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What it costs to replace a 40 gallon gas water heater
Quick answer
In 2022 the cost to replace a 40 gallon basic gas water heater was $2,895: $1,605 in parts with tax, $550 overhead, $495 labor and $245 profit. Southern California prices run 10 to 40% above the national average.
Parts, $1,605 with tax
- Bradford White contractor grade heater with a 10 year warranty: $1,063
- Expansion tank: $46, bracket $21, supply line $21
- Copper tee, adapters and elbows: $40
- Water shutoff valve: $19
- Earthquake restraints: $34
- Drip pan and its plumbing: $31
- Two stainless steel supply lines: $42
- Gas sediment trap: $20
- Gas line with shutoff valve: $37
- Exhaust venting: $33
- Ten feet of copper: $34
- Screws, shims, solder, flux and the rest: $46
- Sales tax: $118
Overhead, $550
Overhead is 20 to 40% of the price and the cost most people overlook: workers compensation and liability insurance, payroll taxes, retirement plans, advertising, fuel, uniforms, vehicles, and the office and warehouse.
Labor $495, profit $245
Labor covers the technician ($220), a project coordinator ($220) and office staff ($50), paid enough to live in the areas they serve. And the business has to make a profit: if your installer goes out of business, your warranty goes with them.
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Today's tank prices