Quick Answer
Contractor labor rates are what you bill a client for an hour of work, not the wage you pay. In 2026, billed rates run from about $50 per hour for a handyman to $150 per hour for licensed electrical, plumbing, and HVAC work. A billed rate has to cover the wage, your actual labor burden on top of it (payroll taxes, workers' comp, benefits), and your overhead and profit. Run your own burden with the Burdened Labor Rate Calculator. These figures are estimates and national midpoints. Prices vary by region, so get local quotes before you set yours.
Last updated: 2026-09-24
2026 Labor Rates by Trade
The table shows typical 2026 numbers for a single worker-hour, or per sq ft for painting, materials not included. Wage is what you pay the worker. Billed rate is what a contractor charges the client after burden, overhead, and profit. Treat these as estimates: your market sets the real number, and licensed trades sit at the top for licensing and liability reasons.
| Trade | Wage Range | Typical Billed Rate | Billed Range |
|---|---|---|---|
| General laborer | $15 to $35/hr | n/a | n/a (billed through the crew rate) |
| Carpenter | $20 to $45/hr | n/a | n/a (billed through the crew rate) |
| Painter | $18 to $40/hr | priced per sq ft | interior labor $1 to $4/sq ft, exterior $1.50 to $5/sq ft |
| Handyman | varies | $80/hr | $50 to $125/hr |
| Electrician (licensed) | licensed | $85/hr | $50 to $150/hr |
| Plumber (licensed) | licensed | $90/hr | $50 to $150/hr |
| HVAC tech (licensed) | licensed | $100/hr | $75 to $150/hr |
| General contractor (own hours) | owner | $90/hr | $50 to $150/hr |
Figures are 2026 estimates from published wage data and contractor cost guides (see Sources below). They are starting points, not quotes. Labor rates vary a lot by region, so get local quotes and compare multiple bids before you price a job.
Sources
- General laborer and carpenter wages: BLS Occupational Outlook Handbook, Construction Laborers and Helpers (May 2025 pay) and BLS Occupational Outlook Handbook, Carpenters (May 2025 pay)
- Painter wage: BLS Occupational Outlook Handbook, Painters (May 2025 pay: median $23.75/hr). Per-square-foot painting labor: EstimationPro's internal pricing reference, compiled from published 2026 contractor cost guides.
- Billed hourly rates for general contractor, electrician, plumber, HVAC tech, and handyman: EstimationPro's internal pricing reference, compiled from published 2026 contractor cost guides.
Trade billed-rate ranges match EstimationPro's internal pricing reference, last verified 2026-06-11.
A Worked Example: Wage to Billed Rate
Here is the math on a carpenter you pay $30 an hour. Add 35% burden for payroll taxes, workers' comp, and benefits, and the true cost is about $40.50 per hour. Price that so 20% covers overhead and a 15% profit target ($40.50 ÷ 0.65), and the hour bills at $62.31. (Stacking a 20% markup and then a 15% markup instead, $40.50 x 1.20 x 1.15, only gets you to $55.89, short of that target.) If you bid that hour at $45 because it feels close to the wage, you worked all day to lose money. That is the trap that keeps busy contractors broke.
| Step | Amount (per hour) |
|---|---|
| Gross wage paid | $30.00 |
| Plus 35% labor burden | $40.50 true cost |
| Plus overhead and profit | $62.31 billed |
| Shortfall if billed at wage | $32.31/hr |
Want it done for you? Run your real numbers through the Burdened Labor Rate Calculator and the Contractor Hourly Rate Calculator, then check your markup with the Contractor Markup Calculator.
How Contractor Labor Rates Work
What goes into a billed labor rate, why it changes by trade and region, and how to set yours so every hour makes money.
What Is a Labor Rate (and What It Is Not)
A labor rate is what you charge a client for one hour of a worker's time, not what you pay that worker. Those are two different numbers, and confusing them is how contractors go broke while staying busy.
Your billed labor rate has to cover three things: the wage, the burden on top of that wage (taxes, insurance, benefits), and your overhead and profit. A carpenter you pay $30 an hour does not cost you $30 an hour. By the time you add payroll taxes, workers' comp, and benefits, the real cost is higher, and that is before the truck, tools, and office get their share. Bill at the wage and you lose money on every hour worked.
