The cost to remove an oil tank is $1,352 on average, but it can cost between $580 and $2,127 or more depending on your tank's capacity.
If it's time to call timeout on your oil tank, expect to pay an average of $1,352 for oil tank removal—as long as there isn't an environmental issue lurking under the surface of your soil. While homeowners pay between $580 and $2,127 for all removals before factoring in the cost of oil tank replacement, there's a big difference between moving aboveground and underground oil tanks. Project costs rise if an oil tank leak requires environmental remediation.
Labor and size are the two big cost factors for removing an oil tank, which can range from $400 to $3,000. However, your estimate will include some fixed costs related to materials. Disposal fees for your old oil tank range from $200 to $700.
Contractors typically bundle costs for labor and materials into one quote for oil tank removal because this is a labor-intensive job. As part of responsible tank removal, you'll need to have the soil surrounding your tank tested for leakage. While some tank removal contractors build this into the cost for removal or tank abandonment, others do not.
Soil testing during removal of an aboveground tank averages $300. Testing underground oil tanks for leaks costs closer to $500.
If you prefer to have your decommissioned tank stay in the ground instead of hauling it away, this process is called oil tank abandonment. Your contractor will charge you for dirt fill or foam used to fill the tank after cutting it open.
The typical cost for tank abandonment services that include light excavation, cut out of the tank, tank draining, tank washing, and the addition of foam or dirt fill is between $1,000 and $3,000.
Homeowners will see big differences in cost when removing underground tanks versus aboveground tanks. Excavation costs to unearth your buried tank can total as much as half of your bill. If your tank is in your basement, the work necessary to demolish the tank before fitting through a door can add $100 to $300 to your project's budget.
A tank buried in the ground can jump removal costs between $1,000 and $3,000. A tank buried in a basement may cost beyond the high range of $3,000.
The average cost to remove an aboveground oil tank will require less labor and usually falls between $300 and $1,000.
| Oil Tank Type | Average Removal Cost |
|---|---|
| Underground Oil Tank | $1,000 – $3,000 |
| Above-Ground Oil Tank | $300 – $1,000 |
Tank size impacts cost, especially for buried tanks, because the extra width and girth require more excavation time. Expect costs to remove oil tanks by gallon capacity to follow these trends:
| Oil Tank Capacity (Gallons) | Average Removal Cost |
|---|---|
| 550 or less | $400 – $1,200 |
| 1,000 | $1,300 – $1,800 |
| 1,500 | $1,900 – $2,200 |
| 2,000 | $2,300 – $2,700 |
| 3,000 | $2,800 – $3,000 |
Anything that adds extra time to the process of getting your oil tank out of the ground is going to increase costs. Here are a few factors to consider when budgeting for this project.
Bigger tanks cost more to remove because of the added labor of freeing, decommissioning, and hauling a bigger, heavier item. Size is less of a factor for aboveground tank removal than for buried tank removals simply because there's no unearthing needed.
If you must remove unused oil, the price will bump higher. Heating oil services near you will typically price hazardous waste disposal by pound or ounce. While end rates vary by town and city, you might pay between $10 and $70, including service fees.
Excavation needed to free a tank from the ground adds to project costs. If your tank is buried in a basement, you'll likely pay $500 to $1,000 extra for excavation and extraction. If you installed your tank while the house was under construction, you might need to dismantle it to fit through the door.
If soil testing reveals a leak on your property, it will be necessary to have leak remediation done. These clean-up costs to remove harmful contaminants from your soil can cost $10,000 or more. In addition, your state may require you to report the leak to your state-level environmental agency to have a case opened.
Removing an oil tank is not a DIY project. Most states require a closure license to remove a tank. Unfortunately, if you don’t have the expertise and tools to handle unexpected situations, you risk creating environmental hazards at your home and within the community.
Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We survey real Angi customers about their project 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.
Want to help us improve our cost data? Send us a recent project quote to costquotes@angi.com. Quotes and personal information will not be shared publicly.
Common signs that your oil tank is leaking include higher energy bills, an oily sheen seen in your water, an oil-like odor in your home or yard, stained patches of grass on your property, and dying vegetation.
Most states require soil testing at the same time as removal to check for hazardous pollutants that may have entered the ground. Oil can harm soil and water supplies. If you're removing a tank because it has degraded, this increases the chances that corrosion has allowed for leakage.
Most home insurance policies will not cover the cost of oil tank removal. However, some companies offer oil tank insurance policies that will pay for repairs, and 36 states have funds that offer financial assistance for damage caused by oil tank releases.
Yes! This is considered an environmental hazard that can harm soil and water supplies. Soil samples must be taken by a certified professional if you have reason to suspect that your oil tank is leaking. Next, it's necessary to report the leak to your state's environmental agency.
