If you’re comparing State and Rheem water heaters, don’t judge either brand only by a basic 40- or 50-gallon tank.
Both companies now sell conventional gas and electric tanks, high-efficiency models, hybrid heat-pump water heaters, tankless systems, smart controls, leak detection, and commercial equipment.
The biggest difference is less about one brand being universally “better” and more about the specific product category.
State Water Heaters, which is part of A. O. Smith, has an especially broad professional-grade lineup, including Premier MAX heat pumps and Adapt tankless units with X3 scale-prevention technology.
Rheem has a similarly broad range, but currently stands out for products such as ProTerra heat-pump heaters, IKONIC tankless systems, EcoNet controls, LeakGuard technology, and the corrosion-resistant Marathon electric tank.
For most homeowners, the right answer depends on whether you’re buying a conventional tank, heat pump, or tankless unit.
A Brief Comparison Table
| Feature | State Water Heaters | Rheem |
| Conventional gas tanks | Yes | Yes |
| Conventional electric tanks | Yes | Yes |
| Heat-pump/hybrid models | Yes | Yes |
| Gas tankless | Yes | Yes |
| Electric tankless | Available by product line/market | Yes |
| Premium heat-pump UEF | Up to about 3.88 on current Premier MAX | Up to about 4.07 on current ProTerra lineup |
| Premium gas tankless UEF | Up to 0.95 | Up to 0.96 on IKONIC |
| High-output tankless | Up to about 10.5 GPM on current Adapt models | Up to about 11.2 GPM on IKONIC |
| Smart leak protection | Yes | Yes |
| App/smart controls | Yes on selected models | EcoNet on selected models |
| Scale prevention | X3 on selected tankless models | Maintenance/scale-management varies by model |
| Premium heat-pump warranty | Typically 10 years | Typically 10 years |
| Premium tankless heat exchanger | 15 years on current residential Adapt models | 15 years on current IKONIC/RTGH models |
| Unusual long-life tank | Conventional steel tank lines | Marathon non-metallic tank with lifetime residential tank warranty |
| Parent company | A. O. Smith | Paloma Industries |
A Primer on State Water Heaters
State Water Heaters, a brand established in 1946, is a popular choice for homeowners who value reliability and performance.
Offering both gas and electric variants, State caters to a wide range of needs.
State Water Heaters are best known for reliable, affordable residential water heating with barebones features.
State Key Features

- Electric and gas models – Choose from standard natural gas and electric tank water heaters.
- Common capacities – Ranging from 6-80 gallons to meet residential needs.
- Basic manual adjustments – Adjust temperatures via knobs and dials or basic digital settings.
- Durable construction – Tanks made from stone-lined steel or commercial-grade plastic.
- Limitedlifetime warranties – All models backed by at least a 6 year warranty.
State Water Heater Pros and Cons
Pros
- Backed by A. O. Smith
- Huge residential and commercial lineup
- Excellent heat-pump options
- 0.95 UEF condensing tankless models
- X3 scale-prevention options
- Smart leak protection
- 6-, 8-, and 10-year tank warranty choices
- 15-year tankless heat-exchanger coverage on qualifying models
- Strong professional/wholesale distribution
Cons
- Model selection can be confusing
- Premium heat-pump efficiency currently trails Rheem’s highest-rated ProTerra examples
- Smart/app experience varies by model
- Fewer obvious consumer-retail comparison tools than Rheem
- No direct equivalent to Rheem Marathon’s non-metallic lifetime-warranty tank
Understanding Rheem Water Heaters
Founded in 1925, Rheem is another industry heavyweight, known for its innovative solutions and customer satisfaction.
Known for pioneering innovations in energy-efficient heating, Rheem offers one of the widest product ranges in water heaters for homes.
Rheem Key Features

- Gas or electric models – Choose from natural gas, propane or electric tank and tankless heaters.
- Wide capacity range – Units from 10 to 100 gallons suit any home’s hot water needs.
- High efficiency ratings – Up to 98% Uniform Energy Factor (UEF) for maximum efficiency.
- Hybrid heat pump models – Provide energy efficient heating with environmental sustainability.
- WiFi enabled options – Allow control via mobile app and integration with smart home.
- Industry-leading warranties – Tank units backed by 6-10 year warranty, tankless by 10-12 years.
Rheem Water Heater Pros and Cons
Pros
- Very broad product range
- ProTerra heat pumps reaching around 4.07 UEF
- IKONIC tankless up to about 0.96 UEF and 11.2 GPM
- EcoNet smart controls
- LeakGuard leak detection and shutoff
- Strong retail availability
- 12-year premium tank warranties on selected models
- Marathon lifetime-warranty tank option
- Built-in recirculation available on premium tankless models
Cons
- Premium smart products can become expensive
- More electronics can mean more complex troubleshooting
- Warranty varies substantially between product families
- Maximum tankless GPM shouldn’t be mistaken for cold-climate output
- Some advanced features may add little value if you only need basic hot water
Key Differences Between State And Rheem Water Heaters
When comparing State and Rheem water heaters, it’s important to understand their key differences. These variations can significantly influence your purchasing decision depending on your unique requirements.
- Energy Efficiency and Performance Comparison
State heaters generally offer superior energy efficiency compared to Rheem. Most of State’s models meet or exceed federal standards for energy efficiency, reducing running costs and being eco-friendlier.
On the other hand, while Rheem does have energy-efficient models, they may not consistently match the efficiency levels of their State counterparts.
Energy-efficiency is a key factor when shopping for a new water heater. Here is how Rheem and State compare:

