What a tankless water heater costs
| Tankless, whole house | Angi (Aug 2026) | HomeGuide (Jan 2026) | Fixr | Our median |
|---|---|---|---|---|
| Installed (unit + labor) | $1,406 to $3,902 | $1,400 to $5,600 | $1,000 to $4,000 (Jan 2026) | $1,400 to $4,000 |
| Unit only | $200 to $2,000 | $600 to $2,600 | $450 to $2,000 (Jan 2025; our span of its electric and gas rows) | $450 to $2,000 |
| Labor | $600 to $1,850 | $600 to $2,500 | $500 to $1,500 (Jan 2025; our span of its electric and gas rows) | $600 to $1,850 |
Basis: trade estimates. “Our median” is the median of the three low ends and of the three high ends. Angi’s average is $2,641. Fixr’s installed row is from its general water heater page (January 2026); its dedicated tankless page (January 2025) says “$2,500 to $4,500, with an average cost of $2,811”, which would make our median $1,406 to $4,500. The estimator above uses the labor figures from the guides’ replacement pages ($600 to $1,900), which are close to these.
Home Depot says tankless installs run “$2,400 to $5,400”, with an “Average Total: $4,300”, from its own sales, including permits, materials, a licensed plumber’s labor, removal of the old unit and “applicable permit charges and upgrades and code upgrades”. Its tankless installation page adds that buying and installing a tankless heater “costs about 2 to 2.5 times as much as a standard water heater”. Lowe’s doesn’t publish a price and says “We install tankless water heaters in select markets only.”
Gas vs electric vs propane
| Fuel | HomeGuide, installed | Fixr, installed (Jan 2025) | Our figure, installed | Unit only (median of 3 guides) |
|---|---|---|---|---|
| Natural gas | $2,100 to $5,600 | $1,400 to $3,500 | $1,750 to $4,550 | $1,000 to $2,000 |
| Electric | $1,400 to $3,000 | $1,000 to $3,000 | $1,200 to $3,000 | $450 to $1,500 |
| Propane | $1,600 to $4,500 | $1,400 to $3,500 | $1,500 to $4,000 | $1,000 to $2,000 |
Basis: trade estimates. “Our figure” is the midpoint of the two guides’ low ends and of their high ends. We leave Angi out of the installed rows: its fuel table (electric $450 to $1,500, natural gas and propane $1,000 to $1,500) sits below its own installed range, and its electric row is identical to Fixr’s electric unit price, so we read it as the price of the unit. It’s used in the unit-only column. Fixr’s newer fuel pages (January 2026) give tankless at $1,600 to $4,000 for gas and $850 to $2,750 for electric.
Gas costs more to install because of the gas supply and venting. Electric units are cheaper to buy but can need a lot of power: Angi says electric tankless units “use 120 to 160 amps, so you might have to upgrade your electrical service to 200 amps or more.”
Point-of-use vs whole-house units
| Type | What it does | Unit price (median of 3 guides) |
|---|---|---|
| Point-of-use (single-point) | Serves one sink or shower; Angi: heats 0.5 to 2 gallons per minute | $150 to $300 |
| Whole-house | Serves the whole home; Angi: heats 5 to 10 gallons per minute | $450 to $1,500 |
Basis: trade estimates (Angi $100 to $300 and $450 to $1,500; HomeGuide $150 to $250 and $600 to $2,600; Fixr $150 to $300 and $450 to $1,500), unit only. None of the three guides gives an installed range for point-of-use units.
