How Much Does a Residential Propane Tank Installation Cost?

Typical Range:

$275 - $8,150

Find out how much your project will cost.

Cost data is based on research by HomeAdvisor.

Updated November 2, 2021

Written by HomeAdvisor.

The average cost of a residential propane tank installation for homeowners across the country is $2,750. While homeowners on the high end pay up to $8,150, for some, costs are as low as $275. Project costs for this home enhancement are split between the cost of a new tank and installation fees.

Average Cost To Install a Propane Tank

High Cost$8,150
Average Cost$2,750
Low Cost$275

Residential Propane Tank Cost by Type

Propane tank prices for residential propane tanks range between $1,000 and $2,000. Homeowners should also budget between $25 and $50 for permits when installing any style of residential propane unit. However, costs for labor and excavation can vary wildly based on the setup you want at your home.

Your two options when installing a residential propane tank are an underground or above-ground tank. Expect labor costs to be higher for a project that involves excavation, trenching and plumbing.

Underground Propane Tank Installation

An underground propane tank offers benefits if you have limited space on your property. You’ll pay between $1,525 to $8,150,depending on the size of your tank and the length of the gas lines. Some homeowners are simply willing to pay more to keep a tank out of sight. Here's the labor cost breakdown when you're digging down to install your new propane tank:

  • Excavating: $500 - $2,400

  • Plumbing: $45 - $150 hourly

  • Trenching: $400-$1,200

  • Gas Line: $200-$1,500

Above-Ground Propane Tank Installation

A much more affordable job than burying your propane tank, installing an above-ground propane tank will cost between $650 to $4,675. Above-ground installation will require a special concrete pad to serve as the foundation for your unit. You'll also need to have a gas line installed.

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Residential Propane Tank Installation Cost by Size

The gallon capacity of the unit you're having installed will impact price for both underground and above-ground tanks, with costs ranging from $650 to $8,150.

Cost of Propane Tanks by Tank Size

Here’s how much the tank itself will cost based on its gallon capacity:

  • 120 gallons: $400-$800

  • 250 gallons: $500-$1,000

  • 500 gallons: $500-$3,000

Cost to Install Concrete Pads for Above-Ground Residential Propane Tanks by Gallon Capacity

Here's what the price breakdown looks like for concrete pads based on the size of your propane unit:

  • 120 gallons: $50-$75

  • 250 gallons: $75-$125

  • 500 gallons: $125-$175

Cost to Install Gas Lines for Residential Propane Tanks by Gallon Capacity

Next up is the cost to install gas lines. Here's what that looks like by size:

  • 120 gallons: $200-$500

  • 259 gallons: $200-$1,000

  • 500 gallons: $500-$1,500

Cost to Excavate for an Underground Residential Propane Tank by Gallon Capacity

Labor costs to excavate for an underground propane tank range from $50 to $200 per cubic yard. With most homeowners choosing a 500-gallon propane tank requiring 10 to 12 cubic yards, that brings costs somewhere between $500 and $2,400.

Residential Propane Tank Cost Factors

Topography and personal preferences both impact total project costs. Here's a look at some factors that may increase the cost of installing a new residential propane tank.

Buying or Renting

Purchasing a tank outright costs between $1,000 and $2,000. Some homeowners prefer to rent propane tanks for up to $250 per year.

Pipe Length

If your unit is beyond the 100-foot to 150-foot proximity to the street recommended for hose accessibility, you may require more piping. Extra piping may also be needed if your tank is located more than the recommended 10 feet from your home.


If you'll be connecting your tank to several appliances, you'll need to pay for extra gas lines. Each line running 20 to 30 feet costs between $200 and $500.

Existing Utility Lines

If you encounter existing utility lines during trenching, moving the lines will add to your project cost.

DIY vs. Hire a Residential Propane Tank Installation Pro

In addition to being illegal in most places, trying to install your own propane tank can be extremely dangerous and difficult! Leave this one to a licensed propane pro!


Is it better to choose an underground or above-ground propane tank?

An underground propane tank provides the benefit of allowing your yard to go back to normal without a visible tank. However, this project can be more complicated than adding an above-ground propane tank because it requires excavation.

Are underground propane tanks more expensive than above-ground propane tanks?

Yes, installing an underground propane tank is generally much more expensive than installing an exposed propane tank due to the excavation needed. You will also need to pay $50 to $75 annually for an inspection of your buried propane tank to check for leaks and valve condition.

Are underground or above-ground propane tanks safer?

Both options are considered safe. However, buried propane tanks are generally considered safer in extreme climates because they are better at maintaining consistent temperatures. Buried propane tanks are recommended for cold climates. They can also offer extra protection if leaking occurs.

How much does it cost to remove an underground propane tank to upgrade to a better one?

The average cost to have a buried propane tank professionally removed is $900.

What types of appliances can be hooked up to a propane tank?

Residential propane tanks are used to provide heat to gas ovens, outdoor stoves, furnaces, boilers, hot-water heaters, heated swimming pools, hot tubs, indoor gas fireplaces and outdoor gas fireplaces.

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