Gas tankless water heater replacement cost in Memphis, TN
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 Memphis area, 2% below the national figure, because plumbers here earn a median $28 an hour against $31 nationally.
Prices by size in Memphis
| Size | Low | Typical | High | National typical |
|---|---|---|---|---|
| About 150,000 BTU (1–2 bathrooms) | $2,000 | $2,600 | $3,350 | $2,650 |
| About 180,000–199,000 BTU (2–3+ bathrooms) | $2,550 | $2,750 | $3,700 | $2,800 |
Local labor: what plumbers earn here
| Hourly wage | Memphis metro | United States |
|---|---|---|
| 25th percentile | $23 | $24 |
| Median | $28 | $31 |
| 75th percentile | $36 | $41 |
The Memphis market
Building permits in Memphis and Shelby County are handled through the Division of Planning and Development's construction enforcement office (develop901.com), which publishes fees for building, electrical, mechanical and plumbing permits and runs a DIY corner for homeowners. Whether a like-for-like water heater, furnace, AC or heat pump replacement needs a permit, what it costs, and whether a homeowner can pull it could not be confirmed for this page, so check with that office first. Mississippi and Arkansas suburbs follow their own rules. Statewide, EIA's 2020 survey found Tennessee homes mostly electric: 60% heat with electricity, 35% with a central heat pump, 86% have central air and 74% heat water electrically. Memphis Light, Gas and Water is a TVA power distributor, and TVA's EnergyRight program offers equipment rebates.
Gas tankless units are an option in Memphis homes with MLGW gas service. The conversion usually needs a new vent and a gas line check by a licensed plumber. Electric tankless models need heavy dedicated circuits, often with panel work by a licensed electrician. Ask each installer to price the vent, gas or electrical work as separate lines. Ask whether the quote includes isolation valves for descaling.
Permits in Memphis
We couldn't confirm all of Memphis's rules from official pages. Check with the building department before work starts.
| Permit for this job | Not stated on the city pages we checked (source) |
|---|---|
| Fee | Not stated on the city pages we checked |
| Who can pull it | Not stated on the city pages we checked |
| Inspection | Not stated on the city pages we checked |
Rebates in Tennessee
HEAR: announced, not open yet. HOMES: announced, not open yet. Source: TDEC Office of Energy Programs, checked October 13, 2026.
- TVA EnergyRight rebates: Heat pump $500-$800, central AC $200-$400, HPWH $900 via Quality Contractor Network
What these programs cover, and other states
Other systems in Memphis
- Gas tank water heater
- Gas furnace
- Central air conditioner
- Heat pump (ducted, outdoor unit + air handler)
Gas tankless water heater cost in other metros
Sources
- Memphis, TN permit source (water heater permit)
- Memphis, TN permit source (who can pull)
- Memphis, TN permit source: 2022 building fee schedule (fetch
- TVA EnergyRight: residential rebates
- EIA RECS 2020: Highlights for space heating fuel in U.S. homes by state
- EIA RECS 2020: Highlights for space heating in U.S. homes by state
- EIA RECS 2020: Highlights for air conditioning in U.S. homes by state
- EIA RECS 2020: Highlights for water heating in U.S. homes by state
- BLS OEWS May 2025, Memphis, TN-MS-AR (47-2152 plumbers)
- DOE Gas-fired Instantaneous Water Heaters Final Rule TSD (Dec 2024), Table 8.2.6 (2023$)