Tankless Water Heater Cost in Austin [2025 Data]

The average cost of a tankless water heater in Austin is around $2,239. However, homeowners might pay anywhere between $1,187 and $3,491 for models with different output capacities and fuel types. Overall, Austin's lower-than-average cost of living and hourly plumbing rates make getting a new water heater installed less expensive compared to many other major cities. Keep reading to learn more about what to expect when paying for this project.

Tankless Water Heater Cost Factors

The cost of a new tankless water heater in Austin can vary depending on the capacity required for your home and the type and model of heater you choose. When you hire a local water heater installer in Austin, they'll prepare a custom quote after assessing your household's needs. A local pro will be able to cover points that include expected monthly energy savings for each option, the pros and cons of tankless water heaters, and how to flush a tankless water heater properly.  

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.

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:

Size

A primary cost factor is the size of the 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). Gallons per minute (GPM) is another measure of size that can be more useful when comparing performance across gas, electric and solar systems.

• Gas Water Heaters: Smaller water heaters of 120–140 BTUs cost $500 to $1,200, which is enough for a one- or two-bedroom home. Larger water heaters of 180–200 BTUs or more cost $900 to $2,200, 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 $100 to $250, 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 $210 to $630 and can efficiently service a two-bedroom home. Large heaters of 27–36 kWs cost $420 to $800 and can handle enough volume for an expansive home. 

• Solar Water Heaters:  Harnessing Austin's sunny climate to take advantage of solar power as a backup for an electric tankless water heater, the sizing will follow parameters for an electric tankless water heater. Austin homeowners may also opt for 80-gallon to 120-gallon solar water heaters costing between $2,500 and $5,800.

Tankless Water Heater Pro Costs

In Austin, plumbers must be licensed by the Texas State Board of Plumbing Examiners (TSBPE) in order to perform plumbing work. Strict licensing requirements are reflected in the cost for labor for residential plumbers.  

Labor Costs

While the average plumber in Austin charges between $65 and $85 per hour, a master plumber needed for a more complex gas water heater installation might charge closer to $90 to $110 per hour. In addition to providing labor, a local pro can provide suggestions for things like tankless heater vs. tank.  

Permits

A permit is generally needed when installing a new water heater of any kind in Austin to ensure that the replacement satisfies all of the city's current safety codes and standards. Depending on the scope of the work, the average plumbing permit for a tankless water heater in Austin can range from $45 to $200.  

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?

Yes, a new tankless water heater is considered a desirable, energy-efficient upgrade that adds value to an Austin home. To maximize the return on investment, ask a local plumbing pro about installing an ENERGY STAR tankless water heater that can reduce energy bills by an average of 50% in many households.

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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