Home Repair Decoded

Tankless Water Heater Installation Cost

$1,400 – $4,400A typical tankless water heater installation costs about $1,400 to $4,400 in the U.S. That covers a whole-house tankless unit replacing a tank. The range reflects parts, job difficulty and local labor rates.
Part of the jobLowHigh
Parts and materials (our assumption)$1,000$3,000
Labor hours (our assumption)510
Billed labor rate per hour$77$138
Estimated total$1,400$4,400

Our estimate, not a quote. Billed rate is the national median wage from BLS (2025, $30.67 an hour) times 2.5 to 4.5 to cover payroll costs, overhead, travel and profit. How we estimate

What our assumptions are based on

ItemSourced figureBasisSource
Labor hours4 – 104 to 8 hours (This Old House); 6 to 10 hours (Fixr). Bob Vila says close to 3 hours; that figure is not in this range.This Old House, Fixr

What other publishers report

National figures as published by each source, checked 2026-11-03. Their scope can differ from ours.
PublisherLowHighScope
This Old House$1,200$3,500Equipment and labor. Page dated June 2026.
Fixr$2,500$4,500National average range, installed. Page dated January 2025.
Bob Vila$1,333$3,721Installed, citing Angi and HomeAdvisor. Page dated October 2023.

This job often needs a permit. Check with your local building department before work starts.

Estimated cost by state

StatePlumber median wageLowHigh
Alabama$28.21$1,350$4,250
Alaska$45.15$1,550$5,050
Arizona$29.84$1,350$4,350
Arkansas$23.39$1,300$4,050
California$35.01$1,450$4,600
Colorado$30.40$1,400$4,350
Connecticut$37.16$1,450$4,650
Delaware$31.11$1,400$4,400
District of Columbia$48.57$1,600$5,200
Florida$25.44$1,300$4,150
Georgia$27.50$1,350$4,250
Hawaii$37.53$1,450$4,700
Idaho$25.18$1,300$4,150
Illinois$48.05$1,600$5,150
Indiana$36.69$1,450$4,650
Iowa$30.72$1,400$4,400
Kansas$31.36$1,400$4,400
Kentucky$30.84$1,400$4,400
Louisiana$30.62$1,400$4,400
Maine$30.77$1,400$4,400
Maryland$31.44$1,400$4,400
Massachusetts$45.14$1,550$5,050
Michigan$38.56$1,500$4,750
Minnesota$45.39$1,550$5,050
Mississippi$26.67$1,350$4,200
Missouri$32.11$1,400$4,450
Montana$38.44$1,500$4,750
Nebraska$29.31$1,350$4,300
Nevada$29.62$1,350$4,350
New Hampshire$32.12$1,400$4,450
New Jersey$37.61$1,450$4,700
New Mexico$29.54$1,350$4,350
New York$37.26$1,450$4,700
North Carolina$27.44$1,350$4,250
North Dakota$30.56$1,400$4,400
Ohio$30.45$1,400$4,350
Oklahoma$27.87$1,350$4,250
Oregon$46.66$1,600$5,100
Pennsylvania$32.73$1,400$4,450
Rhode Island$36.77$1,450$4,650
South Carolina$25.93$1,300$4,150
South Dakota$24.82$1,300$4,100
Tennessee$28.17$1,350$4,250
Texas$28.77$1,350$4,300
Utah$29.76$1,350$4,350
Vermont$29.89$1,350$4,350
Virginia$29.07$1,350$4,300
Washington$38.96$1,500$4,750
West Virginia$27.39$1,350$4,250
Wisconsin$39.04$1,500$4,750
Wyoming$30.01$1,400$4,350

Download this table (CSV)

Common questions

How much does tankless water heater installation cost?
A typical tankless water heater installation costs about $1,400 to $4,400 in the U.S. That covers a whole-house tankless unit replacing a tank. The range reflects parts, job difficulty and local labor rates.
Which states cost the most for tankless water heater installation?
Labor is the part that changes by state. See the table on this page for each state's estimate.
How long does it take to install a tankless water heater?
This Old House says installation by a licensed plumber typically takes 4 to 8 hours, and that your home's current setup affects how complex the job is. Source
Can a homeowner install a tankless water heater?
Rinnai's Value Series manual says installation and service must be performed by a licensed professional, that not following its instructions may cause a fire or explosion, and that improper installation may void the warranty. If you smell gas, leave and call your gas supplier from a neighbor's phone, or the fire department if you cannot reach it. Source
Sources

General information, not professional advice. Conditions, codes and prices vary. Turn off power, gas or water before any work, and hire a licensed professional when in doubt. Cost figures are our estimates, not quotes.