Gas vs electric water heater in the USA: monthly cost
https://infohelper.net/home-energy/gas-vs-electric-water-heater · Updated 22 Oct 2026
At US average prices a gas tank costs about $25 a month to run, an electric tank $53 and a heat pump water heater $13.
- Gas tankbasic model
- $25
- a month
- Electric tankbasic model
- $53
- a month
- Heat pumpnew model
- $13
- a month · cheapest
Updated · Prices: 12 months to Jul 2026 · EIA, ENERGY STAR · Basic tanks, typical new heat pump, gas at its average price · State average, not your tariff
Per month, per year
At US average prices a gas tank costs about $25 a month to run, an electric tank $53, a gas tankless heater $15 and a heat pump water heater $13: $301, $635, $184 and $159 a year.
| Water heater | Per month | Per year |
|---|---|---|
| Gas tank | $25.07 | $301 |
| Gas tankless | $15.32 | $184 |
| Electric tank | $52.89 | $635 |
| Heat pump | $13.24 | $159 |
The gas tank and the electric tank are basic models at the legal minimum efficiency; the gas tankless heater and the heat pump are typical new (ENERGY STAR certified) models.
Is a gas water heater cheaper than an electric one?
At the average gas price and against a basic electric tank, yes, in all 50 states and DC: a gas tank costs $52 to $753 a year less to run, least in Arkansas and most in California.
Against a heat pump water heater, no: a typical new heat pump costs less to run than a basic gas tank in all 50 states and DC.
Of the four machines in the table, a heat pump is the cheapest to run in 23 states and a gas tankless heater in 18. In 10 more, a heat pump and a gas tankless heater are less than $1 a month apart: a tie.
How to tell if a water heater is gas or electric
Look at the top and the bottom of the tank. A gas water heater has a flue, a metal pipe leaving the top, and a gas line with a valve running to a burner door near the floor. An electric one has a cable entering the top, two screwed-on panels on its side and no flue. The yellow EnergyGuide label, if it is still on the tank, names the fuel.
What does each cost per month in your state?
At the average gas price a gas tank is cheaper to run than an electric tank in all 50 states and DC; a heat pump beats the gas tank in all 50 states and DC.
Of the four machines, a heat pump is the cheapest to run in 23 states and a gas tankless heater in 18; in 10 a heat pump and a gas tankless heater cost about the same, less than $1 a month apart, which counts as a tie.
Cheapest water heater to run, by state
- H heat pump, 23 states
- TL gas tankless, 18
- H≈TL tie, under $1 a month apart, 10
| State | Electricity ¢/kWh · 12 months to Jul 2026 | Gas $ a therm · average price, monthly charges included, 12 months to Jul 2026 | Gas tank $ a month | Gas tankless $ a month | Electric tank $ a month | Heat pump $ a month | Cheapest | Gas tank saves $ a year against an electric tank | In one sentence |
|---|---|---|---|---|---|---|---|---|---|
| Alabama | 16.44 | 1.785 | $28.41 | $17.35 | $48.33 | $12.10 | Heat pump | $239 | Alabama: a gas tank costs about $28 a month, an electric tank $48; gas saves about $239 a year. A heat pump is cheapest, at $12. |
| Alaska | 26.85 | 1.376 | $21.90 | $13.38 | $78.94 | $19.76 | Gas tankless | $684 | Alaska: a gas tank costs about $22 a month, an electric tank $79; gas saves about $684 a year. Gas tankless is cheapest, at $13. |