Switching from a tank: the extras that drive the price
No guide gives a single “tank to tankless” total. The installed ranges above plus the work your home needs is the honest way to budget:
| Extra work | Typical cost | Basis |
|---|---|---|
| Labor for a tank-to-tankless job | $375 to $2,500 (replaces the labor in the installed price: don’t add it) | midpoint of Angi ($150 to $2,500) and HomeGuide ($600 to $2,500 “in labor alone”); Angi gives $600 to $1,900 for a like-for-like tankless swap |
| Larger or new gas line | $305 to $1,410 | midpoint of Angi ($260 to $820) and HomeGuide ($350 to $2,000) |
| New venting (gas) | $300 to $850 | midpoint of HomeGuide ($100 to $600) and Fixr ($500 to $1,100) |
| Dedicated electrical circuit (electric) | $375 to $950 | midpoint of Angi ($500 to $1,000, new line and sub-panel) and HomeGuide ($250 to $900) |
| Panel or 200-amp service upgrade (electric) | $1,025 to $2,350 | midpoint of HomeGuide ($850 to $1,700, panel) and Fixr ($1,200 to $3,000, 200-amp service) |
| Permit | $25 to $300 | median of 3 guides |
| Haul-away of the old tank | $75 to $500 | median of 3 guides (often included) |
Basis: trade estimates, as of September 2026. Don’t add every row, and don’t add the labor row on top of an installed price: a gas job won’t need the electrical rows, and some quotes already include the permit and haul-away. HomeGuide says “The old tank gas heater vents cannot be reused for a tankless water heater”, and that a switch takes “half to full day of work”. Angi adds that switching can lower water pressure, because tankless heaters restrict flow until the water reaches temperature.
Gas lines, venting and electrical upgrades are work for a licensed plumber and a licensed electrician. We don’t give installation instructions.
Tankless vs tank: cost over time
| Tank (gas or electric, 40–50 gal) | Tankless | |
|---|---|---|
| Installed price | $600 to $2,500 | $1,400 to $4,000 |
| Typical life | about 11 years (our summary of published sources) | about 20 years (DOE, ENERGY STAR) |
| Energy use | baseline | 8% to 34% more efficient (DOE) |
| Energy saving | baseline | gas: about $95 a year (ENERGY STAR, certified model vs gas tank); electric: about $45 to $50 a year (Angi) |
| Upkeep | per the maker’s manual | descale yearly, more often with hard water: $150 to $300 a visit (pro) |
| Hot water | runs out when the tank is empty | continuous, but limited flow (DOE: “about 2-5 gallons per minute”) |
Basis: installed ranges are our medians of Angi, HomeGuide and Fixr; efficiency, life and savings are official (DOE, ENERGY STAR) except electric savings (Angi, trade estimate). DOE’s efficiency, flow and life figures are from its Energy Saver comparison chart (February 2022), which DOE removed in 2026, so we link an archived copy. DOE’s 2024 rule for gas tankless heaters, withdrawn in 2025 after Congress disapproved it, also estimated an average life of around 20 years, and ENERGY STAR gives 20.
Payback. Angi says “it can take 7 to 10 years for a tankless heater to pay for itself.” Consumer Reports’ 2019 analysis was less generous: “the payback time for converting from a storage tank gas water heater to a gas tankless ranges from 22½ years to 27½ years” (12 to 20 years for electric, at 2019 energy prices). It added that the payback math changes if you’re building or renovating and want space savings, endless hot water or better efficiency, because there’s no major retrofit. Angi, citing DOE, says the efficiency gain is 24% to 34% in homes that use 41 gallons of hot water a day or less and closer to 8% in homes that use a lot.
What size you need (and what it costs)
Tankless heaters are sized by flow, in gallons per minute (GPM), not by gallons stored. ENERGY STAR lists typical flows: shower 2.5 GPM, clothes washer 3.3, kitchen or bathroom sink 2.2, dishwasher 1.3. Add up what runs at the same time.
| Flow rate | Fixr: home size | Angi, unit (any fuel) | Fixr, unit (gas) | Fixr, unit (electric) |
|---|---|---|---|---|
| 2–3 GPM | 1 bedroom | $200 to $600 | $250 to $600 | $200 to $300 |
| 3–4 GPM | 2 bedrooms | $300 to $700 | $400 to $700 | $300 to $550 |
| 5–6 GPM | 3 bedrooms | $400 to $1,200 | $500 to $800 | $425 to $600 |
| 8+ GPM | 5 bedrooms | $600 to $2,000 | $900 to $2,000 | $600 to $1,500 |
Basis: trade estimates, unit only (Angi August 2026, Fixr January 2025). Cold incoming water cuts the real output: in Fixr’s example, a 4.5 GPM unit gives 3.5 GPM with 35°F groundwater and 6.8 GPM with 72°F groundwater. A plumber sizes the unit for your climate and fixtures. Our water heater sizing guide shows how to note your simultaneous demand and required temperature rise before you get quotes.
