Short answer
In Texas, plumbing is licensed by the Texas State Board of Plumbing Examiners (TSBPE). A homeowner may do plumbing in their own homestead without a license, but city permits still apply, and in Houston the water heater permit must be pulled by a master plumber registered with the city. Austin Energy pays $1,000 for qualifying heat pump water heaters.
Key facts
- Houston requires a plumbing permit to replace or install a water heater, and it must be obtained by a master plumber registered with the City of Houston.[4]
- Texas Occupations Code 1301.051: a property owner does not need a plumbing license to perform plumbing in their own homestead.[2]
- Austin Energy pays a $1,000 rebate for a qualifying ENERGY STAR heat pump water heater of at least 40 gallons.[5]
- San Antonio Water System reports typical hardness of 15 to 20 grains per gallon.[7]
Who regulates plumbing in Texas
The Texas State Board of Plumbing Examiners (TSBPE) licenses plumbers in Texas[1]. It is a stand-alone state board. You will see claims online that plumbing moved to the Texas Department of Licensing and Regulation (TDLR); we found no such transfer. TSBPE's site is active, and the state sunset law currently continues the board until September 1, 2033[1][8]. To check a plumber's license, use TSBPE's website.
Who may install or replace a water heater
Licensed plumbers. Plumbing for the public is done by licensed plumbers. Under the state board's rules, a person or company may not advertise, contract for, or offer plumbing work to the public unless it has secured at least one Responsible Master Plumber (RMP) holding a current Master Plumber License[3]. When you hire, ask which master plumber is responsible for the company's work.
Homeowners, in their own homestead. Texas Occupations Code 1301.051 says a property owner does not need a license to perform plumbing in their own homestead[2]. That is a licensing exemption, not a permit exemption. Your city's permit and inspection rules still apply, and some cities limit who may pull the permit.
Gas, venting and electrical. Gas water heaters also involve gas piping and venting. A new 240-volt circuit for an electric or heat pump unit is electrical work. Expect a plumber to coordinate those pieces, and for a new circuit, a licensed electrician.
Permits: the Houston rule
Houston publishes a clear rule for water heaters[4]:
- A plumbing permit is required to replace or install a water heater.
- The permit must be obtained by a master plumber registered with the City of Houston.
- Plan review is not needed for a single-family home. An inspection is required.
- Fees: $34.24 for the first three heaters and $11.41 per heater after that, plus a $33.56 admin fee. The fee table lists a $97.56 minimum permit fee; another line on the same page says $91.05.
- The permit is valid for 180 days, and processing takes about one business day.
- The code basis is the 2021 Uniform Plumbing Code and 2021 International Residential Code, each with Houston amendments.
So even though state law lets a homeowner do plumbing in their own homestead, a Houston homeowner who wants a permitted water heater replacement will, in practice, need a city-registered master plumber to pull it. Other Texas cities set their own rules; check with your city's permitting office.
Rebates in Texas (as of October 2026)
| Utility | Water heater rebate | Conditions |
|---|---|---|
| Austin Energy | $1,000 for an ENERGY STAR hybrid or heat pump water heater | Energy Factor 2.0 or better; at least 40 gallons; at least a 6-year warranty on major components; the unit replaced must be 10+ years old; apply within 90 days of purchase; must meet codes and permit rules; funding limited; gas water heaters not eligible[5] |
| CPS Energy (San Antonio) | None listed | The current residential rebate site lists HVAC, insulation, window A/C, pool pump and cool roof rebates, but no water heater rebate[6] |
Some sites still quote Austin Energy's rebate at a lower, older amount; the utility's own page says $1,000[5]. For other utilities, check the utility's own rebate page; we have not confirmed a residential water heater rebate for them.
The federal 25C tax credit does not apply to water heaters placed in service after December 31, 2025[9].
Hard water
Hard water speeds sediment buildup in tanks and scale in tankless units. San Antonio Water System reports typical hardness of 15 to 20 grains per gallon[7], which is very hard. Ask your plumber about a flushing schedule, and if you choose a tankless unit, about water treatment. Your water utility's annual water quality report lists your area's figure.
Why we can help, and what we are
Water Heater Facts is a referral and information service run by Strive LeadGen LLC. We connect homeowners with independent, licensed plumbing companies. Strive LeadGen does not perform plumbing work.
When to call a pro
- Any water heater replacement in a city that requires a registered plumber to pull the permit, such as Houston.
- Gas line, venting or relief valve work.
- Switching to a heat pump or tankless unit, which may need new circuits, gas sizing or a condensate drain.
- Checking that an existing install has an expansion tank and drain pan where needed.
More questions
Does TDLR license plumbers in Texas?
No. Plumbing licenses in Texas are issued by the Texas State Board of Plumbing Examiners, a separate state board. State law currently continues the board until September 1, 2033, unless the Legislature acts.
Can I replace my own water heater in Houston?
State law lets you do plumbing in your own homestead without a license, but Houston's water heater permit must be obtained by a master plumber registered with the city. In practice, that means a registered plumber pulls the permit.
Sources
- Texas State Board of Plumbing Examiners, State of Texas, TSBPE. Accessed 2026-10-06.
- Texas Occupations Code 1301.051, exemption for homestead plumbing, Texas Public Law (mirror of the Texas Occupations Code). Accessed 2026-10-06.
- 22 Texas Administrative Code 367.9, responsible master plumber requirement, Legal Information Institute, Cornell Law School. Accessed 2026-10-06.
- Water heater permit (HPWCODE1101), City of Houston, Houston Permitting Center. Accessed 2026-10-06.
- Heat pump water heater rebate, Austin Energy. Accessed 2026-10-06.
- Residential Save Now rebates, CPS Energy. Accessed 2026-10-06.
- Water quality FAQs, San Antonio Water System. Accessed 2026-10-06.
- Texas Occupations Code 1301.003, sunset provision, Texas Public Law (mirror of the Texas Occupations Code). Accessed 2026-10-06.
- FAQs for modification of sections 25C, 25D and others under Public Law 119-21, Internal Revenue Service. Accessed 2026-10-06.
Water Heater Facts is an independent information service. We may be paid by contractors when we connect a homeowner with one; that never changes what we publish. Found an error? Tell us. We review safety and legal reports within 2 business days and all others within 7 days.