Tankless water heaters, also called on-demand water heaters, heat water only when you need it instead of storing hot water in a tank. That makes them a strong option for homeowners who want better energy efficiency, a more compact footprint, and longer hot-water run times for showers, laundry, and daily household use.
The best tankless water heater brands combine strong flow rates, high efficiency, durable heat exchangers, solid warranty coverage, and dependable long-term performance. While tankless units often cost more upfront than traditional storage-tank models, they can save space, reduce standby energy loss, and deliver continuous hot water when sized correctly for the home.
Most homeowners spend about $1,000 to $3,500+ for a tankless water heater, depending on fuel type, capacity, efficiency, venting needs, and installation complexity. Gas tankless systems usually cost more to install than electric models, especially when venting, gas-line upgrades, or recirculation accessories are involved. ENERGY STAR notes that whole-home tankless gas water heaters must meet minimum requirements for efficiency, hot-water delivery, warranty period, and safety to qualify, which is helpful context for homeowners comparing premium models.
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Best Tankless Water Heaters by Use Case
- Best for Budget-Friendly Value: Eccotemp, State Water Heaters
- Best for Premium Performance: Rinnai, Navien, Rheem
- Best for Large Households: AO Smith, Bradford White
- Best for Smart Features: Rheem
- Best for Broad Brand Recognition: Rinnai, Rheem
What’s Changed for Tankless Water Heaters in 2026
- Federal Rule Update: A proposed market shift for gas-fired instantaneous water heaters is no longer an immediate factor for 2026 shoppers. Instead of comparing brands under a newly imposed federal standard, homeowners can still focus on flow rate, efficiency, warranty coverage, and installation fit.
- Tax Credit Eligibility: Some premium, high-efficiency tankless gas models may still qualify for a federal tax credit, which makes it worth checking ENERGY STAR eligibility before you buy. Not every tankless unit qualifies, so documentation and model-specific requirements matter.
- Pricing Pressure: Tankless water heater quotes may still feel higher than older guides suggest because equipment pricing remains sensitive to broader manufacturing, materials, and import-cost pressure. That makes side-by-side quote comparison even more important in 2026.
Best Brands at a Glance
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- Excellent efficiency and premium condensing performance
- Strong installer familiarity and broad residential brand recognition
- Long residential warranty coverage on flagship models
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- Built-in recirculation on key models improves convenience
- Strong premium reputation in condensing tankless systems
- Solid warranty coverage on heat exchanger and parts
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- Strong smart-home and connected-control positioning
- Broad brand recognition and retail/pro installer visibility
- Premium condensing options with recirculation availability
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- Strong capacity options for larger households
- Long heat-exchanger warranty on residential models
- Well known among contractors and plumbing pros
Top 9 Tankless Water Heaters
Our experts at Modernize evaluated leading tankless water heater brands based on energy efficiency, flow rate, warranty coverage, product range, ease of installation, smart features, and long-term reliability. Below are the top-rated brands for performance, homeowner value, and day-to-day hot-water comfort.
Rinnai
- Average Cost: $1,200 to $3,500
Premium-performance households that want high efficiency, strong brand reputation, and dependable whole-home hot water for daily high-demand use.
What We Love
Rinnai is the industry leader in tankless technology, offering powerful gas and condensing models that deliver consistent, on-demand hot water. Known for outstanding efficiency and longevity, Rinnai’s products are engineered in Japan and built for decades of dependable service.
Rinnai received a 4.8 score for its premium efficiency, strong performance reputation, and long warranty coverage, with points held back mainly by higher pricing and the fact that some smart functionality is not built in across every model.
Good Fit If: You want a premium tankless brand with high efficiency, strong long-term value, and good support through professional installers.
Not Ideal For: Homeowners who want the cheapest upfront option or a simpler entry-level unit for occasional or low-demand use.
Cost Information
Rinnai tankless water heaters typically cost $1,200 to $3,500 installed, depending on size, venting configuration, and gas line requirements.
- Basic Non-Condensing Models: $1,200 to $1,800
- High-Efficiency Condensing Units: $2,000 to $3,500
Installation costs usually run $800 to $2,500 and depend on venting upgrades, gas-line capacity, and whether a recirculation system is added.
Best Product
SENSEI RX199iN is a great fit for homeowners who want strong whole-home performance, high efficiency, and enough hot water for a busy household. It works especially well in larger homes where multiple people may need hot water at the same time. For shoppers who want a premium tankless unit with long-term reliability, this is one of Rinnai’s strongest options.
Navien
- Average Cost: $1,300 to $3,200
Large or active households that want premium tankless performance plus faster hot-water delivery and strong recirculation features.
What We Love
Navien combines advanced engineering with outstanding energy savings, making it one of the most efficient tankless brands available. Its condensing gas models recover nearly all exhaust heat, achieving exceptional UEF ratings.
