CostGuideHQ

Propane Tank Installation Cost: $600–$2,500 (Average $1,400) in 2026

Author: CostGuideHQ Editorial·✓ Fact-checked·Updated July 2026·6 min read·4 sources·US national averages, USD
Quick answerQuick answer: Most homeowners pay $600 to $2,500 to install a propane tank, averaging about $1,400 nationally. Price depends heavily on tank size — 120 to 1,000 gallons — and whether it sits aboveground or is buried, which alone can add well over $1,000 to the job.
  • A typical propane tank installation costs $600 to $2,500, averaging about $1,400 nationally (Angi, HomeAdvisor, This Old House).
  • Underground/buried tanks cost $1,500 to $5,500 installed versus $400 to $3,500 for aboveground tanks, mostly due to excavation and trenching (Angi, HomeAdvisor).
  • A 1,000-gallon tank runs $1,500 to $5,500 installed, compared to $350 to $900 for a 120-gallon tank (Angi, HomeAdvisor, Fixr, HomeGuide).
  • Buying a 500-gallon tank costs $1,000 to $2,000 upfront, while leasing runs $150 to $180 a year plus fuel (Angi, This Old House).

How much does propane tank installation cost?

National average
$1,400
total project
Typical range
$600–$2,500
Most projects
Whole project
$350–$5,500
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Cost by material / type

TypeLowHigh
120 gallon$350$900
250 gallon$450$1,200
500 gallon$700$3,000
1,000 gallon$1,500$5,500
Estimate your cost
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Rough estimate only — get local quotes for exact pricing.

What affects the cost?

  • Tank size — a small 120-gallon tank runs $350-$900 installed, while a 1,000-gallon whole-home tank costs $1,500-$5,500 (Angi, HomeAdvisor, Fixr, HomeGuide)
  • Aboveground vs. underground — aboveground tanks cost $400-$3,500 installed, versus $1,500-$5,500 for a buried tank, which needs excavation, trenching, and corrosion protection (Angi, HomeAdvisor); Fixr and HomeGuide put underground at $1,500-$5,000
  • Buy vs. lease — buying a 500-gallon tank runs $1,000-$2,000 upfront, while leasing runs $150-$180 a year, though leases often carry minimum-usage fees (Angi, This Old House)
  • Excavation and trenching for buried tanks — $500-$2,400 for excavation plus $400-$1,200 per 100 linear feet of trenching (Angi); HomeGuide cites $100-$300 per hour for an excavator and operator instead
  • Gas line run from the tank to the house — $250-$800 (average $540), or $15-$25 per linear foot (Angi, This Old House); HomeGuide cites $15-$50+ per linear foot for materials and labor
  • Permits and setback compliance — permits run $25-$150, and code typically requires an aboveground tank to sit at least 10 feet from an ignition source and 3 feet from any building opening (Angi, HomeAdvisor, This Old House)
  • Concrete pad for aboveground tanks — $50-$175 total, or $5-$10 per square foot (Angi, HomeGuide)
  • Labor and site conditions — installation labor runs $250-$5,000 depending on tank size and access, with plumbing labor billed at $45-$200 per hour (Angi, HomeAdvisor, This Old House)

Why does propane tank installation cost so much?

Propane tank pricing comes down to two decisions: how big a tank you need, and whether it sits aboveground or underground. Most homeowners pay $600 to $2,500 for the full installation, averaging around $1,400 nationally (Angi, HomeAdvisor, This Old House). By size, a 120-gallon tank — enough for a single appliance like a water heater — runs $350 to $900 installed, a mid-size 250-gallon tank runs $450 to $1,200, a 500-gallon tank for a whole-house system runs $700 to $3,000, and a 1,000-gallon tank for a larger home tops out at $1,500 to $5,500 (Angi, HomeAdvisor, Fixr, HomeGuide). Fixr’s own overall average lands notably higher at $2,500, which its size-by-size breakdown suggests reflects a mix weighted toward bigger tanks and underground installs rather than a small single-appliance hookup.

How much more does an underground tank cost than an aboveground one?

Burying the tank typically adds well over $1,000 to the job. Aboveground tanks cost $400 to $3,500 installed, while underground/buried tanks run $1,500 to $5,500 (Angi, HomeAdvisor) — Angi puts the gap at $1,100 to $4,700 more for going underground. The difference comes from site work: excavation runs $500 to $2,400, trenching adds $400 to $1,200 per 100 linear feet, and plumbing labor for the buried gas line runs $45 to $200 per hour (Angi, HomeAdvisor). Placement is also governed by fire code, not just preference. Brian Russo, a propane supplier featured on This Old House, explains that “one of the codes requires [aboveground tanks] to be 10 feet from any source of ignition.” A separate rule keeps the tank at least three feet from any building opening. Permits, which factor in these setback rules, cost $25 to $150 (Angi, HomeAdvisor, This Old House), and most jurisdictions require them before a tank goes in the ground or against the house.