| Arizona | 15.40 | 1.977 | $31.46 | $19.21 | $45.28 | $11.33 | Heat pump | $166 | Arizona: a gas tank costs about $31 a month, an electric tank $45; gas saves about $166 a year. A heat pump is cheapest, at $11. |
| Arkansas | 13.43 | 2.208 | $35.15 | $21.47 | $39.48 | $9.88 | Heat pump | $52 | Arkansas: a gas tank costs about $35 a month, an electric tank $39; gas saves about $52 a year. A heat pump is cheapest, at $10. |
| California | 32.99 | 2.154 | $34.28 | $20.94 | $96.99 | $24.28 | Gas tankless | $753 | California: a gas tank costs about $34 a month, an electric tank $97; gas saves about $753 a year. Gas tankless is cheapest, at $21. Gas price: calendar year 2025. |
| Colorado | 16.55 | 1.087 | $17.30 | $10.57 | $48.66 | $12.18 | Gas tankless | $376 | Colorado: a gas tank costs about $17 a month, an electric tank $49; gas saves about $376 a year. Gas tankless is cheapest, at $11. |
| Connecticut | 27.99 | 1.634 | $26.01 | $15.89 | $82.29 | $20.60 | Gas tankless | $675 | Connecticut: a gas tank costs about $26 a month, an electric tank $82; gas saves about $675 a year. Gas tankless is cheapest, at $16. Gas price: calendar year 2024. |
| Delaware | 17.79 | 1.778 | $28.30 | $17.28 | $52.30 | $13.09 | Heat pump | $288 | Delaware: a gas tank costs about $28 a month, an electric tank $52; gas saves about $288 a year. A heat pump is cheapest, at $13. |
| District of Columbia | 24.20 | 1.711 | $27.23 | $16.63 | $71.15 | $17.81 | Gas tankless | $527 | District of Columbia: a gas tank costs about $27 a month, an electric tank $71; gas saves about $527 a year. Gas tankless is cheapest, at $17. |
| Florida | 15.39 | 2.488 | $39.60 | $24.19 | $45.25 | $11.32 | Heat pump | $68 | Florida: a gas tank costs about $40 a month, an electric tank $45; gas saves about $68 a year. A heat pump is cheapest, at $11. Gas price: calendar year 2025. |
| Georgia | 15.12 | 2.142 | $34.09 | $20.82 | $44.45 | $11.13 | Heat pump | $124 | Georgia: a gas tank costs about $34 a month, an electric tank $44; gas saves about $124 a year. A heat pump is cheapest, at $11. |
| Hawaii | 43.51 | 5.712 | $90.91 | $55.53 | $127.92 | $32.02 | Heat pump | $444 | Hawaii: a gas tank costs about $91 a month, an electric tank $128; gas saves about $444 a year. A heat pump is cheapest, at $32. Gas price: calendar year 2025. |
| Idaho | 12.65 | 0.771 | $12.26 | $7.49 | $37.19 | $9.31 | Gas tankless | $299 | Idaho: a gas tank costs about $12 a month, an electric tank $37; gas saves about $299 a year. Gas tankless is cheapest, at $7. |
| Illinois | 18.79 | 1.136 | $18.08 | $11.04 | $55.24 | $13.83 | Gas tankless | $446 | Illinois: a gas tank costs about $18 a month, an electric tank $55; gas saves about $446 a year. Gas tankless is cheapest, at $11. |
| Indiana | 16.94 | 1.154 | $18.37 | $11.22 | $49.80 | $12.47 | Gas tankless | $377 | Indiana: a gas tank costs about $18 a month, an electric tank $50; gas saves about $377 a year. Gas tankless is cheapest, at $11. |
| Iowa | 14.13 | 1.095 | $17.43 | $10.64 | $41.54 | $10.40 | Tie: heat pump and gas tankless | $289 | Iowa: a gas tank costs about $17 a month, an electric tank $42; gas saves about $289 a year. Heat pump and gas tankless cost about the same. |
| Kansas | 15.09 | 1.425 | $22.69 | $13.86 | $44.36 | $11.10 | Heat pump | $260 | Kansas: a gas tank costs about $23 a month, an electric tank $44; gas saves about $260 a year. A heat pump is cheapest, at $11. Gas price: calendar year 2025. |