Navien received a 4.7 score because it combines premium condensing efficiency with standout comfort features like built-in recirculation, though it sits just behind Rinnai because pricing is higher and some of its biggest advantages matter most in medium-to-large homes.
Good Fit If: You want premium comfort features, strong flow performance, and less waiting for hot water at fixtures.
Not Ideal For: Smaller households or homeowners who want a simpler, lower-cost tankless setup.
Cost Information
Navien systems cost $1,300 to $3,200 installed, depending on model and configuration.
- NPE-A2 Series With Recirculation: $2,000 to $3,200
- Standard NPE-S2 Series: $1,300 to $2,200
Installation costs typically range $700 to $2,000, varying with venting materials, fuel-line size, and retrofit complexity.
Best Product
Navien NPE-240A2 is a smart choice for homeowners who want faster hot water and better day-to-day convenience. Its built-in recirculation features can help cut down on wait time at showers and faucets, which is especially useful in larger homes. This model is a strong pick for families who want both comfort and efficiency.
Rheem
- Average Cost: $1,000 to $2,800
Homeowners who want a premium tankless brand with strong smart features, broad availability, and easier integration into a connected home setup.
What We Love
Rheem’s tankless systems blend reliability with innovation, offering both gas and electric models suited for diverse households. Known for strong warranties and excellent support, Rheem’s newer Performance Platinum tankless line integrates smart Wi-Fi control for convenience and efficiency tracking.
Rheem received a 4.6 score for its smart-home edge, broad product lineup, and premium tankless innovation, but it ranks a bit lower than Rinnai and Navien because the lineup is less cleanly differentiated for shoppers and warranty/registration details can feel more involved.
Good Fit If: You want smart features, connected monitoring, and a premium tankless system from a very established brand.
Not Ideal For: Homeowners who want the simplest possible comparison process or the lowest upfront cost.
Cost Information
Rheem units cost $1,000 to $2,800 installed, depending on fuel source and efficiency.
- Standard Gas or Electric Models: $1,000 to $1,600
- Condensing and Wi-Fi-Enabled Units: $1,800 to $2,800
Installation typically adds $600 to $900, depending on whether the home needs venting or electrical upgrades and whether a recirculation system or smart-home integration is added.
Best Product
The Rheem RTEX-18 is a compact and highly efficient tankless water heater built to deliver reliable, on-demand hot water. Boasting a 99.8% energy efficiency rating, it features durable copper heating elements and precise digital temperature control, making it an ideal solution for smaller homes and households with moderate hot water demands.
AO Smith
- Average Cost: $1,000 to $2,700
Bigger households that want strong whole-home output, contractor-familiar equipment, and a tankless system built around traditional plumbing-channel reliability.
What We Love
AO Smith brings the same trusted durability from its tank models into its tankless lineup. The brand’s gas and hybrid models are designed for efficiency and reliability, with corrosion-resistant heat exchangers and strong warranty coverage.
A.O. Smith received a 4.4 score because it offers strong capacity, pro-level reliability, and long warranty coverage, but it ranks below the premium leaders because the lineup is less consumer-friendly and not as feature-rich in smart or comfort upgrades.
Good Fit If: You want a dependable, contractor-familiar tankless system for a medium-to-large home.
Not Ideal For: Homeowners who want built-in smart features or the most streamlined shopping experience.
Cost Information
A.O. Smith tankless heaters cost $1,000 to $2,700 installed, depending on type and flow rate.
- Standard Non-Condensing Models: $1,000 to $1,500
- Condensing Models: $1,800 to $2,700
Installation costs are generally $600 to $1,500, influenced by venting design, gas-line size, and the complexity of replacing an existing water heater.
Best Product
AO Smith ATI-540H-N is a strong option for homeowners who need dependable whole-home hot water in a medium-to-large house. It is a good fit for families that may run more than one fixture at a time and want a brand that contractors know well. This model makes sense for shoppers who want performance and durability without paying for a lot of extra bells and whistles.
Bradford White
- Average Cost: $1,200 to $2,800
Larger homes or homeowners working with plumbing professionals who want durable tankless performance and strong warranty-backed residential reliability.
What We Love
Bradford White is highly regarded by professional plumbers for its robust and contractor-grade tankless systems. Known for durable design and superior heat exchanger quality, the brand focuses on performance and dependability.
Bradford White received a 4.3 score for strong durability, long warranty coverage, and solid whole-home performance, but it ranks below the top tier because it is less consumer-friendly to shop and lighter on smart or convenience features.
Good Fit If: You are working with a contractor and want a durable, professionally supported tankless brand.
Not Ideal For: Homeowners who want strong smart-home features or a more retail-style research and buying experience.
