SummaryExpansion joints are used as a special connection equipment between adjacent buildings to accommodate the relative motions generated by wind, thermal, or earthquake loads, but they often exhibit damage during severe earthquakes. The level of damage and safety factors required to avoid loss of function are not well considered in current design practices. The objective of this paper is to provide quantitative information on the seismic damage probability of common expansion joints and the associated repair costs. The designer and engineer can refer to this information as a basis for decision making in the selection of expansion joints. Four common types of expansion joints are considered: high‐ and standard‐performance floor and wall expansion joints, whose damage states have been evaluated recently by the authors through shaking table tests. First, the fragility functions of expansion joints for seven damage patterns are developed utilizing the test results. Next, the vulnerability of expansion joints installed between adjacent building models is assessed via incremental dynamic analysis. The recommended level of safety factor to ensure the function of expansion joints is discussed. Finally, a procedure for cost‐effective selection of expansion joints is introduced, where case studies are examined using buildings with different characteristics. The presented results are deemed to be beneficial for improving the design practice of expansion joints and for reducing future seismic loss.