How Much Does an Oil Tank Replacement Cost in 2025?
Replacing an oil tank costs an average of $2,322
Average oil tank replacement costs range from $1,581 to $3,063, with an average total of $2,322.
Key cost factors include tank size, aboveground or underground placement, and potential excavation or gas line installation.
Outdoor tanks last 10 to 15 years, while indoor tanks can last up to 30 years before needing to be replaced.
Timely replacement helps prevent leaks, corrosion, and environmental hazards, making it crucial to hire a professional for proper installation.
This article was updated using automation technology and thoroughly reviewed for accuracy by HomeAdvisor Editor Ryan Noonan.
On average, oil tank replacement costs $2,322. Prices range from as low as $750 to as high as $5,200, with an average range of $1,581 to $3,063. Your total oil tank replacement cost depends on the tank's size, location, and quality.
Tanks only last 15 to 30 years, so you'll need to replace yours at some point to ensure safety and efficiency. Here's what you need to know to budget for this project and ensure it's installed properly.
Oil Tank Replacement Cost Factors
How much you’ll spend to replace your oil tank is based on a variety of factors. Here’s a closer look at how your total breaks down.
Labor
Labor for oil tank replacement costs between $500 and $1,200. Removing your old oil tank will cost between $400 and $3,000, with an average of $1,700. Additionally, if you're installing an underground tank, you'll need to budget for land excavation costs.
Location
The cost will depend on where you choose to place your tank—indoors or outdoors—and where you live. If you live in a colder climate, you might need to pay extra for special coatings and materials that prevent the tank from freezing.
| Region | Average Cost |
|---|---|
| Northeast | $1,900–$4,025 |
| Midwest | $1,650–$2,000 |
| South | $1,500–$1,700 |
| West | $1,700–$2,100 |
Tank Size
Larger tanks cost more, so first, measure how much fuel your household really uses. Residential models hold 100 to 1,000 gallons, while farms or businesses often need bigger units. Decide whether a single- or double-wall tank makes sense for your budget and space—double-wall designs last longer but come with a higher price tag.
| Tank Size in Gallons | Average Single-Wall Cost | Average Double-Wall Cost |
|---|---|---|
| 100–250 | $300–$2,200 | $900–$3,800 |
| 250–500 | $1,000–$2,100 | $1,200–$5,300 |
| 500–700 | $1,000–$4,900 | $3,000–$8,500 |
| 1,000+ | $2,800–$5,200 | $5,100–$9,700 |
Oil Tank Cost by Type
Your tank type has an impact on your total replacement cost. Here are the average costs to replace the following types of oil tanks.
Aboveground Outdoor
An outdoor aboveground oil tank is a mid-range option, costing between $1,200 and $2,500. You'll need to install a concrete base for it, but you won't have to dig a hole, saving on excavation costs.
Aboveground Indoor
Indoor tank replacement costs between $550 and $3,000, making it the least expensive option. Since it's installed in your basement, you won't need to create an access hole or build a concrete slab.
Underground
An underground oil tank is the most expensive option because creating an access hole can cost an extra $1,000 to $2,000. However, it keeps the tank out of sight and frees up space in your yard.
Budgeting for Oil Tank Replacement
Consider these cost-saving strategies to make your oil tank replacement more wallet-friendly:
Install an indoor tank, which is more affordable because you can avoid excavation or concrete slab costs.
Work with an oil tank installer to determine the smallest tank size that works for your home so you don’t spend money on an oversized tank.
Get detailed quotes from three local oil tank installation pros to ensure competitive pricing.
DIY vs. Hiring an Oil Tank Professional
Because oil tank installation is complex and heavily regulated, it’s best to leave the job to a licensed oil tank installer. A qualified pro will pull the necessary permits, follow environmental guidelines, and schedule any required inspections, so you can be confident the new tank is safe and up to code. Get quotes from trusted local pros when you’re ready to replace your tank.
How HomeAdvisor Gets Its Cost Data
No place is more important than your home, which is why HomeAdvisor connects homeowners with local pros to transform their houses into homes they love. To help homeowners prepare for their next project, HomeAdvisor provides readers with accurate cost data and follows strict editorial guidelines. After a project is complete, we survey real customers about the costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.
Frequently Asked Questions
Watch for warning signs such as poor heating performance, visible leaks or wet spots, surface rust, or an uneven tank shell. Exposed or damaged fuel lines also signal trouble. If you notice any of these issues—or if the tank is more than 15 years old—schedule an inspection with a licensed technician. An expert can confirm whether a repair is possible or if a full replacement is the safer, more cost-effective choice.
Oil tank swaps involve strict codes, heavy equipment, and environmental rules, so DIY replacement isn’t recommended. Licensed pros understand containment requirements, pull the correct permits, and know how to dispose of the old tank responsibly.
Hiring an experienced installer protects your property, the environment, and your warranty while saving you the headaches of complex regulations.
An oil tank’s life span depends on where it sits. Outdoor models last 10 to 15 years, while basement units can serve 20 to 30 years because they’re protected from harsh weather. Plan on routine inspections so a technician can spot corrosion early and recommend repair or replacement before a small issue turns into a leak.
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