Replacing a water heater in Dallas: what a written quote should list

In Dallas, replacing a water heater needs a City permit. The City's code lets you swap a sink or toilet for the same kind with no permit, if the pipes stay put. A water heater is an exception: it needs one¹. Texas law also makes every city of more than 5,000 people require a permit for plumbing work. A water heater is not on its short list of exceptions². A Master Plumber registered with the City can pull the permit. So can an owner who does the work on the home they own and live in³. The permit closes only when the plumbing final inspection passes³.

This page does not give an installed price. It lists what a full written quote should include, so you can compare quotes line by line. It also shows the City's fees, Atmos Energy's rebates and what ENERGY STAR says about running costs.

What a complete written quote should list
On the quote	What the sources say
The new heater: tank, tankless or heat pump; gas or electric; its size; and its efficiency rating (UEF)	The Federal Trade Commission requires makers to put a yellow EnergyGuide label on appliances like water heaters. On a tank heater, the label shows the tank size and the estimated yearly energy cost. It also shows the first-hour rating: how much hot water the heater can supply in an hour, starting full. And it shows the heater's use group: very small, low, medium or high. Rheem says a heater with a higher UEF costs less to run than others of the same fuel in the same use group⁴. ENERGY STAR suggests starting from the size of the tank you have now. It says a heat pump water heater belongs indoors, in a space that stays between 40 and 90 °F all year. It should have 1,000 cubic feet of air around it⁵.
The City plumbing permit, and who pulls it	Replacing a water heater needs a City permit¹. A Master Plumber registered with the City pulls it. Or you can pull it yourself if you do the work on the home you own and live in, under the Homeowner's Exemption³. When you hire, the City says the contractor should pull it. A permit in your name as the homeowner puts the legal responsibility on you³.
The inspection	The permit closes only after the plumbing final inspection passes³. The City suggests asking whether the contractor will schedule and meet the inspector³.
A new temperature-and-pressure (T&P) relief valve	A. O. Smith says not to reuse the old T&P relief valve. A new one comes with the new heater⁶.
The relief valve's discharge pipe	Dallas's code for houses is the 2021 International Residential Code with the City's changes. It has been in effect since May 12, 2023⁷. That code says the pipe must not connect straight into a drain pipe. Instead, it must empty through an air gap: a space of open air. It must be no narrower than the valve outlet. It must run downhill, with no dips that hold water, no valves and no T-shaped joints. Its end must be no more than 6 inches, and no less than twice the pipe's width, above the floor or a drain. It must end at an approved spot or outdoors, where people in the home can see it. And it must empty in a way that cannot hurt anyone or damage the house⁸.
A drain pan, and a pipe to drain it	A. O. Smith says most codes require a metal drain pan piped to a drain, and it recommends one. The pan must be at least 2 inches wider than the heater⁶. Where the City's code calls for a pan, the pan must be at least 1½ inches deep. It must drain through a pipe at least ¾ inch across. If the old heater had no pan drain, a pan drain is not required for the new one⁸.
A thermal expansion tank, or a reason it isn't needed	A. O. Smith says one-way valves (backflow preventers), often in the water meter, keep water from flowing back out of a home into the public water system. So most homes' plumbing is now a “closed” system, and almost all homes need an expansion tank. The tank must be sized to the heater and set to match the home's water pressure⁶. A. O. Smith says its own warranty is void for a heater put on a closed system without a correctly sized tank⁹.
Gas heaters: who installs it	A. O. Smith's manual says a qualified installer, a service agency or the gas supplier must install and service its gas heater⁶.
Gas heaters: shut-off valve, sediment trap and leak check	A. O. Smith's steps call for a gas shut-off valve that is easy to reach. They call for a sediment trap (a short pipe that catches dirt and water) at least 3 inches long. They also call for a union (a fitting that lets the gas control valve come off) and a leak check of the gas connections⁶.
Gas tank heaters with a draft hood: the vent and the air supply	For this kind of heater, A. O. Smith's checklist calls for a new draft hood (the hood on top that leads fumes into the vent). The vent pipe must be screwed to it and supported, and the vent must meet local and state codes. It says to check the old vent for rust and blockages⁶. The checklist also calls for enough air for the heater and any gas appliances near it. A heater in a closet, another small closed-in space or the home's living space needs openings to let in air⁶.
Taking the old heater away	Dallas's monthly bulky trash pickup lists water heaters among the items it takes at the curb. It does not take appliances that contain coolant, gasoline or other chemicals¹⁰. Under its rules for construction debris, the City also says the contractor should haul away waste from a job that needs a contractor¹⁰.
Who does the work, and the license number	A plumber's written estimate and invoice should show the Responsible Master Plumber's license number. They should also show the state plumbing board's name, address and phone number¹¹. A Master Plumber's license number starts with the letter M¹¹. The board does not set prices, and it says to get several estimates in writing¹¹. It says an estimate should be detailed enough to show exactly what work will be done. It should also show how the company expects to be paid¹¹.
The warranties: what the heater's maker covers and what the plumber covers	The state plumbing board says to make sure all warranties and cost estimates are in writing¹¹.

