How Much is a General Contractor License?

The cost of obtaining a general contractor license varies significantly across states, typically ranging from $50 to $500 for application fees. 

Additional expenses often include exams, background checks, and insurance. 

Maintenance costs such as annual renewal fees (averaging around $200), continuing education, and bonding or insurance requirements can add to the overall expense. 

Some states may charge higher fees for combined licenses or specific project types, such as Arizona’s $1,050 fee for commercial and residential licenses.

State-specific requirements also play a role in determining costs. For example, Tennessee mandates licenses for projects exceeding $25,000, while Alabama requires proof of liability insurance for certain project thresholds. 

Here’s a breakdown of the typical costs and requirements:

Initial Licensing Costs

• Application Fees: These can range from $50 to $500, depending on the state.
• Exams: Some states require passing an exam, which may incur additional costs. 
• Background Checks: These are often required and add to the overall cost.
• Insurance: General liability insurance is typically necessary, with costs varying based on the project type and risk.

Annual Maintenance Costs

• Renewal Fees: These generally range from state to state but average about $200 per year when considering the frequency of renewals.
• Continuing Education: Many states require annual continuing education hours, which can be taken online at a relatively low cost.
• Bonding and Insurance: Ongoing costs for maintaining required bonds and insurance policies.

State-Specific Examples

• Florida: Application fees range from $145 to $245.
• Georgia: The application fee is $210, with additional requirements for insurance and continuing education.
• Kansas: No state-level license is required for general contractors, but local fees apply, such as $100 in Johnson County.
• Washington: The application fee is $132.60.

Overall, while the initial cost can vary widely, maintaining a license typically involves manageable annual expenses.

Got your contractor license? Make sure your compliance game is just as strong by exploring these Workyard articles:

• Georgia Break Laws: Meals, Rests, and More (2025)
• Arizona Break Laws: Meals, Rests, and More (2025)
• Massachusetts Overtime Law: Your Guide to Rates, Statutes, Calculations, and More (2025)
• Alabama Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More for 2025

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