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Canada
Water heater replacement cost
Buying and installing a new 40-50 gallon gas tank water heater typically costs $2,500, with most quotes between $1,950 and $3,200 before GST/HST. A basic tank is about $2,250; a model with a longer warranty and leak protection is closer to $2,850. Tankless and heat pump water heaters cost considerably more, and many Canadian homes still rent their tank, which changes the maths.
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mid-range, typicalCost by region
| Location | Basic | Mid-range | Premium |
|---|---|---|---|
| Quebec | $2,450 | $2,700 | $3,100 |
| Saskatchewan | $2,250 | $2,500 | $2,900 |
| Nova Scotia | $2,200 | $2,450 | $2,850 |
| British Columbia | $2,150 | $2,400 | $2,800 |
| Ontario | $2,200 | $2,400 | $2,800 |
| Alberta | $2,100 | $2,350 | $2,700 |
| Manitoba | $2,100 | $2,350 | $2,700 |
| Newfoundland and Labrador | $2,000 | $2,250 | $2,600 |
| New Brunswick | $1,950 | $2,200 | $2,550 |
What's included
Mid-range
- Draining, disconnecting and hauling away the old water heater
- A 40-50 gallon gas tank water heater sized for a household of 4
- Gas connection and connection to the existing venting
- New water connections, shut-off valve and relief valve discharge line
- Expansion tank and drain pan where required
- Filling, lighting and safety checks
- Gas permit where required
What affects the cost
Type of water heater
A gas or electric tank replaced with the same type is the cheapest option. Tankless gas units cost more and usually need PVC venting and a bigger gas line. Heat pump water heaters cost the most up front and work best in a basement with room around them.
Venting
Chimney-vented tanks are the simplest to replace. Moving to a power-vent or condensing model means new PVC venting through a wall, and a chimney-vented tank left on its own after a furnace upgrade may need a liner.
Rental buyout
If your current tank is rented, check the rental agreement before replacing it: removing a rental tank early can come with buyout or removal charges that are not part of this estimate.
Fuel changes
Staying with the same fuel keeps costs down. Switching to electric or a heat pump needs a dedicated 240-volt circuit; switching to gas needs a gas line and venting.
Household size
A family of four usually needs a 40-50 gallon tank. Larger tanks or high-recovery models cost more; tankless units are sized by flow rate instead.
Access
Tight basements, finished utility rooms and condos with limited access add labour, and condos often require a drain pan with a line to a floor drain.
How to save
- Compare the total cost of buying against years of rental payments before signing a new rental.
- Replace a tank that is 10 or more years old before it leaks, so you can shop around.
- Keep the same fuel and location unless there is a clear payback from changing.
- Ask your utility and province about current water heater rebates before choosing a model.
Grants, tax and rules
Licensed trades and permits
Gas, electrical and plumbing work needs licensed trades and usually a permit. Our figures are before GST/HST (13% HST in Ontario, 5% GST in Alberta).
Federal programs
The Canada Greener Homes Grant and Loan are closed; the deadline for grant documents was 31 December 2025.
Frequently asked questions
How much does a new water heater cost in Canada?
A 40-50 gallon gas tank bought and installed costs around $2,500 before GST/HST, with most quotes between $1,950 and $3,200. Electric tanks cost a little less; tankless and heat pump models more.
Is it better to rent or buy a water heater?
Renting has no upfront cost and includes repairs, but you keep paying every month for as long as you have the tank. Buying costs more on day one and is usually cheaper over the life of the heater.
Is a tankless water heater worth it in Canada?
It saves space and never runs out of hot water, but very cold incoming water in winter reduces its flow, and installation costs more once venting and gas lines are upgraded. Size it for winter conditions.
Do heat pump water heaters work in Canadian basements?
Yes, they draw heat from the basement air and cool the space slightly, which helps in summer and means a little more heating in winter. They need enough air space and a condensate drain.
How long does a water heater last?
Tank water heaters usually last about 10 to 12 years, tankless units longer with regular descaling.
How this estimate is calculated
Work hours: 11 · Labour: $1,214 · Materials: $1,264
Sources: Job Bank wages (Employment and Social Development Canada); Regione Toscana, Prezzario dei Lavori 2026 (CC BY 4.0); ECB exchange rates; market check: Mid = 40-50 gal gas tank. hotwaterottawa.ca: gas tank 2,100-3,100, electric 1,900-2,200, tankless 3,900-5,500, heat pump 5,800-7,500; golime.com (2026-01): gas 1,800-2,800, electric 1,500-2,200, tankless 3,500-6,500. Before GST/HST..
Last reviewed September 26, 2026 · How we calculate costs · Editorial policy