Tankless water heater costs depend on the size of your water heater, location, fuel type, and more. Keep reading to calculate your expenses.
How Much Does a Water Heater Replacement Cost in New York City? [2025 Data]
Normal Range: $977 - $1,772
The average cost for a water heater is $1,355 in New York City, but it can range between $1,772 and $977. Your pro can discuss tank or tankless systems and if you need any additional plumbing upgrades.
How we get this data
Cost Insights
The two biggest cost factors to consider are the type of water heater you want and the capacity you need.
Most homes in New York City use natural gas for heating, and gas-fired water heaters are more affordable than electric water heaters, which are on the rise.
Tankless water heaters will cost twice as much as tank-style water heaters, but they’re more convenient and add more to your property value.
The living cost in NYC is 75% higher than the national average, so labor costs more than it would in most other cities and drives the local cost above the national average.
Water heater replacement costs in New York City average $1,355, and most residents pay between $977 to $1,772. Your cost will depend mostly on the type of unit you want, but the fuel source you plan on using and the size or capacity will also play important roles. Gas-fired, tank-style water heaters are the most common in NYC, so you could pay above-average costs for tankless or electric water heaters.
Water Heater Replacement Cost Factors
You can expect to pay an average of $1,355 to replace a water heater in New York City, but you could pay as little as $450 or as much as $5,500. There are a few important factors to consider if you want to figure out where in this range your total will fall.
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.
The average household in NYC is 2.4 people, just below the national average. For this size home, you’ll usually need a tank-style water heater with a capacity of between 30 and 40 gallons, or a tankless water heater with an output of between 6 and 10 gallons per minute (GPM).
You should always have a water heater installation pro help you determine what size you need, especially for a tankless water heater, but you can get a good estimate for your total for a tank-style water heater using the household size that matches yours in the table below.
| Unit Size (Gallons) | Household Size | Average Cost |
|---|---|---|
| 30 | 1–2 | $700–$2,200 |
| 40 | 2–4 | $800–$2,400 |
| 50 | 3–5 | $800–$2,600 |
| 75 | 4–6 | $1,100–$4,100 |
| 80 | 6+ | $1,300–$7,700 |
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.
| Tank-style | $600–$2,600 | Upfront cost | Operating cost |
| Tankless | $1,400–$4,000 | Running cost | Initial investment |
Types of Water Heaters
Most electric and gas water heaters cost between $550 and $1,500, but the unit type will significantly impact your cost. A light-duty commercial heater is more durable but costs about $1,000 more than a residential unit, and it could be a good option if you have an above-average household size or are looking for a unit to service more than one small unit in a multi-family home.
Most homes—just under 60%—in New York City use natural gas for heating and will have the connections in place to make a gas-fired water heater easy to install. Gas water heaters are more affordable than electric water heaters, which account for another 20% or so of homes in the area.
While gas units are more affordable if you choose the same style of water heater, note that gas units have a much higher heat output, so you’ll have the option for a whole-home tankless water heater, which you often won't have with electric units. As such, going the gas route could cost more if you choose to go tankless.
| Type | Average Cost |
|---|---|
| Electric | $600–$3,600 |
| Gas | $700–$2,800 |
| Propane | $700–$2,600 |
Plumber Pro Costs
In NYC, the above-average cost of living drives up labor costs. The cost of living in New York City is 75% higher than the national average, so you’ll pay more on a per-hour basis when you hire a water heater installer in New York City than you would in most other cities. On average, labor will account for close to $700, which could climb up to $2,750 if you install a tankless unit, which involves a more labor-intensive process.
Replacing a water heater will require a building permit, so you should also budget for permit fees when estimating your costs. The NYC Department of Buildings charges a flat fee of $130 for permits to replace a water heater.
You’ll also need to pay sales tax at a rate of 8.88%, which includes city and state taxes. Given the average water heater replacement cost in New York City, you’re looking at sales tax totaling $120.32.
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.
Do Water Heater Replacements Increase Home Value?
Replacing any mechanical equipment in your home will positively impact home value, although the actual bump will be relatively minor compared to things that improve curb appeal. Still, a buyer putting an offer on your home is likely to offer a bit more if new mechanicals give them greater peace of mind that they won’t need to pay additional money after closing for major repairs.
Since most homes in NYC use natural gas for heating, tankless water heaters that work better with gas as a fuel source are more popular than in some other cities. According to a study done by Zillow, upgrading to a tankless water heater can boost property value by 1.2%, which would mean an average increase of over $10,000. As such, tankless water heaters are almost always worth the investment.
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.
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