In most cases, no, it is not worth fixing. The average lifespan of a standard tank water heater is 10 to 15 years. At 20 years old, your unit is past its prime. Putting money into an old tank risks a "good money after bad" scenario, as another major component could fail at any time.
Yes, you should strongly consider replacing it. Traditional tank water heaters have an average lifespan of 8 to 12 years. At 20 years old, your system is running on borrowed time and is at a very high risk of suddenly bursting or leaking, which can cause significant water damage to your home.
Signs a Water Heater is Going Bad
Traditional tank water heaters last 8 to 12 years, while tankless models typically last 15 to 20 years. Lifespans vary greatly depending on water quality, unit design, and whether you perform regular maintenance like flushing the tank and checking the anode rod.
The longest-lasting water heater brands are Bradford White and Rheem (specifically the Marathon series). Bradford White is favored by plumbers for professional installations and longevity, while the Rheem Marathon uses a unique fiberglass tank backed by a true lifetime warranty.
A new 40-gallon water heater costs between $𝟒𝟎𝟎 and $𝟐,𝟎𝟎𝟎 for the unit alone, depending on the fuel type, brand, and efficiency. When factoring in professional installation, the total typically ranges from $𝟖𝟎𝟎 to $𝟑,𝟎𝟎𝟎.
Some of the most reliable tank water heater brands in 2026 include Rheem, A.O. Smith, and Bradford White. These manufacturers have long histories of producing durable, efficient heaters with strong warranty coverage. Rheem is known for overall dependability and wide availability, A.O.
The more hours of electrical, carpentry and plumbing work that are required for your installation (for example, installing new electric, water or gas lines or drywall), the higher your total water heater replacement cost. Relocating your water heater also adds to the complexity and cost of installation.
Tank to Tank Installation: On average, replacing a gas or electric water tank with a similar model takes two to three hours. It takes between 45 to 60 minutes to drain, disconnect and remove your old water heater.
Water leaks are perhaps the most common type of water heater issue you'll face. Any water heater will start to leak eventually, as by nature water will eventually corrode your tank and create microscopic cracks or fractures. However, this isn't always a sign that your tank is what's leaking.
If you are looking to properly decommission, drain, or dismantle an old water heater for replacement, the process involves safely shutting off the power and water, completely draining the tank, and carefully disconnecting the plumbing.
Electric vs. Gas Safety Limits: With electric water heaters, minor external leaks may allow brief continued use, provided water isn't contacting any electrical components. For gas heaters, any gas smell or pilot light issues demand immediate shutdown and professional assessment.
Excessive Water Pressure: High pressure stresses your system and shortens its lifespan. A pressure-reducing valve can help. Undersized System: A unit that's too small for your household's demand works harder and wears out faster. Proper sizing during installation is critical.
The Home Depot offers traditional water heater tanks and modern tankless units, both powered by either gas or electricity. Depending on your selection, the average cost for standard tank installation is generally between $1,600 to $2,400. Tankless installation can range from $2,400 to $5,400.
If the cost of repairs exceeds 50% of the cost of buying a new water heater, replacement is likely the smarter decision, especially if your water heater is older. Older or less efficient models may result in higher utility bills. Upgrading to a newer, more energy-efficient unit can save you money over time.
Gas tankless water heaters installed by December 25, 2025, might qualify for a $600 federal tax credit. The government is offered this 30% credit through December 2025 to help cover the cost of the unit and its installation. This tax credit comes from the 25C Energy Efficient Home Improvement Tax Credit program.
The Home Depot strongly recommends that you use an experienced, licensed plumber to install your new water heater, because they will know the required codes to complete a safe and compliant installation.
Keep the top of the tank free of dust, debris and flammable products such as paint, gasoline, solvents or adhesives. Also, never use these products near a water heater or any other natural gas or electric appliance because vapors from flammable liquids can ignite.
We recommend going with Rheem, specifically for the Professional Series with 8 Year Warranty.
There isn't a single "number 1" model, as the ideal water heater depends on your home's setup, but top-rated brands dominating the market include Rheem (best overall tank/tankless) and A.O. Smith (best for durability and commercial-grade units).
Bradford White water heaters are widely regarded as some of the most durable on the market. They come with an array of well-thought-out features that enable them to stand up to all kinds of wear and tear that results from regular use. Overall, they have a longer service life than Rheem water heaters.
Installing a 40-gallon gas water heater from Lowe's typically costs $1,100 to $2,000 total, including the unit, labor, and materials. The physical heater costs between $450 and $800, while professional labor, permits, and connecting pipes add another $650 to $1,200.
Home Depot 40-gallon gas water heaters range from $𝟓𝟏𝟗 to over $𝟐,𝟎𝟎𝟎 depending on the warranty length, venting type, and energy efficiency. Standard models ideal for 2–4 person households generally sit between $𝟓𝟓𝟎 and $𝟖𝟎𝟎.
Yes, select Rheem water heaters qualify for the federal Energy Efficient Home Improvement Credit (Section 25C). Eligible units include specific high-efficiency Heat Pump models and advanced Gas Tankless/Tank models.