Updated October 29, 2026. Abend Services, plumbing and HVAC in Severna Park, MD.
TL;DR
One liner: Budget from national ranges, add county permit fees, and count only the incentives that still exist, which in 2026 means BGE’s heat pump rebate, not a federal credit.
In short: The figures that matter most on this page, each with its source and year.
| Stat | Value | Source, year |
|---|---|---|
| Households with a tank water heater | About 90% | Angi, 2026 |
| Installed tank replacement, national average | $1,348 | Angi, 2026 |
| Installed heat pump water heater, national average | $4,200 | Angi, 2026 |
| Federal 25C credit window | Improvements through Dec 31, 2025 | IRS, 2026 |
| BGE heat pump water heater rebate | Up to $1,600 | BGE, 2026 |
| County permit application fee | $43 | Anne Arundel County, eff. Oct 2024 |
| County reinspection fee | $150 | Anne Arundel County, eff. Oct 2024 |
| DOE water heater standard compliance | Units made on or after May 6, 2029 | DOE, 2024 rule |
In short: Tank, tankless and heat pump replacements sit in three different price bands, before county permit fees.
How much does it cost to replace a water heater? Per Angi’s 2026 data, the national cost to replace water heater equipment is $882 to $1,826 for a tank, $1,400 to $3,900 for tankless and $2,800 to $8,000 for a heat pump, installed. The 30% federal tax credit ended with 2025 installs.
| Water heater type | Installed cost (national) | What pushes it up |
|---|---|---|
| Tank, gas or electric | $882 to $1,826, average $1,348 | Bigger tank, power venting, moving the unit |
| Tankless | $1,400 to $3,900 | Converting from a tank, new gas line or venting |
| Heat pump (hybrid) | $2,800 to $8,000, average $4,200 | Larger tank, electrical work, a tight space |
None of these is a Maryland average, because no public source publishes one. Treat them as the baseline for any water heater replacement cost Maryland plumbers quote you, then add local permits.
Here’s the math on a common job: a same-size 40 gallon gas tank swap. Homewyse puts the basic national price at $1,586 to $1,843 before permit fees. If the job needs both a plumbing permit ($94) and a gas permit ($112) under the county’s fee schedule, the total lands around $1,792 to $2,049.
So what still lowers the price? The next section covers the incentives left in Maryland.
In short: The federal credit and EmPOWER gas incentives are gone; BGE’s heat pump water heater rebate is the money left.
The federal tax credit for efficient water heaters is over. The IRS allows the Energy Efficient Home Improvement Credit only for improvements made through December 31, 2025, and Maryland’s 2025 law, HB 1532, removed EmPOWER Maryland incentives for natural gas.
| Incentive | 2026 status | Amount |
|---|---|---|
| Federal 25C tax credit | Ended for improvements after December 31, 2025 | Was 30%, up to $2,000 a year for heat pump water heaters and $600 for gas units |
| EmPOWER incentives for natural gas | Removed by HB 1532 (2025) | None |
| BGE heat pump water heater rebate | Open, one per address | Up to $1,600 on select ENERGY STAR models |
| BGE switch-to-electric extras | Open when replacing gas, oil or propane | Up to 75% of home prep costs, capped at $1,500 |
That shifts the math. Take the $4,200 average heat pump install from Angi’s data. If BGE is your electric utility, a rebate of up to $1,600 brings it to about $2,600, which cuts the price gap with an average tank install by more than half. BGE estimates a family of four could save up to $550 a year against a standard electric tank. BGE says its instant rebate offering ends October 31, 2026, and it lists mail-in and contractor routes separately, so check the current terms before you buy.
Gas tankless units are a different story. A Navien or similar gas model no longer brings a federal credit or an EmPOWER rebate, so price it on what it delivers: endless hot water, a wall-mounted footprint and a long service life. Angi puts tankless life spans at about 20 years.
Rebate rules change often, and the paperwork is fussy. Abend Services tells customers which models qualify for current rebates and helps fill out and submit the forms, so the right unit goes in the first time.
In short: Size drives a tank bill more than fuel, and a same-size swap in the same spot costs least.
Angi estimates about 90% of households have a tank water heater, so this is the price most readers need. Fuel sets the venting work and the life span; size sets most of the bill.
| Fuel | Replacement cost | Venting | Typical life |
|---|---|---|---|
| Gas | $700 to $2,700 | Required. A power-vent unit adds $300 to $600, plus $300 to $500 for electrical work | 8 to 12 years |
| Electric | $600 to $3,500 | Generally none | 10 to 15 years |
Angi prices a 40 gallon replacement at $800 to $2,300 and a 50 gallon at $800 to $2,500. It matches 40 gallon tanks to households of 1 to 4 people and 50 gallon tanks to 3 to 5. Labor for the swap itself runs $150 to $450, so on a straight swap the tank is most of the bill. The gas water heater replacement cost climbs when the job changes: a new vent, a longer gas line or a unit that has to move.
Warranty length is worth comparing too; tank warranties often run 6 years, with some reaching 12. Own an electric tank? The DOE 2029 rule covered below decides what your next one will be, so it’s worth reading before you pick a replacement.
