The Ultimate Guide to Residential Propane Tank Sizes and Selection

Residential propane tank sizes play a key role in how efficiently propane powers your Texas home—quietly delivering heat, hot water, cooking, and even backup power when you need it most.

If you’re considering propane for the first time, you can learn more about the benefits of switching your home to propane and how it fits different household needs.

However, to get the best performance out of your propane system, choosing the right residential propane tank size matters more than most homeowners realize. The right tank keeps your energy costs predictable, helps your appliances run efficiently, and prevents the frustration of constant refills during peak-use seasons. This propane tank size guide is designed to help you understand how tank sizes work, what affects propane usage, and how to choose the best option for your Texas home.

At McCraw Oil & Propane, we’ve spent decades helping North Texas families find the setup that fits their home, their lifestyle, and their budget. We don’t believe in guesswork. We believe in guidance, and the goal of this guide is simple: to help you understand how propane tank sizes work, what affects your usage, and how to select the tank that will support your home year-round.

Choosing the right tank starts with knowing how propane capacity is measured. Every tank, from common propane tank sizes to larger whole-home options, follows the 80% fill rule, meaning a 500-gallon tank typically provides about 400 gallons of propane you can actually use. This space keeps the fuel stable as temperatures rise and fall.

Your propane needs depend on how much you’re powering at home. Running hot water heaters, central heating, a stove, dryer, or outdoor equipment will require a larger size tank than a home using propane only for moderate propane uses. Even small portable grills or seasonal appliances should be factored into planning.

Choosing the right propane tank size starts with understanding how your home uses energy day to day. Every household is different, and the “right fit” depends on several major factors that affect how often you’ll need propane delivered and how well your system will run.

Larger homes naturally require more propane to keep things running smoothly, especially if you depend on propane for whole-home heating. Smaller homes or single-appliance users can often work well with smaller tanks, but bigger spaces benefit from sizes that support steady fuel availability.

Your tank size needs to match your appliance load. Heating systems, water heaters, gas stoves, dryers, pool heaters, and backup generators all draw fuel differently, which is why proper tank sizing matters when powering appliances throughout your home. According to the U.S. Energy Information Administration, more than 52% of a typical household’s energy use goes toward space heating and air conditioning, making heating one of the biggest drivers of propane consumption. 

Homes that rely on propane for whole-home heating, hot water, and everyday appliances often benefit from mid- to large-capacity tanks, while lighter-use households may be better suited for smaller models.

Think about how often you cook, how many people live in your home, and whether you spend more time indoors during the cooler months. These habits can influence how quickly you go through propane.

Our seasonal temperature swings and frequent cold snaps in North Texas mean your home’s insulation quality matters. Poor insulation increases propane usage, while a well-sealed home maintains efficiency.

The following propane tank size chart breaks down the most common residential propane tank sizes and explains which household needs each option supports best. Once you understand your home’s energy needs, it becomes much easier to choose the right propane tank size. There are various sizes of propane tanks ranging from 250 to 1000 gallons, each designed to support different home sizes and energy demands. Here’s a simple breakdown of the most common residential propane tank sizes and who they’re best suited for.

Ideal for customers who use propane for one or two small appliances like a gas fireplace, space heater, or cooking range. These offer a compact footprint and are common for homes with light propane usage.

This is a great mid-size option for families who use propane for multiple appliances like water heating, cooking, and supplemental home heating. It’s a practical choice for moderate-sized homes and consistent year-round usage.

This tank size is one of the most popular residential choices. This size comfortably supports heating for the entire home and multiple propane appliances without the need for frequent refills. This option is perfect for bigger households or those seeking reliable long-term performance.

Best suited for very large homes, small commercial properties, or families using propane for high-demand systems such as pool heaters or large standby generators. If you rely heavily on propane and want maximum convenience, this is the tank for you.

No matter your setup, we help match the right tank size to your home so you get dependable comfort without the stress of constant monitoring or surprise runouts.

