Colton Deck

By: Colton Deck on January 6th, 2023

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Takagi Brand Review: A Budget-Friendly Tankless Water Heater Choice

Tankless Water Heaters

Shopping around for a tankless water heater can be confusing, given the number of brands on offer. Takagi is one of those many brands, but it does a few things to help itself stand out from the crowd. While Takagi isn’t the number one choice, the brand has earned the trust of homeowners and contractors. 

After 15 years of installing tankless water heaters in homes around Los Angeles County and the adjacent areas, we can confidently say that Takagi is a more budget-friendly option that provides reliable hot water to homes of all sizes. But it lacks some innovation found in other brands like Noritz and Navien. We’re giving you an unbiased opinion with just the facts so that you can form your own opinion. 

This review will cover the main points of interest when it comes to tankless water heaters. You’ll learn about: 

  • Takagi as a company
  • Cost 
  • Efficiency 
  • Warranty 
  • Availability
  • Variety  
  • Additional features.

By the end of the review, you’ll be armed with a bit more knowledge to assist you in researching tankless water heater brands so you can make the most informed decision possible. 

Let’s get the ball rolling by learning a bit about Takagi itself. 


Takagi Brand History

  • Founded in 1952
  • Manufacturing tankless water heaters since 2010 in North America
  • Joint venture with A.O. Smith

Takagi has been in the tankless water heater game since 1952. With its well-established reputation, Takagi partnered with A.O. Smith, a leader in all things plumbing, to bring its tankless water heaters to the North American market. 

Since its move into the North American market in 2010, Takagi has managed to carve out a space for itself. Thanks to its partnership with nationwide plumbing warehouses, you’ll find many contractors installing Takagi products around the country. It doesn’t hurt to have a name like A.O. Smith backing your product, either. 

Typically, partnering with another reputable brand would raise prices, but that’s not exactly the case with Takagi. 


How Much Do Takagi Tankless Water Heaters Cost?

  • More budget-friendly than other top brands
  • $800 to $1,800 without installation

Compared to industry frontrunners like Noritz and Navien, Takagi’s prices are decisively more budget-friendly. This can be partially attributed to Takagi generally being a little behind the curve on tankless water heater technology. 

A Takagi tankless water heater will run you between $800 to $1,800 for the unit itself. Installing a Takagi tankless water heater costs around $4,700 to $8,000, depending on your contractor and the type of installation services they provide. Some contractors have different tiers of installation that include add-ons to ensure your tankless water heater runs its best. 

But when it comes to protecting your investment, Takagi isn’t the leader of the pack. 


What to Expect from a Takagi Tankless Water Heater Warranty

  • 15-year warranty
  • Above-average warranty term
  • Takagi replaces entire tankless water heaters instead of parts in some cases

Takagi’s warranty doesn’t quite hit the high note that Noritz achieves, but neither does Navien. Although its warranty term doesn’t go above and beyond, Takagi still hits above the average 12-year coverage by offering up to a 15-year warranty. 

One important aspect of Takagi’s warranty service is that it has been known to offer replacement units over parts. While this sounds like a customer-oriented approach, the labor warranty is only active for a year. This means that if your tankless water heater breaks down after the term, you may be on the hook for installation costs should Takagi choose to honor the warranty with a new unit. 

It won’t happen in every case, but it’s worth noting since other brands don’t share this approach to honoring warranties. 


Takagi Tankless Water Heater Efficiency

  • Up to 95% efficiency, 3% behind Noritz and Navien
  • High-efficiency models qualify for maximum California rebates and federal tax credits

A big draw of tankless water heaters is their efficiency, and Takagi is no slouch in this department. Takagi tankless water heaters reach up to 95% efficiency. While this falls behind Navien and Noritz by 3% efficiency, you’ll still ensure less energy waste in your home by switching to a Takagi. 

Takagi’s lineup features high-efficiency models that can net you the maximum in California rebates and federal tax credits like the other frontrunners in the tankless water heater industry. That means $1,000 in rebates back in your pocket, and a $300 tax credit come the season. 


Are Takagi Tankless Water Heaters Readily Available?

  • Readily available
  • Parts only through plumbing warehouses
  • Will need a contractor to get parts

Takagi tankless water heaters aren’t in short supply. It’s fairly easy to get your hands on whichever tankless water you’d like, but there is one issue with Takagi’s structure. While Takagi has offices in California, Tennessee, New Jersey, and Canada, it utilizes plumbing warehouses to store products. This means that you won’t be able to buy direct and may have to go through a contractor for parts. 

In many cases, this won’t be an issue since most homeowners won’t be working on their tankless water heaters themselves. For the D.I.Y. types, this may be a cause for pause. 


What Kind of Variety Can You Expect from Takagi?

  • Only copper stainless steel heat exchangers
  • Variety of models for different sizes of home
  • Indoor and outdoor models

Variety is where Takagi falls considerably short of the competition. While Navien and Noritz carry copper and stainless steel heat exchangers, Takagi only stocks copper-core tankless water heaters. This ties back to the early mention of Takagi being slightly behind the curve when it comes to innovation. 

Aside from the lack of heat exchanger selection, you’ll still find plenty of models to serve different-sized homes, including indoor and outdoor options. This flexibility makes it easier for homeowners with limited indoor or outdoor space. Likewise, having a range of options serving single fixtures to four bathrooms is another way Takagi stays in the game. 


Additional Takagi Tankless Water Heater Features

  • Lacking in innovation for the most part
  • Pioneered built-in water filter
  • Remote controllers

While Takagi is dragging behind the pack in terms of heat exchanger advancement, the company has made recent strides to take the lead in another department. Takagi’s TK-540SX3-NIH has a built-in water filter, which is the first of its kind. This feature can save money on expensive water treatment and improve the longevity of the tankless water heater.

Looking at other features, you won’t get app-based control. But you will have access to add-on remote controllers to ensure flexible control over your system. It isn’t quite as convenient as other companies’ attempts at connectivity, but it’s there for homeowners needing additional control. 


  • Backed by A.O. Smith
  • High-efficiency
  • Qualifies for maximum rebates and credits
  • Widely available
  • Above average warranty
  • Additional features on offer


  • Slimmer variety without stainless steel-core models
  • The approach to warranty may not work for everyone


Is a Takagi Tankless Water Heater for You?

We’ve covered the major talking points when it comes to what makes a tankless water heater brand. By now, you better understand how Takagi stacks up against the competition so you can make a more informed decision while weighing your options. 

After 15 years of installing tankless water heaters, we tend to recommend a handful of brands to our members. Takagi is often the go-to choice for those who are more budget-conscious and need to save a buck here and there. While Takagi doesn’t exactly excite and hasn’t made the leap to stainless steel heat exchangers, they still present a solid value proposition for those on a budget. 

If you’d like to know more about whether Takagi is the best option for you, call us at 310-853-8690 or visit our tankless water heater service page or click the button below to schedule a consultation. 

If you’re just getting started on your research, it’s worth considering if a tankless water heater is right for you before realizing it may not suit your needs down the road. Budget is often a top consideration, so learning how much tankless water heaters cost in general will create a helpful frame of reference.