Same fuel, same size, same spot is the cheapest replacement there is. An Abend water heater installation visit starts with your current system’s condition and the most cost-effective options for it.
In short: Conversion work, not the heater, sets most of a tankless quote.
A tank keeps a pot warm all day; a tankless unit lights a burner only when you open the tap. That design lets the heater hang on a wall, and it’s why the tankless water heater installation cost depends more on your house than on the heater. Installed totals sit in the tankless row of the price table above, and the work below decides where you land.
| Job | Typical cost |
|---|---|
| Labor, replacing one tankless with another | $600 to $1,900 |
| Labor, converting from a tank | $150 to $2,500 |
| Gas line work | $260 to $820 average |
| New line and subpanel for an electric tankless | $500 to $1,000, total wiring up to $2,300 |
Converting is the wide row for a reason. Angi notes a tank-to-tankless job can take twice as long, since plumbing often has to be rerouted to the new mounting spot. Electric tankless units draw 120 to 160 amps, so some homes also need a 200 amp service upgrade.
For gas, the main choice is condensing or non-condensing. Navien’s condensing NPE-2 series rates up to 0.96 UEF with a 15 year residential heat exchanger warranty, against about 0.81 UEF for non-condensing models. Abend’s tankless guide puts Navien units at $700 to $3,000 or more before installation and notes condensing models want yearly maintenance. The Department of Energy says tankless units can be 24% to 34% more efficient than a tank in homes using 41 gallons of hot water a day or less, and 8% to 14% in homes using about 86.
Pricing the switch? Ask for venting and gas line work as separate lines on each quote so you compare like with like. Abend’s installers are certified on Navien and Rinnai units, and the federal rule status for gas tankless is covered below.
In short: County fees are fixed, licensed trades pull the permits, and a missed inspection costs extra.
National cost guides put permits anywhere from $25 to $300. Here the numbers are fixed: every water heater permit Anne Arundel County issues carries a $43 non-refundable application fee on top of the permit itself.
| Permit type | County fee | Total with application fee |
|---|---|---|
| Plumbing, existing home, first fixture (minimum) | $51 | $94 |
| Gas, pipe 2 1/2 inch or less (minimum) | $69 | $112 |
| Electrical, one appliance repaired or replaced | $25 | $68 |
Only licensed electricians, plumbers and mechanics can apply for trade permits in the county. Its permit pages say a plumbing permit covers adding or relocating fixtures and piping, and a gas permit covers adding or relocating gas fixtures, appliances or piping. Abend’s guidance is that a plumbing permit is required for any water heater replacement in the county, even a like-for-like swap. Ask which permits your job needs, and get each fee listed on the quote. A gas tank swap that needs both plumbing and gas permits adds $206.
One fee catches people off guard. If an inspection isn’t canceled at least 24 hours ahead, or the inspector can’t get to the water heater, the county charges $150 for the reinspection. That’s more than the plumbing permit itself, so clear the path to the tank before inspection day.
In short: The 2029 rule governs new production; large electric tanks go heat pump and gas tankless is untouched.
The DOE 2029 rule sets efficiency standards for residential water heaters manufactured on or after May 6, 2029. It isn’t a ban: it doesn’t require you to remove a working heater, and it applies to new production, not units already built.
| Your water heater | What changes for units built after May 6, 2029 |
|---|---|
| Electric tank, over 35 and up to 120 gallons | Must use heat pump technology |
| Electric tank, 20 to 35 gallons | Same efficiency, capped at 135°F and a 50 gallon first-hour rating; today’s “40 gallon” models, rated at 36 to 37 gallons, drop to 35 |
| Gas tank, 20 to 55 gallons | Small efficiency increase; atmospheric models add a damper |
| Gas tank, over 55 and up to 100 gallons | No change |
| Gas tankless | No new standard. Congress voided the separate tankless rule in May 2025 |
A working heater needs nothing from you. The rule matters the day an older electric tank fails: once stock built to the old standard runs out, a 50 gallon electric replacement means a heat pump model. That’s where the BGE rebate covered earlier helps close the price gap.
In short: Haul-away, expansion tanks and relocation are what push quotes past the averages.
The averages above assume the new heater drops into the old one’s spot with nothing else to fix. When it doesn’t, these lines appear.
| Add-on | Typical cost |
|---|---|
| Expansion tank | $90 to $350 |
| Removing and hauling away the old unit | $100 to $500 |
| New water line | $400 to $2,000 |
| Moving the water heater to a new spot | $150 to $3,400 |
| Opening and patching drywall | $1,000 to $3,000 |
| Extra warranty from the installer | $100 to $300 |
A quote that looks a few hundred dollars high often isn’t padded. Haul-away alone runs $100 to $500, and an expansion tank adds $90 to $350. That tank protects a closed plumbing system, where heated water has nowhere to expand and strains the pipes, and Angi notes it’s often required in new construction.
