Influence of a vent hood at the exit of exhaust flue gas and flue baffles in the fire tube on the temperature and flow fields of a gas tank water heater as well as the structure and amount of heat transferred to the water tank has been studied numerically using two-dimensional steady state numerical simulation. It has been observed that using a vent hood prevents the gas back flow in the flue and placing the flue baffles increases the heat delivered to the water.