Texas Contractor License Requirements: What You Need to Know

Texas: The Exception

Unlike California or Florida, Texas does not require a state-wide general contractor license. But that doesn't mean you can work without credentials.

What IS Required

Electrical: Licensed by the Texas Department of Licensing and Regulation (TDLR). Master Electrician or Journeyman license required.

Plumbing: Licensed by the Texas State Board of Plumbing Examiners. Master or Journeyman Plumber license required.

HVAC: Licensed by TDLR. ACR (Air Conditioning and Refrigeration) license required for any work involving refrigerant.

Roofing, Painting, Landscaping, General Contracting: No state license required. However, many cities require local registration.

City-Level Requirements

Houston, Dallas, San Antonio, Austin, and most major cities have their own contractor registration requirements:

• Business registration/permit
• Proof of insurance
• Some require trade-specific permits

Always check your city's requirements even if the state doesn't require a license.

Insurance (Effectively Required)

While Texas doesn't mandate general liability insurance for most trades, good luck getting hired without it. Most commercial clients, property managers, and informed homeowners require proof of insurance before hiring.

General liability: $500-1,500/year depending on trade and revenue.

Penalties

For licensed trades (electrical, plumbing, HVAC): working without a license is a Class C misdemeanor, fines up to $4,000, and potential jail time for repeat offenders.

For unlicensed trades: your biggest risk is liability. Without proper insurance and business registration, you have zero legal protection in disputes.

Your next step: Check your city's contractor registration requirements today — even if the state doesn't require a license, your city might.