Maintenance cost
| Item | Cost | Basis |
|---|---|---|
| Professional flush and descale | $150 to $300 a visit | midpoint of Angi ($150 to $250) and HomeGuide ($150 to $350) |
| Preventative maintenance visit | $50 to $350 | Angi (one guide) |
| How often | yearly; more often with hard water | Angi, HomeGuide |
Basis: trade estimates. For repairs, HomeGuide puts tankless work at “$300 to $1,300 for repairs on average” (one guide, August 2025).
Prices and warranties by brand
| Brand | Gas unit (Fixr, Jan 2025) | Heat exchanger warranty | Parts | Labor |
|---|---|---|---|---|
| Rinnai | $900 to $1,995 | 15 years or 12,000 operating hours, whichever comes first (Sensei, condensing); 10 years (V series) | 5 years | 1 year |
| Navien | $1,075 to $1,535 | 15 years (NPE-A2); Navien says buying online “or other e-commerce channels” voids it | 5 years | 1 year |
| A.O. Smith | $300 to $670 | 15 years (gas tankless) | 5 years | 1 year |
| Rheem | $670 to $1,950 | check Rheem’s current warranty | ||
| ENERGY STAR minimum (gas) | at least 6 years | at least 5 years |
Basis: unit prices are a trade estimate from one guide (Fixr); warranties are official (each maker’s residential warranty document; ENERGY STAR key product criteria). Terms differ by model; Rinnai’s documents, for example, ask for proof of purchase by “dated sales receipt, or by registering within 30 days”. Read the document for your model. We don’t rank brands.
Already have a tankless heater? Find its age with the Navien or Rinnai checker before you decide to replace it.
Tax credits and rebates in 2026
- The federal tax credit has ended. ENERGY STAR gas tankless heaters with a UEF of 0.95 or higher used to qualify for 30% of the cost, up to $600. The IRS says the credit “will not be allowed for any property placed in service after December 31, 2025”, so a tankless heater installed in 2026 doesn’t qualify. A.O. Smith confirms: “The federal tax credit for tankless gas water heaters expired on December 31, 2025.” Some cost guides still describe the credit without that end date.
- Utility rebates may still apply. Some utilities list rebates for ENERGY STAR gas tankless heaters in the ENERGY STAR Rebate Finder; check it and your utility before you buy.
Basis: official (IRS, ENERGY STAR) and manufacturer (A.O. Smith), as of September 2026. Utility rebates change often: confirm before you buy.
Cost by state: our estimate
This table adjusts the national installed range for local plumber pay, using the same method as our water heater replacement cost page.
| State | Median plumber wage (per hour) | vs US median | Tankless, installed |
|---|---|---|---|
| United States | $30.67 | $1,400 to $4,000 | |
| Alabama | $28.21 | −8% | $1,360 to $3,890 |
| Alaska | $45.15 | +47% | $1,620 to $4,630 |
| Arizona | $29.84 | −3% | $1,390 to $3,960 |
| Arkansas | $23.39 | −24% | $1,290 to $3,680 |
| California | $35.01 | +14% | $1,470 to $4,190 |
| Colorado | $30.40 | −1% | $1,400 to $3,990 |
| Connecticut | $37.16 | +21% | $1,500 to $4,280 |
| Delaware | $31.11 | +1% | $1,410 to $4,020 |
| District of Columbia | $48.57 | +58% | $1,670 to $4,780 |
| Florida | $25.44 | −17% | $1,320 to $3,770 |
| Georgia | $27.50 | −10% | $1,350 to $3,860 |
| Hawaii | $37.53 | +22% | $1,500 to $4,300 |
| Idaho | $25.18 | −18% | $1,320 to $3,760 |
| Illinois | $48.05 | +57% | $1,660 to $4,760 |
| Indiana | $36.69 | +20% | $1,490 to $4,260 |
| Iowa | $30.72 | 0% | $1,400 to $4,000 |
| Kansas | $31.36 | +2% | $1,410 to $4,030 |
