It depends on your county — and the answer matters before your installer arrives. This guide cuts through the confusion with plain-English permit rules, setback tables, and state-by-state requirements.
There is no single national rule. Here is the framework that determines what you need.
Enter your tank size and installation type. Get the NFPA 58 minimum distances in seconds.
The permit threshold is often determined by gallon capacity. Know where your tank falls.
| Tank Size | Typical Use | Above-Ground Permit | Underground Permit | NFPA 58 Setback | Details |
|---|---|---|---|---|---|
| Under 125 gal | Grills, space heaters | Often Not Required | Always Required | 10 ft from building | 120-gal guide → |
| 125–250 gal | Small home supplement | Varies by County | Always Required | 10 ft from building | 250-gal guide → |
| 500 gal | Whole-home heating | Commonly Required | Always Required | 10 ft from building | 500-gal guide → |
| 1,000 gal | Large home, farm | Required Everywhere | Always Required | 25 ft from building | 1,000-gal guide → |
| 2,000+ gal | Farm, commercial use | Required Everywhere | Always Required | 50 ft from building | Large tank guide → |
These are general patterns based on NFPA 58 and common county practices. Your specific county may have stricter or more lenient rules. Always check with your county building or fire department before purchasing a tank or scheduling installation. Rules also differ for leased vs. homeowner-owned tanks.
Select your state for permit thresholds, application portals, typical fees, and county-level notes.
More states being added. Don't see yours? See our general permit basics guide which applies nationwide.
NFPA 58 is a model code, not a law. Your local Authority Having Jurisdiction (AHJ) — usually your county building or fire marshal's office — has final say. They can require more than NFPA 58 minimum setbacks and have their own permit forms and fees. NFPA 58 sets the floor; your AHJ sets the ceiling.
Regardless of tank size, every underground propane tank installation in the United States requires a permit. There are no exceptions. Underground tanks also require cathodic corrosion protection and a setback from water features and wells that above-ground tanks do not.
Many jurisdictions set their permit trigger at 125 gallons for above-ground tanks. Below that, a standard residential installation often needs only a gas piping permit (for the line connecting the tank to your home), not a separate LP tank permit. At 125 gallons and above, expect a permit plus inspection.
Most states require the tank to be installed by a licensed LP gas contractor. In some states (Minnesota, Wisconsin, others), the installer must also hold a state-issued elevator or conveyance license for certain equipment. Homeowner self-installation is rarely permitted for tanks over 100 gallons.
If you rent a tank from a propane supplier, the supplier typically pulls the required permits. If you own the tank outright, the permit responsibility falls on you as the homeowner. Always clarify who is responsible before installation day.
Installing a propane tank without a required permit can invalidate your homeowner's insurance coverage for fire and explosion damage. It can also create problems at resale, when a home inspector discovers an unpermitted installation. The cost of a permit ($25–$150) is trivial compared to these risks.
In most cases, yes — but the specifics depend on tank size, whether it's above-ground or underground, and your county's rules. Underground tanks of any size require a permit everywhere in the U.S. For above-ground tanks, many jurisdictions set the threshold at 125 gallons: below that, you may only need a gas piping permit for the supply line; at 125 gallons and above, expect a full LP tank installation permit. Some rural counties have no permit requirement for residential above-ground tanks, but this is increasingly rare.
The safest approach: call your county building or fire department before purchasing a tank. Ask specifically: "Do I need a permit for a [size]-gallon above/below-ground residential propane tank?" Get the answer in writing or via email.
Under NFPA 58 (the national standard), the minimum setback for tanks under 500 gallons is 10 feet from any building wall, door, window, or ignition source. For tanks 500–2,000 gallons, the minimum increases to 25 feet. For tanks over 2,000 gallons, it's 50 feet.
These are minimums. Your county or city may require more. Your homeowner's insurance policy may also require additional clearance. Use our Setback Calculator to get the specific distances for your tank size, then verify with your local AHJ.
Residential propane tank permit fees typically range from $25 to $150, with most counties falling in the $50–$100 range for standard above-ground residential installations. Underground tank permits tend to be higher — $75 to $200 — because they require more complex plan review and multiple inspections (pre-backfill and final).
Some counties charge a flat fee; others base the fee on the valuation of the installation (equipment + labor). In addition to the LP tank permit, you will almost always need a separate gas piping permit for the supply line, which adds another $25–$75. See our state-by-state permit fee guide for specifics.
Yes. Underground LP gas tanks require a permit in every jurisdiction in the United States, regardless of tank size. This is because buried tanks involve excavation, corrosion protection requirements (cathodic protection systems), soil contact issues, and the potential for groundwater contamination if a leak goes undetected.
In addition to the standard permit requirements, underground tanks typically also require: a separate permit for the excavation, a pre-backfill inspection before covering the tank, documentation of the cathodic protection system, and in flood-prone areas, anchoring certification. Full underground tank permit guide →
For tanks under 100 gallons, some states allow homeowner installation with a permit. For larger tanks — and virtually all underground installations — a licensed LP gas contractor is required by law in most states. Even in states that technically allow homeowner installation, your homeowner's insurance and propane supplier will typically require licensed installation.
The gas piping connecting the tank to your home must be installed by a licensed plumber or gas fitter in most jurisdictions, regardless of who installs the tank itself. Licensed installer requirements by state →
It depends on whether you own or lease the tank. If you lease the tank from a propane supplier (the most common arrangement), the supplier typically handles permits as part of the installation service. Ask to confirm this in writing before signing a lease agreement.
If you own the tank outright — which is less common but gives you the freedom to shop for propane from any supplier — the permit responsibility generally falls on you as the property owner. You would hire a licensed LP gas contractor to handle the installation and pull the required permits. In practice, most contractors will include permit procurement as part of their service.