The decision table
| Choose a tank when | Choose tankless when |
|---|---|
| Several showers and appliances run at once: a tankless unit's output is "limited to about 2–5 gallons per minute" and "multiple heaters may be needed if hot water demand is high" (DOE) | Use is low or spread out: DOE puts tankless at "8%-34% more efficient than storage water heaters" and says an ENERGY STAR qualified tankless unit "could save $100 or more annually" |
| You expect to move within 10–15 years, DOE's lifespan for a storage heater | You plan to stay: DOE says a tankless unit "lasts about 20 years" |
| You want a like-for-like swap with no new gas line or circuit. In Denton a gas-line permit is a separate filing, usual value $1,400 | The gas line, venting and panel already suit it, or the installer has priced that work in writing |
| You are electric and have a space that stays 40–90°F year-round with at least 1,000 cubic feet of air around the unit: a heat-pump water heater is a tank, and DOE says it "can be 2 to 3 times more energy efficient" than electric resistance | You are on gas and want the ENERGY STAR level: a gas tankless unit needs a UEF of at least 0.95, against 0.81 for a medium-draw gas tank over 20 and up to 55 gallons (ENERGY STAR criteria) |
Two things do not depend on the choice. There is no federal credit for either in 2026: the 25C credit cannot be claimed for property placed in service after 31 December 2025 (IRS Form 5695 instructions). And Bellevue requires a permit to replace any water heater (see below).
What the file shows, city by city
These are all water-heater permits on homes in each city, tank and tankless together. "Usual filed value" is the middle job value on the permit; "days to final" is the usual time from issue to final inspection, with open permits counted as unfinished; "finished" is the share of mature permits that reached final. A dash means the city does not record that field for this trade.
| City | Permits | Firms | Usual filed value | Days to final | Finished | Busiest month |
|---|---|---|---|---|---|---|
| Elk Grove, CA | 2,078 | 143 | $3,150 | 23 | 79.4% | January |
| Sacramento County, CA (unincorporated) | 3,553 | 365 | $3,695 | 38 | 71.7% | February |
| Cary, NC | 1,519 | 117 | $4,253 | 16 | 92.9% | January |
| Boulder, CO | 1,267 | 125 | $3,518 | 137 | 50.9% | April |
| Palo Alto, CA | 851 | 121 | $5,000 | 50 | — | October |
| Denton, TX | 1,391 | 113 | $2,300 | — | 93.5% | April |
| Bellevue, WA | 1,402 | 127 | — | 32 | 66.8% | August |
| Bellingham, WA | 813 | 34 | — | 31 | 89.2% | October |
| Anaheim, CA | 642 | 70 | — | 55 | 76.9% | June |
| Ames, IA | 1,578 | 49 | — | 2 | — | July |
| Sugar Land, TX | 1,358 | 91 | — | — | 4.9% | January |
| Scottsdale, AZ | 1,026 | 49 | — | — | 50.1% | January |
The window is October 2023 to September 2026 everywhere except Scottsdale (2023-01 to 2025-12). Bellevue, Bellingham, Anaheim, Ames, Sugar Land and Scottsdale record no usable job value on trade permits, so their value cell is empty rather than estimated. Denton, Sugar Land and Scottsdale have no usable days-to-final, and Palo Alto and Ames no usable finish status.
Cost: what the filed value covers
The filed value is the contractor's own figure for the job, written on the application. Cities use it to set fees. It is not a quote and not your final bill, and it covers the water-heater permit only: a new gas line or a new electrical circuit, if the job needs one, can be a separate permit with its own value.
Inside one city, firms spread widely. In Elk Grove the middle half of firms with 3+ permits usually filed between $2,250 and $4,473 a job; in Cary, between $3,442 and $6,000; in Denton, between $1,950 and $3,000. Our inference, not something the file shows: a firm whose usual job sits at the top of its city's band is doing bigger jobs (tankless, heat pump, new gas line or venting) or charging more for the same tank. The firm page shows its own usual value; ask which it is.
