane | $650–$2,300 | Rural or inaccessible areas |
| High efficiency | $1,375–$2,750 | Energy savings |
| Indirect | $1,100–$3,225 | Flexible fuel source |
| Solar | $1,550–$5,050 | Energy efficiency in sunny climates |
| Hybrid heat pump | $1,100–$3,225 | Energy efficiency in garages or basements |
Plumber Pro Costs
Plumber Costs
You’ll need to hire a licensed Phoenix water heater pro to install your replacement water heater. Water heater installation isn’t a DIY job—safety concerns and city codes require the work to be performed by a qualified professional. Labor costs for a plumber in Phoenix average between $45 and $200 an hour.
Safety Warning
To prevent carbon monoxide exposure from a water heater, make sure it is properly ventilated. You should also have it inspected and cleaned every year and install a carbon monoxide detector nearby. If you smell gas—which can mimic the scent of rotten eggs—evacuate immediately and call your gas company.
Permit Costs
You’ll need a permit to install a water heater in Phoenix to ensure it complies with all local safety regulations. The permit has a minimum fee of $75, which can increase if your water heater is valued at more than $1,000. If you’re installing a solar water heater, you’ll need a specific permit, so check with your water heater installer to ensure all necessary permits have been secured before installation.
Additional Pros to Consider Hiring
In some cases, you may need to bring in additional pros to complete your water heater installation. If you need any electrical rewiring, you can hire a local electrician, which will cost between $50 and $130 an hour in labor. If the water heater installation requires drywall work, a drywall installer will cost $1 to $2.10 per square foot in labor, plus material costs.
Do Water Heater Replacements Increase Home Value?
A new water heater is not only a necessity when your old one needs to be replaced, but it can also be a good investment, offering a return on investment (ROI) ranging from 50% for a tank-style heater to 90% for a heat pump water heater.
A tankless water heater can be worth the investment, since it can increase your home’s resale value by up to 1.3% If you’re selling your home, a new water heater is a definite plus for potential buyers, since it won’t need to be replaced for a decade or two, depending on the type of heater.
How Angi Gets Its Cost Data
Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We’ve surveyed over 30,000 real Angi customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.
Want to help us improve our cost data? Send us a recent project quote to [email protected]. Quotes and personal information will not be shared publicly.
Water heater services reviews from real Angi homeowners in Phoenix, AZ
4.6★ avg. • 35 total reviews
- Luke M.
There was a small spot where water seemed to be getting in. Advosy came out, checked the area, and repaired it before it became serious. Really glad we handled it early.
Advosy Construction - Krista R.
James was amazing! Arrived when he said he would and got everything done right! I also wanted to know a cost on a water heater, he looked at mine and noticed some things that were not done correctly on the last install. Most worrisome were the leaks in the exhaust pipe that were dangerous....
Do It Right Plumbing, Inc. - Elver G.
They come and fix a water damage in my bathroom in less than 24 hours.
DRYWALL F1 - License Not Yet Provided - Diane D.
What a great experience. Jason came and balanced my chemicals. Great, honest customer service. Water looks beautiful! Thanks so much for your help!
Kool Side Pools - Annie W.
It was beyond easy to get a new water heater installed. Best pricing I was able to find. Fast install. Kevin was solid!
Rooter Ready Plumbing Solutions LLC - Alice A.
Nick is a find. Great positive personality, work ethic, workmanship. Frankly, I cannot praise him or the quality of his work enough. He performed several projects including replacing a worn on demand home water heater, kitchen sink and faucet install on 2 wood counters, toliet flange...
AZ Sunrise Plumbing LLC - Jonathan M.
Tom was very helpful and understanding of our situation. He got a new tankless water heater installed very quickly after our old heater broke. Service was great, Tom was knowledgeable and helped us choose the right model for our needs and budget
Emergency Plumbing Hero LLC - Craig R.
Have used AHW for 20 years, Ro system, water softner and A/C units. Always prompt and helpful
AHWA, LLC - Ashley R.
Ben was so easy to work with! Installing my gas water heater was a huge job, but he had no problems with it. I would hire him again without hesitation!
Thunderbird Home Services, LLC - Mary S.
I had several plumbing issues made challenging because my house is >80 years old and some changes made in a remodel were done poorly. Reed was very persistent to resolve the issues and get a great result. BB also did a great job replacing my water softener. They are a little expensive, but...
Bumble Bee Home Services - P
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