How Much Does Oil Tank Replacement Cost? [2024 Data]
Normal range: $1,200 - $4,600
Replacing an oil tank costs around $2,400 on average. Prices can fall as low as $400 or reach up to $6,500, depending on the size and location.
Oil tank replacement cost falls anywhere between $400 and $6,500. If your home uses oil heat, you have an oil tank somewhere on your property to store the oil. Oil tanks only last 10 to 30 years, so you will have to replace them at some point. The average cost of an oil tank replacement is $2,400. The typical range is anywhere from $1,200 to $4,600 depending on the size of the tank and whether you get an indoor, aboveground, or underground installation.
- Average
- $2,400
- Low end
- $400
- high end
- $6,500
Cost to Replace an Oil Tank by Type
The type of oil tank you need depends on where the tank is designed to be housed. The location of your oil tank affects the replacement cost.
| Tank Type | Average Cost |
|---|---|
| Aboveground outdoor tank | $1,200–$2,500 |
| Underground tank | $1,600–$4,600 |
| Aboveground indoor tank | $550–$3,000 |
Aboveground Outdoor
An outdoor aboveground oil tank is the mid-range option in terms of cost. The cost is between $1,200 and $2,500. You will have to do extras like installing a concrete base, but you won't have to dig a hole for the oil tank to live in.
Underground
An underground tank is the most expensive option because it can cost an extra $1,000 to $2,000 to create an access hole for the tank.
Aboveground Indoor
Starting at just $550, indoor tank removal is your least-expensive option because you won't have to create an access hole or build a concrete slab since your basement's floor should suffice.
Oil Tank Replacement Cost Breakdown
The factors affecting the price of an oil tank replacement include the size of the oil tank and the type of installation.
Labor
Roughly $500 to $1,200 of your budget will go toward labor. You’ll pay in the lower range if installing the oil tank in the basement since that doesn’t require much work.
Size of the Oil Tank
Oil tanks range from around 100 to over 1,000 gallons, and the larger the oil tank you choose, the more it will cost. The price is also affected by whether the tank is a single-walled or double-walled tank. This feature impacts the tank’s longevity and susceptibility to corrosion.
| Capacity (Gallons) | Single-Wall Cost | 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 |
| 1000+ | $2,800–$5,200 | $5,100–$9,700 |
Type of Installation
If you get an indoor installation, you'll pay on the lower end since you won't have to build access holes or a concrete slab. An underground installation that requires digging will cost at the highest end. An aboveground option is a mid-range solution.
Fuel Filters
A smaller factor is whether you need to replace the fuel filters and fuel fill pipe, which will add about $100 to $150 to the price.
Oil Tank Removal Costs
Oil tank removal costs between $400 and $3,000 before factoring in the replacement costs. Expect to pay an average of $1,700 for oil tank removal—as long as there isn't an environmental issue lurking under the surface of your soil. A tank buried in the ground could reach as high as $3,000.
Location
You may find differences in oil tank replacement costs based on where you live in the U.S. Buried oil tanks are less common in western portions of the U.S. than in the eastern part of the country. So, homeowners may spend more simply because there’s higher demand for removal and replacement in states like Massachusetts, Rhode Island, and Connecticut compared to states like California, Oregon, or Washington.
| Region | Average Cost |
|---|---|
| Northeast | $1,900–$4,025 |
| Midwest | $1,650–$2,000 |
| South | $1,500–$1,700 |
| West | $1,700–$2,100 |
Additional Cost Factors for Replacing an Oil Tank
While the type and size of the tank and labor all play major roles in the cost to replace an oil tank, there are other factors that can influence how much you’ll pay for this project. From paying for permits to removing oil or sludge, here are some additional things you may need to budget for.
Permits
Most cities require a permit to replace your oil tank. Obtain the proper documents or have your pro help you. Building permits cost an average of $1,330 nationally but will vary greatly depending on where you live and your specific project.
Cost to Pump Reusable Oil
Have your contractor extract the reusable oil—if any—from your tank to avoid letting costly gallons go to waste. Pumping this oil requires special equipment to extract, filter, and reuse, so you may incur extra costs. Other contractors might want to keep it and reimburse you by discounting your bill.
Oil Sludge Disposal
Similar to oil tank removal fees, your contractor will likely price waste disposal by pound or ounce. While end rates vary by town and city, you might pay between $10 and $70, including service fees to remove and dispose of sludge properly.
Custom Fuel Lines
If you live in a colder climate, for example, you might opt for insulated fuel lines to keep your fuel from freezing. Your contractor might recommend a different supply line depending on your climate and location.
How to Save Money on Oil Tank Replacement
Replacing an oil tank is not a DIY job. It is a specialized and potentially hazardous task that involves compliance with regulations, safety precautions, and environmental considerations. If you’re trying to figure out how to cut costs without doing the job yourself, however, there are a few things you can do.
Install the tank indoors: While you may have originally intended to install the oil tank outside underground or above ground, basement installs are more affordable because you won't have to dig a hole or install a concrete slab.
Get a smaller tank: In this case, bigger tanks mean more money. If you can swing it, opt for a smaller tank that’s easier to install.
Be flexible regarding access: If you need to create an access hole for your tank, consider cutting into the wall of your home rather than into the foundation, which could save you around $1,000.
How Angi Gets Its Cost Data
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 extensively research project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We rely on 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.
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Frequently Asked Questions
You can determine if your oil tank needs replacing by watching for several key signs like inadequate heating, visible leaks or wet spots, corrosion or rust on the tank's surface, an uneven or deteriorating appearance, exposed or unprotected lines, or a malfunctioning fuel gauge. These indicators signal potential safety hazards and inefficiencies, making it essential to consider a replacement for your oil tank when you observe any of these issues. Also, if your tank is over 15 years old, it's generally recommended that you replace it.
DIY oil tank installation is possible but not recommended. This is because it is a difficult installation, and you’ll need to meet legal requirements for safety, like secondary containment within a fire-resistant chamber in a specific part of the building. Hiring a professional boiler installer ensures the job is done safely, legally, and correctly, protecting your property, the environment, and your peace of mind.
Oil tanks in general need replacement every 10 to 15 years. However, oil tanks in basements typically have a lifespan of 20 to 30 years because they are less exposed to the elements and won’t corrode as fast. This lifespan still depends on factors such as the tank's material, maintenance, and local regulations, though. Regular inspections and proactive maintenance can extend their longevity, while neglect and corrosion can shorten it.
The frequency of oil tank replacement depends on several factors, including the tank's material, location, and condition. In general, most oil tanks have a lifespan of 15 to 30 years. However, regular inspections by a qualified technician are crucial to assess the tank's integrity. Consider replacing your tank if it shows signs of corrosion, rust, leaks, or if it no longer meets updated safety and environmental standards.