Steinmetz died on October 26, 1923 and was buried in Vale Cemetery, Schenectady, New York.

Based on Steinmetz experiments, "Steinmetz's formula" defines the approximate heat energy due to magnetic hysteresis released, per cycle per unit area of magnetic material. Steinmetz equivalent circuit theory is still widely used for the design and testing of induction motors.

One of the highest technical awards given by the Institute of Electrical and Electronics Engineers, for major contributions to standardization within the field of electrical and electronics engineering, is named in his honor as the IEEE Charles Proteus Steinmetz Award. Other awards include the Certificate of Merit of Franklin Institute, 1908; the Elliott Cresson Medal, 1913; and the Cedergren Medal, 1914.

His connection to Union College is celebrated with the annual Steinmetz Symposium, a day-long event in which Union undergraduates give presentations on research they have done. Steinmetz Hall, which houses the Union College computer center, is named after him.

Steinmetz was portrayed in 1959 by the actor Rod Steiger in the CBS television anthology series, "The Joseph Cotten Show". The episode focused on his socialist activities in Germany.

A Chicago public high school, Steinmetz College Prep, is named for him.

A public park in north Schenectady, New York was named for him in 1931.

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