Choosing the right size propane tank depends on how much propane your home uses, how often you want refills, and how your household consumes energy throughout the year. Selecting a tank that’s too small can lead to frequent deliveries and higher long-term costs, while choosing the right size improves efficiency, convenience, and peace of mind.

Your home’s square footage plays a major role in propane usage. Larger homes—especially those over 3,500 square feet—generally require 500-gallon or 1,000-gallon propane tanks, particularly in colder climates where heating demand is higher. Smaller homes with limited propane use may function well with 120- or 250-gallon tanks.

The type and number of propane-powered appliances directly influence the tank size you need. Homes using propane for whole-home heating, water heaters, cooking, dryers, fireplaces, pool heaters, or standby generators will consume propane much faster than homes using propane for a single appliance. Larger properties with multiple appliances typically require larger tanks to avoid constant refills.

Estimating your annual propane usage helps determine the best tank size. This involves reviewing the average propane consumption of each appliance and adjusting for household size, usage habits, and seasonal demand. Your propane use has the biggest influence on how often your tank needs refilling, especially during winter months.

When choosing a propane tank size, consider how many times per year you want your tank refilled. Opting for a tank that is too small means more frequent deliveries, increased delivery fees, and a higher risk of running low during peak usage. A larger tank allows for fewer refills and more predictable energy planning.

Your local climate also affects propane usage. Homes in colder regions or areas with frequent winter cold snaps use more propane for heating, making larger tanks a better long-term solution. Even in North Texas, temperature swings can significantly impact propane consumption during winter.

Some homeowners choose two or more smaller propane tanks instead of one large tank to allow greater flexibility in placement, especially on properties with space or zoning limitations. A local propane provider can help determine whether this option makes sense for your home.

Because propane needs vary widely, consulting a local propane provider is one of the most effective ways to choose the right tank size and placement. A professional assessment helps eliminate guesswork and ensures your system supports your home efficiently year-round.

Residential propane tanks come in a wide range of sizes, from small portable containers to large tanks capable of supporting whole-home energy needs. Understanding what each tank size is designed for helps homeowners choose a system that delivers reliable performance without unnecessary refills or overspending.

All propane tanks follow the 80% fill rule, meaning they are only filled to 80% of their total capacity to allow for safe fuel expansion.

20-lb Propane Tank (≈4.6 gallons usable)
This is the most common portable propane tank size. It’s typically used for:

• Outdoor grills
• Patio heaters
• Small outdoor appliances

These tanks are not suitable for whole-home propane use but are ideal for light, portable applications.

120-Gallon Propane Tank (≈96 gallons usable)
A 120-gallon propane tank is commonly used for:

• One or two residential appliances
• Gas fireplaces
• Cooking ranges
• Space heaters

This size works well for homes with minimal propane usage or as a supplemental fuel source.

250-Gallon Propane Tank (≈200 gallons usable)
A 250-gallon tank is a popular option for medium-sized homes that use propane for:

• Water heating
• Cooking
• Supplemental or partial home heating

It offers a balance between capacity and footprint, making it suitable for households with moderate propane demand.

500-Gallon Propane Tank (≈400 gallons usable)
One of the most commonly installed residential tanks, a 500-gallon propane tank is ideal for:

• Whole-home heating
• Multiple propane-powered appliances
• Larger households with higher energy usage

This size reduces the need for frequent refills and provides consistent fuel availability during colder months.

• Very large homes or estates
• Homes with extensive heating systems
• Multiple high-demand appliances such as pool heaters or standby generators

This size is best for homeowners who rely heavily on propane and want maximum convenience with fewer deliveries.

Some residential or estate properties may use tanks larger than 1,000 gallons, especially when propane supports large-scale heating or backup power systems. or connects to bulk plant storage for long-term fuel supply management.

The propane tank size your home needs depends primarily on:

• The number and size of propane appliances
• Whether propane is used for whole-home heating or partial use
• Household size and daily usage habits
• Local climate and seasonal demand

Choosing a tank that’s too small can lead to frequent refills and higher delivery costs, while an appropriately sized tank ensures efficiency, comfort, and predictable energy expenses.

