Propane is a reliable fuel for heating, cooking, and backup power, but choosing the right tank size is key to keeping your home running efficiently. Tanks range from small, portable cylinders for grills to large underground tanks for whole-home heating.
A 20-pound tank is perfect for grilling, while a 500-gallon tank can heat a 1,500-square-foot home. Larger homes or properties with multiple propane appliances may need a 1,000-gallon tank.
In this guide, we’ll break down propane tank sizes, their uses, and how to choose the right one for your home.
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What Is a Propane Tank?
A propane tank is a pressurized container that stores liquefied petroleum gas (LPG) for home energy use. Homeowners rely on propane to power essential appliances, including:
- Heating systems: Furnaces, fireplaces, and space heaters
- Kitchen appliances: Ovens, stovetops, and grills
- Water heaters
- Laundry machines: Clothes dryers
- Outdoor living: Fire pits and pool heaters
There are two main types of propane tanks:
- Portable cylinders – Small, refillable tanks used for grills, camping stoves, and forklifts.
- Stationary tanks – Larger, permanent tanks installed above or below ground to fuel whole-home systems.
Most homeowners install aboveground propane tanks a few feet away from their homes. However, larger tanks (500 gallons or more) take up significant space, so underground installation is a popular option for those looking to preserve yard space.
No matter the size, every propane tank has key components that ensure safety and proper operation:
| Tank Part | Description and Function |
| Liquid Withdrawal Valve | A tube that reaches into the liquid propane. Used to empty the tank before servicing, transporting, or refilling a portable tank. |
| Vapor Return Valve | A safety feature that prevents excessive pressure. If the tank becomes over-pressurized, this valve releases gas or redirects propane into another storage container. |
| Float Gauge | A simple gauge that floats on top of the liquid propane to show the approximate fill level. |
| Fixed Level Liquid Gauge | A small tube used by delivery personnel to determine when the tank has reached its maximum fill capacity. |
| Service Valve | Controls the flow of propane into a home’s piping system. This valve can be shut off in case of a leak or emergency. |
| Safety Relief Valve | A spring-loaded device that prevents excessive pressure buildup. It automatically opens to release gas if the pressure gets too high, preventing a potential explosion. |
| Fill Valve | The connection point where propane delivery personnel refill the tank. Equipped with gaskets and caps to keep out debris and prevent gas leaks. |
Before choosing a propane tank size, it’s important to know that tanks are never filled to their full capacity. Instead, they’re only filled to hold 80% of their capacity to allow room for propane to expand as temperatures rise.
For example, a 2,000-gallon tank actually holds 1,600 gallons when full. This built-in safety measure prevents excessive pressure buildup and reduces the risk of leaks or explosions.
No matter what size tank you choose, the 80% rule applies across the board.
For a comprehensive breakdown of pricing, read our propane tank installation cost guide.
Propane Tank Sizes and Their Uses
The dropdown sections below cover some common propane tank sizes and their residential and commercial applications.
A 20-pound propane tank – or grill cylinder – is a portable container often used for small appliances like grills, patio heaters, and generators.
These tanks hold a little more than 4.5 gallons of propane when full.
420-pound propane tanks are one of the smallest stationary tank options.
These containers, often called 120-gallon tanks, stand over 4 feet tall and hold up to 96 gallons of propane.
420-pound tanks are best suited to power a couple of appliances like clothes dryers, stovetop ranges, gas fireplaces, or water heaters. Some mobile homes might use a couple of these tanks for whole-house heating.
250-gallon propane tanks are 7-foot-long containers that hold up to 200 gallons of propane.
These tanks can fuel additional heating systems or two home appliances such as water heaters, pool heaters, or a generator.
500-gallon tanks hold up to 400 gallons of propane at total capacity.
These containers generally heat smaller homes of around 1,500 square feet. In addition to providing whole-house heating, 500-gallon tanks can fuel a few propane appliances.
A homeowner might use their 500-gallon tank to power a generator, water heater, or space heater.
1,000-gallon tanks are large containers primarily used for agricultural and commercial applications. These 16-foot-long tanks hold up to 800 gallons of propane.
Although rare, this tank size sometimes fulfills residential purposes – often buried underground on the property of a large home.
They’re primarily used to fuel a home with only propane-powered appliances or heat sizable square footage.
How To Determine What Size Propane Tank You Need
Picking the right propane tank size can save you money on fuel and reduce the hassle of frequent refills. A tank that’s too small means more deliveries and higher costs over time, while an oversized tank may take up unnecessary space.
To find the best tank for your home, consider these key factors:
Where You Live
Your local weather heavily impacts propane usage. Colder climates require larger tanks since heating systems will burn through propane faster in winter.
- If you live in a cold-weather state, consider a larger tank (500+ gallons) to minimize mid-winter refills.
- For mild or warm climates, a smaller tank may be sufficient.
The Inter-County Community Council recommends checking your tank monthly during winter and refilling when levels drop below 30% to avoid running out.
The Size of Your Home
The larger your home, the more propane you’ll need—especially if you’re using it for heating. Choosing a tank that’s too small will lead to frequent refills and higher costs.
- Over 3,500 sq. ft. → 1,000-gallon tank or multiple 500-gallon tanks
- Up to 1,500 sq. ft. → 120–250-gallon tank
- 1,500–3,500 sq. ft. → 500-gallon tank (most common for full-home heating)
How Often You Use Propane
Your propane needs go beyond home size—usage matters just as much:
- Occasional use (grills, fire pits, generators): 20- to 40-pound portable tanks
- Seasonal use (pool heaters, fireplaces, water heaters): 120-gallon tank
- Year-round whole-home heating & appliances: 500+ gallon tank
For most homes, a 500-gallon propane tank is the best choice—it can power heating, hot water, and multiple appliances while minimizing refills.
If propane is your primary heating or power source, a 500-gallon tank is the best choice. It holds enough fuel to minimize refills, and buying in bulk lowers your cost per gallon, saving you money over time.
Final Thought
Choosing the right propane tank size ensures efficient heating, fewer refills, and long-term cost savings. Whether you opt for an aboveground or underground tank, propane is a reliable, long-lasting fuel source that won’t expire—giving you peace of mind year-round.
Now that you know your options, you’re ready to select the best propane setup for your home and enjoy dependable energy for years to come.
