40 Gallon Tank, Installed
40 Gallon Water Heater Installation Cost (2026)
DOE's average installed cost for a 20 to 55 gallon electric water heater is $902; for a gas tank of the same size it is $1,432 (2022 dollars, 89 FR 37778, 6 May 2024). The tank alone: Home Depot listed a Rheem 40 gallon electric at $469 and gas at $649 on 13 Nov 2026.
Page updated 15 November 2026
Installed: product plus labour
DOE average installed cost
Average total installed cost per tank in the DOE consumer water heater final rule (89 FR 37778, 6 May 2024), in 2022 dollars. These are national averages across homes, not a quote.
| DOE product class | Current standard | Level required from 6 May 2029 |
|---|---|---|
| Electric storage, 20 to 55 galFrom 2029 a new tank in this class needs heat-pump efficiency | $902 | $1,855 |
| Gas storage, 20 to 55 galHigher minimum efficiency from 2029 | $1,432 | $1,578 |
Tank only, on the shelf
Home Depot price, 13 Nov 2026
Regular (non-sale) price read on homedepot.com with store Ellsworth, ME 04605. No installation, permit or haul-away.
- Rheem Performance 40 gal medium electricXE40M06ST45U1$469
- Rheem Performance 40 gal tall natural gas, 36,000 BTUXG40T06EC36U1$649
- Rheem ProTerra 40 gal heat pumpXE40T10HS45U1$1,699
What sits between the shelf price and a 40 gallon install bill is labour, fittings, venting or wiring, the permit and haul-away of the old tank. No national price list for that work is published (Home Depot's installation page gives no price), so get it as a written quote. For scale, the median US plumber earned $30.67 an hour in May 2025 (BLS); that is pay, not the rate a firm bills, which also covers the van, insurance, overhead and profit.
Right Use Cases
Who a 40 Gallon Tank Suits
A 40 gallon tank suits two or three people with one or two bathrooms, where showers are spread through the morning rather than stacked. A like-for-like swap of an existing 40 gallon tank usually reuses the same space, venting and wiring.
A household of four, or one that runs two showers at once, is better served by a 50 gallon tank: see the 50 gallon water heater installation cost page. Where space is very tight and one person lives there, the 30 gallon page covers the smaller tank.
Regulatory Context
What the 2029 DOE Rule Means for a 40 Gallon Electric Tank
The DOE consumer water heater final rule requires electric storage tanks from 20 to 55 gallons (other than small tanks of 35 gallons or less) to reach heat-pump efficiency for units made from 6 May 2029. DOE's average installed cost rises from $902 for today's tank to $1,855 at the new level, while first-year operating cost falls from $340 to $171 (2022 dollars).
The rule applies to tanks manufactured from that date. A resistance tank already made can still be sold and installed, and nothing requires you to replace a working tank.
The federal Section 25C tax credit ended for property placed in service after December 31, 2025, so no federal credit applies to a 2026 install. State and utility heat-pump rebates still run in some areas; check your utility before you buy.
FAQ
40 Gallon Water Heater Cost Questions
How much does a 40 gallon water heater cost installed?
DOE's average installed cost for a 20 to 55 gallon electric water heater is $902, and for a gas tank of the same size $1,432, in 2022 dollars (DOE consumer water heater final rule, 89 FR 37778, 6 May 2024). The tank alone: Home Depot listed the Rheem Performance 40 gal medium electric at $469 and the Rheem Performance 40 gal tall natural gas, 36,000 BTU at $649 on 13 Nov 2026. DOE's figures are national averages across homes; a written quote for your home is the only exact number.
How much is a 40 gallon heat pump water heater?
Home Depot listed the Rheem ProTerra 40 gal heat pump (XE40T10HS45U1) at $1,699 on 13 Nov 2026, tank only. DOE's average installed cost for a heat-pump tank in the 20 to 55 gallon electric class is $1,855 (2022 dollars).
Is 40 gallons enough for a family of 3?
Usually, if showers are spread out. If two showers regularly run at the same time, or laundry and dishwasher run alongside a shower, a 50 gallon tank gives more margin.
How long does a 40 gallon water heater last?
DOE's analysis uses an average lifetime of 14.5 years for gas storage tanks and 15.1 years for electric storage tanks.
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