Tankless Water Heater Cost in Boston [2025 Data]
A tankless water heater in Boston, MA costs $3,855 on average. Depending on size, fuel type, quantity, and on-site issues, you could spend between $1,919 and $5,790.
Tankless water heaters in Boston cost between $1,919 and $5,790.
Single-point water heaters are more affordable, but they don’t service the whole house.
Electric and gas water heaters are cheaper than solar water heaters.
However, Massachusetts offers a state tax rebate that could make a solar tankless water heater worth consideration.
You’ll need to budget for a $20 permit to install a tankless water heater in Boston.
In Boston’s northeastern climate, having access to hot water is crucial. Unfortunately, Boston’s higher cost of living also makes the installation of water heaters more expensive—and you’ll have to budget more for maintenance and repairs as well.
An energy-efficient tankless water heater can help you offset some of those costs through lower utility bills. On average, installing a tankless water heater in Boston costs $3,855, but prices may run from $1,919 to $5,790 depending on factors such as the type and size of the water heater.
We highly recommend inspecting your water heater annually for signs of degradation. If you spot any potential warning signs, consider contacting a local plumber.
Tankless Water Heater Cost Factors
Several factors can impact the cost of installing a tankless water heater in Boston, including the type of system (single-point vs. whole-house), the fuel type, and the size of the water heater.
Single-Point Tankless Water Heater vs. Whole-House System
You can choose between single-point and whole-house tankless water heater systems. Some homeowners mix and match, installing a whole-house unit to handle the primary heating duties and placing a single-point system in an additional bathroom. This allows multiple people to shower at once.
| Tankless Water Heater in Boston | Single-Point | Whole-House System |
|---|---|---|
| Cost | $150–$425 | $650–$2,150 |
| Hot water distribution | One fixture (faucet or showerhead) | Throughout the entire house |
| Efficiency | Water located near fixture for short-distance travel | Water located in one central position and flows throughout house |
| Heating power | 0.5–2 gallons per minute | 5–10 gallons per minute |
Given Boston’s cold winters, a single-point system in one bathroom (such as the primary bathroom) could be a great way to enjoy hot showers, even while the dishwasher or washing machine is running.
Fuel Type
Wondering how much you can save (or spend) on a tankless water heater? One of the best ways to calculate your expenses is by the type of hot water heater you choose. There are four types of tankless heaters to consider:
| Fuel Type | Cost in Boston | Pros | Cons |
|---|---|---|---|
| Electricity | $650–$2,150 | Most affordable; Easier to install; More energy-efficient than other options | Reduced performance in high-demand scenarios |
| Natural gas | $1,450–$2,150 | Strong performance during in-demand scenarios; More energy-efficient than traditional tank systems | More expensive than electric |
| Propane | $1,450–$2,150 | Strong performance during in-demand scenarios; More energy-efficient than traditional tank systems | More expensive than electric |
| Solar | $2,600–$8,650 | Energy savings over time; Low maintenance | Higher upfront costs; Boston has fewer-than-average sunny days than the U.S. |
Size
A primary cost factor is the size of the tankless water heater. Larger heaters service a higher volume of water than smaller heaters, so count on increased costs. The amount of energy the heater can handle is one indicator of size. For tankless gas water heaters, the amount of energy they can handle is measured in the British thermal unit (BTU); electric water heaters use kilowatts (kW).
| Type of Water Heater | Typical Cost to Install |
|---|---|
| Gas | $725–$1,725 for small; $1,300–$3,175 for large |
| Electric | $150–$350 for small; $300–$900 for mid-sized; $600–$1,150 for large |
| Solar | $2,600–$8,650 (varies by performance) |
Gas Water Heaters: Smaller water heaters of 120–140 BTUs cost $725 to $1,725, which is enough for a one- or two-bedroom home. Larger water heaters of 180–200 BTUs or more cost $1,300 to $3,175, and these appliances handle enough volume to service a home of five or more people. Gas water heaters have an average flow rate of up to 5 gallons per minute (GPM).
Electric Water Heaters: Smaller water heaters of 5–8 kWs cost $150 to $350, though this is just enough for a one-bedroom apartment or small home. Keep in mind that electric water heaters only have a flow rate of up to 2 GPM. Mid-sized electric water heaters of 10–24 kWs cost $300 to $900 and can efficiently service a two-bedroom home. Large heaters of 27–36 kWs cost $600 to $1,150 and can handle enough volume for an expansive home.
Solar Water Heaters: Tankless solar water heaters cost between $2,600 and $8,650. Rather than GPM, a good way to measure the performance of a tankless solar is to look at the solar fraction (amount of energy provided by the solar heater divided by the total energy required—which would be provided by a backup energy source). Usually, solar tankless water heaters run from 0.5 to 0.75 in terms of their solar fraction, meaning you would still need a backup water heating source. Note that these cost estimates do not include any tax credit for which your project may be eligible. In addition to federal tax credits, Massachusetts has a state tax credit for solar hot water: 15%, up to $1,000.
Tankless Water Heater Pro Costs
Installing a tankless water heater is not typically a DIY job, unless you have prior experience. Instead, you’ll need to budget for Boston-area pros, including local plumbers, HVAC contractors, or water heater installers.
Labor Costs
On average, you’ll need to budget between $850 to $2,650 for actual installation, depending on the contractor you hire and the complexity of the installation. Labor usually makes up half of the cost to install a tankless water heater.
Permits
Installing a new tankless water heater in Boston does require a permit, but your contractor should pull this for you. It costs $20 for a short-term permit, but plumbing and electrical may include additional per-fixture fees—negligible in the grand scheme of things.
Accessibility
If the desired location of the new tankless system is difficult to access or narrow and harder to work in, this can raise the labor costs by up to 10% to 15% of your project total. Prices will vary based on the home and setup.
Current Heating System Removal
Removing an existing hot water heating system can cost $500 or more, depending on the unit's size and accessibility, as well as the contractor's hourly rate. When looking for an installation quote, make sure the quote includes the removal and disposal of your current water heater.
Does Installing a Tankless Water Heater Increase Home Value?
A new tankless water heater could drive up the value of your home, as long as it’s powerful enough to service the whole house (or if it’s simply a single-point tankless water heater that enhances your home’s capabilities). In fact, a study by Zillow found that a tankless water heater increases home value by 1.2%. Make sure the listing for your home talks about the tankless water heater’s energy efficiency (and young age) to help potential buyers understand this property perk.
Even if tankless water heaters didn’t impact your home’s value, they can still be worth the investment, thanks to federal tax credits (and a Massachusetts state tax credit) and between 8% and 34% energy savings, according to Energy.gov.
How Angi Gets Its Cost Data
Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We survey real Angi customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.
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