Introduction
Replacing a water heater is one of the bigger plumbing expenses homeowners face. Whether you stick with a traditional tank or upgrade to an on-demand (tankless) unit, the final bill depends on more than just the heater itself. Parts, labour, permits, venting, and even tariffs on imported tanks all play a role. This guide explains what Canadians typically pay today — and why costs can fluctuate.
- Introduction
- Water Heater Costs (Parts Only)
- Installation Costs (Labour/Service)
- Permit and Inspection Costs
- On-Demand Unit Upgrades
- Combined Real-World Ranges
- Cost Overview
- Water Heater Replacement Cost Table
- Factors That Affect Cost
- Scenario Examples
- Case Study: Real-World Example
- DIY vs Professional
- Estimates Disclaimer
- What’s Not Included
- Pro Tip
- Warranty Notes
- Eco Angle
- FAQs
- Next Steps
🔴 Safety Disclaimer
In Canada, gas and electrical work is regulated and usually requires a licensed professional. In some provinces, homeowners may be permitted to replace a water heater themselves only if they live in the home and no tenants are involved (direct family members only — extended relatives like grandparents, or renters, do not qualify).
👉 If your home has renters, suites, or anyone outside your immediate household, the law requires that a licensed professional handle the work. Even when it’s legally allowed, DIY water heater replacement is risky and often voids warranty coverage. Always check local codes and consider hiring a professional for safety and compliance.
Water Heater Costs (Parts Only)
- Tank-style (electric or gas): $800–$2,000 depending on size (30–60 gal common).
- On-demand (tankless): $1,500–$4,000+ depending on brand, flow rate, and efficiency.
💡 Tank prices are sensitive to steel costs and tariffs, so they can swing. As of late 2025, tank pricing is relatively low compared to past years.
Installation Costs (Labour/Service)
- Minimum service charge: from $300 (site visit, basic labour).
- Tank-style installation: $600–$1,200 (removal, new fittings, disposal).
- On-demand installation: $1,500–$3,000+ (wall-mount, venting, gas line upgrades, electrical connections).
Permit and Inspection Costs
- Typical range: $100–$300.
- Gas installations almost always require a permit and inspection.
- Electric tank replacements may also need electrical inspection depending on the province.
On-Demand Unit Upgrades
Upgrading to a tankless unit is more than just swapping the appliance. Common extra costs include:
- 636 PVC venting: mandatory for high-efficiency on-demand heaters.
- Gas line upgrades: many homes require service raised to 2 psi, new regulators, and larger supply lines.
- Electrical work: some units need a dedicated circuit.
These upgrades often add $1,000–$2,000+ beyond the heater itself.
Combined Real-World Ranges
- Basic tank replacement: $1,100–$2,500 (tank + labour + disposal).
- Mid-range tank upgrade: $1,800–$3,000 (larger or higher-efficiency tank).
- On-demand tankless upgrade: $3,000–$7,000 (unit + venting + gas/electrical upgrades).
Cost Overview
Most Canadian homeowners fall in the middle of the cost curve.
- Low (from $300): Labour only if you supply a compatible tank.
- Typical ($1,800–$3,000): 40–50 gal tank replacement with labour, disposal, and permits.
- High ($3,000+): Tankless system requiring 636 PVC venting and 2 psi gas service upgrades.
Water Heater Replacement Cost Table
| Service Type | Typical Cost Range | Notes |
|---|---|---|
| Tank swap (30–40 gal) | $1,100–$2,000 | Parts + labour, common in condos |
| Tank swap (50–60 gal) | $1,800–$3,000 | Standard for family homes |
| Tankless (on-demand) | $3,000–$7,000 | Includes venting, gas/electrical upgrades |
| Disposal of old unit | $100–$200 | Often included in install |
| Permit/inspection | $100–$300 | Required for gas, sometimes electric |
| Expansion tank/valve | +$100–$300 | Protects heater from thermal pressure |
| Tank pan & drain | +$50–$150 | Required in basements/condos |
| Seismic strapping | +$75–$200 | Required in seismic zones (e.g., BC) |
💡 Prices reflect Canadian averages across small and large markets.
Factors That Affect Cost
- Type of heater: Tankless = higher upfront, longer lifespan.
- Fuel type: Electric cheaper upfront; gas needs venting and line checks.
- Size & flow rate: Larger tanks and high-capacity tankless cost more.