| Kentucky | 13.92 | 1.556 | $24.77 | $15.13 | $40.92 | $10.24 | Heat pump | $194 | Kentucky: a gas tank costs about $25 a month, an electric tank $41; gas saves about $194 a year. A heat pump is cheapest, at $10. |
| Louisiana | 12.99 | 1.705 | $27.13 | $16.57 | $38.19 | $9.56 | Heat pump | $133 | Louisiana: a gas tank costs about $27 a month, an electric tank $38; gas saves about $133 a year. A heat pump is cheapest, at $10. Gas price: calendar year 2025. |
| Maine | 29.31 | 1.817 | $28.92 | $17.66 | $86.17 | $21.57 | Gas tankless | $687 | Maine: a gas tank costs about $29 a month, an electric tank $86; gas saves about $687 a year. Gas tankless is cheapest, at $18. Gas price: calendar year 2024. |
| Maryland | 21.03 | 1.555 | $24.75 | $15.12 | $61.83 | $15.47 | Tie: heat pump and gas tankless | $445 | Maryland: a gas tank costs about $25 a month, an electric tank $62; gas saves about $445 a year. Heat pump and gas tankless cost about the same. Gas price: calendar year 2024. |
| Massachusetts | 30.43 | 2.551 | $40.59 | $24.80 | $89.46 | $22.39 | Heat pump | $586 | Massachusetts: a gas tank costs about $41 a month, an electric tank $89; gas saves about $586 a year. A heat pump is cheapest, at $22. |
| Michigan | 21.05 | 1.084 | $17.26 | $10.54 | $61.89 | $15.49 | Gas tankless | $536 | Michigan: a gas tank costs about $17 a month, an electric tank $62; gas saves about $536 a year. Gas tankless is cheapest, at $11. |
| Minnesota | 16.22 | 1.075 | $17.11 | $10.45 | $47.69 | $11.94 | Gas tankless | $367 | Minnesota: a gas tank costs about $17 a month, an electric tank $48; gas saves about $367 a year. Gas tankless is cheapest, at $10. |
| Mississippi | 14.77 | 1.728 | $27.49 | $16.79 | $43.42 | $10.87 | Heat pump | $191 | Mississippi: a gas tank costs about $27 a month, an electric tank $43; gas saves about $191 a year. A heat pump is cheapest, at $11. |
| Missouri | 13.95 | 1.661 | $26.44 | $16.15 | $41.01 | $10.26 | Heat pump | $175 | Missouri: a gas tank costs about $26 a month, an electric tank $41; gas saves about $175 a year. A heat pump is cheapest, at $10. |
| Montana | 13.84 | 0.869 | $13.82 | $8.44 | $40.69 | $10.18 | Gas tankless | $322 | Montana: a gas tank costs about $14 a month, an electric tank $41; gas saves about $322 a year. Gas tankless is cheapest, at $8. |
| Nebraska | 12.86 | 1.226 | $19.51 | $11.92 | $37.81 | $9.46 | Heat pump | $220 | Nebraska: a gas tank costs about $20 a month, an electric tank $38; gas saves about $220 a year. A heat pump is cheapest, at $9. |
| Nevada | 13.36 | 1.081 | $17.20 | $10.51 | $39.28 | $9.83 | Tie: heat pump and gas tankless | $265 | Nevada: a gas tank costs about $17 a month, an electric tank $39; gas saves about $265 a year. Heat pump and gas tankless cost about the same. |
| New Hampshire | 26.67 | 1.791 | $28.51 | $17.41 | $78.41 | $19.62 | Gas tankless | $599 | New Hampshire: a gas tank costs about $29 a month, an electric tank $78; gas saves about $599 a year. Gas tankless is cheapest, at $17. Gas price: calendar year 2025. |
| New Jersey | 23.78 | 1.423 | $22.64 | $13.83 | $69.91 | $17.50 | Gas tankless | $567 | New Jersey: a gas tank costs about $23 a month, an electric tank $70; gas saves about $567 a year. Gas tankless is cheapest, at $14. |
| New Mexico | 15.24 | 0.964 | $15.34 | $9.37 | $44.81 | $11.21 | Gas tankless | $354 | New Mexico: a gas tank costs about $15 a month, an electric tank $45; gas saves about $354 a year. Gas tankless is cheapest, at $9. Gas price: calendar year 2025. |