Why no tankless split: each city's water-heater trade is defined from its permit type (Cary's water-heater permit codes, Denton's "E RES WATER HEATER") or from descriptions matching words such as "water heater" and "tankless" (Boulder, Anaheim, Palo Alto, where "HPWH" for heat-pump water heater also counts). Tank, tankless and heat-pump units land in the same trade, and the published file keeps one row per firm. Splitting them needs a description classifier we have not built.
Permits: does a water heater need one?
In Bellevue it is written down: "A permit is required for replacing or moving an existing hot water heater" (City of Bellevue, read 20 Oct 2026). The City's plumbing page lists "replacing an electric water heater" as plumbing-permit work and says "replacing a gas water heater requires a mechanical permit." Elk Grove's policy B-20-35 does not name water heaters; it requires a permit to "erect, install, enlarge, alter, repair, remove, convert or replace any electrical, gas, mechanical or plumbing system", and for an emergency replacement the application is due "within the next working business day" (City of Elk Grove, read 20 Oct 2026).
The permit matters because the final inspection is when the city signs off the installation. Whether that final happens varies by city and by firm. 92.9% of Cary water-heater permits reached final, and 93.5% in Denton. In Boulder it was 50.9%, and in Sugar Land 4.9%, where the rest are marked expired or still open (see the FAQ). Within Elk Grove, among firms with 10 or more permits, the 10th-percentile firm finished 56.1% and the 90th-percentile firm 95.1%; 7 of 28 finished under 70%.
Elk Grove, California
This is Elk Grove, California; we do not cover Elk Grove Village, Illinois. 2,078 water-heater permits went to 143 firms in the window. 33 firms had 10 or more, and the five busiest held 41.4% of the permits. The busiest over the last twelve months was California Delta Mechanical Inc with 95. The usual job was filed at $3,150, with a value on 99.8% of permits, and the usual permit reached final in 23 days. 79.4% reached final.
Filing peaks in January (index 159, where 100 is an average month) and bottoms out in August (62). That is filing volume, not price; we have no data on whether quiet months are cheaper. 94.4% of the firms matched an Active CSLB license on the snapshot date.
Plumbing jobs, filed separately, had a usual value of $7,000 over 875 permits. If a tankless quote includes re-piping or a gas line, ask whether that is on a second permit.
Tankless vs tank in Sacramento County
Unincorporated Sacramento County filed 3,553 water-heater permits from 365 installers between October 2023 and September 2026. The usual one was filed at $3,695, the middle half of firms with 3+ permits usually filed $2,385 to $4,500, and the usual permit reached final 38 days after issue. Only 71.7% of those a year or more old reached final, the lowest finished share of any trade in our county file (HVAC was 84.1%, plumbing 90.6%). So whichever type you choose, ask the installer in writing who books the final inspection.
The County's own permit types answer part of the tankless question. Its water-heater permit type is labelled "Residential Water Heaters (if tankless install, apply for Miscellaneous Houses, Duplex, Townhome Plumbing)", so a tankless install is meant to go on a different, miscellaneous plumbing permit than a like-for-like tank (Sacramento County permit file, snapshot 18 October 2026). Some of those land in our water-heater trade and some in plumbing, where the usual filed value was $9,000. A tankless quote that comes with a "water heater" permit number is worth one question to the County. Search the permit on the County's Accela Citizen Access portal; the County takes building permits online only (Sacramento County Building Permits and Inspection, read 21 October 2026).
Is tankless worth it in Sacramento County?
The rebates now point away from gas, tank or tankless. SMUD raised its rebates in February 2026 to "up to $4,000 for gas-to-electric heat pump water heater conversions" and "$1,000 for electric-to-electric heat pump water heater" upgrades; its release says nothing about gas tankless units (SMUD, 18 February 2026, read 21 October 2026). With no federal credit in 2026 (see below), a gas tankless unit gets no rebate we could find, while a heat-pump water heater can. Apply through smud.org/GoElectric before the job, and check the conditions there.
