Short answer

National cost guides put a typical water heater replacement at roughly $900 to $1,800, with averages between about $1,350 and $1,950 depending on the source (HomeAdvisor, Fixr and This Old House, 2026). Tankless installs run higher, commonly $1,400 to $4,000. These are national figures, not McKinney quotes, and your price depends on the unit, the location and any code upgrades. McKinney lists a $40 residential water heater permit fee.

What published cost guides say

No reputable source publishes a McKinney-specific average, so the numbers below are national ranges from 2026 cost guides. Treat them as a sanity check, not a quote. Real prices in McKinney can land above or below them.

  • HomeAdvisor (updated June 2026): average $1,347, with most homeowners paying $882 to $1,825. Tank units $600 to $2,500, tankless $1,400 to $3,900. Source
  • Fixr (updated January 2026): average about $1,400, typical range $900 to $3,000. Tank $600 to $2,500, tankless $1,000 to $4,000. Source
  • This Old House (updated June 2026): average about $1,950, range $1,600 to $5,400. Tankless $2,100 to $4,000, heat pump units $2,500 to $3,500. Source

The sources don't agree exactly. This Old House's range starts higher because it leans toward a fuller installation, while HomeAdvisor's typical band reflects what most of its users reported paying. A straightforward like-for-like tank swap usually sits toward the lower half; tankless conversions and attic installs push toward the top.

What drives the price

The unit itself

  • Type: tank, tankless or heat pump. Tankless and heat pump units cost more up front.
  • Fuel: gas or electric. Staying with the fuel you already have avoids new gas line or electrical work.
  • Size: HomeAdvisor lists 40 gallon tanks at $800 to $2,300 installed and 50 gallon tanks at $800 to $2,500. Bigger tanks and higher first-hour ratings cost more.
  • Warranty length: a 12 year tank usually costs more than a 6 year tank from the same brand.

Labor

HomeAdvisor estimates labor at roughly half the total, $150 to $2,500 depending on complexity. Fixr puts it at $300 to $1,500. Tight closets, attics and long carries up stairs all add time.

Permit

The City of McKinney requires a permit to replace a water heater. Its permit fee schedule lists Residential Water Heater Permits at $40.00, and reinspections are charged extra if the first inspection fails. National guides quote $25 to $300 for permits (HomeAdvisor), so McKinney's fee is at the low end. Fees can change, so check the current schedule.

Haul-away

Removal and disposal of the old tank runs $75 to $500 according to Fixr and $100 to $300 according to This Old House. Many quotes include it; confirm that yours does.

Code upgrades

Older installs often don't meet current code, and bringing them up to it is part of a proper replacement. Common items:

  • Expansion tank: $90 to $350 plus labor (HomeAdvisor) or $40 to $150 (This Old House). Needed where the water system is closed.
  • Drain pan and drain line: required in many locations, especially attics. Cost guides don't publish a reliable standalone figure, so ask for it as a line item.
  • Venting: This Old House lists $300 to $500 for gas venting; HomeAdvisor lists $600 to $1,100 for a power-vent system.
  • Gas line, sediment trap, stand or strapping where the old setup is missing them.

Access and location

An attic or cramped closet costs more than an open garage. Moving the heater somewhere new is a bigger job: HomeAdvisor lists relocation at $150 to $3,400.

After-hours or emergency work

This Old House lists $200 to $500 extra for emergency or after-hours installation. HomeAdvisor says many plumbers charge time and a half to triple their hourly rate outside business hours (source).

How to get an accurate quote

Give each plumber the same information: fuel type, tank size from the label, the heater's location, and a photo of the top of the heater showing the venting and connections. Then ask:

  1. What exact make, model, capacity and warranty are you quoting?
  2. Is the City permit and inspection included?
  3. Which code items are included: pan, expansion tank, venting, gas line work?
  4. Is removal of the old unit included?
  5. What labor warranty do you give, separate from the manufacturer's?
  6. Will the price change if you find something unexpected, and how will you tell me?

Texas rules require a plumber's written estimates and contracts to show the responsible master plumber's name and license number and a notice that plumbers are regulated by the Texas State Board of Plumbing Examiners. If that's missing, ask why. You can verify any license on the TSBPE lookup.

Honest ways to save

  • Check whether it needs replacing at all. A leaking drain valve, a failed thermostat or a bad heating element can often be repaired. Tank leaks can't. Start with water heater repair if you're unsure.
  • Stay like-for-like when the current size and fuel suit your household. Conversions add gas, venting or electrical work.
  • Get two or three written quotes that list the same items, so you're comparing like with like.
  • Avoid after-hours rates by shutting the heater down safely and booking a weekday slot.
  • Ask your electricity or gas provider about rebates on high-efficiency models before you buy, and confirm eligibility in writing.

Red flags

  • A quote with no model number or warranty length
  • "No permit needed" for a water heater replacement in McKinney
  • A price far below the others that leaves out the pan, expansion tank or venting
  • No license number, or pressure to decide on the spot
  • Large cash-only deposits before any work starts

For a fuller checklist, see choosing a plumber and the water heater replacement buyer's guide.

Frequently asked questions

How much does it cost to replace a water heater in McKinney?

There's no published McKinney average. National 2026 guides put typical replacements at about $882 to $1,825 (HomeAdvisor) or $900 to $3,000 (Fixr), with tankless installs higher. Get written quotes from two or three licensed plumbers for your actual setup.

How much is the water heater permit in McKinney?

The City's permit fee schedule lists Residential Water Heater Permits at $40.00. Reinspections after a failed inspection cost extra. The installing plumber usually pulls the permit and includes the fee in the quote.

Is tankless worth the extra cost?

Tankless installs cost more, roughly $1,000 to $4,000 in national guides, and McKinney's moderately hard water means they need regular descaling. They make most sense if you want continuous hot water and plan to stay in the home for years.

Why are my water heater quotes so different?

Usually because they include different things. One may include the permit, expansion tank, drain pan, venting updates and haul-away while another leaves them out. Ask each plumber to itemize the same list so you can compare.

Does an expansion tank add much to the cost?

National guides list expansion tanks at about $40 to $150 (This Old House) up to $90 to $350 plus labor (HomeAdvisor). Whether you need one depends on whether your home's water system is closed, for example by a pressure-reducing valve or check valve.