How much does it cost to replace a water heater in Canada?

August 29, 2017

Water heater replacement costs in Canada

How much does it cost to replace a water heater? This can depend on tank capacity, gas vs. electric, and a few other factors. Read on to find out more about hot water tank replacement costs.

How much does it cost to replace a water heater in Canada?

Water heater replacement: Cost distribution

The median cost split for this type of project is 73% for materials and 27% for labour. The median costs are $850 for materials and $315 for labour.

On this page:

  • Cost factors for replacing a water heater >
  • Water heater related questions on Ask a Pro >
  • Water heater related Smart Tips >

Cost factors for replacing a water heater

  • The cost of replacing a water heater in Canada can range from $105 to $8,300, with the average cost being $1,466.

Water heater options

  • The most significant factor in the cost of replacing a water heater is the cost of the water heater itself. Typically, larger capacity water heaters cost more than the usual 40-gallon tank. Tankless water heaters are even more expensive. In Canada, many homeowners feel that the initial cost of purchasing and installing a tankless water heater is offset by annual energy savings and the longevity of a tankless unit compared to a traditional hot water tank.
  • Water heaters that run on natural gas are generally more expensive than electrical units and the cost of running gas lines (if you’re switching from electric to gas) must be considered as well. With rising electricity bills in some areas of Canada, it is a good idea to compare the costs of running an electric heater vs. a gas heater in your community.

Labour and removal costs

  • The cost of labour in installing your new hot water heater may vary all over Canada and on whether your plumber charges by the hour or charges a flat rate. Labour may include charges for retrofitting any existing electrical, gas or plumbing connections for your new unit.
  • Your plumber may also include a disposal fee to haul away your old water heater and any materials from the installation. You can also call your local metal recycling facility and have them come and haul away the old appliance.
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