86.6% of the County's water-heater firms matched an active CSLB license by business name. The Sacramento County water-heater list shows each one with its finished share.
Tax credits and rebates in 2026
The federal energy efficient home improvement credit (25C) cannot be claimed for property placed in service after 31 December 2025, according to the IRS instructions for Form 5695 (last updated 30 April 2026). While it ran, it paid 30%, up to $600 for a natural gas, propane or oil water heater that met the CEE's highest efficiency tier, and up to $2,000 a year for heat pumps and heat-pump water heaters. The IRS rule goes by fuel and efficiency tier, not tank or tankless. A water heater installed in 2026 gets neither.
Local programmes are what is left. Palo Alto's "Switch Your Water Heater" page says "We handle the permits, contractors, and installation for you" for a heat-pump water heater, "for as little as $2,100", with a limited-time $500 discount "combined with existing City rebates"; it gives no end date (City of Palo Alto, read 20 Oct 2026). It is the only city programme in this list we read and can quote; for others, ask your utility which rebates apply in 2026.
What this does not tell you
The file does not say whether a permit was for a tank, a tankless or a heat-pump unit, gas or electric, or its size. It does not record your gas bill, your hot-water use or what you paid. The filed value excludes separate gas-line, electrical or plumbing permits. License status is matched by business name, and an unmatched firm is not necessarily unlicensed.
Check a quote in five minutes
- Open your city's water-heater compare page below and set the sliders to weight finished share.
- Open the firm you were quoted by and compare its usual filed value with the city's.
- In California, look the firm up on CSLB's Check a License page (cslb.ca.gov) and confirm the license is Active.
- Ask the firm three things in writing: is it tank, tankless or heat pump; does the price include a gas-line or electrical permit; who books the final inspection.
How we know this
Source: each city's open permit dataset (City of Elk Grove, Sacramento County, Town of Cary, City of Boulder, City of Palo Alto, City of Denton, City of Bellevue, City of Bellingham, City of Anaheim, City of Ames, City of Sugar Land, City of Scottsdale), water-heater permits on homes classified by us from the city's permit type or description. Window 2023-10 to 2026-09 (Scottsdale 2023-01 to 2025-12); snapshots 1 to 19 October 2026 (Scottsdale 1 January 2026). Permit counts per city are in the table. Fields: permit count, distinct firms, filed job value (usual = middle value), issue-to-final days with open permits counted as unfinished, finished share of mature permits, monthly filing index, permits per firm. The trade does not separate tank from tankless. Efficiency and lifespan figures are from DOE Energy Saver, UEF thresholds from ENERGY STAR, credit status from IRS Form 5695 instructions, permit rules from the City of Bellevue and City of Elk Grove pages and the Palo Alto programme from the City of Palo Alto, all read 20 October 2026.
Numbers come from City of Elk Grove TRAKiT building permits on single-family, duplex, mobile-home and ADU homes; Sacramento County building permits on single-family, duplex and townhouse homes in the unincorporated county (the County's Accela permit layer); Town of Cary building permit applications (issued permits only); City of Boulder construction permits; City of Palo Alto Development Center building permits on single-family, duplex and ADU homes; City of Denton Building Safety permits on homes (the city's yearly permit reports); City of Bellevue permits on single-family homes and condo units; City of Bellingham permits on single-family homes, duplexes and townhomes; City of Anaheim Accela building permits on single-family homes and ADUs; City of Scottsdale building permits; City of Ames residential permits (one record per permit); City of Sugar Land building permits on homes (the city's EnerGov permit exports), data through October 19, 2026. Nobody paid to be on this page and nobody can.
