Water heater replacement cost by type
| Type | Typical installed price |
|---|---|
| Tank water heater | $780 to $3,300 |
| Tankless water heater | $1,820 to $5,100 |
| Gas | $900 to $3,500 |
| Electric | $780 to $4,600 |
| Propane | $900 to $3,300 |
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Cost by tank size
| Tank size | Household | Typical installed price |
|---|---|---|
| 30 gallons | 1 to 2 people | $900 to $2,700 |
| 40 gallons | 2 to 4 people | $1,000 to $3,000 |
| 50 gallons | 3 to 5 people | $1,000 to $3,300 |
| 75 gallons | 4 to 6 people | $1,400 to $5,200 |
| 80 gallons | 6 or more | $1,700 to $9,800 |
Labor is roughly half of the total, about $860 on average. A permit for a home under 2,500 square feet is about $153, and sales tax adds 7% on the equipment.
Should I repair or replace my water heater?
The average water heater repair in Indianapolis costs about $643, with most between $238 and $1,047 (Angi, water heater repair cost in Indianapolis). A repair is usually worth it for a heater under about 8 years old with a failed thermostat, element, igniter or valve. Replacement is the better choice when:
- The tank itself is leaking (a leaking tank can't be repaired)
- The heater is past 8 to 12 years old and needs a major part
- You're running out of hot water because the household has grown
- Rust colored hot water or heavy rumbling points to a corroded, scaled tank
Is a tankless water heater worth it?
Tankless units cost close to twice as much to install, but they last longer, often 20 years or more, and supply hot water continuously. They suit larger households and homes with a gas line and venting that can support them. Hard central Indiana water makes annual flushing important. See water heater installation.
What a fair water heater quote includes
- The new heater and any expansion tank, venting or gas line changes
- Removal and disposal of the old heater
- The permit, if your city requires one
- The warranty on the heater and on the labor
Need help now? See water heater repair or call 317-314-8486.
How this works: Plumbers in Indianapolis Today is a referral service. When you call 317-314-8486, we connect you with an independent, licensed contractor who serves your area. The contractor quotes, performs and stands behind the work, not us.
Sources
Updated November 2, 2026. Figures are published averages, not quotes. Your price depends on the job, the equipment and access, and the contractor will quote before any work starts.
How much does it cost to replace a 50 gallon water heater in Indianapolis?
Angi lists $1,000 to $3,300 installed for a 50 gallon tank in Indianapolis, depending on gas or electric, venting and access.
How long does a water heater last?
Tank water heaters usually last about 8 to 12 years, and tankless units 20 years or more. Hard water shortens tank life unless the heater is flushed regularly.