Tankless Water Heater Installation Cost Estimate

In the U.S., Tankless water heater installation typically costs $1,400–$5,600 for the unit and installation combined, averaging around $2,600–$2,700.

  • Electric tankless water heaters cost 30-40% less to install than gas models, but gas units typically offer higher flow rates.
  • The tankless water heater installation cost in 2026 typically ranges from $700 to $2,500, depending on how complex your project is.
  • You should budget for permits, electrical service upgrades, and old heater removal, which can add $200 to $500.

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Tankless Water Heater Installation Estimate FAQs

Is a gas or electric tankless water heater cheaper to install?

Electric is cheaper upfront — electric tankless water heater costs typically range from $1,200 to $2,500 including parts and labor, while gas systems usually range from $2,000 to $3,800 — but gas units handle higher simultaneous hot water demand better for larger households.

Why do tankless water heater installation quotes vary so much between contractors?

Installing a tankless system is not a simple swap — most homes need a gas line upgrade, a new venting system, and possibly electrical work, and older homes need more work and adjustments, which explains large quote differences.

Is there a tax credit for installing a tankless water heater?

Yes — the federal Energy Efficient Home Improvement Credit offers 30% of equipment cost, up to $600 maximum, for ENERGY STAR certified tankless water heaters with a UEF of 0.95 or higher in 2026.

How much does ongoing maintenance cost after installation?

The average tankless hot water heater maintenance cost is around $100–$200 per year, depending on water hardness and the service provider, and a yearly flush typically costs $150–$250 and helps prevent expensive repairs.

Is it worth switching from a tank to a tankless water heater?

Tankless costs more upfront but lasts longer and uses less energy — if your current system is failing or over 10 years old, upgrading to tankless is often the smarter investment.

What hidden costs should I watch for in a tankless installation quote?

Gas tankless units often require gas line upsizing from ½-inch to ¾-inch, adding $500 to $1,500, plus permits, electrical service upgrades, and old heater removal, which can add $200 to $500 on top of the base quote.

Can I install a tankless water heater myself to save money?

Not recommended — incorrect installation can be dangerous and may void the warranty, especially given the gas line, venting, and electrical work most installations require.

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See customer stories
IR
Igal Rubinshtein @igal

Joel and his team went above and beyond to make sure they helped us fix the gas leak. Joel is a man of his word and came through on his promise.

AP
Alex Pritchard @alexpritch

Very expensive. Make sure you establish the price up front. They did some work on gas pipes, which was specialized so the prices weren't so horrible.

JS
Joe S. @joe

They did a good job and came quickly. Installed a bidet in my toilet. Shout out to Casey for the quality work.

DE
D Evonne W. @evonne

Scheduled service for a clogged toilet and never showed. No call, all messages unanswered

JA
Jari @jari22

If its an easy fit sure they maybe great but if its something different then quoted they are going to charge you either way a hefty price.

AU
Ashley Undercuffler @undercuffler

They never called my property manager, or myself, to ask if they could do an additional estimate while at my property. I was shocked. Companies cannot go around doing estimates.

AJ
A Jackson @jacksona

Mike showed up in an hour to shut off a spigot that I could not shut off. Always great friendly service at a reasonable price!!!

IR
Igal Rubinshtein @igal

Joel and his team went above and beyond to make sure they helped us fix the gas leak. Joel is a man of his word and came through on his promise.

AP
Alex Pritchard @alexpritch

Very expensive. Make sure you establish the price up front. They did some work on gas pipes, which was specialized so the prices weren't so horrible.

JS
Joe S. @joe

They did a good job and came quickly. Installed a bidet in my toilet. Shout out to Casey for the quality work.

DE
D Evonne W. @evonne

Scheduled service for a clogged toilet and never showed. No call, all messages unanswered

JA
Jari @jari22

If its an easy fit sure they maybe great but if its something different then quoted they are going to charge you either way a hefty price.

AU
Ashley Undercuffler @undercuffler

They never called my property manager, or myself, to ask if they could do an additional estimate while at my property. I was shocked. Companies cannot go around doing estimates.

AJ
A Jackson @jacksona

Mike showed up in an hour to shut off a spigot that I could not shut off. Always great friendly service at a reasonable price!!!

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