Ask for an itemized quote that names each add-on and why it’s needed. Comparing hot water heater replacement cost quotes only works when each one lists the same lines, and a low total that skips haul-away or permits can grow once the work starts.
In short: Leak location and tank age decide it; past 10 years, plan a replacement.
Two things decide it: where the water is and how old the tank is. Leaks at the top fittings or the drain valve are usually repairable, while a steady leak from the bottom means the tank itself has failed. Most water heater repairs cost $230 to $1,000, with tank repairs at $100 to $500 against $100 to $1,300 for tankless.
Age changes the value of that repair. A $230 valve fix on a 6 year old tank is money well spent. The same fix on a 12 year old tank buys time on a unit near the end of its life, and BGE suggests planning a replacement once a water heater passes 10 years. Waiting has a price too: Angi puts the average homeowner’s water damage bill at $1,300 to $5,550.
Not sure what you’re looking at? See what a leak’s location tells you before you book.
In short: Financing, rebate filing and an itemized written quote keep the cost predictable.
A water heater rarely fails on a convenient week. Abend offers financing through Upgrade Financial for qualified homeowners, with an online prequalify step, and its team helps you choose a model that qualifies for current rebates and file the paperwork. After the install, the Home Service Plan adds twice-yearly service visits to keep the new unit running smoothly.
Before you sign any quote, get three things in writing: the model number, every add-on line and which rebate the unit qualifies for.
Abend Services has worked on Maryland water heaters since 1952 and lists license MP #2316, which you can check on the state’s public license lookup. If you’re in Severna Park, Annapolis, Glen Burnie, Pasadena or anywhere in Anne Arundel County, call (410) 618-3115 for a written quote on the cost to replace your water heater. For hourly rates and service fees on other jobs, see what a licensed plumber costs in Maryland.
In short: Short answers to the questions homeowners ask most, with the same figures used above.
Angi’s national 2026 data puts installed replacement at $882 to $1,826 for a tank, $1,400 to $3,900 for tankless and $2,800 to $8,000 for a heat pump model. In Anne Arundel County, permits add $94 to $206 when required.
Installed tankless runs $1,400 to $3,900 nationally. Labor alone is $600 to $1,900 when replacing a tankless unit and $150 to $2,500 when converting from a tank, since conversions often need rerouted plumbing, a gas line or electrical work.
Abend’s guidance is that a plumbing permit is required for any water heater replacement in the county, even a like-for-like swap. County pages say gas permits cover adding or relocating gas appliances, and only licensed trades can apply. Fees are $94 for plumbing and $112 for gas, application fee included.
No. The IRS allows the Energy Efficient Home Improvement Credit only for improvements made through December 31, 2025. Maryland’s HB 1532 also removed EmPOWER incentives for natural gas, so BGE’s heat pump water heater rebate is the main incentive left for BGE customers.
Angi’s 2026 average for an installed heat pump water heater is $4,200. If BGE is your electric utility, a rebate of up to $1,600 brings that to about $2,600. BGE says its instant rebate offering ends October 31, 2026.
No. It sets efficiency standards for units manufactured on or after May 6, 2029. Electric tanks over 35 and up to 120 gallons must use heat pump technology, 20 to 55 gallon gas tanks get a small efficiency increase, and gas tankless units have no new standard.
Check where the leak is first. Top fittings and drain valves are usually repairable, but a steady leak from the bottom means the tank has failed. Past 10 years, BGE suggests planning a replacement, since a repair only buys time on an aging unit.
The county requires plumbing, gas and electrical work to be performed by tradesmen licensed in Anne Arundel County. A DIY install can also void the manufacturer warranty and break plumbing code, NerdWallet notes.
In short: Plain-English meanings for the terms used above.
In short: The programs, rules and products behind the prices, at a glance.
| Property | Value |
|---|---|
| Created | EmPOWER Maryland Energy Efficiency Act of 2008 |
| Funded by | A charge on Maryland energy bills |
| 2024 change | HB 864 added incentives for switching from fossil fuel to electric |
| 2025 change | HB 1532 removed incentives for natural gas |
| Property | Value |
|---|---|
| Amount | Up to $1,600 on select ENERGY STAR models |
| Limit | One per address, purchases after Jan 2, 2024 |
| Switch-to-electric extra | Up to 75% of home prep costs, capped at $1,500 |
| Instant rebate | BGE says the offering ends Oct 31, 2026 |
| Property | Value |
|---|---|
| Application fee | $43 on every trade permit |
| Plumbing minimum | $51 |
| Gas minimum | $69 |
| Who applies | Licensed electricians, plumbers and mechanics |
| Property | Value |
|---|---|
| Published | May 6, 2024 |
| Applies to | Units manufactured on or after May 6, 2029 |
| Electric tanks over 35 to 120 gallons | Heat pump technology required |
| Gas tankless | Separate rule voided by Congress, withdrawn May 20, 2025 |
| Property | Value |
|---|---|
| Type | Condensing gas tankless |
| Efficiency | Up to 0.96 UEF |
| Residential heat exchanger warranty | 15 years |
| Fuel | Field convertible from natural gas to propane |
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