At a Glance: Texas Contractor License
| Item | Details |
|---|---|
| Licensing Board | Texas Department of Licensing and Regulation (TDLR) + Local |
| License Types |
|
| License Threshold | No state GC license; trade licenses vary |
| Application Fee | $75–$300 for trade licenses |
| Exam Required | Yes |
| Exam Provider | PSI / TDLR |
| Exam Cost | $70–$135 |
| Experience Required | 2–4 years for trade licenses |
| Insurance Required | Required for most trades |
| License Renewal | Annual or biennial |
Step-by-Step: How to Get Your Texas Contractor License
- For GC work, obtain city/county contractor registration
- For trade licenses, apply to TDLR or relevant state board
- Pass applicable trade exam
- Register business in Texas
- Obtain city contractor license where required (Dallas, Houston, Austin all have separate systems)
Exam Requirements
Provider: PSI / TDLR
Cost: $70–$135
Topics covered: Texas Code, 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
Required for most trades
Beyond what Texas 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
Texas has the following reciprocity agreements with other states:
- Some trade reciprocity
Important: Reciprocity agreements change over time. Always contact the Texas licensing board directly to confirm current reciprocity status before assuming your out-of-state license qualifies for expedited licensure.
Important Notes for Texas
Texas has no statewide GC license — it's one of the more permissive states for general contracting. However, major cities have their own licensing systems. Trade licenses (electrical, plumbing, HVAC) are state-regulated.
Frequently Asked Questions
-
Do I need a contractor license in Texas?Yes. In Texas, contractors are required to be licensed for projects valued at No state GC license; trade licenses vary. The licensing is managed by the Texas Department of Licensing and Regulation (TDLR) + Local. Operating without a license can result in fines and inability to enforce contracts.
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How much does a Texas contractor license cost?The application fee for a Texas contractor license is $75–$300 for trade licenses. An exam fee of $70–$135 is also required for the PSI / TDLR exam. Renewal is Annual or biennial.
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Is an exam required for a Texas contractor license?Yes. Texas requires passing the PSI / TDLR exam (cost: $70–$135) covering Texas Code and Trade knowledge. Passing the exam is a prerequisite before applying for your license.
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What insurance is required for a Texas contractor license?Texas requires the following insurance for contractor licensing: Required for most trades. 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 Texas?Getting a Texas contractor license typically involves 5 steps: obtaining required experience (2–4 years for trade licenses), passing the exam, securing insurance, and submitting the application to the Texas Department of Licensing and Regulation (TDLR) + Local. Processing times vary but most applications are decided within 4–8 weeks after submission.
Official Resources
- Texas Department of Licensing and Regulation (TDLR) + Local — 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 Texas Department of Licensing and Regulation (TDLR) + Local. Requirements, fees, and exam procedures change frequently — this guide is updated periodically but may not reflect the most recent changes.