How Much Does Oil Tank Removal Cost in 2025?
Removing an oil tank costs an average of $1,352
You can expect to pay an average of $1,352 for oil tank removal, with most homeowners spending between $580 and $2,127.
Above-ground tanks are less expensive to remove compared to underground tanks, due to excavation costs.
Factors like your tank's size, location, and accessibility affect the overall removal cost.
Proper removal prevents environmental hazards and protects your property.
Hiring an oil tank professional ensures safe removal and compliance with regulations, saving you from potential fines or cleanup costs.
This article was updated using automation technology and thoroughly reviewed for accuracy by HomeAdvisor Editor Ryan Noonan.
If it's time to remove your old oil tank, you can expect to pay $1,352 on average, with prices ranging from $580 to $2,127. Factors like your tank's location, size, and accessibility can significantly impact the overall cost. Hiring an oil tank removal professional is essential for this project to ensure the job gets done safely and efficiently.
Oil Tank Removal Cost Factors
Several factors can influence the cost of removing your oil tank, including its size and capacity, location, accessibility, and disposal requirements. When you get a quote from a local oil tank removal contractor, they'll consider all these elements in their estimate.
Size
Larger tanks require more time and effort to remove than small tanks. Since they’re more often installed underground, large tanks may also require special equipment and labor-intensive excavation. In general, larger tank sizes equate to increased costs for oil drainage, material disposal, environmental remediation, and permits.
Here is an overview of average removal costs based on tank type and size:
| Tank Size (Gallons) | Underground or Basement Removal Cost | Above-Ground Removal Cost |
|---|---|---|
| 550 or less | $1,000–$1,500 | $300–$1,000 |
| 1,000 | $1,300–$1,800 | $1,000–$1,700 |
| 1,500 | $1,900–$2,200 | $1,500–$2,300 |
| 2,000 | $2,300–$2,700 | $2,000–$2,700 |
| 3,000 | $2,800–$3,000 | $2,500–$3,000 |
Location and Accessibility
Where your oil tank is located plays a big role in removal costs. Above-ground tanks don't require excavation, so they cost less to remove than underground or basement tanks. Generally, the easier it is to access your tank and get machinery in place, the less you'll pay.
Excavation
The oil tank removal process for underground tanks includes excavation. Smaller and shallower tanks are easier to access and remove compared to larger or deeper tanks. Deep tanks require heavy machinery, such as backhoes and excavators, the rental cost of which may or may not be included in the contractor’s quote.
Soil Testing and Remediation
Oil tanks can leak into the surrounding areas, sometimes without obvious signs, necessitating soil testing and potential remediation. Soil testing costs for oil tank removal vary, averaging $300 for above-ground tanks and closer to $500 for underground tanks. It involves digging holes around the perimeter to look for oil seepage or environmental damage and collecting lab samples.
Remediation, which removes contaminated soil and stabilizes it with new material, costs around $500 to $10,000, depending on the extent of contamination, obstructions, and accessibility.
The risk of leaks increases as oil tanks age and experience corrosion and degradation. Increased heating bills, dying vegetation, dark patches, and other signs suggest leaks, which can cause further damage to the environment and hurt your property value. Even without obvious signs, it’s important to assess the tank’s condition and its immediate surroundings.
Permits and Tests
Local regulations often require you to get a permit before removing your oil tank. Issued by local government offices or fire departments, oil tank removal permits range from $30 to $160. If your tank doesn't pass inspection, you might face additional soil testing costs.
Labor
Oil tank removal involves several professionals, such as licensed contractors, environmental specialists, and sometimes soil remediation experts. These professionals handle tasks including site assessment, excavation, tank cleaning, removal, and disposal.
Labor costs range between $400 and $3,000, depending on the complexity of the job and the region. In areas with higher labor rates or stricter environmental regulations, costs may be higher. It's important to hire qualified professionals to ensure the job is done safely and in compliance with local laws.
Leftover Fuel Removal
If there is leftover oil in your tank, it is hazardous and needs to be disposed of safely. Most contractors include the cost and responsibility of disposing of your oil tank and any leftover oil in their quotes.
Oil Tank Removal Costs by Location
The tank's location—whether underground, in a basement, or above ground—affects the overall cost due to differences in accessibility and the need for excavation.
| Location | Average Cost Range |
|---|---|
| Underground | $1,000–$3,000 |
| Basement | $1,000–$3,000+ |
| Above ground | $300–$1,000 |
Underground Oil Tank
Underground tank removal averages between $1,000 and $3,000. This type of tank requires more excavation than others, and excavation costs can account for up to half of your bill. Prices also vary depending on soil, obstructions, and other accessibility factors.
