Gas tankless water heater replacement cost in Austin, TX
Installed, About 180,000–199,000 BTU (2–3+ bathrooms)
A typical tankless water heater (About 180,000–199,000 BTU (2–3+ bathrooms)) costs about $2,750 installed in the Austin area, 2% below the national figure, because plumbers here earn a median $30 an hour against $31 nationally.
Prices by size in Austin
| Size | Low | Typical | High | National typical |
|---|---|---|---|---|
| About 150,000 BTU (1–2 bathrooms) | $2,000 | $2,600 | $3,400 | $2,650 |
| About 180,000–199,000 BTU (2–3+ bathrooms) | $2,550 | $2,750 | $3,750 | $2,800 |
Local labor: what plumbers earn here
| Hourly wage | Austin metro | United States |
|---|---|---|
| 25th percentile | $23 | $24 |
| Median | $30 | $31 |
| 75th percentile | $38 | $41 |
The Austin market
Austin's Development Services Department runs a Residential Change-Out Program whose permits include water heaters and HVAC systems. The fee schedule lists the first HVAC system at $61.20, or $64.87 with the 6% Development Services surcharge, and each additional system at $17.10 before the surcharge; a separate water heater change-out fee is not itemized. Trade permits go to a State of Texas licensed contractor or a qualified homeowner with a homestead exemption filed with the appraisal district, though a homeowner may not reclaim or charge refrigerant in a ducted system. A final trade inspection is required, and a permit expires on day 181 if no inspection has occurred. Cooling drives demand: EIA found 83% of Texas homes have central air and 19% heat with a heat pump. Round Rock, San Marcos and Travis County areas outside city limits follow other rules.
Attic water heaters are common in Central Texas homes, and switching to tankless is a chance to move the heater somewhere easier to reach. Moving to a garage or exterior wall changes the vent and gas routes, and those lines add cost. A gas unit usually needs a larger gas line than the old tank. Ask the installer to price the relocation as its own line item. Then ask what flow rate the unit delivers when two showers run at once.
Permits in Austin
| Permit for this job | Yes (inferred: water heaters are included in the Residential Change-Out Program permits; no page states the requirement in words) (source) |
|---|---|
| Fee | HVAC change-out: $61.20 first system + 6% surcharge = $64.87; each additional system $17.10 (+6% = $18.13). Water heater change-out fee not itemized. |
| Who can pull it | State of Texas licensed contractor, or qualified homeowner with a homestead exemption (homeowner may not reclaim/charge refrigerant in ducted HVAC) |
| Inspection | Yes (final trade inspection; permit expires on day 181 without an inspection) |
Rebates in Texas
HEAR: announced, not open yet. HOMES: announced, not open yet. Source: Texas State Energy Conservation Office (Comptroller), checked October 13, 2026.
What these programs cover, and other states
Other systems in Austin
- Gas tank water heater
- Gas furnace
- Central air conditioner
- Heat pump (ducted, outdoor unit + air handler)
Gas tankless water heater cost in other metros
Sources
- City of Austin: Trade permits
- City of Austin residential fee schedule
- City of Austin Development Services: Fees
- City of Austin mechanical permit request form
- Texas Comptroller: State Energy Conservation Office
- EIA, 2020 RECS: Highlights for space heating in U.S. homes by state
- EIA, 2020 RECS: Highlights for water heating in U.S. homes by state
- EIA, 2020 RECS: Highlights for air conditioning in U.S. homes by state
- https://www.austintexas.gov/development-services/work-exempt-building-permits
- BLS OEWS May 2025, Austin-Round Rock-San Marcos, TX (47-2152 plumbers)
- DOE Gas-fired Instantaneous Water Heaters Final Rule TSD (Dec 2024), Table 8.2.6 (2023$)