What a replacement actually costs here in 2026 — by tank size and fuel type, with the permit and the haul-away included, and an honest account of what pushes a job above the range.
Most national cost guides quote a US-wide average that is useless in Portland, because they leave out the two things that matter locally: the city permit and the Oregon code items an inspector will check. Here is what we actually charge, and what sits inside that number.
| Unit | Brands we fit | Installed price |
|---|---|---|
| 40-gallon gas tank | Rheem, Bradford White, A.O. Smith | $1,100–$1,600 |
| 50-gallon gas tank | Rheem, Bradford White, A.O. Smith | $1,300–$1,900 |
| 50-gallon electric tank | Rheem, Bradford White, A.O. Smith | $1,100–$1,700 |
| Gas tankless | Navien NPE, Rinnai RUR, Noritz | $1,800–$3,800 |
| Heat pump (hybrid) | Rheem ProTerra, A.O. Smith | $2,000–$3,600 |
Installed prices for Portland in 2026 — unit, labour, haul-away of the old heater and the Portland BDS permit included. A heat pump installation drops to roughly $1,300–$2,800 once the Energy Trust of Oregon rebate is applied. Anything that changes the scope — a fuel conversion, new venting, a gas line upsize, a relocation — is quoted separately and in writing before we start.
When we say installed, we mean you pay that number and nothing else. Specifically it covers:
If you are comparing quotes and one is several hundred dollars cheaper, ask specifically whether the Portland BDS permit is included and whether they are pulling it. Unpermitted water heater work is common, cheap and a genuine problem when you sell the house.
Roughly one job in five costs more than the table, and it is almost always one of these. All of them get quoted separately and in writing before we start:
The cheapest option on the day is not always the cheapest option over ten years. Very roughly:
| Gas tank | Gas tankless | Heat pump | |
|---|---|---|---|
| Installed | $1,100–$1,900 | $1,800–$3,800 | $2,000–$3,600 |
| Energy Trust rebate | None | Up to $400 | Up to $800 |
| Typical life | 8–12 years | 20+ years | 10–15 years |
| Best for | Straight replacement, tight budget | Gas homes staying 10+ years | All-electric homes |
A heat pump is the strongest case on running cost in an all-electric Portland house, and it is the one Oregon pays the most toward. A gas tankless unit makes sense if you are staying long enough to earn back the premium and the gas supply is already adequate. For most people replacing a failed tank on a Tuesday, a like-for-like tank is the right answer — and we will say so.
A quote that answers all six is comparable to ours. One that answers none is a number, not a quote.
$1,100–$1,900 installed for a standard gas tank, depending on size, and $1,100–$1,700 for a 50-gallon electric. Those figures include the unit, the labour, removing the old heater and the Portland BDS permit.
Yes. A water heater replacement is permitted work in Portland and we pull it in-house. Any quote that comes in materially below the range above is worth checking on this point.
A fuel conversion, a relocation, rebuilding the venting, upsizing the gas line, or getting a tank in and out of a tight 1912 basement. All of those are quoted separately and in writing before we start.
No diagnostic fee, no trip charge, and a flat-rate price in writing before anything starts. If it is no hot water today, calling is faster than the form.
A real diagnosis and a flat-rate price in writing, anywhere in Portland, at no cost.