| New York | 28.39 | 1.814 | $28.87 | $17.63 | $83.47 | $20.89 | Gas tankless | $655 | New York: a gas tank costs about $29 a month, an electric tank $83; gas saves about $655 a year. Gas tankless is cheapest, at $18. |
| North Carolina | 14.77 | 1.582 | $25.18 | $15.38 | $43.42 | $10.87 | Heat pump | $219 | North Carolina: a gas tank costs about $25 a month, an electric tank $43; gas saves about $219 a year. A heat pump is cheapest, at $11. Gas price: calendar year 2024. |
| North Dakota | 12.32 | 0.969 | $15.43 | $9.42 | $36.22 | $9.07 | Tie: heat pump and gas tankless | $250 | North Dakota: a gas tank costs about $15 a month, an electric tank $36; gas saves about $250 a year. Heat pump and gas tankless cost about the same. |
| Ohio | 18.25 | 1.304 | $20.76 | $12.68 | $53.66 | $13.43 | Tie: heat pump and gas tankless | $395 | Ohio: a gas tank costs about $21 a month, an electric tank $54; gas saves about $395 a year. Heat pump and gas tankless cost about the same. Gas price: calendar year 2025. |
| Oklahoma | 13.70 | 1.385 | $22.05 | $13.47 | $40.28 | $10.08 | Heat pump | $219 | Oklahoma: a gas tank costs about $22 a month, an electric tank $40; gas saves about $219 a year. A heat pump is cheapest, at $10. Gas price: calendar year 2025. |
| Oregon | 15.50 | 1.617 | $25.74 | $15.72 | $45.57 | $11.41 | Heat pump | $238 | Oregon: a gas tank costs about $26 a month, an electric tank $46; gas saves about $238 a year. A heat pump is cheapest, at $11. |
| Pennsylvania | 20.70 | 1.540 | $24.51 | $14.97 | $60.86 | $15.23 | Tie: heat pump and gas tankless | $436 | Pennsylvania: a gas tank costs about $25 a month, an electric tank $61; gas saves about $436 a year. Heat pump and gas tankless cost about the same. |
| Rhode Island | 29.27 | 2.107 | $33.53 | $20.48 | $86.05 | $21.54 | Gas tankless | $630 | Rhode Island: a gas tank costs about $34 a month, an electric tank $86; gas saves about $630 a year. Gas tankless is cheapest, at $20. Gas price: calendar year 2024. |
| South Carolina | 15.64 | 1.637 | $26.05 | $15.91 | $45.98 | $11.51 | Heat pump | $239 | South Carolina: a gas tank costs about $26 a month, an electric tank $46; gas saves about $239 a year. A heat pump is cheapest, at $12. Gas price: calendar year 2024. |
| South Dakota | 14.20 | 0.990 | $15.76 | $9.63 | $41.75 | $10.45 | Tie: heat pump and gas tankless | $312 | South Dakota: a gas tank costs about $16 a month, an electric tank $42; gas saves about $312 a year. Heat pump and gas tankless cost about the same. |
| Tennessee | 13.56 | 1.302 | $20.72 | $12.65 | $39.87 | $9.98 | Heat pump | $230 | Tennessee: a gas tank costs about $21 a month, an electric tank $40; gas saves about $230 a year. A heat pump is cheapest, at $10. |
| Texas | 15.96 | 2.240 | $35.66 | $21.78 | $46.92 | $11.74 | Heat pump | $135 | Texas: a gas tank costs about $36 a month, an electric tank $47; gas saves about $135 a year. A heat pump is cheapest, at $12. |
| Utah | 13.32 | 1.056 | $16.80 | $10.26 | $39.16 | $9.80 | Tie: heat pump and gas tankless | $268 | Utah: a gas tank costs about $17 a month, an electric tank $39; gas saves about $268 a year. Heat pump and gas tankless cost about the same. |
| Vermont | 23.80 | 1.749 | $27.84 | $17.01 | $69.97 | $17.51 | Tie: heat pump and gas tankless | $506 | Vermont: a gas tank costs about $28 a month, an electric tank $70; gas saves about $506 a year. Heat pump and gas tankless cost about the same. |
