The sticker price is only half of the story. A tank heater is cheaper to buy but wears out sooner, while tankless and heat pump models cost more up front and save on energy. This guide spreads each price over its lifespan and explains what drives the installed total.
Installed price by type, from published sources
The ranges below come from three publications. They disagree at the edges, which is normal for cost guides built from different surveys.
| Type | This Old House | NerdWallet | Fixr |
|---|---|---|---|
| Tank | $1,200 to $2,300 | $600 to $2,500 | $700 to $2,700 (gas) |
| Tankless | $2,100 to $4,000 | $1,400 to $3,900 | $1,000 to $4,000 |
| Heat pump | $2,500 to $3,500 | No range given | $1,200 to $4,600 |
All three place tankless above tank, and heat pump near or above tankless. Fixr says tankless and heat pump units usually cost close to twice what a standard tank costs to install.
Lifespan changes the math
This Old House gives a tank 8 to 12 years and tankless about 20. NerdWallet lists 10 to 15 years for tank and about 20 for tankless. The U.S. Department of Energy says storage heaters last 10 to 15 years, tankless about 20 and heat pump 10 to 15.
A heater is a purchase you spread over years. Dividing each installed range by its lifespan gives a rough cost per year of ownership before energy and repairs. The arithmetic below is ours, using the This Old House prices and the DOE lifespans.
| Type | Installed range | Lifespan (DOE) | Price per year of life |
|---|---|---|---|
| Tank | $1,200 to $2,300 | 10 to 15 years | About $80 to $230 |
| Tankless | $2,100 to $4,000 | About 20 years | About $105 to $200 |
| Heat pump | $2,500 to $3,500 | 10 to 15 years | About $165 to $350 |
The first and last rows show how much the answer depends on the actual lifespan. A tank that fails at 8 years costs more per year than a tankless unit that lasts 20.
Operating cost: what the savings can offset
The Department of Energy says tankless heaters are 8% to 34% more efficient than storage heaters, and an ENERGY STAR tankless model could save $100 or more a year. It says heat pump water heaters are two to three times as efficient as conventional electric resistance heaters, and ENERGY STAR models could save almost $300 a year on electric bills.
Those savings depend on your fuel, your rates and how much hot water you use. In a gas home, a heat pump heater means switching fuels, which changes the install scope. A household with low hot water use gets less from a tankless unit, because the savings come from avoiding standby heat loss.
What drives the installed price
- Fuel and venting: gas needs a vent, and a tankless or condensing unit may need a new run.
- Gas line capacity: tankless units demand more gas at once than a tank.
- Electrical: electric tankless and heat pump units need the panel and wiring to support them.
- Location: access, stairs and the distance to a drain or exterior wall.
- Old unit removal and disposal.
- Permits and code items such as pans, drains and seismic straps.
- Size and efficiency rating of the unit chosen.
Fixr lists power venting at $300 to $1,000 extra and old unit removal at $75 to $500 when the quote leaves it out. Those items explain why two quotes for the same tank can differ by hundreds of dollars.
Heater failed and no hot water?
Call the 24/7 line. Shut the cold supply valve if the tank is leaking and a plumber will take it from there.
Where a heat pump heater makes sense here
The Department of Energy says a heat pump water heater needs at least 1,000 cubic feet of air space and will not operate efficiently in a cold space. North Salt Lake’s winter design temperature is 8 F, per the city’s design criteria. A heat pump heater in an unheated garage or crawl space faces that cold, while a basement or utility room that stays above freezing does better.
That is a reason to look at where the heater lives before choosing a type. For help weighing the options, our tankless water heater page covers the gas and electric tankless side.
Repair or replace first
If the tank is leaking, replacement is the only option. If the heater is working but old, a repair price compared against a replacement price is the useful comparison. Our water heater repair page explains what a repair visit involves, and a heater past its expected lifespan is usually a replacement candidate.
North Salt Lake notes for choosing a heater
Utah’s plumbing code is the 2024 International Plumbing Code (IPC) from July 1, 2026. Utah amends it so water heaters must be anchored or strapped, with straps in the upper and lower thirds of the tank, and a drain pan with its own trap and vent when the code official allows.
Plumbing permits come from the Building Department at 10 E Center Street through City Inspect. The quick-facts sheet lists a $50.50 over-the-counter fee, no plan review for most plumbing permits and inspections Monday to Thursday.
Gas service is from Enbridge Gas, formerly Dominion Energy Utah. If you smell gas, leave the building and call 1-800-767-1689 or 911 before calling a plumber. The city’s 2024 water quality report shows total dissolved solids of 888 to 980 mg/L, which is a high mineral content. Minerals build up in tanks and tankless heat exchangers, so flushing or descaling is worth asking about.
Service area
We dispatch from North Salt Lake to Centerville and West Bountiful on the same 24/7 line. Prices there follow the same drivers.
Frequently asked questions
It depends on the type. This Old House (June 2026) lists $1,200 to $2,300 for a tank, $2,100 to $4,000 for tankless and $2,500 to $3,500 for a heat pump unit. Your quote depends on venting, access and code items.
It can be, because it lasts about 20 years per the Department of Energy and saves energy. It costs more to install, and savings vary by fuel and use.
The Department of Energy says 10 to 15 years. This Old House lists 8 to 12 years. Water quality and maintenance influence the result.
Not efficiently, according to the Department of Energy. They need open air space and a space that is not cold, which matters with an 8 F winter design temperature.
Plumbing permits come from the Building Department at 10 E Center Street. The over-the-counter fee is $50.50. Ask your plumber to confirm who pulls it.
Yes. Utah’s amendment requires anchoring or strapping, with straps in the upper and lower thirds of the unit’s height.