State
- Electric – EF rating around 0.93 to 0.95.
- Gas – EF ratings approximately 0.55 to 0.67.
Rheem
- Electric – UEF ratings from 0.90 up to 0.98.
- Gas – UEF ratings between 0.62 to 0.80.
- Heat pump models – Up to 4.0 UEF rating.
- Tankless – Up to 0.96 Uniform Energy Factor.
Rheem clearly leads when it comes to maximizing energy efficiency. Their highest-end models can achieve over 98% efficiency.
Rheem also has heat pump and advanced hybrid models not offered by State.
In terms of reliability, both brands rate well but Rheem edges out State based on superior part quality, advanced features, and fewer durability complaints from customers.
- Technology and Innovation
Rheem tends to lead in technological innovation, with several models boasting advanced features like WiFi connectivity, which allows for remote control and monitoring, and self-cleaning systems, which prolong the heater’s lifespan.
State, while not as technologically forward, focuses on producing reliable and straightforward water heaters.
- Price and Affordability
There is a noticeable price difference between the two brands. Rheem generally offers more affordable options, providing a diverse range of heaters that can fit into most budgets.
State heaters, while tending to be more expensive, justify their cost with superior efficiency and excellent warranties.
- Availability
When it comes to availability, Rheem tends to have the upper hand. Their products are easily accessible across numerous online and physical retailers.
State, on the other hand, while available in a variety of outlets, might not be as widely distributed, potentially limiting your purchasing options.
- Available Sizes and Installation
Rheem and State cover all the standard capacities needed for homes:
State
- Residential tanks from 6 to 80 gallons
- Slim profiles for tight spaces like closets
- Basic retrofit installation

Rheem
- Residential tanks from 10 to 100 gallons
- Tankless units in 2.5, 4, 5, 6, 8, 10 gallon sizes
- Designed for basic replacement installs to new construction
While State meets general homeowner needs, Rheem offers a broader range of configurations and capacities for any residential setting.
Rheem also provides more versatile installation potential.
- Warranty
State heaters often come with more extensive warranties compared to Rheem, reflecting their commitment to durability and quality.
Rheem’s warranties aren’t insignificant, but they may not always match the coverage offered by State.
In summary, the choice between State and Rheem water heaters hinges on what you value most in a water heater. If energy efficiency and warranty coverage are your top priorities, State might be the better choice.
Conversely, if affordability and technological features are your main concerns, Rheem could be a more fitting option.
Which Is Better For You?
For those wanting the latest in energy savings technology, customization, and premium performance, Rheem is likely the better choice but comes at a higher cost.
Homeowners focused purely on reliable hot water at the lowest upfront price will be happy with a State water heater.
Make sure to consider your usage needs, fuel source preferences, and installation requirements as you decide. And review all warranties closely, as the tank and parts coverage are similar between both brands.
If your top priority is upgrading to a highly efficient system, Rheem wins.
But State provides satisfactory performance for many homeowners at an affordable price point.
Recommended Models to Consider
Here are two top rated models from each brand:
State
- State GS650YME: 65-gallon gas model with durable polyethylene tank backed by a 6-year warranty.
- State SC25XLL 3KW Electric: 25-gallon compact unit with 0.93 EF rating and 6-year warranty.
Rheem
- Rheem Performance Platinum 50 Gal Electric: Up to 0.97 EF and 10-year warranty.
- Rheem Prestige High Efficiency Gas: 96% efficient with electronic controls and wifi connectivity.
Frequently Asked Questions (FAQ)
There are numerous reliable brands in the market, including but not limited to State, Rheem, AO Smith, and Bradford White. Reliability depends on various factors, such as usage, maintenance, and installation quality.
State water heaters are made by State Industries, a subsidiary of A.O. Smith Corporation, a leading global manufacturer of residential and commercial water heaters.
Rheem faces stiff competition from other reputable brands, including State, AO Smith, Bradford White, and Navien.
Yes, State Water Heaters is a brand owned by AO Smith. The company acquired State Industries in 2001, expanding its product portfolio in the residential and commercial water heating industry.
Yes, State is known as a good, affordable option for basic water heating needs. The brand has built a reputation for reliability and simplicity over decades in business.
No, Rheem and GE are separate brands. However, Rheem did acquire GE’s appliance division in 2015. Some GE-branded heaters may share Rheem components and manufacturing.
Final Thoughts
The modern State and Rheem water heater comparison is much closer than older articles suggest.
State is no longer just a basic professional-brand tank manufacturer. Its current lineup includes Premier MAX smart heat pumps, 3.88-UEF models, Adapt condensing tankless heaters, smart leak protection, and X3 scale-prevention technology.
Rheem likewise goes far beyond basic tank heaters, with ProTerra heat pumps reaching around 4.07 UEF, IKONIC tankless systems reaching 0.96 UEF and 11.2 GPM, EcoNet controls, LeakGuard, and the unique Marathon non-metallic tank.
Rather than declaring one company universally superior, compare equivalent products.
For heat pumps, Rheem currently has the stronger peak efficiency specifications.
For hard-water tankless installations, State’s X3-equipped Adapt models are particularly interesting.
For conventional tanks, compare warranty, first-hour rating and installed price.
And whatever you choose, a properly sized and correctly installed water heater will matter more than the name printed on the tank.
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