| Virginia | 16.48 | 1.715 | $27.30 | $16.67 | $48.45 | $12.13 | Heat pump | $254 | Virginia: a gas tank costs about $27 a month, an electric tank $48; gas saves about $254 a year. A heat pump is cheapest, at $12. |
| Washington | 14.12 | 1.608 | $25.59 | $15.63 | $41.51 | $10.39 | Heat pump | $191 | Washington: a gas tank costs about $26 a month, an electric tank $42; gas saves about $191 a year. A heat pump is cheapest, at $10. Gas price: calendar year 2025. |
| West Virginia | 15.48 | 1.270 | $20.21 | $12.34 | $45.51 | $11.39 | Tie: heat pump and gas tankless | $304 | West Virginia: a gas tank costs about $20 a month, an electric tank $46; gas saves about $304 a year. Heat pump and gas tankless cost about the same. Gas price: calendar year 2025. |
| Wisconsin | 18.74 | 1.024 | $16.29 | $9.95 | $55.10 | $13.79 | Gas tankless | $466 | Wisconsin: a gas tank costs about $16 a month, an electric tank $55; gas saves about $466 a year. Gas tankless is cheapest, at $10. Gas price: calendar year 2025. |
| Wyoming | 14.01 | 1.234 | $19.63 | $11.99 | $41.19 | $10.31 | Heat pump | $259 | Wyoming: a gas tank costs about $20 a month, an electric tank $41; gas saves about $259 a year. A heat pump is cheapest, at $10. |
Gas tank and electric tank: the basic models; gas tankless and heat pump: the typical certified ones. The yearly figure is under each on a wide screen. Where the cheapest two are less than $1 a month apart, the row says "Tie" and marks both. A state whose gas price covers another period says so in its row. Tap a state's name for its prices.
A home already paying a monthly gas charge pays less than this average for each extra therm, so gas does a little better than shown (see why the price here is not the price on your bill).
Dollars a month, four water heaters, by state
- Gas tank
- Gas tankless
- Electric tank
- Heat pump
A small, medium or large household
The more hot water you use, the more it costs: at US prices a gas tank costs about $19 a month for a small household and $35 for a large one.
The federal test rates water heaters at three levels of use; the tables on this page use the middle one, 55 gallons of hot water a day.
- Small: gas tank
- $19
- a month at 38 gallons a day
- Medium: gas tank
- $25
- a month at 55 gallons a day
- Large: gas tank
- $35
- a month at 84 gallons a day
| Water heater | Small 38 gallons a day | Medium 55 gallons a day | Large 84 gallons a day |
|---|---|---|---|
| Gas tank | $19 ×0.77 | $25 | $35 ×1.38 |
| Gas tankless | $11 ×0.69 | $15 | $23 ×1.53 |
| Electric tank | $37 ×0.70 | $53 | $80 ×1.51 |
| Heat pump | $11 ×0.80 | $13 | $19 ×1.42 |
For the two tanks the small and large figures are a model: the legal minimum for that level of use applied to the same tank. A real tank is certified at one level only.
Check it against your own bill
Your own bill decides it: your rates are not the state average. Take the per-kWh line of the electricity bill and the per-therm line of the gas bill, multiply by the yearly energy of each machine, and divide by twelve.
Illinois, a home on Nicor Gas
Electricity 18.79¢ a kWh, the state average. Gas $0.574 a therm: the per-therm lines of the bill (Nicor Gas Rate 1, Oct 2026).
| Heater | A year | $ a month |
|---|---|---|
| Gas tank | 190.99 therms × $0.574 = $110 | 9.14 |
| Gas tankless | 116.66 therms × $0.574 = $67 | 5.58 |
| Electric tank | 3,528.0 kWh × 18.79¢ = $663 | 55.24 |
| Heat pump | 883 kWh × 18.79¢ = $166 | 13.83 |
A tariff with dear electricity
Electricity 24¢ a kWh. Gas $1.90 a therm on the per-therm line.