- Wage: the gross hourly pay before taxes and deductions
- Burden: your actual payroll taxes, workers' comp, unemployment, and benefits on top of the wage (this example uses 35%; pull your real number from your payroll taxes and workers' comp policy, or run it in the Burdened Labor Rate Calculator)
- Overhead + profit: the markup that keeps the business alive and pays you
Key Takeaways
- Billed rate is not the wage you pay
- Burden adds your actual payroll cost on top of wage
- Overhead and profit ride on top of burden
2026 Contractor Labor Rates by Trade
Billed labor rates in 2026 run from about $50 an hour for a handyman to $150 an hour for licensed electrical, plumbing, and HVAC work. The spread comes from licensing, risk, and how hard the trade is to staff right now.
The numbers below are typical 2026 figures, materials not included: wages for laborers, carpenters, and painters, per-sq-ft labor for painting, and billed hourly rates for the licensed trades, handymen, and GCs. They are national midpoints. Your market sets the real number, and the gap between a rural county and a major metro on the same trade can be large.
- General laborer: wage $15 to $35/hr
- Carpenter: wage $20 to $45/hr
- Painter: wage $18 to $40/hr, labor priced per sq ft ($1 to $4/sq ft interior, $1.50 to $5/sq ft exterior)
- Electrician: billed $50 to $150/hr, typical $85/hr
- Plumber: billed $50 to $150/hr, typical $90/hr
- HVAC tech: billed $75 to $150/hr, typical $100/hr
- Handyman: billed $50 to $125/hr, typical $80/hr
- General contractor (own hours): billed $50 to $150/hr, typical $90/hr
General laborers and carpenters are usually paid a wage and billed through your crew rate rather than a standalone hourly charge. Licensed trades sit at the top for a reason: the license, the bond, the liability, and the years it takes to get there all get priced into the hour.
Key Takeaways
- General labor and carpentry are wages, billed through your crew rate
- Licensed trades billed up to $150/hr
- Rates are national midpoints, set locally
Why the Same Trade Costs More in One Town Than Another
Labor rates vary a lot by market. A remodel that bills at one rate in a rural county can bill noticeably higher in a coastal metro for the same scope and quality.
I have lived and worked from Alaska to the Marshall Islands to the Pacific Northwest, and how things get built, and what they cost, changes with the market. Three things move the number.
- Cost of living: high-rent metros pay higher wages, so billed rates climb to match
- Labor supply: good workers are hard to find, and that shortage drives up costs and timelines everywhere
- Workers' comp class rates: comp costs vary a lot by trade and state, so check your carrier's class rate, because it lands in your labor rate
This is why a national rate chart is a starting point, never a quote. Always get local quotes and compare multiple bids before you trust a number.
Key Takeaways
- Region is a major swing on labor rates
- Labor shortage pushes costs and timelines up everywhere
- Workers' comp class rate varies by trade and state
Turning a Wage Into a Billed Rate
The clean way to set a rate: take the wage, add burden to get your true cost, then mark it up for overhead and profit.
Say you pay a carpenter $30 an hour. Add 35% burden and your real cost is about $40.50 an hour. Now price it so 20% covers overhead and 15% is profit: $40.50 ÷ (1 - 0.20 - 0.15) = $62.31 per hour. (Stacking a 20% markup and then a 15% markup instead, $40.50 x 1.20 x 1.15, only gets you to $55.89, short of that target.) Bill it at $45 because that feels close to the wage, and you just worked all day to lose money you will not see until tax time.
- Step 1: Start with the gross hourly wage
- Step 2: Add your actual labor burden (payroll taxes, workers' comp, benefits) to get true cost; this example uses 35%, pull your real number from your payroll taxes and workers' comp policy, or run it in the Burdened Labor Rate Calculator
- Step 3: Divide by your billable-hour efficiency (drive time and breaks are not billable)
- Step 4: Add overhead and profit markup to land the billed rate
Run your own numbers with the Burdened Labor Rate Calculator and the Contractor Hourly Rate Calculator.
