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Water heater cost / deep-diveVerified November 2026

How much does a tankless water heater cost?

By Our research team · Last verified · 10 jobs priced · Methodology

Water heater cost

Tankless water heater cost in the US

United States
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Normal range across the US
$2,000–$5,600installed

Whole-home tankless gas (replacing a tank). The full price list is below.

How we get this data
Typical
$3,500
Low
$2,000
High
$5,600
Jobs priced
10
Cities priced
195
Sources
36+
Verified
November 2026
Quick answer

$2,000–$5,600 to replace a tank with a whole-home tankless gas water heater, installed, and $3,500 is typical. Whole-home electric tankless runs $1,000–$4,500, and a point-of-use unit for one sink $400–$1,500. Most of the extra cost over a $2,000 gas tank is new venting and a bigger gas line.

  • Whole-home tankless gas, replacing a tank: $2,000–$5,600 installed
  • Gas line upsize $400–$800; new venting $400–$800
  • Whole-home electric tankless: $1,000–$4,500 with new circuits
  • Descale it yearly: $100–$350 a visit
  • Runs for about $185 a year vs $275 for a gas tank

Prices verified November 2026 · Cross-referenced against 36+ American pricing sources · See methodology

01 / PricesUSA · November 2026

Tankless water heater prices (2026)

Whole-home tankless gas costs $2,000–$5,600 installed when it replaces a tank. The rows below show where that money goes and what it costs to run.

Tankless water heater prices (2026)Installed, low to high with the typical price marked.
Whole-home tankless gas (replacing a tank) $3,500$2,000–$5,600
Whole-home tankless electric $2,200$1,000–$4,500
Gas tank, 40–50 gal (for comparison) $2,000$1,100–$3,100
Point-of-use electric tankless (one sink) $750$400–$1,500
JobLowTypicalHigh
Whole-home tankless gas (replacing a tank)installed$2,000$3,500$5,600
Whole-home tankless electricinstalled$1,000$2,200$4,500
Point-of-use electric tankless (one sink)installed$400$750$1,500
Gas line upsize (½ in to ¾ in)per job$400$600$800
New tankless venting (wall or roof)per job$400$600$800
Tankless flush and descaleper job$100$200$350
Tankless repairper job$300$600$1,300
Gas tank, 40–50 gal (for comparison)installed$1,100$2,000$3,100
Running cost per year: tankless gasper year$130$185$280
Running cost per year: gas tankper year$190$275$425

US prices, November 2026. Low is a simple job in a low-cost area; high is a bigger job or a high-cost city.

02 / By city195 cities priced

Does tankless water heater cost change by city?

Yes. The same job costs more where labor and rent cost more. Here's how water heater prices in the biggest US metros compare with the US typical of $1800.

Water heater prices in the 12 biggest US metrosEach city's typical water heater price against the US typical of $1,800.
Los Angeles, CA 31% more
New York, NY 14% more
Washington, DC 14% more
Miami, FL 14% more
Boston, MA 14% more
Dallas, TX Same
Atlanta, GA 3% less
Phoenix, AZ 6% less

Labor, rent and demand move every job on this page in the same direction. Open your city's guide for its full local price list.

03 / The guide11 parts

What to know before you book

What drives the price

Gas supply and venting. A whole-home unit burns far more gas at once than a tank, so many homes need the gas line upsized from ½ inch to ¾ inch ($400–$800). The old tank's flue can't be reused for most tankless units, so new venting goes through a wall or the roof ($400–$800).

Size. A unit is sized by gallons per minute at your coldest inlet water, not by tank size. Homes with two or three showers running at once need a bigger unit, which costs more to buy and to vent.

Compare

Tank vs tankless: is it worth it?

Over 10 years, a gas tank costs about $4,750 ($2,000 installed plus $275 a year), and tankless gas about $5,350 ($3,500 plus $185 a year), at US average gas prices, before yearly descaling. The fuel saving alone rarely pays back the higher price.

Tankless makes sense when you want endless hot water, need the floor space, or plan to stay long enough to get the longer life: tankless units often last 20 years or more, against 8–12 years for a tank.

Electric and point-of-use tankless

Whole-home electric tankless costs $1,000–$4,500 installed. It needs very large circuits, so many homes need panel work, which is what pushes the top of that range. Running cost is about $605 a year at the US average electric rate.

A point-of-use unit under one sink costs $400–$1,500 installed. It's a fix for a far bathroom or kitchen that waits a long time for hot water, not a whole-home heater.

Upkeep: descaling

Tankless units need flushing to clear scale: about once a year, or every six months with hard water. A plumber charges $100–$350 a visit. Ask for isolation (service) valves at install so the flush is quick.

Watch out

Permits and red flags

A tankless swap is gas, venting and often electrical work, so it needs a permit and licensed pros in most places.

Red flags in a quote: no gas line sizing check, reusing the old tank's metal flue for a condensing unit, no isolation valves for descaling, or a unit sized for summer rather than winter water.

Worked example

Worked example: 10 years of tankless, upkeep included

Over 10 years, a typical whole-home gas tankless unit costs about $7,350 if a plumber descales it every year. Upkeep is easy to forget when you compare prices.

Line itemCost
Tankless gas unit, installed (replacing a tank)$3,500
Gas for 10 years at $185 a year$1,850
Pro descaling once a year for 10 years at $200 a visit$2,000
10-year total$7,350

A gas tank over the same 10 years costs $2,000 to install plus $275 a year for gas. Tanks need a yearly flush too. With soft water, fewer visits are needed, and the upkeep line drops a lot. Some makers also allow you to descale it yourself with a pump kit; check the manual.

