Purchase prices for common sizes
Typical 2026 US prices for customer-owned tanks (tank only, before installation):
- 120 gal ASME aboveground — $700–$1,200
- 250 gal ASME aboveground — $900–$1,500
- 500 gal ASME aboveground — $1,200–$2,000
- 1,000 gal ASME aboveground — $2,000–$3,500
- 500 gal ASME underground — $1,500–$2,500 (tank only; add excavation)
- 1,000 gal ASME underground — $2,500–$4,000 (tank only)
Installation costs
Aboveground install: $300–$1,000 for site prep, anchoring, regulator and first-stage connection. Underground install: $1,500–$3,500 including excavation, sand bedding, cathodic protection, and connections. Permits and inspection are typically $50–$200 on top. See tank installation cost.
Leased tank annual rent
Most dealers charge $50–$150/year tank rent on leased tanks, and waive it above a minimum annual purchase volume (commonly 400–500 gallons). For customers who clear the waiver threshold, effective lease rent is zero.
Ongoing maintenance
Regulator replacement: every 15–25 years, $200–$500 per regulator. Routine inspection: included by most dealers in service plans (free or low cost). Painting/touch-up: minor, every 5–10 years for aboveground tanks.
FAQ
How much does a 500-gallon propane tank cost?
Aboveground purchase: $1,200–$2,000 for the tank, plus $300–$1,000 installation. Total customer-owned setup: $1,500–$3,000. Leased: $0 upfront plus $50–$150 annual rent (often waived).
Why is underground installation so much more expensive?
Excavation, sand bedding, cathodic protection (to prevent corrosion), and the additional permit and inspection requirements. The tank itself is similar; the installation is the expensive part.