How Much Does Tankless Water Heater Cost?
Updated for 2026 — national average costs with state-by-state breakdowns
What Does Tankless Water Heater Include?
Tankless (on-demand) water heaters heat water only when you need it, eliminating the standby energy loss of traditional tank heaters. They're compact, last longer, and can reduce water heating bills by 20-34%.
The national average cost for tankless water heater is $3,200 installed. Most homeowners pay between $1,800 and $5,500, though costs can vary significantly based on your location, the scope of work, and other factors outlined below.
What Affects the Price?
Fuel Type
Gas tankless: $2,500-$5,500 installed. Electric tankless: $1,500-$3,000 installed
Retrofitting
Switching from tank to tankless may need new gas line ($500-$1,500), venting ($500-$1,000), or electrical upgrade ($300-$800)
Brand
Rinnai and Navien: $1,200-$2,500 for unit. Noritz: $1,000-$2,000. Budget brands: $500-$1,000
Key Cost Factors
- ✓Unit type (gas vs electric)
- ✓Flow rate needed (GPM)
- ✓Number of fixtures served
- ✓Venting requirements
- ✓Gas line upgrades needed
- ✓Local codes
💡 Tips to Save Money
- 1.Electric units cost less upfront but gas units have lower operating costs
- 2.Check for federal tax credits (up to $2,000 for qualifying units)
- 3.Consider point-of-use units ($200-$500) for single fixtures instead of whole-home
- 4.Get quotes from plumbers who specialize in tankless — general plumbers may overcharge
📈 Tankless Water Heater Cost Trends (2020–2024)
Prices have increased +17.7% over the last 5 years
| Year | National Avg | YoY Change |
|---|---|---|
| 2020 | $2,719 | — |
| 2021 | $2,833 | +4.2% |
| 2022 | $3,017 | +6.5% |
| 2023 | $3,101 | +2.8% |
| 2024 | $3,200 | +3.2% |
Based on national averages adjusted for annual inflation. Actual costs vary by location and project scope.
Tankless Water Heater Cost by State
Costs vary significantly by state due to labor rates, cost of living, and local market conditions. Click any state for a detailed breakdown.
| State | Low | Average | High |
|---|---|---|---|
| Alabama | $1,476 | $2,624 | $4,510 |
| Alaska | $2,304 | $4,096 | $7,040 |
| Arizona | $1,710 | $3,040 | $5,225 |
| Arkansas | $1,440 | $2,560 | $4,400 |
| California | $2,430 | $4,320 | $7,425 |
| Colorado | $1,944 | $3,456 | $5,940 |
| Connecticut | $2,196 | $3,904 | $6,710 |
| Delaware | $1,890 | $3,360 | $5,775 |
| Florida | $1,764 | $3,136 | $5,390 |
| Georgia | $1,620 | $2,880 | $4,950 |
| Hawaii | $2,556 | $4,544 | $7,810 |
| Idaho | $1,656 | $2,944 | $5,060 |
| Illinois | $1,890 | $3,360 | $5,775 |
| Indiana | $1,584 | $2,816 | $4,840 |
| Iowa | $1,548 | $2,752 | $4,730 |
| Kansas | $1,530 | $2,720 | $4,675 |
| Kentucky | $1,512 | $2,688 | $4,620 |
| Louisiana | $1,566 | $2,784 | $4,785 |
| Maine | $1,836 | $3,264 | $5,610 |
| Maryland | $2,070 | $3,680 | $6,325 |
| Massachusetts | $2,340 | $4,160 | $7,150 |
| Michigan | $1,656 | $2,944 | $5,060 |
| Minnesota | $1,836 | $3,264 | $5,610 |
| Mississippi | $1,404 | $2,496 | $4,290 |
| Missouri | $1,566 | $2,784 | $4,785 |
| Montana | $1,710 | $3,040 | $5,225 |
| Nebraska | $1,584 | $2,816 | $4,840 |
| Nevada | $1,836 | $3,264 | $5,610 |
| New Hampshire | $2,016 | $3,584 | $6,160 |
| New Jersey | $2,250 | $4,000 | $6,875 |
| New Mexico | $1,620 | $2,880 | $4,950 |
| New York | $2,376 | $4,224 | $7,260 |
| North Carolina | $1,620 | $2,880 | $4,950 |
| North Dakota | $1,620 | $2,880 | $4,950 |
| Ohio | $1,620 | $2,880 | $4,950 |
| Oklahoma | $1,494 | $2,656 | $4,565 |
| Oregon | $1,980 | $3,520 | $6,050 |
| Pennsylvania | $1,836 | $3,264 | $5,610 |
| Rhode Island | $2,070 | $3,680 | $6,325 |
| South Carolina | $1,566 | $2,784 | $4,785 |
| South Dakota | $1,530 | $2,720 | $4,675 |
| Tennessee | $1,548 | $2,752 | $4,730 |
| Texas | $1,674 | $2,976 | $5,115 |
| Utah | $1,710 | $3,040 | $5,225 |
| Vermont | $1,944 | $3,456 | $5,940 |
| Virginia | $1,890 | $3,360 | $5,775 |
| Washington | $2,070 | $3,680 | $6,325 |
| West Virginia | $1,440 | $2,560 | $4,400 |
| Wisconsin | $1,692 | $3,008 | $5,170 |
| Wyoming | $1,656 | $2,944 | $5,060 |
Frequently Asked Questions
Is a tankless water heater worth it?
For most homes, yes. Despite higher upfront cost ($1,500-$3,000 more than tank), they save $100-$150/year on energy and last 20+ years vs 10-12 for tank heaters. Break-even is typically 6-10 years.
Can a tankless water heater run out of hot water?
Not in the traditional sense — they heat water continuously. However, they have a maximum flow rate (typically 5-10 GPM). Running multiple showers simultaneously can exceed capacity.
🏙️ Tankless Water Heater Cost by City
Compare tankless water heater costs in the most popular US cities:
View all 219 cities →
Related Cost Guides
💬 What Did You Pay?
Real costs reported by homeowners for Tankless Water Heater
Recent Reports
📐 Tankless Water Heater Cost Calculator
Get a personalized estimate based on your project details
Get Free Quotes from Local Pros
Compare prices from top-rated contractors in your area.
🔍 Get Free Quotes from Local Pros
Compare prices from pre-screened contractors in your area. Free, no-obligation estimates.
* CostWhale may earn a commission. This doesn't affect our pricing data or recommendations.
💰 Get Weekly Cost-Saving Tips
Join 10,000+ smart homeowners. Unsubscribe anytime.