There are two basic types of water heaters: the traditional kind with a storage tank and tankless water heaters, which heat water as needed.. Typical costs: With all needed parts and labor, hiring a plumber to install a traditional gas water heater costs $300-$3,500 or more, depending on capacity (with 40 or 50 gallons the most common sizes); length of warranty (typically 5-12 years); and the ...

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