What it costs in the GTA
| Job | Typical range |
|---|---|
| Tank water heater, bought and installed | $1,200–$3,000 |
| 40-gallon gas tank, installed | $1,400–$2,200 |
| 50-gallon gas tank, installed | $1,600–$2,600 |
| Tankless, installed | $3,500–$6,000 |
Before HST. Tankless often needs new venting and a bigger gas line, which is where the price jumps. Ranges where published GTA and Ontario sources overlap, checked November 2026. Not a quote.
Rebates, permits & rules
- Gas water heaters must be installed by a TSSA-certified gas technician.
- Ending a rental? Read your contract for buyout and removal fees, and who has to pick up the old tank.
- In Ontario, a company can't sign you up for a furnace, air conditioner or water heater (buy, rent or lease) at your door unless you contacted them first. If someone shows up uninvited, you don't have to let them in.
- Signed the contract at your home? Ontario gives you 10 days to cancel most contracts signed there, for any reason.
What a complete quote includes
If any of these aren't on your quote, ask. Missing doesn't mean it's wrong, but it should be in writing.
- Buy, rent or lease, stated clearly
- Brand, model and capacity (gallons)
- Gas or electric, and venting type (natural draft, power vent, direct vent)
- Expansion tank, if needed
- Permit
- Removal and disposal of the old tank
- If you rent now: return of the rental tank and any buyout fee
- Parts warranty and labour warranty, in years
- A rental agreement handed over as a 'free upgrade'
- No total cost over the life of a rental contract
- Buyout schedule left off the paperwork
- Tankless quote with no mention of venting or gas line size
- Buying a tank costs about $1,200–$3,500 once. Renting a power-vent tank can cost around $6,600 over 10 years.
- Buying usually breaks even in about 5–7 years. Tanks often last 10–15.
- Renting can make sense if you can't cover the upfront cost and repairs are included. Know the buyout terms first.
- Tankless pays off mostly in households that use a lot of hot water.
5 questions to ask before you sign
- Is this a purchase or a rental, in writing?
- What will it cost me to end my current rental?
- Does my home need a power-vent, and why?
- For tankless: does my gas line need upsizing?
- Who removes the old tank, and is that in the price?
Paste your quote into ChatGPT, Claude or Gemini with this prompt:
I'm a homeowner in [city], Ontario. Here is a water heater quote or rental contract: [paste]. Tell me if it's a purchase or rental, the total I'd pay over 10 years, any buyout or cancellation fees, what it includes and leaves out, and 5 questions to ask before I sign. Don't guess a fair price.
Or skip the copy-paste: our free Quote Checker already knows what a water heater quote should include, and compares the price with real GTA ranges.
Common questions
How much does a new water heater cost in Toronto?
A tank water heater bought and installed is about $1,200–$3,000. Tankless runs about $3,500–$6,000.
Is it cheaper to rent or buy a water heater in Ontario?
Buying is usually cheaper over the life of the tank, often breaking even in 5–7 years. Check your rental contract's buyout terms.
How long does a water heater last?
Tank water heaters often last about 10–15 years, depending on water quality and maintenance.