Tank or tankless water heater: what does each cost?

How are a tank and a tankless water heater different?

A tank water heater heats a stored supply of water and keeps it hot until you use it. When the tank runs low, you wait while it heats more. A tankless water heater has no storage, so it heats water as it passes through the unit. Either type can run on gas or on electricity.

Those differences shape the work. A tank is a large cylinder that sits on the floor or a platform, and a tankless unit is smaller and can be mounted on a wall. A tankless unit can heat only so much water at one time, so a household that runs several showers or appliances together needs a unit sized for that.

What does each one cost in Georgia?

These are estimates from what Georgia plumbers publish, not quotes, and we do not name any plumber. Replacing a tank water heater typically runs $1,850 to $2,150+. Installing a tankless water heater typically runs $3,100 to $4,450+.

The tankless range sits above the tank range, so in these figures a tankless installation costs more than replacing a tank. Ask what each quote includes before you compare.

Plumbers differ on what a price includes, such as the vent, the gas line or electrical work, and hauling away the old unit, so a figure here may cover more or less than your quote. See what moves the price of a water heater.

Why does the same water heater cost more in one house than in another?

The heater is only part of the job. The work around it changes from house to house.

• Gas or electric: Switching from one to the other changes the supply and the connections.
• Venting: A gas heater needs a vent, and a tankless unit can need a different vent than the heater it replaces.
• Gas line and electrical supply: A tankless unit can draw more gas or more power than a tank, which can call for a larger gas line or a different electrical connection.
• Size: A bigger tank, or a tankless unit that serves more fixtures at once, usually costs more.
• Where it sits: A heater in an attic or crawl space can take longer to take out and set than one in a garage.
• The old unit, codes and permits: Hauling away the old heater adds to the job, and codes and any permit your city or county asks for can add to the price.

Ask the plumber to look at where the heater will go and name which of these apply to your house.

Is it worth repairing a water heater instead?

Whether to repair or replace depends on the problem and the age of the heater. We do not show a Georgia price range for water heater repairs, so ask for the repair price in writing.

The price depends on which part failed. No hot water, not enough hot water or a noise from the tank can each come from several causes, so ask the plumber to name the part and show you. Water around the base can come from a fitting or a valve, or from the tank itself, and a leak from the tank itself is a reason to price a replacement.

The age of the heater matters too. An older heater has more parts near the end of their life, so a repair can be followed by another. When a repair gets close to the price of a replacement, get a replacement quote before you decide.

What should you ask before you decide?

• Which type fits my house, and why?
• What does the price include: the vent, the gas line or electrical work, the shutoff valves and hauling away the old heater?
• Does my house need a larger gas line or a different electrical connection?
• If my city or county asks for a permit, is it in the price, and who pulls it?
• What is the warranty on the unit and on the labor, and what does each cover?
• If it is a repair, which part failed, and what would a replacement cost in writing?
• If I hire you, is the service call fee taken off the bill?

Prices mentioned here come from our Georgia plumbing cost ranges, built from the prices and cost guides Georgia plumbers publish on their public websites, collected September and October 2026.