Gas tankless water heater replacement cost in Minneapolis, MN
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 $3,150 installed in the Minneapolis area, 13% above the national figure, because plumbers here earn a median $49 an hour against $31 nationally.
Prices by size in Minneapolis
| Size | Low | Typical | High | National typical |
|---|---|---|---|---|
| About 150,000 BTU (1–2 bathrooms) | $2,150 | $3,000 | $3,850 | $2,650 |
| About 180,000–199,000 BTU (2–3+ bathrooms) | $2,700 | $3,150 | $4,250 | $2,800 |
Local labor: what plumbers earn here
| Hourly wage | Minneapolis metro | United States |
|---|---|---|
| 25th percentile | $31 | $24 |
| Median | $49 | $31 |
| 75th percentile | $55 | $41 |
The Minneapolis market
Minneapolis requires a plumbing permit to replace or install a water heater, and the city says most heating, air conditioning, ventilation, refrigeration and gas piping work requires a mechanical permit. Plumbing permits go to licensed contractors or to owner-occupants of single-family homes under city ordinance 85.80, which requires owning and living in the dwelling. Who may pull mechanical permits is not stated; the city links a list of licensed mechanical contractors. Inspections are detailed: a rough-in inspection on concealed work, duct blaster test results and a heat test record (ORSAT test) with the installer's name and competency card number for new fuel-burning equipment. Fee tables could not be read, so ask the city. Winters dominate: EIA found furnaces heat 73% of Minnesota homes and boilers 15%. St. Paul, Bloomington and Wisconsin suburbs have separate offices.
Incoming water in a Minneapolis winter is very cold, so a tankless unit has to work harder to reach shower temperature, and an undersized one will drop its flow rate in January. Ask the installer to size for winter conditions. A new gas tankless unit often needs a gas piping change. Its side-wall vent should exit where snow will not bury it, so ask exactly where it will go and how high above grade.
Permits in Minneapolis
| Permit for this job | Yes (source) |
|---|---|
| Fee | Unclear (fee schedules are embedded Smartsheet tables that could not be read) |
| Who can pull it | Plumbing: licensed contractor or owner-occupant of a single-family home under MCO 85.80; mechanical: applicant eligibility not stated (city links a list of licensed mechanical contractors) |
| Inspection | Yes (mechanical: rough-in on concealed work, duct test results, heat test record for new fuel-burning equipment) |
Rebates in Minnesota
HEAR: announced, not open yet. HOMES: announced, not open yet. Source: Minnesota Department of Commerce, Division of Energy Resources, checked October 13, 2026.
What these programs cover, and other states
Other systems in Minneapolis
- 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
- Minneapolis: Plumbing permits
- Minneapolis: Mechanical and heating permits
- Minneapolis plumbing permit application
- Minneapolis residential mechanical permit process
- Minnesota Commerce: HEAR
- 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.minneapolismn.gov/business-services/licenses-permits-inspections/construction-permits/permits-overview/fees/existing-mechanical
- BLS OEWS May 2025, Minneapolis-St. Paul-Bloomington, MN-WI (47-2152 plumbers)
- DOE Gas-fired Instantaneous Water Heaters Final Rule TSD (Dec 2024), Table 8.2.6 (2023$)