How Much Does an Oil Tank Replacement Cost in 2025?
An oil tank replacement costs an average of $2,322
Replacing your water or fuel tank costs an average of $2,322, with prices ranging from $750 to $5,200.
The cost is affected by the size of your tank, whether it's aboveground or underground, and the installation of gas lines.
Replacing your tank every 15 to 30 years ensures your home remains safe and efficient.
Hiring a professional for installation ensures compliance with safety and environmental regulations.
This article was updated using automation technology and thoroughly reviewed for accuracy by HomeAdvisor Editor Ryan Noonan.
If your home relies on a water or fuel tank, replacing it costs about $2,322 on average. Prices range from as low as $750 to $5,200, depending on the tank's size, location, and quality. Tanks only last about 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
Installing a water or fuel storage tank involves several costs to consider.
Labor
Labor alone can cost between $500 and $1,200. Removing an old oil tank can cost between $300 and $1,000 for an aboveground tank and $1,000 to $3,000 for an underground tank. Additionally, if you're installing an underground tank, you'll need to budget for land excavation, which costs $40 to $150 per hour.
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.
Tank Size
Generally, the larger the oil tank, the more it will cost. For most homes, fuel holding tanks range from 100 to 1,000 gallons. If you have a larger property, like a commercial business or a farm, you might need a bigger tank. When selecting a tank size, consider your needs, budget, and available storage space. When choosing your tank size, you’ll also have to consider whether you want a single or double-wall tank. Double-wall tanks last longer but are more expensive than single-wall tanks.
| 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 |
Running Fuel Lines
The cost to install a gas line is around $600 and requires specialized expertise, so it's not a DIY job.
Oil Tank Cost by Type
There are two main types of fuel storage tanks: aboveground and underground. Aboveground tanks are more common and more cost-effective to install, but underground tanks provide more storage without taking up space on your property.
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 starts at just $550, 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.
DIY vs. Hiring an Oil Tank Professional
Replacing an oil tank requires knowledge and experience, so a DIY approach is not recommended. An improperly installed or maintained fuel storage tank can harm the environment and contaminate the soil, so permits and annual inspections may be required. By hiring a local oil tank installer or storage tank pro, you ensure your tank is installed safely and complies with all regulations. Hire a professional storage tank installer to ensure safe and compliant installation. They'll handle all the permits and regulations, so you won't have to worry.
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
You can tell if your oil tank needs replacing by watching for several key signs, like persistent leaks, visible corrosion, or an uneven structure. If the fuel gauge isn't working properly, that's another indication your tank may be failing. Generally, if your oil tank is over 15 years old, it's time to consider a replacement. Scheduling an inspection with a qualified technician can confirm if your tank meets safety and performance standards.
DIY oil tank installation is not recommended. The installation process demands strict adherence to safety regulations, including secondary containment in a fire‐resistant chamber and compliance with legal requirements. Hiring a qualified professional ensures that all permits are in place and that the installation meets rigorous safety and environmental standards. This approach safeguards your property and guarantees high-quality performance.
An oil tank installed outdoors must be replaced after 10 to 15 years of reliable service, while an indoor installation in a basement endures for 20 to 30 years due to reduced exposure to corrosive elements. A qualified technician’s regular inspection confirms the tank’s condition and ensures timely replacement when deterioration or safety risks become evident.
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