See every Elk Grove water-heater contractor by their permit record →
See every Cary water-heater contractor by their permit record →
See every Boulder water-heater contractor by their permit record →
See every Denton water-heater contractor by their permit record →
Questions
- Is the filed value what a tankless water heater costs?
No. It is the job value the contractor wrote on the permit, for every water-heater permit in the city, tank and tankless together. In Elk Grove the usual one was $3,150; the middle half of firms usually filed between $2,250 and $4,473. Use it to put a quote in context, not as a price for one type.
- Can you tell how many people chose tankless?
Not yet. Our water-heater trade is built from permit types and descriptions that put tank, tankless and heat-pump units in one group, and our exports keep one row per firm, not per permit. Until we classify the descriptions, any tankless share would be a guess, so this page gives none.
- Is there a federal tax credit for a tankless or heat-pump water heater in 2026?
No. The IRS instructions for Form 5695 say you can't claim the energy efficient home improvement credit for property placed in service after 31 December 2025. Before that it paid 30%, up to $600 for a natural gas, propane or oil water heater that met the CEE's highest efficiency tier, and up to $2,000 a year for a heat-pump water heater (IRS, page updated 30 April 2026, read 20 Oct 2026). The IRS rule goes by fuel and efficiency tier; it does not mention tank or tankless.
- Do I need a permit to replace a water heater?
In Bellevue, yes: the City says "a permit is required for replacing or moving an existing hot water heater", a plumbing permit for an electric unit and a mechanical permit for a gas one. Elk Grove's policy B-20-35 does not name water heaters, but requires a permit to replace any electrical, gas, mechanical or plumbing system and gives emergency replacements until the next working business day to apply. Elsewhere, search your city's permit page for "water heater" before the old tank comes out.
- Why do so few Sugar Land water-heater permits show as finished?
We count a Sugar Land permit as finished only when the city's file marks it COMPLETE, and 4.9% of mature water-heater permits are; the rest are marked expired or are still open. It is not one firm: among firms with 10 or more permits, the 10th-percentile firm finished 1.1% and the 90th-percentile firm 9.2%. The file cannot say whether inspections happened without the permit being closed. Ask whoever installs yours to book the final, and check the permit status online afterwards.
- What about a heat-pump (hybrid) water heater?
It is a tank that heats with a heat pump, and DOE says it can be 2 to 3 times more energy efficient than an electric resistance heater; it needs a space that stays 40–90°F with at least 1,000 cubic feet of air around it. It is where the 2026 rebates are: SMUD pays up to $4,000 for a gas-to-electric conversion, and Seattle City Light $750 per unit for a Tier 3 or 4 model on its qualified list.
Build your own list
Every firm with that kind of permit on record. Pick what you value. The list moves.
Related guides
- Plumber vs handyman: which plumbing jobs a handyman can legally do, by state
- Repair or replace a water heater? The filed costs in 8 cities, and the rules
- How to check a contractor's license in California
- Do I need a permit? 13 common home projects, checked against city rules and permit files
For one city
- Which Water Heater Is Right for You? (U.S. Department of Energy, Energy Saver) (2026-10-20)
- Residential Water Heaters Key Product Criteria (ENERGY STAR) (2026-10-20)
- Instructions for Form 5695 (2025) (IRS, last updated 30 April 2026) (2026-10-20)
- Work requiring permits (City of Bellevue, WA) (2026-10-20)
- Plumbing permits (City of Bellevue, WA) (2026-10-20)
- Do I need a building permit? Policy B-20-35 (City of Elk Grove, CA) (2026-10-20)
- Check a License (Contractors State License Board, California) (2026-10-20)
- SMUD boosts rebates for heat pumps (SMUD news release, 18 February 2026) (2026-10-21)
- Building Permits and Inspection (Sacramento County Building Permits and Inspection) (2026-10-21)
- Home Energy Solutions (Seattle City Light) (2026-10-21)
- Switch Your Water Heater (City of Palo Alto) (2026-10-20)