Step by step

Size a tankless unit in four steps

Two showers at the same time need about 5 gallons a minute. Here's how to check your own home with the Department of Energy's method.

  1. List what runs at the same timeThink of your busiest moment. For example, one shower and the kitchen tap.
  2. Add up the flowThe Department of Energy uses about 2.5 gallons a minute for a shower head and 0.75 for a tap. Together that's 3.25 gallons a minute. Low-flow heads use less; the number is often stamped on the head.
  3. Work out the temperature riseThis is how much the unit must warm the water. Take the hot water you want, often 120°F, and subtract the cold water coming in. If you don't know it, the Department of Energy uses 50°F, which gives a 70°F rise. Incoming water is colder in winter and in northern states, so size for winter.
  4. Pick a unit rated for that flow at that riseMakers list gallons per minute at each rise. As a guide, the Department of Energy says gas units often give about 5 gallons a minute at a 70°F rise, and electric units about 2. Our size calculator does the math.
Compare

Gas vs electric whole-home tankless

Electric tankless costs less to install, $2,200 typical against $3,500 for gas. But it gives less hot water at once and costs more to run.

ItemGas tanklessElectric tankless
Installed price$2,000–$5,600$1,000–$4,500
Hot water at a 70°F riseAbout 5 gallons a minute (typical)About 2 gallons a minute (typical)
Running cost per year$130–$280More than gas at US average rates
VentingNeeded. New venting costs $400–$800.None
Supply workMany homes need a bigger gas line: $400–$800Very large circuits; panel work in many homes
Hot water in a power cutNo; most need power for the fan and controlsNo
Best fitWhole homes with two or more showersSmall homes, one bathroom, or warm areas

Whole-home electric units need very heavy circuits. Ask a licensed electrician to check your panel before you buy.

Watch out

What tankless won't fix

Tankless won't get hot water to your tap faster. The water still travels the same pipe from the heater to the tap. If you wait a long time now, ask about a recirculation pump, or a small unit under that sink ($400–$1,500).

It won't give endless hot water to every tap at once. It gives endless hot water up to its flow limit. Open more taps than it can handle, and the water cools.

Most gas units need power to run their fan and controls. In a power cut you get no hot water. Many standard gas tanks keep working.

A tap opened only a little may not switch the unit on. You may also get a short burst of cold water between uses.

Watch out

More red flags in a tankless quote

A tankless quote with no flow rate is the first thing to question. Also watch for these.

  • No gallons-per-minute figure at your winter temperature rise.
  • A unit picked by home size or old tank size alone.
  • No condensate drain plan for a condensing unit. These units make slightly acidic water that needs a drain, and often a neutralizer.
  • No permit, even though the job involves gas, venting or wiring.
  • An electric unit with no check of how much power your panel has to spare.
  • A federal tax credit promised for a unit installed in 2026. The 25C credit ended for units placed in service after December 31, 2025.
  • No written labor warranty, or no word on what the maker's warranty needs from you, such as regular descaling.
Tip

Get the gas line checked in writing

Ask the plumber to write down the pipe size, the length of the run and how much gas the unit burns at full power (its BTU rating). If the line is too small, the unit can't reach full output. Upsizing costs $400–$800. Gas work needs a licensed pro and a permit in most places.

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05 / Questions11 answers

Tankless water heater cost: FAQ

Is a tankless water heater worth it?

For endless hot water, space or a long stay in the home, yes. On fuel savings alone it pays back slowly: about $90 a year less gas than a tank, against $1,500 more up front at typical prices.

Do I need a bigger gas line for a tankless water heater?

Often. Whole-home units need much more gas at once than a tank, and many homes need the line upsized from ½ inch to ¾ inch for $400–$800.

How often does a tankless water heater need descaling?

About once a year, or every six months with hard water. A professional flush costs $100–$350.

Can an electric tankless water heater run a whole house?

Yes, if your panel can supply it. Whole-home electric units need heavy circuits and cost $1,000–$4,500 installed, more if the panel needs an upgrade.

How long does a tankless install take?

Most tank-to-tankless jobs take half a day to a full day, longer if the gas line or venting needs a long new run.

Does a tankless water heater work during a power outage?

Usually not. Most gas tankless units need power for the fan and controls, and electric units need power to heat. Many standard gas tanks still work in a power cut.

Is there a tax credit for a tankless water heater in 2026?

No federal credit. High-efficiency gas units could get up to $600 under the 25C credit, but it ended for units placed in service after December 31, 2025. Some gas utilities still pay rebates, so check yours.

How long does a tankless water heater last?

Often 20 years or more, against 8–12 years for a tank. Regular descaling ($100–$350 a visit) helps it get there.

What size tankless water heater do I need?

Add the flow of everything you run at once. One shower and one tap need about 3.25 gallons a minute. Two showers need about 5. Then check the unit gives that flow at your winter temperature rise. Our size calculator can help.

How much does a point-of-use tankless water heater cost?

$400–$1,500 installed, and $750 is typical. It serves one sink, not the whole home.

Why does tankless installation cost so much?

Because it's more than a swap. Many homes need a bigger gas line ($400–$800), new venting ($400–$800), a condensate drain and a permit. The unit itself also costs more than a tank.

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