- Access & space: Tight basements and wall-mounting add labour.
- Code upgrades: 636 PVC venting, 2 psi gas service, regulators, and electrical circuits.
- Expansion protection: Thermal expansion valves or tanks often required ($100–$300).
- Tank pans: Condos and basements often require leak pans with drains ($50–$150).
- Seismic strapping: Mandatory in seismic zones, especially in BC ($75–$200).
- Permits: Mandatory in many areas, with inspection fees.
- Tariffs & materials: Steel prices and import tariffs can shift tank costs.
- Timing: Emergency replacements add after-hours premiums.
Scenario Examples
Basic Tank Swap (from $1,100)
Swap a 40-gal electric tank in a condo. Straightforward job, no upgrades.
- Time: 2–3 hours.
Typical Tank Replacement ($1,800–$3,000)
Replace a 50-gal gas tank in a family home. Includes disposal, permit, expansion valve, and new pan.
- Time: 3–4 hours.
Complex Tankless Upgrade ($3,000–$7,000)
Convert from tank to tankless. Requires 636 PVC venting, 2 psi gas service, seismic strapping, and inspection.
- Time: 6–8 hours or more.
Case Study: Real-World Example
A homeowner in Calgary replaced a 40-gal tank with a high-efficiency tankless heater. The plumber installed 636 PVC venting, upsized the gas service to 2 psi with regulators, added seismic strapping, and installed a drain pan.
- Service: Tankless water heater upgrade
- Equipment: 180,000 BTU tankless unit
- Total cost: $5,200 ($3,200 unit + $2,000 labour/upgrades)
- Result: Unlimited hot water, reduced utility bills, code-compliant safety upgrades
DIY vs Professional
🔴 Safety Disclaimer
In Canada, gas and electrical work is regulated and usually requires a licensed professional. In some provinces, homeowners may be permitted to replace a water heater themselves only if they live in the home and no tenants are involved (direct family members only — extended relatives like grandparents, or renters, do not qualify).
👉 If your home has renters, suites, or anyone outside your immediate household, the law requires that a licensed professional handle the work. Even when it’s legally allowed, DIY water heater replacement is risky and often voids warranty coverage. Always check local codes and consider hiring a professional for safety and compliance.
| Option | Cost | When It Works | Risks |
|---|---|---|---|
| DIY tank swap | $800–$1,800 (unit only) | Very skilled homeowners in single-family homes they occupy | Code violations, leaks, gas/electrical hazards |
| Professional install | $1,100–$7,000 | Most replacements | Warranty valid, safe venting/gas, permits signed off |
👉 STOP point: If gas, venting, or electrical upgrades are required, call a licensed plumber.
Estimates Disclaimer
💡 Estimates only. Prices exclude after-hours premiums, major electrical or gas utility upgrades, or structural changes. Minimum service charge is $300 before tax. Actual costs vary by site conditions and location.
What’s Not Included
- Electrical panel upgrades or new circuits beyond water heater needs
- Gas meter upsizing by utility company
- Structural modifications for larger tanks
- Water damage remediation from leaks
Pro Tip
If staying with a tank, ask about anode rod replacement to extend lifespan. For tankless, flush with vinegar or descaling solution every 1–2 years.
Warranty Notes
- Tank: 6–12 years manufacturer warranty.
- Tankless: 12–20 years on heat exchanger (brand dependent).
- Professional installation often required to validate warranty.
Eco Angle
Tankless systems use less energy and provide endless hot water. Even tank replacements can improve efficiency if you choose insulated, high-efficiency models.
FAQs
How long do water heaters last?
Tank: 8–12 years. Tankless: 15–20+ years.
Is tankless worth it?
Yes if you plan to stay in your home and want efficiency and space savings.
Do I need a permit?
Usually yes — gas almost always, electric sometimes.
Why do tank prices fluctuate?
Steel costs and tariffs impact pricing. Current prices are relatively low.
Do I need an expansion tank or valve?
Yes in many cases — it protects your heater from pressure damage.
Are pans and seismic straps mandatory?
Yes in many provinces and especially in seismic zones like BC.
Next Steps
Don’t get caught without hot water. Whether you need a fast tank replacement or a full tankless upgrade with venting and safety add-ons, a licensed plumber ensures safe, code-compliant work.
👉 Book a licensed plumber at unclogit.com or call 604-496-1661. Usually available 24/7 across Canada.
