Repair or replace: the decision table
| Situation | Usually | Why |
|---|---|---|
| Tank under 10 years, one part failed (element, thermostat, igniter, valve) | Repair | Well inside the 10–15 year tank life (DOE); a part swap that keeps the unit's approval needs no permit in Elk Grove, CA |
| Water leaking from the tank body, not a fitting | Replace | A leak in a pipe, valve or fixture is a repair; the tank itself is not |
| Tank 10–15 years old, repair is more than a cheap part | Replace | DOE: "If your current unit is nearing that range, begin looking for a replacement now" |
| Tankless unit under about 20 years | Repair first | DOE puts tankless life at about 20 years |
| You want a heat pump or tankless unit anyway | Replace on your schedule | Changing type can mean new wiring or gas work, which is easier to plan than to do in an emergency |
The money side: in Sacramento County the middle half of water heater firms usually file between $2,385 and $4,500 for a replacement. A repair quote that is a large share of that band on an old tank is the one to turn down.
What a replacement is filed at, city by city
| City | Water heater permits | Usual filed value | Middle half of firms' usual job | Usual days, issue to final | Reached final |
|---|---|---|---|---|---|
| Elk Grove, CA | 2,078 | $3,150 | $2,250–$4,473 | 23 | 79.4% |
| Citrus Heights, CA | 938 | $3,195 | $2,250–$4,125 | 40 | 66.8% |
| Boulder, CO | 1,267 | $3,518 | $2,675–$4,030 | 137 | 50.9% |
| Sacramento County, CA | 3,553 | $3,695 | $2,385–$4,500 | 38 | 71.7% |
| Marin County, CA (unincorporated) | 470 | $4,200 | $3,263–$5,989 | 56 | 71.7% |
| Cary, NC | 1,519 | $4,253 | $3,442–$6,000 | 16 | 92.9% |
Two more cities record values without a full timeline: Denton's usual water heater permit was filed at $2,300 (93.5% reached a final) and Palo Alto's at $5,000. Palo Alto runs a full-service heat pump water heater program in which the city arranges permits, contractors and installation, from "as little as $2,100" after its discounts (City of Palo Alto, read 21 October 2026); the filed value is the job's full cost, before rebates. City pages: Sacramento County, Cary, Elk Grove, Boulder, Marin County, Palo Alto.
The permit closes fast when the final gets booked: 16 days in Cary and 23 in Elk Grove. It often does not get booked: only 50.9% of Boulder water heater permits a year or more old reached a final, and 66.8% in Citrus Heights. Ask who books it, because an unfinaled permit stays on the address.
Which jobs need a permit
- Replacement: yes, in most cities. Bellevue, Washington: "A permit is required for replacing or moving an existing hot water heater." For a failed heater it does not require the permit before the emergency work, but it must be obtained "on the first City of Bellevue work day after the work started" (City of Bellevue, read 21 October 2026).
- Repairs: usually no. Elk Grove, California exempts "the repairing of leaks in pipes, valves or fixtures" and, for gas appliances, "replacement of any minor part that does not alter approval of equipment or make such equipment unsafe" (City of Elk Grove, Policy B-20-35).
So a thermostat, element or gas valve swap is a repair with no permit; a new heater, tank or tankless, is a permitted job. A plumber who offers to replace the whole unit "without the hassle of a permit" is offering to skip the inspection. Our tankless vs tank guide covers choosing the replacement.
Tax credits in 2026
The federal credit ended for installs after 2025. The IRS: "can't claim energy efficient home improvement credits for expenditures or property placed in service after December 31, 2025" (IRS, Instructions for Form 5695). Before that, a heat pump water heater qualified for 30% up to a separate $2,000 annual limit. Utility rebates still exist in some places; ask your utility, not the installer.
Check a quote in five minutes
- Find the unit's age on its rating plate, or ask the plumber to read it from the serial number.
- If it is under 10 years old and not leaking from the tank, ask for a repair price first.
- For a replacement, compare the quote to your city's middle-half range above.
- On the Sacramento County water heater compare page (or your city's), check the firm's permits and finished share, and ask whether the permit is in the price.
See every Sacramento County water heater installer →
What this does not tell you
Repairs do not need permits, so there is no filed repair cost to compare; this page can show what a replacement is filed at, not what a repair costs. The filed value is the installer's own figure and mixes tank, tankless and heat pump units without saying which. Only eight of our cities record values on water heater permits, five of them in California, so treat the figures as a guide for those markets, not a national price.
How we know this
Water heater permits are those each city files under a water heater work type over its three-year window ending September 2026 (a few cities end earlier; each city page names its window). The usual filed value is the median of permits that carry one; the middle-half range uses firms with three or more water heater permits; "reached final" is the share of permits a year or more old that the city closed with a final; days is the median from issue to final. Lifespans are from the Department of Energy and permit rules from the city pages under Sources, read 21 October 2026.
Numbers come from 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 Elk Grove TRAKiT building permits on single-family, duplex, mobile-home and ADU homes; City of Boulder construction permits; Marin County Community Development Agency building permits on homes in unincorporated Marin (the County's open-data permit and inspection files); City of Citrus Heights building permits on homes (the city's issued-permits layer); 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), data through October 17, 2026. Nobody paid to be on this page and nobody can.
Questions
- Is it worth repairing a 10-year-old water heater?
For a cheap part on a tank that is not leaking, often yes; for anything bigger, plan the replacement. The U.S. Department of Energy says storage water heaters last 10 to 15 years, and the usual replacement was filed at $3,695 in Sacramento County and $4,253 in Cary.
- How much does it cost to replace a water heater?
Going by permits, the usual water heater replacement was filed at $2,300 in Denton, $3,150 in Elk Grove, $3,518 in Boulder, $4,253 in Cary and $5,000 in Palo Alto.
- Does replacing a water heater need a permit?
In most places, yes. Bellevue, Washington requires a permit for replacing or moving a water heater and lets an emergency replacement go first, as long as the permit is pulled the next city work day. Elk Grove, California exempts leak repairs on pipes, valves or fixtures and minor gas parts, not a new heater.
- How long do water heaters last?
About 10 to 15 years for a storage tank or heat pump water heater and about 20 years for a tankless unit, according to the Department of Energy's Energy Saver guide.
- Is there a tax credit for a new water heater in 2026?
Not a federal one. The IRS says the energy efficient home improvement credit can't be claimed for property placed in service after December 31, 2025; it had covered 30% of a heat pump water heater, up to $2,000 a year. Utility rebates are separate.
Build your own list
Every firm with that kind of permit on record. Pick what you value. The list moves.
Related guides
- Which Water Heater Is Right for You? — U.S. Department of Energy, Energy Saver (2022-02-28; accessed 2026-10-21)
- Work requiring permits — City of Bellevue, WA (accessed 2026-10-21)
- Do I need a building permit? (Policy B-20-35) — City of Elk Grove, CA (accessed 2026-10-21)
- Switch Your Water Heater — City of Palo Alto (accessed 2026-10-21)
- Instructions for Form 5695 (2025) — IRS (accessed 2026-10-21)