Who may pull the permit, and who answers for it

A Dallas home plumbing permit, such as one to replace a water heater, can be pulled by a licensed Master Plumber registered with the City. It can also be pulled by a homeowner doing the work on their own main home, under the Homeowner's Exemption. That exemption does not cover rental properties.³
If the proper permit is missing, the owner, someone acting for the owner, or a renter can face the City's penalties. Each of them has the duty to make sure properly qualified people get the permit before work starts.¹
Texas law lets property owners do plumbing in their own homestead (the home they own and live in) without a plumbing license. This rule is only about the license. It says nothing about permits.¹²
The City's Homeowner's Exemption lets you do your own plumbing on the home you own and live in (your homestead). The City's form also calls it a Homeowner's Permit. You don't need to register as a contractor or hold a plumbing license. You must do all the work yourself: no one may be paid to help with any part of it. You sign a statement that you own the home and live in it. The work must still pass the City's inspections.¹³

How to check a Dallas plumber before you sign

DallasNow is the City of Dallas's online system for permits, planning and inspections.¹⁴ Look up a contractor's City registration in DallasNow →
Before you sign, the City says to look the contractor up in DallasNow. You don't need an account for this lookup. Check that the registration is Active and covers the trade you need, such as plumbing. If a contractor who is not registered for that trade pulls a permit, the permit can be canceled.³
The Texas State Board of Plumbing Examiners says to get the name of the company's Responsible Master Plumber. A Master Plumber's license number starts with the letter M. Enter that number in the board's license search. Use it to check that the license is valid and that the plumber has a certificate of insurance on file.¹¹ Check a plumber's license number on the state board's search →
The City's advice on hiring a contractor says to agree on who pulls the permit. It says the contractor should pull it: a permit in your name as the homeowner puts the legal responsibility on you. It also says to ask whether the contractor will schedule and meet the inspectors. And it says to ask for a current certificate of insurance.³

Some of the City's red flags

A contractor who asks for cash up front, a large down payment or full payment before work starts.³
A contractor who refuses to pull a permit (“we don't need one”).³
A contractor who tries to put the permit in your name (“just use the Homeowner's Exemption”).³

If the heater is in the attic

Dallas's building code for houses sets rules for an attic with an appliance that needs service. The attic must have an opening and a clear path big enough to take out the largest appliance. The code lists exceptions.⁸
The path must be at least 30 inches high and 22 inches wide, and no more than 20 feet long. It needs solid flooring at least 24 inches wide.⁸
The opening must be at least 20 by 30 inches.⁸
There must be a level space at least 30 by 30 inches where the appliance needs service.⁸
The way up must be a permanent stair, a pull-down stair that holds at least 300 pounds, or a door from an upper floor. An access panel may be used instead when the building's structure requires it, with the building official's approval first.⁸
There must be a light and an outlet at or near the appliance, with the light's switch at the attic opening.⁸

Comparing two quotes, line by line

Put the quotes side by side. Check that each one covers every line, in the same way.

