# Contractor tax and licensing guides by state

State guides for trades businesses covering whether installation labor is subject to sales tax, how materials and use tax work, which trades need a state license, and where to file. Every rule links to the state agency that publishes it and shows when we last checked it.

## Taxes

- [Alabama Contractor Taxes and Licensing: Materials Tax, Licenses and Workers' Comp](https://www.brix.so/taxes/alabama): Alabama contractor guide: tax on materials, local rates up to 5%, home builder license over $10,000, GC license at $100,000, and workers' comp rules.
- [Alaska Contractor Taxes and Licensing Guide](https://www.brix.so/taxes/alaska): Alaska has no state sales or personal income tax, but cities and boroughs set their own sales taxes. Contractor bonds, insurance and certificates.
- [Arizona Contractor Taxes and Licensing Guide](https://www.brix.so/taxes/arizona): Arizona taxes new construction under prime contracting TPT at 65% of the job, while repair work pays tax on materials. ROC licensing, bonds and comp.
- [Arkansas Contractor Taxes and Licensing: Taxable Labor, Materials and Licenses](https://www.brix.so/taxes/arkansas): Arkansas taxes some installation and repair labor in existing buildings. Contractor sales tax rules, $2,000 residential license trigger, comp at two.
- [California Contractor Taxes and Licensing Guide](https://www.brix.so/taxes/california): California contractors pay tax on materials, charge it on fixtures, and skip it on labor. CSLB license rules, the $800 FTB tax and comp, with sources.
- [Colorado Contractor Taxes and Licensing Guide](https://www.brix.so/taxes/colorado): Colorado taxes contractors on materials, not labor, and your contract type decides who pays. Home-rule city use tax, licensing, comp and official sources.
- [Connecticut Contractor Taxes and Licensing: What Every Trade Should Know](https://www.brix.so/taxes/connecticut): Connecticut contractor taxes: when 6.35% sales tax hits your labor, why homeowner jobs differ from commercial, DCP registration and trade licenses.
- [Delaware Contractor Taxes and Licensing: What Trades Need to Know](https://www.brix.so/taxes/delaware): Delaware has no sales tax, but contractors pay a 0.6472% gross receipts tax, need a $75 license, DOL registration and a 6% bond if nonresident.
- [Florida Contractor Taxes and Licensing: Sales Tax, Licenses and Workers' Comp](https://www.brix.so/taxes/florida): Florida contractor sales tax explained: lump-sum vs. retail sale plus installation contracts, DBPR licensing, workers' comp from employee one.
- [Georgia Contractor Taxes and Licensing: Sales Tax, Licenses and Income Tax](https://www.brix.so/taxes/georgia): Georgia contractor taxes: why every contractor registers for a sales tax number, separately stated labor, nonresident bonds, licenses and 4.99% income tax.
- [Hawaii Contractor Taxes and Licensing Guide](https://www.brix.so/taxes/hawaii): Hawaii has no sales tax, but contractors owe 4% general excise tax plus county surcharge on gross income. Subcontract deduction, use tax and licensing.
- [Idaho Contractor Taxes and Licensing Guide](https://www.brix.so/taxes/idaho): Idaho contractors pay 6% tax on materials and don't bill sales tax on improvement jobs. DOPL registration, trade licenses, comp rules and official sources.
- [Illinois Contractor Taxes and Licensing: Use Tax, Service Occupation Tax and State Licenses](https://www.brix.so/taxes/illinois): Illinois contractors pay use tax on materials and don't charge sales tax on construction. Repair SOT, plumbing and roofing licenses.
- [Indiana Contractor Taxes and Licensing: Lump-Sum vs. Time-and-Material Contracts](https://www.brix.so/taxes/indiana): In Indiana, your contract type decides sales tax: time-and-material contractors collect it, lump-sum contractors pay it. Licensing, 2026 rates and comp.
- [Iowa Contractor Taxes and Licensing: Repair Labor, Registration and Income Tax](https://www.brix.so/taxes/iowa): Iowa taxes repair labor but not new construction or remodeling labor. Contractor registration, trade licenses, the 3.8% 2026 income tax and workers' comp.
- [Kansas Contractor Taxes and Licensing: Residential vs. Commercial Labor](https://www.brix.so/taxes/kansas): Kansas taxes commercial remodel and repair labor but not residential or new construction labor. PECs, roofer registration and more.