| Kentucky | $30.84 | +1% | $1,400 to $4,010 |
| Louisiana | $30.62 | 0% | $1,400 to $4,000 |
| Maine | $30.77 | 0% | $1,400 to $4,000 |
| Maryland | $31.44 | +3% | $1,410 to $4,030 |
| Massachusetts | $45.14 | +47% | $1,620 to $4,630 |
| Michigan | $38.56 | +26% | $1,520 to $4,340 |
| Minnesota | $45.39 | +48% | $1,620 to $4,640 |
| Mississippi | $26.67 | −13% | $1,340 to $3,830 |
| Missouri | $32.11 | +5% | $1,420 to $4,060 |
| Montana | $38.44 | +25% | $1,520 to $4,340 |
| Nebraska | $29.31 | −4% | $1,380 to $3,940 |
| Nevada | $29.62 | −3% | $1,380 to $3,950 |
| New Hampshire | $32.12 | +5% | $1,420 to $4,060 |
| New Jersey | $37.61 | +23% | $1,510 to $4,300 |
| New Mexico | $29.54 | −4% | $1,380 to $3,950 |
| New York | $37.26 | +21% | $1,500 to $4,290 |
| North Carolina | $27.44 | −11% | $1,350 to $3,860 |
| North Dakota | $30.56 | 0% | $1,400 to $4,000 |
| Ohio | $30.45 | −1% | $1,400 to $3,990 |
| Oklahoma | $27.87 | −9% | $1,360 to $3,880 |
| Oregon | $46.66 | +52% | $1,640 to $4,700 |
| Pennsylvania | $32.73 | +7% | $1,430 to $4,090 |
| Rhode Island | $36.77 | +20% | $1,490 to $4,270 |
| South Carolina | $25.93 | −15% | $1,330 to $3,790 |
| South Dakota | $24.82 | −19% | $1,310 to $3,750 |
| Tennessee | $28.17 | −8% | $1,360 to $3,890 |
| Texas | $28.77 | −6% | $1,370 to $3,920 |
| Utah | $29.76 | −3% | $1,390 to $3,960 |
| Vermont | $29.89 | −3% | $1,390 to $3,970 |
| Virginia | $29.07 | −5% | $1,380 to $3,930 |
| Washington | $38.96 | +27% | $1,530 to $4,360 |
| West Virginia | $27.39 | −11% | $1,350 to $3,860 |
| Wisconsin | $39.04 | +27% | $1,530 to $4,360 |
| Wyoming | $30.01 | −2% | $1,390 to $3,970 |
Basis: wages are official: the hourly medians for plumbers, pipefitters and steamfitters (SOC 47-2152) as published by the US Department of Labor’s O*NET OnLine (BLS May 2025 wage data; every state re-checked on 6 October 2026); installed ranges are our estimate, rounded to $10. Formula: national range × (2/3 + 1/3 × state wage ÷ $30.67). Labor may be more than a third of a tankless job (our median labor range is about 43% to 46% of our median installed range), so the real state differences may be a little larger than shown.
Limitations
- These are national trade-guide ranges, not quotes. The unit you choose, your fuel, the work your home needs and local rules set your price.
- Fixr’s dedicated tankless page is from January 2025; Angi’s and HomeGuide’s are from 2026. Home Depot’s and Lowe’s pages are undated.
- The state figures are our estimate and adjust only for plumber pay, not for local unit prices, permit fees or demand.
- Energy savings depend on your usage and local gas and electricity prices.
What to do next
- Get two or three written quotes from licensed plumbers, and ask each one to list the gas-line, venting, electrical and permit work separately.
- Use the estimator above for your state and tick the extras your plumber says the job needs. It covers the permit, haul-away, an expansion tank, a gas line, a new electrical line and moving the heater; add venting or a panel upgrade from the table above if your job needs them.
- Comparing with a tank? See water heater replacement cost and how long water heaters last.
- Still choosing which systems to get quotes for? Compare tank vs tankless for your household, including demand patterns and home constraints.
- Find your current heater’s age: water heater age checker.
Checked against the sources below on 30 September 2026; sources added or changed on 6 October 2026 were checked that day.