The same heater: type, fuel, size and UEF.⁴
The City permit, with who pulls it and who meets the inspector.³
A new relief valve, and where its discharge pipe will end.^6,8
A drain pan with its drain, and an expansion tank, or a reason either one is left out.^6,8,6
For a gas heater: who installs it, the shut-off valve, the sediment trap, the leak check, the vent and the air supply.^6,6,6
Who takes the old heater away.¹⁰
The Responsible Master Plumber's license number, checked on the state board's license search, and an Active City registration in DallasNow.^11,11,3
How the price is set: one price for the whole job, or an hourly rate. It should be spelled out so you can see what work you pay for.¹¹
The warranties, in writing.¹¹
For a natural-gas heater: its UEF and whether it is ENERGY STAR rated. With the heater type, these decide whether the heater qualifies for an Atmos rebate, and how much. Also: who will claim the rebate, and an invoice you can send with the form.^15,15

City fees, rebates and running costs

Dallas's permit fee table for changes or repairs to a house or duplex (Table B-II) sets a base permit fee of $181 for each home. Each added trade (a kind of work, like electrical) adds $100.¹
The City's online fee estimator puts stand-alone home plumbing work, such as a water heater, under Table B-II. It says that fee includes the standard inspection fees. It also adds a $25 document handling fee for home trade reviews. The estimator says its total is an estimate, not a bill: City staff work out the final fee when you apply.³
Dallas's code charges its plan document handling fee, a scanning fee, only on documents filed on paper. There is no scanning fee when you apply through the City's online permit portal.¹
The City also charges a $15 technology fee on online applications.³
Dallas charges a $75 reinspection fee for each failed inspection. Reasons include work that is not ready when the inspector comes, no posted address or permit card, and a locked house. The fee must be paid before more inspections are done.¹
If work that needs a permit starts without one, the City investigates before it issues the permit. It charges an investigation fee on top of the permit fee. That fee equals the permit fee, plus $100 an hour for each trade, with a one-hour minimum. You pay it even if no permit is issued.¹
Atmos Energy's Mid-Tex Division serves gas customers in Dallas.¹⁶
The rebates are for current Atmos Energy home or business customers in the Mid-Tex Division. They cover the program year July 1, 2026 to June 30, 2027. Apply within 12 months of buying or installing. Applications are processed only while program money lasts.¹⁵
A natural-gas tank water heater can get an Atmos Mid-Tex rebate of $100 at 0.68 UEF or higher. It can get $150 at 0.86 UEF or higher, or $200 at 0.90 UEF or higher, if it is also ENERGY STAR rated. A natural-gas tankless heater can get $200 at 0.87 UEF or higher. It can get $300 at 0.95 UEF or higher, if it is also ENERGY STAR rated. A heater below those levels is not on the rebate list. Each heater can get only one rebate, paid to the builder or the homeowner, not both.¹⁵
To claim an Atmos Mid-Tex rebate, send a copy of a recent Atmos Energy bill in the same name and at the same address as the application. Also send a copy of the store receipt or the contractor's invoice for the appliance. The equipment must be installed to meet local, state and federal codes.¹⁵
ENERGY STAR compares a certified heat pump water heater with a standard electric one. For a household of four, it estimates about $550 a year less on electric bills, with power at 14.6 cents per kWh.¹⁷

Published by CrewButton (Econ Labs, LLC, Addison, Texas). Drafted with AI (Claude) from the sources below. Facts were checked against their sources by AI, and the page was approved by CrewButton's founder on November 11, 2026. First published November 7, 2026. Updated November 11, 2026. Last reviewed November 11, 2026.