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Tankless Water Heater Cost in New York [2025 Data]
Normal Range: $1,303 - $3,490
A tankless water heater in New York costs $2,389 on average. Depending on size, fuel type, quantity, and on-site issues, you could spend between $1,303 and $3,490.
How we get this data
Ian Tuttle / Angi
Ian Tuttle / Angi
Highlights
The size and type of water heater, as well as the fuel type, can impact the price.
Gas and electric water heaters are more affordable, but a solar tankless water heater saves more on energy costs.
Solar water heaters are eligible for federal and New York tax credits.
You’ll need a New York City permit to replace your water heater.
Installing a tankless water heater in New York City costs between $1,303 and $3,490, or $2,389 on average. This is surprisingly cheaper than the national average—not something most New Yorkers are used to hearing, especially those living in the Big Apple. The overall cost will depend on the type and size of the water heater, as well as the labor rates of the plumber you hire.
Angi Tip
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
The cost to install a tankless water heater in New York City depends on several factors, including whether the water heater services one fixture (single-point) or your entire home (whole-house); its fuel type (gas, electric, or solar); and its size. Labor rates for New York water heater installers can also vary depending on where in the city you live.
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 without running out of hot water.
| Cost in New York | $90–$275 | $400–$1,375 |
| Hot water distribution | Water heater services a single fixture | Water heater distributes water throughout the entire house |
| Efficiency | Short-distance travel to fixture for hot water fast | Longer distances to travel before hot water reaches fixture |
| Heating power | 0.5–2 gallons per minute | 5–10 gallons per minute |
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 New York | Pros | Cons |
|---|---|---|---|
| Electricity | $400–$1,375 | Most affordable option, easier to install, more energy-efficient than other water heater options | Performance can suffer in high-demand scenarios |
| Natural gas | $900–$1,375 | Performance remains strong during in-demand scenarios, more energy-efficient than traditional tank systems | More costly than electric |
| Propane | $900–$1,375 | Performance remains strong during in-demand scenarios, more energy-efficient than traditional tank systems | More costly than electric |
| Solar | $1,650–$5,450 | Greater energy savings over time, low maintenance, New York City has a higher number of sunny days per year than the average city, New York State has a state-level tax credit for solar equipment | Larger upfront costs |
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 British thermal units (BTU); electric water heaters use kilowatts (kW).
| Type of Water Heater | Typical Cost to Install in New York City |
|---|---|
| Gas | $450–$1,100 for small |
| $825–$2,000 for large | |
| Electric | $90–$225 for small |
| $200–$575 for mid-sized | |
| $375–$725 for large | |
| Solar | $1,650–$5,450 (varies by performance) |
Gas Water Heaters: Smaller water heaters of 120 to 140 BTUs cost $450 to $1,100, which is enough for a one- or two-bedroom home. Larger water heaters of 180 to 200 BTUs or more cost $825 to $2,00, 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 to 8 kWs cost $90 to $225, 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 $200 to $575 and can efficiently service a two-bedroom home. Large heaters of 27 to 36 kWs cost $375 to $725 and can handle enough volume for an expansive home.
Solar Water Heaters: Tankless solar water heaters in NYC cost from $1,650 to $5,450, but don’t be thrown by those high costs. Not only are solar-powered tankless water heaters eligible for tax credits at the federal level, but they are also available for a tax credit at the New York state level: 25% of the cost, up to $5,000. Solar tankless water heaters make a lot of sense in New York City, where there’s a higher-than-average number of sunny days each year. Rather than measure a solar tankless water heater’s performance in GPM, we look at its solar fraction: the amount of hot water provided by the solar device compared to the total amount of hot water needed. A good tankless water heater powered by solar should have a 0.50 to 0.75 solar fraction; you’ll need a backup water heater to provide the rest, since solar units don’t typically provide 100% of your hot water needs.
Tankless Water Heater Pro Costs
You should not attempt to replace your existing water heater with a tankless water heater on your own. This kind of plumbing installation requires a licensed and insured New York City plumber.
Labor Costs
Labor costs will vary in the Big Apple depending on what part of the city you live in, the complexity of the install, the time of year, and other factors. That said, budget between $550 and $1,675 when hiring a plumber to install your new tankless water heater.
Permits
New York City requires permits for some plumbing work, which includes replacing a water heater. Permit costs vary depending on the type and size, but can range from $345 to nearly $1,500. Your contractor can speak with you about specific permit costs for your project.
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 to 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?
You can increase your home value with a tankless water heater. Potential buyers find this energy-efficient water heater appealing, as long as it’s a quality brand and strong enough to consistently provide hot water throughout the home. According to a study by Zillow, tankless water heaters can boost home value by as much as 1.2%.
Not planning to sell your home any time soon? That doesn’t mean a tankless water heater isn’t worth consideration. According to the Department of Energy, homeowners can save anywhere from 8% to 34% in energy costs with a tankless water heater. And if you go solar, you’ll be eligible for more savings on your New York and federal taxes.
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.
Want to help us improve our cost data? Send us a recent project quote to [email protected]. Quotes and personal information will not be shared publicly.
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