Should I buy or lease my propane tank?

Buying costs more upfront but usually pays off if you’re staying put. A 500-gallon tank costs $1,000 to $2,000 to purchase outright, and owning it means you can shop around for the best per-gallon propane price and, in many cases, bury the tank to keep your yard looking clean (Angi, This Old House). Leasing avoids that upfront cost — expect to pay $150 to $180 a year plus the cost of fuel — and the supplier typically handles maintenance and inspections. The tradeoff is that leased tanks usually lock you into that supplier’s pricing, and many lease agreements include minimum-usage fees that can erase the savings if you don’t use much propane (Angi, This Old House). If you won’t be in the home long, leasing keeps upfront costs low; if you’re settled in for years, buying is usually the better math.

How to lower your propane tank installation cost

  • Choose an aboveground tank over a buried one unless you specifically want the yard cleared — aboveground installs run $400 to $3,500 versus $1,500 to $5,500 underground (Angi, HomeAdvisor).
  • Pick the smallest tank that meets your household’s needs. Jumping from a 250-gallon to a 500-gallon tank can add well over $1,000 to the installed cost (Angi, HomeAdvisor).
  • Keep the gas line run short. Since it’s priced at $15 to $25 per linear foot, placing the tank closer to the house cuts that line item directly (Angi, This Old House).
  • Compare buying versus leasing before committing, especially if you plan to stay in the home for many years — ownership avoids minimum-usage fees and long-term markups (Angi, This Old House).
  • Confirm permit and setback requirements with your local building department up front, since fines or a forced relocation cost far more than the $25 to $150 permit itself (Angi, HomeAdvisor, This Old House).

Prices vary by region, tank size, and site conditions, so treat the figures above as a planning budget. Get two or three local quotes, and confirm upfront whether the concrete pad, gas line run, permits, and old-tank removal are included.

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Frequently asked questions

How much does it cost to install a propane tank?
Most homeowners pay $600 to $2,500, averaging around $1,400 (Angi, HomeAdvisor, This Old House). The full realistic spread runs from about $350 for a small tank with minimal labor up to $5,500 for a large buried system (Angi, HomeAdvisor).
How much does a 120-gallon propane tank cost installed?
A 120-gallon tank runs $350 to $900 installed, depending on the source and whether it's aboveground (Angi, HomeAdvisor, Fixr, HomeGuide, This Old House).
How much does a 500-gallon propane tank cost installed?
A 500-gallon tank costs $700 to $3,000 installed aboveground, or more if buried — Fixr and This Old House put a buried 500-gallon tank at $1,500 to $3,000 (Angi, HomeAdvisor, Fixr, This Old House).
How much more does an underground propane tank cost than an aboveground one?
Underground/buried tanks run $1,500 to $5,500 installed versus $400 to $3,500 for aboveground tanks (Angi, HomeAdvisor) — Angi notes underground installs cost $1,100 to $4,700 more, mainly from excavation, trenching, and corrosion protection.
Is it cheaper to buy or lease a propane tank?
Buying a 500-gallon tank costs $1,000 to $2,000 upfront but saves money long-term since you can shop suppliers freely. Leasing runs $150 to $180 a year plus fuel, with no upfront cost, though many leases carry minimum-usage fees (Angi, This Old House).
Do I need a permit to install a propane tank?
Yes, in most areas. Permits typically cost $25 to $150 (Angi, HomeAdvisor, This Old House), and placement is governed by setback codes — an aboveground tank generally needs to sit at least 10 feet from an ignition source and 3 feet from any building opening.
What does the gas line from the tank to the house cost?
Running the gas line averages $540, with a typical range of $250 to $800, or $15 to $25 per linear foot (Angi, This Old House). HomeGuide cites a broader $15 to $50+ per linear foot for materials and labor.
Why do propane tank cost estimates vary so much between sources?
Angi, HomeAdvisor, and This Old House cluster around a $1,400 average and $600-$2,500 range, while Fixr reports a higher $2,500 average ($1,500-$3,750) that its own size-by-size data shows leans toward larger tanks and buried installs rather than a typical small aboveground hookup.

