Electrician License in Texas: Fees, Requirements & Startup Costs
Quick answer: The Texas Department of Licensing and Regulation (TDLR) licenses an Electrical Contractor business, which must employ a licensed Master Electrician. The contractor application is $110 under the TDLR fee schedule; a new Master Electrician application is $45 under the individual application rules. The master exam is a separate charge.
The company license depends on its master
Texas separates permission to contract from the qualification of the person responsible for electrical work. A company offering electrical installation or repair needs the Electrical Contractor license. Its licensed Master Electrician must be employed by the company, so hiring a journeyman alone does not meet that condition. The master normally cannot be assigned to another contractor unless the ownership exception in the TDLR record applies. An owner who already holds the master credential still has to arrange the business license.
Match the entity name, master assignment, and intended services before marketing jobs. A change in the qualifying master can affect the contractor’s ability to continue contracting; keep the assignment current with TDLR rather than treating it as a document filed only at startup.
Licensing in Texas
Jurisdiction: state
Authority: Texas Department of Licensing and Regulation (TDLR) - Electricians program
Licensed statewide by TDLR under Occupations Code ch. 1305. Per TDLR/statute, a city may not charge a state-licensed electrician a license/registration fee or require a municipal exam (Occ. Code 1305.201), but building permit fees still apply.
Electrical Contractor
BUSINESS Business license to offer/perform electrical work; must employ a licensed Master Electrician (a Master may be assigned to only one contractor unless owning >50%).
| Fee | Amount | Period (years) |
|---|---|---|
| New Electrical Contractor license application (non-refundable) | $110 OFFICIAL FEE Source — www.tdlr.texas.gov | 1 |
| Annual Electrical Contractor license renewal (on time) | $110 OFFICIAL FEE Source — www.tdlr.texas.gov | 1 |
| Late renewal, expired 90 days or less | $165 OFFICIAL FEE Source — www.tdlr.texas.gov | 1 |
Master Electrician
INDIVIDUAL Individual license the owner/qualifying employee must hold for the contractor license.
| Fee | Amount | Period (years) |
|---|---|---|
| New Master Electrician license application (non-refundable) | $45 OFFICIAL FEE Source — www.tdlr.texas.gov | 1 |
| PSI Master Electrician exam (both portions); retake also $78 | $78 VERIFIED DATA Source — test-takers.psiexams.com | — |
| Annual Master Electrician renewal (non-refundable) | $45 OFFICIAL FEE Source — www.tdlr.texas.gov | 1 |
Exam: Provider: PSI · Fee: 78 · Source
Experience: Master Electrician: 12,000 hours of on-the-job training under a Texas-licensed Master Electrician, and held a Journeyman Electrician license at least two years.
Bond: Applies To: No bond requirement stated on the Electrical Contractor application page · Source
Insurance: Requirement: General liability: min $300,000 per occurrence (property damage + bodily injury combined), $600,000 aggregate, $300,000 aggregate products/completed operations · Source
Requirement: Workers' compensation: proof of coverage, certificate of self-insurance, or statement of election not to obtain coverage · Source
Renewal and CE: Renewal period: 1 year · Continuing education: 4 hours · Source
Local note: Cities cannot require a separate license/registration fee or exam from state-licensed electricians (Occ. Code 1305.201) but can charge building permit fees.
Data notes
CE of 4 hours is stated on the Master Electrician renewal page as 'each license cycle' (cycle = 1 year). Exam fee from PSI's TDLR Electrician Candidate Information Bulletin (effective Sept 1, 2026, 2026 NEC); Journeyman exam also $78. Journeyman experience (commonly 8,000 hrs) not verified here and omitted.
Verified: 2026-09-24
What the master applicant must document
The TDLR master application calls for the documented training and prior journeyman license shown in the state record. The applicant also takes the PSI master exam. Verify eligibility before paying for an exam date or promising that the business can open; time served in electrical work and authority to qualify a contractor are different questions.
TDLR’s contractor application also calls for general liability coverage and workers’ compensation documentation or the permitted election statement. The record does not identify a contractor bond requirement on that application. Obtain coverage that matches the work being sold, and submit the documents in the form TDLR requires. The master renewal has continuing education during each license cycle; put renewal tracking on the operating calendar for both the company and the individual.
Municipal permits remain part of the job
Texas Occupations Code 1305.201, noted in the TDLR program record, limits a city’s ability to impose its own fee or exam on a state-licensed electrician. It does not eliminate building permits. For a panel replacement, new circuit, or remodel, ask the local authority what permit, inspection, and utility coordination the address requires. Write those steps into the estimate and schedule.