| Heater | A year | $ a month |
|---|---|---|
| Gas tank | 190.99 therms × $1.900 = $363 | 30.24 |
| Gas tankless | 116.66 therms × $1.900 = $222 | 18.47 |
| Electric tank | 3,528.0 kWh × 24.00¢ = $847 | 70.56 |
| Heat pump | 883 kWh × 24.00¢ = $212 | 17.66 |
The fixed monthly gas charge: who keeps paying it
A gas bill has a fixed charge that does not depend on how much gas is burned. If the water heater is the last gas appliance in the house, switching to electric lets you close the gas account and removes that charge as well, a saving the table does not count. If the furnace or the stove stays on gas, the fixed charge stays too, and only the per-therm part of the bill changes. Whether the furnace itself is cheaper on gas or as a heat pump is worked out state by state on heat pump vs gas furnace.
The state gas price in the table has that fixed charge averaged into it, so a home that keeps paying the charge anyway pays less for each extra therm. More in why the price here is not the price on your bill.
Is switching fuel worth it?
At US average prices, replacing an electric tank with a gas tank saves about $334 a year and with a heat pump about $476; replacing a basic gas tank with a typical new heat pump saves about $142. Whether that pays depends on the quote.
Take the yearly saving between two machines in your state: the "Gas tank saves" column of the table for an electric tank against a gas tank, or the difference of two yearly figures. Take the extra cost from your quotes. The grid gives the years to get it back.
| Extra cost (rows) by yearly saving (columns) | $50 | $100 | $150 | $200 | $300 | $400 | $600 |
|---|---|---|---|---|---|---|---|
| $500 | 10 | 5.0 | 3.3 | 2.5 | 1.7 | 1.3 | 0.8 |
| $1,000 | 20 | 10 | 6.7 | 5.0 | 3.3 | 2.5 | 1.7 |
| $1,500 | 30 | 15 | 10 | 7.5 | 5.0 | 3.8 | 2.5 |
| $2,000 | 40 | 20 | 13 | 10 | 6.7 | 5.0 | 3.3 |
| $3,000 | 40+ | 30 | 20 | 15 | 10 | 7.5 | 5.0 |
| $4,000 | 40+ | 40 | 27 | 20 | 13 | 10 | 6.7 |
- Bold, underlined: back within 5 years
- within 10 years
- longer than 10 years
What creates the extra cost depends on the direction. Gas to an electric tank: a 240‑volt circuit where there was none. Electric to gas: a gas line and a flue. Either to a heat pump: a condensate drain, enough air around the unit, and usually the 240‑volt circuit. 76 of the 717 certified heat pump models run on 120 volts, which can avoid the new circuit. This page gives no installation prices, because no public source has them; bring your own quote.
The federal tax credit that covered heat pump water heaters has ended: the IRS states that the Energy Efficient Home Improvement Credit can be claimed for improvements made through 31 December 2025 (read 13 October 2026; the IRS page is in the sources).
No gas line? Propane against electric
Away from the gas main, "gas" means propane. The propane heaters are priced with the efficiency of the natural gas machines, which is our assumption.