Basement Oil Tank
Some oil tanks are buried beneath the basement and, as such, often cost the most to remove. If your tank is buried in a basement, you’ll likely pay an additional $500 to $1,000 for excavation and extraction, which can push the total removal cost beyond $3,000.
Above-Ground Oil Tank
The average cost to remove an above-ground oil tank runs between $300 and $1,000. Low-end costs represent either simple jobs or estimates covering only the most basic aspects of the service. Above-ground oil tanks are also usually smaller than underground tanks, averaging around 275 gallons, which is reflected in their comparatively lower removal costs.
Oil Tank Abandonment or Decommissioning Costs
Abandonment or decommissioning costs range from $1,000 to $3,000 or more, depending on the tank size. An alternative to removal, decommissioning involves cleaning oil and sludge from the tank and filling it. Decommissioning a tank should prevent its eventual collapse and subsidence of the surface above it. The three main filling options are:
Foam: Foam can reach more areas of the tank than concrete or sand. It’s mixed in a truck and uses a wand at the end of a long hose, so it’s easy to fill in hard-to-reach places, like a basement.
Concrete slurry: Typically, a mixture of various quantities of Portland cement, water, and selected aggregate materials, a concrete slurry is a semi-liquid substance that fills the tank evenly. Its primary advantages are its high density and ease of handling.
Sand: Sand is a low-cost filler option, but is less effective at filling tank voids and connecting lines than foam and concrete slurry.
Removal is generally recommended over decommissioning since it has similar costs. Some tanks are buried under foundation footings or in other inaccessible areas, in which case decommissioning may be a more cost-effective option.
Budgeting for Oil Tank Removal
Removing an oil tank can be a big project, but careful budgeting can help you keep costs down. Here are some cost-saving strategies to consider:
Compare multiple quotes: Obtain estimates from several licensed oil tank removal professionals to find competitive pricing and understand the scope of services offered.
Schedule during off-peak seasons: Plan the removal during times when demand is lower, which might result in lower labor costs.
Check for government grants or subsidies: Some local governments offer financial assistance or incentives for removing old oil tanks, reducing your out-of-pocket expenses.
Bundle related services: If you plan to install a new heating system or need soil remediation, combining these services with the tank removal may lead to discounts.
Prepare the site yourself: Clearing access to the tank and removing obstacles can reduce labor time and costs.
DIY Oil Tank Removal vs. Hiring a Pro
Thinking about removing an oil tank yourself to save money? It's not a good idea. Oil tanks contain hazardous materials that need proper handling and disposal. If you try to remove it yourself, you risk environmental contamination, legal penalties, and safety hazards. Oil tank removal professionals have the training, equipment, and permits to remove oil tanks safely and comply with regulations. Hiring a qualified contractor ensures the job is done right and gives you peace of mind.
How HomeAdvisor Gets Its Cost Data
No place is more important than your home, which is why HomeAdvisor connects homeowners with local pros to transform their houses into homes they love. To help homeowners prepare for their next project, HomeAdvisor provides readers with accurate cost data and follows strict editorial guidelines. After a project is complete, we survey real customers about the costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from 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.
Frequently Asked Questions
There are several reasons why you might need to remove an oil tank. In some areas, local regulations require tanks to be removed after a certain period. Leaking tanks can pose hazards to drinking water and the environment. Plus, many municipalities won't allow property sales until an inspection confirms the oil tank is safe.
One option for disposing of an oil tank is to have your removal pro take it to a dismantling yard or salvage yard for recycling. If a salvage yard isn’t an option, you can contact a local landfill or a local oil tank removal service for help finding a proper disposal location for your tank. Typically, you’ll need to show there’s no sludge or residue in the tank.
A leaking oil tank reveals itself through increased energy bills and a noticeable oily sheen on water surfaces, which signals a malfunction. You may also experience strong oil odors and observe stained grass and deteriorating vegetation near your property. These clear warning signs demand immediate professional evaluation to protect the environment and secure your property’s safety.
Yes, states mandate soil testing during oil tank removal to detect hazardous pollutants that harm the environment. This testing confirms that no soil contamination exists. Certified specialists collect soil samples to meet regulatory requirements and ensure property safety. Conducting these tests protects water quality and the structure’s integrity while immediately triggering any necessary remediation measures.
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