At a Glance: Tennessee Contractor License
| Item | Details |
|---|---|
| Licensing Board | Tennessee Board for Licensing Contractors |
| License Types |
|
| License Threshold | $25,000 for commercial; $3,000 for residential |
| Application Fee | $120–$400 |
| Exam Required | Yes |
| Exam Provider | PSI Exams |
| Exam Cost | $85–$130 |
| Experience Required | 2 years minimum |
| Insurance Required | General Liability ($100,000 minimum); Workers' Comp required |
| License Renewal | Annual; $120–$400 |
Step-by-Step: How to Get Your Tennessee Contractor License
- Determine license type needed
- Document 2 years experience
- Pass Business & Law and trade exams via PSI
- Obtain insurance
- Apply online through TN Board for Licensing Contractors
- License issued in 4–6 weeks
Exam Requirements
Provider: PSI Exams
Cost: $85–$130
Topics covered: Tennessee Business & Law, Trade Knowledge
Most state contractor exams test two main areas: Business & Law (contracts, lien law, workers' comp, licensing regulations) and Trade Knowledge (construction practices, building codes, safety). Prepare for both sections — even experienced contractors struggle with the Business & Law portion without dedicated study.
Study Resources
- PSI Candidate Handbook (available on PSI website — free, covers exactly what's on the exam)
- ICC Study Guides for code-based exams
- Contractor's Business & Law Study Guide by Craftsman Book Company
- Online prep courses from Contractor Exam Prep and similar providers
Insurance & Bonding Requirements
General Liability ($100,000 minimum); Workers' Comp required
Beyond what Tennessee requires, consider these coverage types for complete protection:
- General Liability: Protects against third-party bodily injury and property damage claims
- Workers' Compensation: Required if you have employees; protects against job-site injury claims
- Commercial Auto: Your personal auto policy won't cover your work truck
- Inland Marine (Tools & Equipment): Covers tool theft from job site or vehicle
Reciprocity
Tennessee has the following reciprocity agreements with other states:
- Alabama
- Mississippi
- Georgia
Important: Reciprocity agreements change over time. Always contact the Tennessee licensing board directly to confirm current reciprocity status before assuming your out-of-state license qualifies for expedited licensure.
Important Notes for Tennessee
Tennessee has reciprocity with several southeastern states. The $25,000 commercial threshold catches most commercial projects. HIC registration covers residential below $25K.
Frequently Asked Questions
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Do I need a contractor license in Tennessee?Yes. In Tennessee, contractors are required to be licensed for projects valued at $25,000 for commercial; $3,000 for residential. The licensing is managed by the Tennessee Board for Licensing Contractors. Operating without a license can result in fines and inability to enforce contracts.
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How much does a Tennessee contractor license cost?The application fee for a Tennessee contractor license is $120–$400. An exam fee of $85–$130 is also required for the PSI Exams exam. Renewal is Annual; $120–$400.
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Is an exam required for a Tennessee contractor license?Yes. Tennessee requires passing the PSI Exams exam (cost: $85–$130) covering Tennessee Business & Law and Trade Knowledge. Passing the exam is a prerequisite before applying for your license.
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What insurance is required for a Tennessee contractor license?Tennessee requires the following insurance for contractor licensing: General Liability ($100,000 minimum); Workers' Comp required. This is the minimum required — most contractors carry higher limits for additional protection on job sites.
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How long does it take to get a contractor license in Tennessee?Getting a Tennessee contractor license typically involves 6 steps: obtaining required experience (2 years minimum), passing the exam, securing insurance, and submitting the application to the Tennessee Board for Licensing Contractors. Processing times vary but most applications are decided within 4–8 weeks after submission.
Official Resources
- Tennessee Board for Licensing Contractors — Official Website
- PSI Exams — Schedule Your Contractor Exam
- Contractor Insurance Guide
- Contractor Bonding Guide
- How to Start a Construction Business
Always verify requirements directly with the Tennessee Board for Licensing Contractors. Requirements, fees, and exam procedures change frequently — this guide is updated periodically but may not reflect the most recent changes.