Cost Information
Bradford White tankless models cost $1,200 to $2,800 installed, depending on configuration.
- Standard Gas Models: $1,200 to $1,800
- High-Efficiency Condensing Units: $2,000 to $2,800
Installation costs average $700 to $1,500 and depend on vent routing, access, and any gas or plumbing upgrades required.
Best Series
Bradford White Infiniti® K Series is a solid choice for homeowners who want reliable tankless performance from a brand often recommended by plumbing professionals. It works well for households that want continuous hot water and long-term durability, especially when installed as part of a professionally guided replacement. This is a good fit for buyers who value reliability more than flashy extra features.
Ruud
- Average Cost: $900 to $2,400
Homeowners who want Rheem-like smart features and strong efficiency in a slightly less prominent tankless brand.
What We Love
Ruud, a sister brand to Rheem, delivers similar reliability and energy performance at slightly lower price points. It’s a strong option for homeowners seeking dependable hot water and good warranty protection without the premium cost.
Ruud received a 4.1 score because it offers strong smart and performance features, but it ranks below Rheem because it is less recognizable and often feels like a secondary choice rather than the first brand homeowners research.
Good Fit If: You want connected features and strong efficiency but are open to a brand that is less dominant in consumer comparisons.
Not Ideal For: Homeowners who want the most recognizable premium tankless brand or the broadest installer familiarity.
Cost Information
Ruud tankless systems cost $900 to $2,400 installed, depending on model and flow rate.
- Standard Models: $900 to $1,400
- Condensing Models: $1,600 to $2,400
Installation costs typically range $600 to $1,200 and vary with venting type, fuel source, and whether new plumbing or electrical work is needed.
Best Product
Ruud RUTGH Series Super High Efficiency Condensing Tankless Gas Water Heater is a good fit for homeowners who want strong efficiency along with useful features like connected controls and leak protection. It can be a smart choice for buyers who like the idea of easier monitoring and more modern system alerts. For households that want premium-style features without defaulting to a more heavily advertised brand, this model stands out.
State Water Heaters
- Average Cost: $900 to $2,200
Budget-conscious homeowners who still want a professional-grade tankless system from an established plumbing-channel brand.
What We Love
State Water Heaters provide reliable tankless systems that balance cost and performance. Known for accessible pricing and dependable operation, these units are ideal for homeowners who want long-term efficiency without paying premium prices.
State Water Heaters received a 3.9 score because it offers solid value, real whole-home tankless capability, and strong warranty support, but it ranks lower because it is lighter on premium features and consumer-facing appeal.
Good Fit If: You want dependable tankless performance and solid value from a plumbing-channel brand.
Not Ideal For: Homeowners who want top-tier smart features, premium branding, or a more polished direct-to-consumer experience.
Cost Information
Typical costs range $900 to $2,200 installed, depending on type and efficiency.
- Basic Models: $900 to $1,200
- Condensing Models: $1,500 to $2,200
Installation costs run $500 to $1,000 and fluctuate based on venting, gas-line upgrades, and overall installation difficulty.
Best Product
State ProLine® XE GTS-310C-NI is a practical choice for homeowners who want solid whole-home tankless performance at a more approachable price. It works well for buyers who want dependable hot water and good long-term value without stepping up to a premium-priced model. This is a strong fit for households that care most about function, warranty support, and overall value.
Eccotemp
- Average Cost: $250 – $600
Budget-minded homeowners, cabins, smaller homes, or lighter-duty applications where lower upfront cost matters more than premium features or maximum whole-home output.
What We Love
Eccotemp is a great choice for homeowners on a budget or for off-grid and RV applications. The brand specializes in portable, compact, and affordable tankless water heaters that are easy to install and maintain.
Eccotemp received a 3.6 score because it delivers affordability and useful small-home flexibility, but it ranks last on this list because it is not as strong in premium whole-home performance, warranty confidence, or long-term upscale positioning.
Good Fit If: You want a lower-cost tankless unit for a smaller home, cabin, or lighter-use application.
Not Ideal For: Homeowners who have a large household with heavy simultaneous hot-water demand or want a premium long-term whole-home system.
Cost Information
Eccotemp models cost $500 to $1,500 installed, depending on size and setup.
- Portable or Point-of-Use Units: $500 to $800
- Whole-Home Systems: $1,000 to $1,500
Installation costs generally fall between $400 and $800, varying with fuel source, venting needs, and whether professional or DIY installation is chosen.
Best Product
Eccotemp i12 Indoor Tankless Water Heater is a good option for homeowners in smaller homes, condos, apartments, or cabins who want a lower-cost way to get continuous hot water. It is best for lighter-duty use and buyers who do not need the output of a larger premium whole-home system. For budget-conscious shoppers, it is one of the easier entry points into tankless water heating.