A heat pump water heater is the cheapest of the four in all 38 states with a propane price; a propane tank costs less to run than an electric tank in 24 of the 38. Show the table
| State propane, $ a gallon | Propane tank | Propane tankless | Electric tank | Heat pump |
|---|---|---|---|---|
| Alabama 3.462 | 60.24 | 36.81 | 48.33 | 12.10 |
| Arkansas 2.342 | 40.75 | 24.90 | 39.48 | 9.88 |
| Colorado 2.223 | 38.68 | 23.64 | 48.66 | 12.18 |
| Connecticut 3.828 | 66.61 | 40.70 | 82.29 | 20.60 |
| Delaware 3.572 | 62.15 | 37.98 | 52.30 | 13.09 |
| Florida 4.667 | 81.21 | 49.63 | 45.25 | 11.32 |
| Georgia 3.078 | 53.56 | 32.73 | 44.45 | 11.13 |
| Idaho 2.363 | 41.12 | 25.13 | 37.19 | 9.31 |
| Illinois 1.905 | 33.15 | 20.26 | 55.24 | 13.83 |
| Indiana 2.473 | 43.03 | 26.30 | 49.80 | 12.47 |
| Iowa 1.591 | 27.68 | 16.92 | 41.54 | 10.40 |
| Kansas 1.899 | 33.04 | 20.19 | 44.36 | 11.10 |
| Kentucky 2.672 | 46.49 | 28.41 | 40.92 | 10.24 |
| Maine 3.294 | 57.32 | 35.03 | 86.17 | 21.57 |
| Maryland 3.585 | 62.38 | 38.12 | 61.83 | 15.47 |
| Massachusetts 3.413 | 59.39 | 36.29 | 89.46 | 22.39 |
| Michigan 2.262 | 39.36 | 24.05 | 61.89 | 15.49 |
| Minnesota 1.951 | 33.95 | 20.75 | 47.69 | 11.94 |
| Mississippi 3.020 | 52.55 | 32.11 | 43.42 | 10.87 |
| Missouri 2.097 | 36.49 | 22.30 | 41.01 | 10.26 |
| Montana 2.024 | 35.22 | 21.52 | 40.69 | 10.18 |
| Nebraska 1.606 | 27.94 | 17.08 | 37.81 | 9.46 |
| New Hampshire 3.580 | 62.29 | 38.07 | 78.41 | 19.62 |
| New Jersey 3.628 | 63.13 | 38.58 | 69.91 | 17.50 |
| New York 3.528 | 61.39 | 37.51 | 83.47 | 20.89 |
| North Carolina 3.358 | 58.43 | 35.71 | 43.42 | 10.87 |
| North Dakota 1.630 | 28.36 | 17.33 | 36.22 | 9.07 |
| Ohio 2.579 | 44.87 | 27.42 | 53.66 | 13.43 |
| Oklahoma 2.224 | 38.70 | 23.65 | 40.28 | 10.08 |
| Pennsylvania 2.932 | 51.02 | 31.18 | 60.86 | 15.23 |
| Rhode Island 3.629 | 63.14 | 38.59 | 86.05 | 21.54 |
| South Dakota 1.790 | 31.15 | 19.03 | 41.75 | 10.45 |
| Tennessee 3.145 | 54.72 | 33.44 | 39.87 | 9.98 |
| Texas 2.939 | 51.14 | 31.25 | 46.92 | 11.74 |
| Utah 2.292 | 39.88 | 24.37 | 39.16 | 9.80 |
| Vermont 3.688 | 64.17 | 39.22 | 69.97 | 17.51 |
| Virginia 3.461 | 60.22 | 36.80 | 48.45 | 12.13 |
| Wisconsin 1.909 | 33.22 | 20.30 | 55.10 | 13.79 |
From 2029 the choice is gas or heat pump
Federal rules change what can be made. Electric tank water heaters of 20 to 55 gallons manufactured from must reach an efficiency of 2.30: deliver 2.30 times the energy they use as hot water (230%; the federal measure is called the uniform energy factor). The minimum for the 50‑gallon tank in this page's table is 0.92 today, and the typical certified heat pump water heater is at 3.60: only heat pump designs reach the new figure. The rule keeps a separate class for small electric tanks. Gas tanks get a higher minimum too, 0.64 for a 40‑gallon tank against 0.58 today.
So a new electric tank of that size made after that date will be a heat pump model. If you are comparing a gas tank with a basic electric tank, look at the heat pump column as well. Source: 10 CFR 430.32(d), read 13 Oct 2026; the link is in the sources.
What about tankless?
A gas tankless heater costs less to run than a gas tank: $15 a month at US average prices against $25, about $117 a year less. It is the cheapest of the four in 18 states, and ties for cheapest (less than $1 a month apart) in 10 more. The tankless page puts the saving at $84 a year: it prices gas per extra therm, because a home that keeps gas keeps its monthly charge (tankless vs tank water heater).
Two limits. The figure leaves out the electricity a tankless heater uses for its ignition and fan, which no open data gives. And this page compares running cost only: whether a tankless heater pays back its higher price in your state is worked out on that page.
