Cost Guide
How Much Does Tankless Water Heater Installation Cost? (2026 Guide)
Compare typical tankless water heater installation costs, see what can change the total, and learn how to compare itemized quotes for equivalent work.
On this pageTypical costs
Plumbing Advisors Editorial TeamEditorial StandardsFigures reviewed August 3, 2026Source-CheckedTypical pricing
Electric tankless system
$1,050–$3,700
Complete installed system
Gas tankless system
$2,300–$6,350
Complete installed system
Electric and gas tankless systems have different installation requirements, so compare them as separate installed projects. A gas quote should include the unit, dedicated venting, and any required gas-line work; an electric quote should identify any needed circuit or panel upgrades. Final cost depends on capacity, access, labor, and the home's existing utility connections.
Tankless Water Heater Installation costs
| System | Typical installed cost |
|---|---|
| Electric tankless water heater, installed | $1,050–$3,700 per unit |
| Gas tankless water heater, installed | $2,300–$6,350 per unit |
Labor costs
| Labor | Typical cost range |
|---|---|
| Labor to install the unit | $730–$2,600 per unit |
Additional project costs
| Additional work | Typical cost range |
|---|---|
| New or upgraded gas line | $430–$2,100 |
| Annual descaling / maintenance | $110–$340 |
Additional per-item costs
| Additional item | Typical cost range |
|---|---|
| Electrical upgrade for an electric unit | $530–$3,000 per unit |
What affects the cost
- Whether the unit is gas or electric and its flow-rate capacity
- Venting requirements for a gas model
- Gas-line sizing for the unit's burner demand
- Electrical capacity needed for an electric model
- Permit and code requirements in your city, county, or state
- How difficult the install location is to access
- Local labor rates in your area
What is typically included
- Help choosing gas or electric and sizing by flow rate
- Installation and connection of the tankless unit
- Dedicated venting for a gas model where required
- Gas-line or electrical updates the unit needs
- Handling permits where your area requires them
- Testing for safe operation and steady hot water
Ways to manage the cost
- Compare total installed quotes, including venting and gas or electrical work
- Right-size by flow rate so you do not overpay for unneeded capacity
- Ask about efficiency rebates that may apply to tankless units locally
- Keep up with annual descaling to protect efficiency and lifespan
- Confirm venting, permits, and any upgrades are itemized in writing
Cost questions
Why does a tankless install cost more than a tank?
The unit itself costs more, and gas models often need dedicated venting and a larger gas line, while electric models may need added electrical capacity. That extra work adds labor and materials beyond a basic tank swap, though the efficiency can offset it over a long stay in the home.
Is gas or electric cheaper to install?
Electric is often less expensive to install when your panel already has room, since it avoids gas venting and gas-line work. Gas can cost more upfront because of venting and line sizing, but it generally supports higher flow for whole-home use. The best value depends on your home and demand.
What should a tankless installation quote include?
Ask for the inspected scope, labor, parts or equipment, access work, permits or inspections when applicable, restoration, exclusions, and change-order terms to be listed separately.
How should I compare tankless installation quotes?
Compare proposals for the same inspected scope. A lower total may exclude testing, access, materials, restoration, or follow-up work that another proposal includes.
Need Plumbing Help Now?
Call Plumbing Advisors to connect with help for leaks, drains, water heaters, sewer lines, burst pipes, toilets, faucets, and more.
No-obligation request · Availability varies by location and provider