Key Takeaways
- Wage plus your actual burden = true cost
- Add overhead and profit to set billed rate
- Non-billable time has to be priced in
Common Mistakes That Wreck Your Labor Pricing
The most expensive mistake in the trades is billing labor at or near the wage you pay. It looks competitive on the bid and bleeds you dry on the job.
- Forgetting burden: taxes and comp are not optional, and you have to recover every dollar of it
- Billing 8 hours when you pay 8 hours: drive time, material runs, and cleanup eat real hours that still cost you
- One flat rate for every trade: a $50 handyman rate on electrical work that typically bills around $85/hr means you are subsidizing the sub out of your own margin
- Chasing the lowball bid: winning on price alone usually means you missed scope or shorted your own labor line
Good, fast, or cheap. Pick two. If your labor rate is the cheapest in town, something in your pricing is broken.
Key Takeaways
- Never bill at the wage you pay
- Price non-billable hours into the rate
- Use trade-specific rates, not one flat number
How to Use This Calculator
Find your trade in the rate table
Start with the 2026 labor rate table below. Locate your trade and read across for the typical wage range and the billed hourly rate range a contractor charges a client.
Adjust for your region
Labor rates vary a lot by market. Nudge the national midpoint up for high cost-of-living metros and down for rural areas, then confirm against local quotes.
Add your burden and overhead
Take the wage you actually pay, add your actual burden for taxes and insurance (the worked example below uses 35%; pull your real number from your payroll taxes and workers' comp policy, or run it in the Burdened Labor Rate Calculator), then add overhead and profit to land your real billed rate.
Build the full estimate
Drop your labor rate into a complete bid alongside materials, equipment, and markup so every hour on the job is priced to make money.
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Frequently Asked Questions
What is the average contractor labor rate in 2026?
In 2026, billed contractor labor rates run from about $50 per hour for a handyman to $150 per hour for licensed electrical, plumbing, and HVAC work. A general contractor bills around $90 per hour for their own time. These are national midpoints. Your local market, the trade, and the risk of the work set the real number, so get quotes from local contractors before you trust a figure.
What is the difference between a labor rate and a wage?
A wage is what you pay the worker. A labor rate is what you bill the client. They are not the same number. A carpenter you pay $30 per hour costs you closer to $40.50 per hour once you add labor burden (payroll taxes, workers' comp, benefits; this example uses 35%, pull your real number from your payroll taxes and workers' comp policy), and you still have to add overhead and profit on top of that. Bill at the wage and you lose money on every hour. Use the Burdened Labor Rate Calculator to see your true cost per hour with your own numbers.
How do contractors calculate their labor rate?
Start with the gross wage, add your actual labor burden (payroll taxes, workers' comp, benefits), then add overhead and profit markup. Example: a $30 wage at an assumed 35% burden is about $40.50 true cost. Price that so 20% covers overhead and 15% is profit ($40.50 ÷ 0.65), and you bill the hour at about $62.31. You also have to account for non-billable time like drive time and material runs. The Contractor Hourly Rate Calculator walks through it step by step.
Why do licensed trades bill at the top of the range?
Licensed trades carry more cost behind the hour. The license, the bond, higher liability insurance, continuing education, and years of apprenticeship all get priced into the rate. Electricians and plumbers commonly bill $50 to $150 per hour and HVAC techs $75 to $150, so licensed trades reach $150 while a handyman tops out around $125. The skilled-labor shortage pushes rates up too.
How much do labor rates vary by region?
Labor rates vary a lot by market. Cost of living, local labor supply, and state workers' comp class rates all move the number. A national chart is a starting point, never a quote. Always compare multiple bids from local contractors.
How do I price labor for a job I am bidding?
Set a billed hourly rate per trade, estimate the labor hours each task will take, then multiply. For a handyman job that takes 24 hours at an $80 billed rate, that is $1,920 in labor before materials. The hard part is the hour estimate, not the rate. Track your real production rates over time so your hour estimates get tighter. Then bundle labor, materials, and markup into one clean bid with the Construction Estimate Template.
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