Sources

Figures synthesized and cross-checked across these sources (retrieved 2026-07-28):

  • Angi — Normal range $600-$2,500; average $1,400; low end $350; high end $5,500. By tank size (gallons): under 100 $35-$300, 100 $350-$500, 120 $400-$800, 250 $500-$1,000, 500 $700-$3,000, 1,000 $1,500-$5,500. Aboveground $400-$3,500; underground $1,500-$5,500 (underground costs $1,100-$4,700 more than aboveground). Underground breakdown: excavation $500-$2,400, plumbing labor $45-$200/hour, trenching $400-$1,200 per 100 linear feet, gas line $120-$1,350. Gas line installation averages $540, range $250-$800, $15-$25 per linear foot. Concrete pads $50-$175 (120-gal pad $50-$75, 250-gal $75-$125, 500-gal $125-$175). Permits $25-$150. Annual inspections $50-$75. Buying a 500-gallon tank costs $1,000-$2,000; renting runs $150-$180/year. Old tank removal $100-$1,500. Installation labor overall $250-$5,000.
  • HomeAdvisor — Average cost $1,400; normal range $600-$2,500; full range $350-$5,500. By tank size (gallons): less than 100 $35-$300, 100 $350-$500, 120 $400-$800, 250 $500-$1,000, 500 $700-$3,000, 1,000 $1,500-$5,500. Above-ground $400-$3,500; underground/buried $1,500-$5,500. Underground breakdown: excavation $500-$2,400, trenching $400-$1,200, gas line $120-$1,350, plumbing labor $45-$200/hour. Labor (installation) $250-$5,000. Permits $25-$150. Annual inspections (underground) $50-$75. Gas line installation $250-$800 (avg $540); $15-$25/linear foot. Concrete pads $50-$175. Excavation labor $50-$200/cubic yard.
  • Fixr — National average range $1,500-$3,750; average cost $2,500; low end $700; high end $5,000. By capacity installed: 120 gallons $350-$600 (above-ground); 250 gallons $450-$1,000 (above-ground); 500 gallons $700-$2,500 (above-ground) or $1,500-$3,000 (underground); 1,000 gallons $1,500-$3,000 (above-ground) or $2,500-$5,000 (underground). Above-ground installation $300-$3,000; underground installation $1,500-$5,000. Above-ground gas line work $150-$300 plus about $500 total setup and delivery; underground excavation/trenching labor $150-$1,000, most paying $600-$800; underground installation starts at $1,000. Annual inspections (owned tanks) $50-$75; recertification about $100; tank removal up to $500; tank moving $100-$1,500. Leasing costs $0 or $150-$175 annually.
  • This Old House — Average cost about $1,400; most homeowners pay $600-$2,500. By size, above-ground: 100 gallon $600-$800, 120 gallon $700-$900, 250 gallon $800-$1,200, 330 gallon $900-$1,500, 500 gallon $1,000-$2,000, 1,000 gallon $1,500-$2,500. Underground (500 and 1,000 gallon): $1,500-$2,500 and $2,000-$2,500. Buying a 500-gallon tank $1,000-$2,000 upfront; renting $150-$180/year plus fuel. Gas line setup averages $540, range $250-$800. Labor $50-$150/hour, typically 4-8 hours on site; permits $25-$150. Concrete pads from $50 for small units; 500-gallon pad $125-$175. Old tank removal $100 (above-ground) up to $1,500 (buried). Tank relocation about $200 (above-ground) or $1,000-$1,500 (underground). Yearly safety checks $50-$75. Quote from Brian Russo, propane supplier: aboveground tanks must be '10 feet from any source of ignition' and 'three ft from any opening into a building.'

Angi, HomeAdvisor, and This Old House cluster tightly on the whole-project figure: average $1,400, typical range $600-$2,500. Angi and HomeAdvisor are sister brands under the same parent company and publish near-identical tables, and This Old House states it also draws in part on Angi's data for this guide, so these three aren't three fully independent confirmations. Fixr and HomeGuide, which describe different data-collection methods, corroborate the same order of magnitude and the same aboveground/underground and size-based cost structure, though Fixr's own overall average reads notably higher ($2,500, range $1,500-$3,750) — its per-size table shows that average is weighted more toward larger tanks and underground installs than a typical single aboveground hookup. national_average_usd and range_low_usd/range_high_usd are anchored to the Angi/HomeAdvisor/This Old House cluster. project_low_usd/project_high_usd ($350-$5,500) capture Angi's and HomeAdvisor's stated absolute low and high ends, covering everything from a small tank with no labor up to a large buried 1,000-gallon system. by_type rows use the widest low-high span any of the four sources cites per tank size, since sources differ on whether a given size is quoted aboveground-only, underground-only, or both. Figures generally cover the tank and standard installation; propane fuel itself, delivery fees, and ongoing rental/lease fees are priced separately and broken out in cost_factors rather than folded into the size-based figures.