Beyond running cost: recovery, the plug, noise
| What | Gas | Electric tank | Heat pump | Source |
|---|---|---|---|---|
| Hot water in the first hour | 95 gallons, the median of 71 certified gas tanks (86 to 118) | Not in the dataset | 72 gallons, the median of 717 models (45 to 134) | ENERGY STAR, first-hour rating |
| Efficiency: heat in the hot water per unit of energy used | 58% for the basic tank; 95% for the typical certified tankless | 92% for the basic tank | 360%, the median of the certified models: it moves heat from the air, so it delivers 3.6 times the energy it uses | 10 CFR 430.32(d); ENERGY STAR |
| Electrical supply | Not in the dataset | Not in the dataset | 76 of 717 certified models run on 120 volts; the rest need 230 or 240 | ENERGY STAR, input voltage |
| Noise | Not reported | Not reported | 49 decibels, the median of the 156 models that report it (37 to 54) | ENERGY STAR, sound pressure level |
The first-hour figures compare the better gas tanks with heat pumps of several sizes, so read them as a range, not as a verdict on one model: the label of the heater you are quoted has its own figure.
How these numbers are calculated
The formula, per year, at 55 gallons a day
| Gas tank | 190.99 therms × gas price |
|---|---|
| Gas tankless | 116.66 therms × gas price |
| Electric tank | 3,528 kWh × electricity price |
| Heat pump | 883 kWh × electricity price |
The trap in this comparison is which machines are compared. ENERGY STAR lists only models good enough to certify: it has no basic electric tank and no basic gas tank. So the two tanks here are the basic model, a 40‑gallon gas tank and a 50‑gallon electric tank at the federal minimum efficiency (0.58 and 0.92, that is 58% and 92% of the energy ends up in the hot water), and the other two are the typical certified model: the median of 460 gas tankless heaters (0.95) and of 340 heat pump water heaters rated at this level of use (883 kWh a year; models range from 769 to 1,550).
All four deliver the same hot water: 55 gallons a day warmed by 67°F (from 58°F to 125°F), the middle level of the federal test, which is 11.1 million BTU or 3,248 kWh of heat a year. A tank's energy is that heat divided by its efficiency.
Assumed, not verified: that the basic model on sale sits at the legal minimum; the same incoming water temperature in every state; and the propane heaters' efficiency. These are test-procedure figures, not measurements in homes.
Gas is priced at the EIA average for the 12 months to Jul 2026, weighted by volume, never a single month: a water heater runs all year. The monthly figure is the yearly one divided by twelve. Left out: purchase and installation, the fixed gas charge as a separate item and time-of-use rates.
How the state prices are worked out: how the prices are calculated.
Free to reuse (CC BY 4.0). Cite this page: https://infohelper.net/home-energy/gas-vs-electric-water-heater
Sources
- EIA: Electricity Data BrowserResidential revenue, sales and price by state, monthly; 12 months to Jul 2026. Edition of 23 Sep 2026.
- EIA: natural gas, average residential price by stateMonthly and annual residential price, volume and heat content by state; 12 months to Jul 2026. Edition of 21 Oct 2026.
- EIA: Heating Oil and Propane UpdateWeekly residential propane price by state, Oct 2025–Mar 2026. Edition of 21 Oct 2026.
- ENERGY STAR: Certified Water Heaters (dataset pbpq-swnu)Efficiency, yearly electricity, first-hour rating, voltage and sound level of the certified gas tankless and heat pump models; 1,374 rows, edition of 22 Oct 2026.
- 10 CFR 430.32(d): energy conservation standards for water heaters (eCFR)The minimum efficiency of the basic gas and electric tanks today, and the minimums from 6 May 2029. Read 13 Oct 2026.
- 10 CFR Part 430, Subpart B, Appendix E (eCFR)The federal test for water heaters: the three levels of daily hot-water use and the temperature rise behind every yearly figure.
- IRS: Energy Efficient Home Improvement CreditThe end date of the federal tax credit that covered heat pump water heaters.
What changed
- Figures recalculated from updated source data.
- First published with prices for the 12 months to Jul 2026.