Keep permit records with test results and the final invoice. A contractor license makes the business eligible to contract within its scope; it does not certify that a particular installation has passed local inspection. Check any specialty scope with TDLR before adding it to the service list.
Budget the Texas launch
Set the startup model to Texas, then replace tool, vehicle, insurance, and reserve assumptions with actual quotes. A service van stocked for troubleshooting has a different cash demand from a company buying materials for larger installations. The cost table is a planning reference; the state license panel identifies official licensing items.
| Cost category | Range | Basis |
|---|---|---|
| Licensing | Varies by state — see license table | Official fees depend on state and structure |
| Business formation | Varies by state — see license table | Official fees depend on state and structure |
| Insurance (first year) | $730–$940 MARKET ESTIMATE Source | Selected coverage |
| Vehicle | $0–$48,400 MARKET ESTIMATE Source | Own vehicle to cash purchase |
| Tools & equipment | $210–$980 MARKET ESTIMATE Source | Basic to pro priced kit anchors |
| Software (first year) | $590–$6,000 MARKET ESTIMATE Source | Basic to pro annual subscription |
Marketing, payroll, working capital, permits: set in the calculator.
Startup Cost Calculator
Estimated startup cost: $8,450–$10,800
Estimated startup cost: $8,450–$10,800. Break-even at about 7 jobs per month.
| Licensing & exam fees | $233 OFFICIALLicense details |
|---|---|
| Business formation (state filing) | $300 OFFICIAL |
| Insurance (first year) | $730–$940 MARKET ESTIMATEGeneral liability |
| Vehicle acquisition | $0 YOUR INPUTYour existing vehicle; acquisition cost $0Vehicle price sources |
| Tools & equipment | $510 MARKET ESTIMATEExcludes unpriced kit items: Wire strippers, Insulated hand tools, Ladder, Safety gearStarter kit items
|
| Software (first year) | $590–$2,250 MARKET ESTIMATEPublished monthly list price × 12Software price sources
|
| Launch marketing | $1,500 YOUR INPUTYour input — default: 3 months × $500 |
| Payroll reserve | $0 CALCULATEDBLS median wage × 173 hours/month × employees × employer taxes and ECEC benefits × working-capital months |
| Working capital | $4,550–$5,050 CALCULATEDMonthly overhead × working-capital months |
| Permits & compliance | $0 YOUR INPUTYour input — default $0; local requirements may apply |
Monthly overhead: $1,500–$1,700 · Annual operating: $18,200–$20,100 · Break-even: 7 jobs/month
Vehicle operating per month: $760 CALCULATED
Phone and admin per month: $150 YOUR INPUT
Show formula
Startup total is the sum of available first-year cost lines. Monthly overhead includes insurance, software, marketing, vehicle operating, phone and admin, and payroll. Break-even jobs = monthly overhead ÷ (average ticket × gross margin).
For a broader explanation of credentials, read the electrician license guide. The startup cost guide explains how to plan equipment and working cash, while the pricing guide covers estimating service and installation jobs.
Official sources
- www.tdlr.texas.gov — New Electrical Contractor license application (non-refundable)
- www.tdlr.texas.gov — Annual Electrical Contractor license renewal (on time)
- www.tdlr.texas.gov — New Master Electrician license application (non-refundable)
- www.tdlr.texas.gov — Annual Master Electrician renewal (non-refundable)
- api.bls.gov — BLS OEWS Electricians
- www.sos.state.tx.us — Texas LLC filing fee
Market sources
- test-takers.psiexams.com — PSI Master Electrician exam (both portions); retake also $78
- www.insureon.com — Insureon
- www.nextinsurance.com — NEXT
- www.ramtrucks.com — 2026 Ram ProMaster cargo van (base)
- www.cars.com — 2026 Ford F-150 XL (base)
- www.cars.com — 2026 Ford Transit-150 cargo van (base, T-150 130in low roof RWD)
- www.coxautoinc.com — Used vehicle average listing price (all segments, not cargo-van specific)
- www.fluke.com — Fluke 117 electrician's multimeter
- www.fluke.com — Fluke 117/323 multimeter + clamp meter kit
- www.fluke.com — Fluke 323 true-RMS clamp meter
- www.getjobber.com — Jobber
- www.housecallpro.com — Housecall Pro
- quickbooks.intuit.com — QuickBooks Online
Last updated: September 24, 2026