HEATING
Propane Tank Installation Cost: In 2026
Estimate propane tank installation cost — with the free HVAC calculator.
A propane tank powers heat, water, cooking and generators where natural gas doesn't reach. The tank size and install method drive the price. Here's the real 2026 cost.
THE SHORT ANSWER
The short answer
A 500-gallon propane tank runs $800–$1,600 to buy and $1,000–$2,500 to install above-ground in 2026. Underground installs run $2,500–$5,000+. Leasing runs $0–$200 upfront. Refills run about $1,070 per 500 gallons.
What it costs
Buying a 500-gallon tank runs $800–$1,600; installation above-ground $1,000–$2,500. Underground installs run $2,500–$5,000+. Leasing runs $0–$200 upfront with a fuel contract. Smaller 120-gallon tanks run $500–$1,200 installed. Refills run $1,070 per 500 gallons.
- 500-gal tank: $800–$1,600
- Above-ground install: $1,000–$2,500
- Underground install: $2,500–$5,000+
- Refill (500 gal): ~$1,070
Buy vs lease
Buying the tank means upfront cost but freedom to shop fuel prices. Leasing runs $0–$200 upfront but locks you to one supplier — typically 20-40 cents more per gallon. If you'll be in the house 5+ years, buying usually wins. Underground costs more but looks better.
Try the HVAC calculator
Enter the tank cost and labor to rough out the total.