A local propane provider can assess your home’s usage and recommend the tank size that best matches your needs.

Choosing between an above-ground or underground propane tank depends on your property layout, budget, climate considerations, and long-term energy needs. Both options safely store propane, but each comes with unique benefits and installation considerations that homeowners should understand before making a decision.

Above-ground propane tanks are the most common option for residential use and are typically quicker and easier to install than underground tanks. Because they do not require excavation, installation costs are generally lower, and setup can often be completed in a shorter timeframe.

These tanks are exposed to the elements, which means they may experience temperature fluctuations in extreme weather. However, they are designed to operate safely outdoors and allow easy access for inspections, maintenance, and refills, which many homeowners find convenient.

Although above-ground tanks are visible, they can often be disguised with landscaping, fencing, or decorative screens to better blend with the property. In many cases, above-ground propane tanks are rented from the propane provider, which can reduce upfront costs but may include ongoing rental fees.

Underground Propane Tanks

Underground propane tanks are installed below the surface and require excavation, which increases both installation time and cost. Because of this complexity, a professional site assessment is especially important for larger tank sizes to ensure proper placement, drainage, and compliance with local safety regulations.

One key advantage of underground tanks is that they are protected from weather and extreme temperatures, allowing them to handle colder or more variable climates more consistently than above-ground tanks. Their hidden placement also creates a cleaner appearance and may increase the perceived value of a home, particularly for larger residential properties.

Underground tanks are generally owned by the homeowner rather than rented, giving greater long-term control over fuel providers. However, access for maintenance can be more limited compared to above-ground tanks, making professional servicing especially important.

Which Option Is Right for Your Home?

Above-ground tanks are often ideal for homeowners looking for lower upfront costs, faster installation, and easy maintenance access. Underground tanks may be better suited for homeowners prioritizing aesthetics, temperature stability, and long-term ownership, especially for larger homes or high propane usage.

Because safety codes, property layouts, and tank sizes vary, consulting a local propane provider ensures the tank type you choose meets all placement regulations and supports your household’s energy needs safely and efficiently.

Choosing between above-ground and underground propane tanks starts with understanding how each option can support your daily energy needs. 

Above-ground tanks are straightforward, cost-friendly, and easy to access, making them a practical choice for temporary heat, lighter appliance usage, or homes that store tanks outdoors. They’re also simple for propane professionals to service, which many North Texas families appreciate.

Underground tanks offer a cleaner look and work well for larger tanks that support whole-home heating, and serve as backup power during a power outage. Because they’re protected underground, they’re often preferred for long-term liquid propane storage or large communities that rely on steady use.

If you’re unsure which option fits your property, McCraw Oil & Propane is here to guide you with a local, friendly assessment you can trust.

Once you’ve chosen the tank that fits your home, the next step is making sure everything is installed safely and supported by reliable propane delivery. At McCraw Oil & Propane, we keep things simple, clear, and stress-free from day one.

Propane delivery can be offered on your schedule or automatically. Many North Texas homeowners choose our automatic refill service so they never have to track gauge levels or worry about running low, especially during colder months. 

A professional installation starts with proper site evaluation, safe tank placement, and secure line connections. Our licensed technicians follow all Texas safety standards and local codes, ensuring your tank operates efficiently and safely from the start. Every installation gets the same careful attention.

We also provide long-term maintenance and routine checkups to keep your extensive heating systems working at peak performance. From leak checks to regulator inspections, our team stays proactive so you can enjoy dependable propane year-round.

Choosing the right residential propane tank size doesn’t have to feel overwhelming, especially when you have a local team that understands how Texas homes use energy year-round. With over 7 decades of experience serving, McCraw Oil & Propane is here to make the process simple, clear, and truly tailored to the way you live.

If you’re ready to install a new tank, upgrade your system, or want expert guidance on residential propane tank sizes that fit your home’s needs, our team is here to help. Schedule your propane assessment today.