You’ve got a cold shower problem. The water heater is making noises like a coffee grinder. You know it’s time for a new one. And you’re already a Costco member, so the first thought is: does Costco sell gas water heaters?
Good news: yes, they do. But the answer isn’t as simple as walking into a warehouse and loading a tank into your cart. There are catches, options, and fine print you need to know. This article covers what Costco stocks, how their pricing works, what installation looks like, and whether you should pull out your membership card or call a plumber instead.
What Costco Actually Sells for Gas Water Heaters
Costco sells gas water heaters, but mostly online. In most warehouses you’ll find electric water heaters on the floor, but gas models are typically special order through Costco.com. That’s an important distinction: you can’t just grab a 50-gallon gas unit off the shelf on a Saturday afternoon.
The primary gas water heater brands at Costco are Rheem and AO Smith. They offer both traditional tank-style and tankless models. For tank-style, you’ll see 40, 50, and 75-gallon options. For tankless, Costco carries the Rheem tankless gas water heater line, including high-efficiency condensing models.
One thing that stands out: Costco frequently bundles these with installation services. You don’t just buy the unit — you buy the unit plus professional installation through a third-party contractor network. That’s a big deal if you don’t want to handle gas lines and venting yourself.
Costco’s gas water heater selection is smaller than what you’d find at Home Depot or Lowe’s. But the trade-off is the warranty and service support. Most Rheem units through Costco carry a 12-year warranty, compared to the 6-year standard elsewhere.
Pricing, Installation, and Warranty – The Fine Print
Let’s talk money. Costco’s prices on gas water heaters are competitive, but they’re not always the lowest. The real value comes from the warranty and the service bundle. Most Rheem gas water heaters at Costco come with a 12-year warranty, which is longer than the standard 6-year warranty you’d get at a big-box store. But read the fine print: the warranty covers the tank, not labor. And Costco’s Concierge Services handle warranty claims, which can be smoother than dealing with the manufacturer directly.
Installation is handled by a network of local licensed contractors. Costco doesn’t employ plumbers. You pay a flat installation fee that includes removal of the old unit, basic permits, and up to a certain amount of venting and gas line work. If your setup is non-standard — say, you need a new gas line run or a different venting system — you’ll pay extra. Some customers report that the installation scheduling can take a week or two, so plan ahead.
Also: membership is required to buy from Costco.com. If you’re not a member, you can’t buy. But you can join online for about $60 a year. Factor that into your total cost if you don’t already have a membership.
Tank vs. Tankless – Which One Should You Get?
This is the big decision. Costco sells both. Traditional tank water heaters are cheaper upfront, simpler to install, and work fine for most homes. A 50-gallon gas tank heater from Costco will typically cost several hundred dollars — check current prices on Costco.com for exact numbers. Tankless gas water heaters are more expensive — often $1,000 to $1,500 for the unit alone — but they save energy, last longer, and never run out of hot water.
But there’s a catch with tankless: the installation often costs more. Gas tankless units require larger gas lines and specific venting (usually PVC for condensing units, or stainless steel for non-condensing). Costco’s flat installation fee may not cover these extras. You’ll need to get a quote from the installer after they assess your home.
For most families, a 50-gallon tank heater is sufficient. Only go tankless if you have a large household, long showers, or want the energy savings. And if you do go tankless, consider a water softener if you have hard water — that’s a key factor. We covered this in more detail in our article on tankless water heater softener needs.
Should You Buy a Gas Water Heater at Costco?
It depends on your situation. If you’re a Costco member and you want a reliable Rheem or AO Smith unit with a solid warranty, and you’re okay with waiting for installation, it’s a good option. The 12-year warranty and Concierge service are real benefits. However, if you need a unit installed tomorrow because your heater flooded the basement, Costco’s timeline might not work. Local plumbing supply houses or even Home Depot can sometimes get a unit installed faster.
Also, compare prices. Sometimes you can find a better deal on the same model from a local plumbing wholesaler, especially if you can install it yourself. Costco’s prices are good, but not always the absolute lowest. The value is in the bundle: unit plus installation plus extended warranty.
One more thing: Costco’s return policy is excellent. If you have a problem with the unit, you can return it to Costco within 90 days. After that, the warranty applies.
I’d suggest: if you’re not in a rush and you value the warranty, buy from Costco. If you want the cheapest price possible and can install it yourself, look at local plumbing suppliers or online retailers.
| Factor | Costco | Home Depot | Local Plumber |
|---|---|---|---|
| Unit price | Competitive, often includes installation bundle | Similar to Costco base price | Usually higher markup |
| Warranty | 12 years (Rheem) + Concierge support | 6-10 years standard | 6-10 years, varies |
| Installation included? | Optional bundle with contractor network | Separate, can schedule | Included in quote |
| Speed of install | 1-2 weeks typical | 3-7 days | Usually 1-3 days |
| Return policy | 90 days (membership required) | 30 days | Depends on contract |
| Brand selection | Rheem, AO Smith | Rheem, AO Smith, GE, others | Limited to what they stock |
| Best for | Members wanting warranty plus easy service | Quick purchase, more brand choices | Emergency installs, custom work |
Do I need a Costco membership to buy a gas water heater?
Yes. Costco.com requires membership for purchases. In-warehouse purchases also require membership. If you’re not a member, you can join online for about $60 a year for Gold Star.
Does Costco install gas water heaters?
Costco offers installation through a third-party network. When you buy a gas water heater online, you can add installation at checkout. The fee covers removal of the old unit, basic permits, and standard hookup. Non-standard work (extra venting, gas line extension) costs extra. The installers are licensed contractors, not Costco employees.
Can I return a gas water heater to Costco?
Yes, within 90 days of purchase for a full refund. Costco’s return policy for major appliances is 90 days. After that, warranty claims go through the manufacturer or Costco’s Concierge service. Keep your receipt and membership card.
Are Rheem gas water heaters from Costco good quality?
Rheem is one of the top brands in water heaters. Costco carries the Rheem Performance series with a 12-year warranty. They are solid units. However, some plumbers prefer AO Smith or Bradford White. The difference is marginal for most homeowners. Just ensure the model you buy has the right BTU rating and recovery rate for your household size.
Does Costco sell tankless gas water heaters?
Yes. Costco sells Rheem tankless gas water heaters, including the RTGH series. These are high-efficiency condensing units that can handle multiple bathrooms. They are more expensive than tank models but offer endless hot water. If you’re considering a tankless, read our guide on <a href
