The Texas electrical contractor license
What do I need to run an electrical contracting business in Texas?
Who has to hold an electrical contractor license
Texas licenses the business, not just the person holding the tools. Anyone who performs or offers to perform non-exempt electrical work in Texas must be licensed and must perform that work through a licensed electrical contractor. That covers the obvious panel and wiring work, and it also covers turnkey solar: if you offer to install the panels and the components, you need the contractor license too. Because the license is held by the business, the business has to exist first — as a sole proprietorship, or as an entity filed with the Texas Secretary of State either directly or through a formation service.
Non-exempt electrical work in Texas must be performed through a licensed electrical contractor. — Texas Department of Licensing and Regulation, retrieved 2026-09-14
227,117Texas had 227,117 electrician license holders in fiscal year 2025. — Texas Department of Licensing and Regulation, retrieved 2026-09-14
The master electrician of record is the license
An electrical contractor license is attached to a master electrician. You either hold the master license yourself or you employ someone who does, and that person is named on the application. The tie is exclusive: a master electrician can only be assigned to one electrical contractor at a time, unless they own more than half of the contracting business. If your master leaves, the license problem is immediate.
An applicant for an electrical contractor license must be a licensed master electrician or employ one. — Texas Department of Licensing and Regulation, retrieved 2026-09-14
50 percentA master electrician may be assigned to only one electrical contractor unless they own more than 50 percent of it. — Texas Department of Licensing and Regulation, retrieved 2026-09-14
An Electrical Contractor can ONLY have a master electrician assigned to the electrical contractor.
What TDLR charges for each license
The business license and the individual license are separate line items, and you will usually be paying both. The contractor business license is the larger of the two. The individual master license that qualifies you for it costs considerably less, which surprises people who assume the hard license is the expensive one; the full first-year cost is dominated by neither.
| License | Fee |
|---|---|
| Electrical contractor (business) | $110 |
| Master electrician | $45 |
| Journeyman electrician | $30 |
$110The electrical contractor business license fee in Texas is $110. — Texas Department of Licensing and Regulation, retrieved 2026-09-14
$45A Texas master electrician license costs $45 and a journeyman electrician license costs $30. — Texas Department of Licensing and Regulation, retrieved 2026-09-14
The general liability insurance TDLR requires
Proof of insurance is attached to the application, not promised afterwards. TDLR sets three separate floors and your certificate has to clear all of them. The carrier matters as well as the number: it must be admitted in Texas or an eligible surplus lines carrier, and rated B+ or better by A.M. Best. The certificate needs a 30-day cancellation notice, and what it has to say is as particular as what it has to cover.
| Cover | Minimum |
|---|---|
| Per occurrence | $300,000 |
| Aggregate | $600,000 |
| Products and completed operations | $300,000 |
$300,000Texas electrical contractors must carry at least $300,000 per occurrence in general liability cover. — Texas Department of Licensing and Regulation, retrieved 2026-09-14
$600,000The policy must also show at least $600,000 aggregate and $300,000 for products and completed operations. — Texas Department of Licensing and Regulation, retrieved 2026-09-14
B+The insurer must be rated B+ or higher by A.M. Best Company. — Texas Department of Licensing and Regulation, retrieved 2026-09-14
Three ways to satisfy the workers compensation rule
Texas does not force a private employer to buy workers' compensation, but it does force you to declare which route you took. The application gives three boxes: you carry it, you self-insure, or you file a notice of no coverage with the Department of Insurance through its non-subscriber e-file tool. Self-insurance is not a real option for a small shop, and TDLR says so plainly on the form.
3 optionsThe contractor application requires you to state whether you carry workers' compensation, self-insure, or file a notice of no coverage. — Texas Department of Licensing and Regulation, retrieved 2026-09-14
$500,000Self-insurance requires a manual premium of at least $500,000 in Texas or $10,000,000 nationally. — Texas Department of Licensing and Regulation, retrieved 2026-09-14
Generally, companies with less than 200 employees will not meet the above criteria.
Renewing, and the deadlines that end a license
Renewal costs the same as the original application, so budget it as a recurring cost rather than a one-off. Let it lapse and the price climbs in steps. Let it lapse long enough and renewal stops being available at all: past 36 months you are not renewing, you are applying again from the beginning, with the exam and the hours behind you counting for what they count for. The renewal itself has its own prerequisites.
| Lapsed for | Cost to renew |
|---|---|
| Not expired | $110 |
| 90 days or less | $165 |
| 91 days to 18 months | $220 |
| More than 36 months | Cannot renew — new application |
$110Renewing a Texas electrical contractor license costs $110. — Texas Department of Licensing and Regulation, retrieved 2026-09-14
$165A license expired 90 days or less costs $165 to renew, and one expired 91 days to 18 months costs $220. — Texas Department of Licensing and Regulation, retrieved 2026-09-14
36 monthsA license expired more than 36 months cannot be renewed and requires a new application. — Texas Department of Licensing and Regulation, retrieved 2026-09-14
Questions
Can I run electrical jobs as a sole trader without the contractor license?
No. Non-exempt electrical work has to be performed through a licensed electrical contractor, so the business itself needs the license even when you are the only person on the van.
How many hours does it take to qualify as a master electrician in Texas?
TDLR requires 12,000 hours of on-the-job training under a master electrician, and you must have held a journeyman license for at least two years before sitting the master exam.
Which edition of the NEC do Texas exams cover?
The 2023 National Electrical Code has been the adopted edition since 1 September 2023, and licensing exams have covered it since 2 October 2023.
Do I need the contractor license to sell residential solar?
From 1 September 2026, residential solar retailers and salespersons must register with TDLR. Offering a turnkey install, including the electrical components, requires the electrical contractor license.