PermitDueContractor License Guide by State: Requirements, Exams, and Bonds
March 22, 2026 · Daniel Amar·Last updated: March 22, 2026
13 states do not require a state contractor license
That is the number that shocks most people in the contracting world. Thirteen states have no state-level general contractor license requirement at all. You still need a business license, insurance, and potentially local permits, but the state does not issue a contractor-specific license.
The other 37 states (plus D.C.) require some form of state contractor license, but the requirements vary wildly. Some require a 4-hour exam, a $15,000 surety bond, and proof of 4 years of experience. Others just want a registration form and a $100 fee. This guide breaks down what every state actually requires.
States that require vs. do not require a contractor license
| Category | States |
|---|---|
| State license required | Alabama, Alaska, Arizona, Arkansas, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Iowa, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Oregon, Rhode Island, South Carolina, Tennessee, Utah, Virginia, Washington, West Virginia, Wisconsin, Wyoming, D.C. |
| No state license (local/registration only) | Colorado, Illinois, Indiana, Kansas, Kentucky, Maine, Missouri, New Hampshire, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, South Dakota, Texas, Vermont |
Important: "no state license" does not mean "no rules." In Texas, for example, there is no state general contractor license, but cities like Houston, Dallas, and San Antonio each require their own city contractor licenses. And you still need a state license for specific trades (electrical, plumbing, HVAC) in most of these states.
What a contractor license typically requires
For states that do require a license, here are the common requirements:
1. Experience requirements
Most states require 2 to 4 years of verifiable experience as a journeyman or supervised contractor before you can apply for a license. You will need previous employers or clients to verify your experience on official forms.
- California (CSLB): 4 years of journey-level experience
- Florida (CILB): 4 years of experience
- Arizona (ROC): 4 years of practical experience in the trade
- North Carolina: No minimum experience for limited license; 4 years for unlimited
2. Examinations
About 30 states require a written exam. The exam typically has two parts:
- Trade exam: Tests your knowledge of construction methods, building codes, and trade-specific skills
- Business and law exam: Tests your knowledge of contract law, lien law, workers' comp rules, and business management
Pass rates for contractor exams range from 50% to 70%, depending on the state. These are not easy tests. Most people study 40 to 80 hours. PSI and Prometric administer the exams in most states. Expect to pay $50 to $200 for exam fees.
3. Surety bonds
A surety bond protects consumers if a contractor fails to complete work or violates regulations. Bond amounts vary significantly:
| State | Bond amount | Annual premium (typical) |
|---|---|---|
| California | $25,000 | $250-$1,250 |
| Arizona | $2,000-$50,000 (based on license class) | $100-$2,500 |
| Nevada | $1,000-$500,000 (based on bid limit) | $100-$25,000 |
| Florida | None required at state level | N/A |
| Oregon | $20,000 (residential), $75,000 (commercial) | $200-$3,750 |
| Washington | $12,000 (residential) | $120-$600 |
| Virginia | Based on class ($70K max) | $350-$3,500 |
| North Carolina | None required | N/A |
Your bond premium (what you actually pay) is typically 1% to 5% of the bond amount, based on your credit score and financial history. Good credit means lower premiums. A contractor with a 750+ credit score might pay $250/year for a $25,000 bond. A contractor with a 600 credit score might pay $1,250 for the same bond.
4. Insurance requirements
Most states require at minimum:
- General liability insurance: $500,000 to $1,000,000 per occurrence
- Workers' compensation insurance: Required if you have employees (required in all states except Texas, where it is optional)
Some states also require auto insurance for business vehicles. Annual premiums for a small contracting business typically run $1,500 to $5,000 for general liability and $2,000 to $8,000 for workers' comp (varies widely based on trade and payroll).
General contractor vs. specialty contractor
Most states distinguish between general contractors and specialty (or subcontractor) licenses:
- General contractor: Can oversee entire construction projects, hire subcontractors, and manage multiple trades. Higher bond and insurance requirements. Usually requires the full exam.
- Specialty contractor: Licensed for a specific trade (electrical, plumbing, HVAC, roofing, painting, etc.). Lower bond requirements. Trade-specific exam only.
How much does a contractor license cost?
Total first-year costs for a contractor license (including application, exam, bond, and insurance):
| State | Application fee | Exam fee | Bond premium | Total first-year estimate |
|---|---|---|---|---|
| California | $450 | $100 | $250-$1,250 | $800-$1,800 |
| Florida | $249 | $100-$165 | N/A | $350-$415 |
| Arizona | $100-$400 | $85 | $100-$2,500 | $285-$2,985 |
| Nevada | $300 | $100 | $100-$25,000 | $500-$25,400 |
| Oregon | $325 | N/A (no exam) | $200-$3,750 | $525-$4,075 |
| Georgia | $120 | $100 | Varies | $220-$1,000+ |
These are just the license costs. Add general liability insurance ($1,500-$5,000/year) and workers' comp ($2,000-$8,000/year) and the real first-year cost of being a licensed contractor is $5,000 to $35,000+.
Reciprocity between states
Some states have reciprocity agreements that let you use your license from one state to get licensed in another without retaking the exam. The most notable:
- Florida has reciprocity with Alabama, Georgia, Louisiana, Mississippi, and a few others
- California has limited reciprocity with Nevada and Arizona for some license classes
- Several states accept the ICC (International Code Council) certification in place of state exams
Reciprocity does not mean automatic licensing. You still need to apply, pay fees, and meet the state's insurance and bonding requirements. But it saves you from retaking a 4-hour exam.
What happens if your contractor license expires
An expired contractor license means you cannot legally bid on, start, or complete work. Penalties vary:
- Contracting without a license is a misdemeanor in most states. In California, it carries fines up to $5,000 and potential jail time.
- You cannot enforce contracts for work done while unlicensed. In many states, a homeowner can refuse to pay you, and you have no legal recourse.
- Reinstatement after expiration usually means paying a penalty fee (2x to 3x the renewal fee), completing any missing CE, and in some cases retaking the exam if the license has been expired more than a year.
For more, see our guide on the hidden cost of an expired business license.
Check your contractor license requirements
Check your contractor license renewal status or look up all the permits you need by entering your state and city. We track 1,057 license types across 50 states, including general contractor licenses, specialty trade licenses, bond requirements, and local contractor registration.
If you are managing multiple licenses across states or trades, the multi-location tracker keeps all your deadlines in one dashboard. One missed renewal can cost you a project, so set it up before something slips.