500 Gallon Propane Tank Cost: Purchase, Install & Refill

The most common residential propane tank in the US. Full pricing across the lifecycle: tank purchase, installation, refills, rental alternative, and the dimensions you need to plan around.

Latest EIA residential propane price

Source: EIA SHOPP residential propane survey. Current data is the final release of the 2025/26 heating season (week ending 30 March 2026). EIA pauses weekly publication April-September; next release expected October 2026. Refreshed 21 July 2026.

500-Gallon Tank: Cost Summary

Tank only (new)

$800 - $1,600

ASME-rated steel; varies by manufacturer and finish

Tank only (refurbished)

$500 - $900

Inspected, recertified, with valid stamp

Full install (above-ground)

$1,000 - $2,500

Tank, labour, line, regulator, permit

Full install (underground)

$2,500 - $5,000

Plus excavation, coating, cathodic protection

Annual rental (alternative to buying)

$100 - $175/year

Plus $0.30-$0.50/gal supplier markup

Refill at national avg ($2.67/gal)

$1,070 (400 gal)

Range $657 (Nebraska) to $1,882 (Florida)

500-Gallon Tank Specs

Length (above-ground horizontal)	~9 ft 11 in (118-120 inches)
Width / diameter	~3 ft (37-38 inches)
Height (with dome)	~4 ft (48 inches)
Weight empty	~950 lbs
Weight full (400 gal × 4.24 lb/gal + tank)	~2,650 lbs
Usable propane (80% rule)	400 gallons
Setback from buildings (above-ground)	10 feet (NFPA 58)
Setback from ignition sources	10 feet
Manufacturer lifespan	30-40 years

Looking for what it costs to fill a 500-gallon tank?

A 500-gallon refill runs about $1,070 at the national average (400 usable gallons under the 80% rule), with the full per-state breakdown and volume-discount math on our fill-cost hub.

Cost to fill a propane tank by size →

Is a 500-Gallon Tank Right for You?

500 gallons is the default residential size. Most US households heating with propane have one. Here's when to size up or down:

500 is right when: Whole-home heating + water heating + cooking, 1,500-3,000 sqft house, moderate-to-cold climate, 800-1,200 annual gallons. Two to three fills per year fits the cost-vs-convenience sweet spot.

Size up to 1,000 gallons when: Cold-climate larger home (3,500+ sqft), 1,500+ annual gallons, you want only 1-2 fills per year, or you have a backup generator that shares the tank. The install premium ($1,200-$2,500 extra) typically pays back via volume pricing within 3-5 years.

Size down to 250 gallons when: Propane-only-for-cooking-and-water-heating (no whole-home heating), under 400 annual gallons. The smaller install ($800-$1,800) saves money and you still only need 1-2 fills per year.

500-Gallon Tank FAQ

How much does a 500-gallon propane tank cost?

A 500-gallon propane tank costs $800 to $1,600 for the tank alone, $1,000 to $2,500 fully installed above-ground, and $2,500 to $5,000 fully installed underground. A refill at the national average ($2.67/gal × 400 usable gallons) costs about $1,070. Cheapest state (Nebraska, $1.64/gal) refill: $657. Most expensive (Florida, $4.71/gal) refill: $1,882.

How long does a 500-gallon propane tank last?

For whole-home heating in a 2,000 sqft home in moderate climate, a 500-gallon tank (400 usable gallons) lasts 4-5 months in winter at typical usage. In cold climates, expect 3-4 months. Households using propane only for water heating and cooking can stretch a 500-gallon tank to 12-24 months. Most heating households fill 2-3 times per year.

Is 500 gallons the right size tank for my home?

Yes for most homes that use propane for whole-home heating. 500 gallons is the most common residential size. It strikes a balance: large enough that you only fill 2-3 times per year, small enough that the install is reasonable, and large enough to qualify for volume pricing. Upgrade to 1,000 gallons if you use 1,500+ gal/year or want fewer fills. Drop to 250 gallons if you only use propane for cooking and water heating.

Should I buy or rent a 500-gallon tank?

Buy if you plan to live in your home 3+ years. The $1,000-$2,500 install pays back in 3-5 years through eliminated rental fees ($100-$175/year) and supplier markup avoidance ($300-$500/year at 1,000 gal usage). Over 10 years, ownership saves approximately $2,750. Rent only if you may move within 3 years, have a cash flow constraint, or live in a single-supplier market.

What are the dimensions of a 500-gallon propane tank?

A standard above-ground 500-gallon residential tank is approximately 9 feet 11 inches long, 3 feet wide, and 4 feet tall (including the dome). It weighs about 950 pounds empty and 2,650 pounds full of propane. The setback requirement (NFPA 58) is 10 feet from any building, property line, or ignition source.

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