What you need to know before you start

A Texas contractor's license is issued by the Texas Department of Licensing and Regulation (TDLR), not by your city or county. The process takes several months and requires you to pass an exam, prove work experience, and pay fees. You cannot legally bid on jobs over $5,000 or hold yourself out as a licensed contractor without this license — the penalties for working without one include fines and project shutdowns.

Texas has different license types depending on what kind of work you do: residential, commercial, or both. The path to getting licensed depends on which type fits your business. Most people spend between three and six months gathering documents and studying before they sit for the exam.

Key Takeaways

  • You must have four years of work experience in your trade before you can take the TDLR exam, or three years if you have a relevant degree or apprenticeship certificate.
  • The TDLR exam covers both trade knowledge and Texas construction law, and you must score at least 70 percent to pass.
  • You need to submit proof of experience, a completed process, and exam results to TDLR before your license is issued.
  • License fees vary by license type and classification, ranging from roughly $300 to $600 for the initial license.
  • Your license is valid for two years, and you must renew it by paying a renewal fee and completing continuing education hours.

The three types of contractor licenses in Texas

Texas offers three main license types: Residential Contractor, Commercial Contractor, and Residential and Commercial Contractor. A Residential Contractor can work on single-family homes and duplexes. A Commercial Contractor works on commercial buildings and industrial projects. If you want to do both types of work, you get a combined license.

Within each type, you also choose a classification based on your specialty — for example, General Contractor, Electrical Contractor, Plumbing Contractor, HVAC Contractor, or Roofing Contractor. Some classifications have additional requirements. For instance, an Electrical Contractor must hold a valid electrician's license from the Texas Department of Licensing and Regulation before you can get the contractor's license.

Check the TDLR website to see which classification matches your work. This choice affects which exam you take and what experience you need to document.

Work experience requirements and how to document them

You must have four years of full-time work experience in your trade to sit for the exam. This means at least 2,000 hours per year, or roughly 40 hours per week for 50 weeks. If you have a relevant degree (such as a bachelor's in construction management) or a completed apprenticeship certificate, you can reduce this to three years of experience.

TDLR requires you to document this experience on a form called the Verification of Experience. You will need to list each job, the dates you worked, the hours per week, and the type of work you performed. Your former employers or supervisors must sign and date this form — TDLR will contact them to verify the information. If you are self-employed, you can use business records like invoices, tax returns, or contracts to show your hours.

Start gathering this documentation early. If you worked for multiple employers, you may need to track down old supervisors or contact previous companies' HR departments. TDLR typically takes two to four weeks to verify your experience once you submit it.

Studying for and taking the TDLR exam

The TDLR exam is a multiple-choice test that covers two areas: your trade knowledge and Texas construction law. The trade portion tests your technical skills — for example, an electrical contractor exam covers wiring, code compliance, and safety. The law portion covers Texas construction regulations, contract law, and licensing rules. You must score at least 70 percent overall to pass.

TDLR does not provide a study guide, but it publishes a list of topics covered on each exam. You can prepare by reading the Texas Construction Industry and Trades section of the Texas Administrative Code, studying trade-specific textbooks, and taking practice exams from third-party test prep companies. Many contractors take a prep course offered by community colleges or online providers, which typically cost between $200 and $500.

You schedule your exam through Pearson VUE, the testing company TDLR uses. Exams are offered at testing centers across Texas. The exam fee is roughly $100 to $150 depending on your license type. You can retake the exam if you do not pass, but you must wait at least 24 hours and pay the fee again.

Submitting your process to TDLR

Once you have passed the exam, you submit your process to TDLR along with your exam results, proof of experience, and the process fee. You can explore online through the TDLR website or by mail. The process form is called the process for Contractor License.

Along with the process, you must include:

  • Your passing exam score report from Pearson VUE
  • Completed Verification of Experience forms with employer signatures
  • A copy of your government-issued ID
  • Proof of any relevant degrees or apprenticeship certificates (if you used these to reduce your experience requirement)
  • The non-refundable process and license fee

TDLR reviews your process and typically issues or denies your license within four to six weeks. If TDLR needs more information, they will contact you by email or phone. Once approved, you receive your license number and can legally work as a licensed contractor in Texas.

License fees and renewal requirements

The initial license fee depends on your license type and classification. Most licenses cost between $300 and $600. Some specialty classifications, like Irrigator or Utility Contractor, may have different fees. You pay this fee when you submit your process.

Your license is valid for two years from the date it is issued. To renew, you must submit a renewal process and pay the renewal fee (typically $200 to $400) before your license expires. You also must complete continuing education hours — the number varies by license type, but most contractors must complete between 4 and 8 hours of approved courses every two years.

Continuing education covers topics like construction law updates, safety, and ethics. You can take these courses online or in person through approved providers. TDLR maintains a list of approved courses on its website. If you do not renew before your license expires, you must reapply and may have to retake the exam.

What happens if you work without a license

Working as a contractor without a license in Texas is illegal. TDLR and local code enforcement agencies investigate complaints and can issue citations. Penalties include fines up to $5,000 per violation, project shutdowns, and civil lawsuits from customers. If you are caught, you also may be barred from getting a license in the future.

Customers also have legal recourse if they hire an unlicensed contractor. They can sue for damages and recover the cost of the work plus additional penalties. This is why getting licensed protects both you and your customers — it shows you meet state standards and have passed an exam on safety and law.

Frequently Asked Questions

Can I use military service or apprenticeship time to count toward my four years of experience?

Yes. A completed apprenticeship in your trade counts as one year of experience and reduces your total requirement to three years. Military service in a construction-related field may count, but you must document it with discharge papers and a letter from your commanding officer describing your duties. Contact TDLR to confirm whether your specific military role qualifies.

What if I cannot find my former employer to sign the Verification of Experience form?

TDLR allows you to submit alternative documentation if an employer is no longer in business or you cannot locate them. You can use tax returns, invoices, contracts, or letters from customers who can verify your work during that period. You must explain why you cannot get an employer signature and provide as much supporting documentation as possible.

Do I need a business license before I get my contractor's license?

No. Your contractor's license is separate from a business license. However, if you operate as a business entity (LLC, corporation, or sole proprietorship), you may need a business license from your city or county. Check with your local government. Your contractor's license is issued by the state and allows you to legally perform construction work.

Can I get a contractor's license if I have a criminal record?

TDLR evaluates criminal history on a case-by-case basis. Certain felonies, particularly those involving fraud or dishonesty, may disqualify you. Contact TDLR before you explore if you have a criminal record — they can tell you whether your specific situation will affect your license. You can also request a preliminary information before you pay fees and submit your full process.

How long does the entire process take from start to finish?

Most people take three to six months total. This includes gathering experience documentation (two to four weeks), studying and scheduling your exam (four to eight weeks), taking the exam (one day), and waiting for TDLR to process your process (four to six weeks). The timeline depends on how quickly you can get employer signatures and how fast you prepare for the exam.