Labor Costs for Hot Water Heater Installation

Price source: Costs shown are derived from our proprietary U.S. construction cost database (updated continuously from contractor/bid/pricing inputs and normalization rules).

Eva Steinmetzer-Shaw

Head of Marketing

Understanding Labor Costs for Hot Water Heater Installation

For construction professionals, understanding the labor costs associated with installing a hot water heater is essential for precise project planning. As of February 2026, licensed plumbers charge between $75 and $150 per hour, with a median rate of $115 per hour for a two-person crew. Here's a detailed breakdown of typical costs:

Component Cost: Straight swap: $150–$450
Component Cost: Tankless conversion: $600–$1,900
Component Cost: Relocation: $800–$1,900

Key Factors Influencing Labor Costs

Several factors can impact the labor costs for installing a hot water heater:

Unit Type: Tank-style units generally require less installation time than tankless systems.
Fuel Source: Gas heaters need additional checks, increasing labor time compared to electric units.
Location: Easier access locations reduce labor hours.
Local Code Requirements: Compliance can add 1-3 hours to the project.
Old Unit Removal: Removing old units can be time-consuming, especially if they are corroded.

Typical Labor Time by Project Scope

Straight tank-for-tank replacement: 2 – 4 hours
Tank to tankless conversion: 6 – 10 hours
Relocating heater: 8 – 12 hours

Hidden Labor Add-Ons

Be aware of potential additional costs such as permit procurement, emergency service premiums, and necessary upgrades. These can significantly affect the total labor cost.

Case Study: Fort Worth Residential Retrofit

In Fort Worth, TX, a contractor used our platform to replace a 40-gallon electric unit. The project required 3.2 labor hours at $95 per hour, totaling $304. This efficient process highlights the importance of accurate labor estimation.

DIY vs. Professional Installation

While DIY installations might seem cost-effective, they often incur hidden costs such as tool rentals and potential rework. Professional installations provide reliability and warranty protection.