- [Kentucky Contractor Taxes and Licensing: Sales Tax, Occupational Taxes and Licenses](https://www.brix.so/taxes/kentucky): Kentucky contractor guide: flat 6% sales tax with no local add-on, taxable warranty contracts since 2023, local occupational taxes and comp from one.
- [Louisiana Contractor Taxes and Licensing: Sales Tax, LSLBC Licenses and Income Tax](https://www.brix.so/taxes/louisiana): Louisiana contractor guide: 5% state sales tax since 2025, home vs. appliance repairs, LSLBC thresholds from $7,500, flat 3% income tax, comp from one.
- [Maine Contractor Taxes and Licensing: What Builders and Trades Should Know](https://www.brix.so/taxes/maine): Maine doesn't license general contractors, but it licenses electricians, plumbers and fuel techs and requires written contracts over $3,000. Tax rules too.
- [Maryland Contractor Taxes and Licensing: A Guide for Trades](https://www.brix.so/taxes/maryland): Maryland contractors pay 6% sales tax on materials, need an MHIC license for home improvement and face new 2025 income tax brackets. The rules, sourced.
- [Massachusetts Contractor Taxes and Licensing: What Trades Need to Know](https://www.brix.so/taxes/massachusetts): Massachusetts contractor taxes: 6.25% sales tax on materials, the HIC vs. CSL split, the 4% millionaire surtax and workers' comp rules for trades.
- [Michigan Contractor Taxes and Licensing: Use Tax, LARA Licenses and City Income Tax](https://www.brix.so/taxes/michigan): Michigan real property contractors owe 6% use tax on materials and need no sales tax license. LARA builder licenses, the $600 rule, city income tax, comp.
- [Minnesota Contractor Taxes and Licensing: Taxable Services, DLI Licenses and 2026 Rates](https://www.brix.so/taxes/minnesota): Minnesota doesn't tax construction labor but does tax lawn care and building cleaning. Residential contractor and roofer licenses, 2026 brackets and comp.
- [Mississippi Contractor Taxes and Licensing: Contractor's Tax, Sales Tax and Licenses](https://www.brix.so/taxes/mississippi): Mississippi's 3.5% contractor's tax on commercial jobs over $10,000, 7% on residential trade work, MSBOC license thresholds and workers' comp at five.
- [Missouri Contractor Taxes and Licensing: Untaxed Labor, Local Licenses](https://www.brix.so/taxes/missouri): Missouri doesn't tax construction labor, and most contractor licensing is local. Sales and use tax on materials, St. Louis earnings tax and workers' comp.
- [Montana Contractor Taxes and Licensing Guide](https://www.brix.so/taxes/montana): Montana has no general sales tax, but public jobs over $80,000 carry a 1% gross receipts tax. The 2026 contractor license, comp rules and official sources.
- [Nebraska Contractor Taxes and Licensing: Options 1, 2 and 3 Explained](https://www.brix.so/taxes/nebraska): Nebraska contractors pick Option 1, 2 or 3 to set how they handle sales tax on materials. Labor rules, DOL registration, 2026 income tax rates and more.
- [Nevada Contractor Taxes and Licensing Guide](https://www.brix.so/taxes/nevada): Nevada contractors pay tax on materials, not labor, and must keep sales tax off the invoice. Commerce Tax, MBT, NSCB licenses and comp rules, with sources.
- [New Hampshire Contractor Taxes and Licensing: What Trades Should Know](https://www.brix.so/taxes/new-hampshire): New Hampshire has no sales tax, but contractors still face the 7.5% Business Profits Tax, the 0.55% BET, trade licenses and cross-border use tax.
- [New Jersey Contractor Taxes and Licensing: A Guide for Trades](https://www.brix.so/taxes/new-jersey): New Jersey contractor sales tax on repair and installation labor, ST-8 exempt capital improvements, HIC registration, BAIT and workers' comp in one guide.
- [New Mexico Contractor Taxes and Licensing Guide](https://www.brix.so/taxes/new-mexico): New Mexico's gross receipts tax hits construction labor and materials at the job site rate. NTTCs, CID licenses, comp rules and sources for contractors.
- [New York Contractor Taxes and Licensing: What Trades Need to Know](https://www.brix.so/taxes/new-york): New York contractor taxes: capital improvement vs. repair, ST-124 and ST-120.1, local-only home improvement licenses, NYC rules and workers' comp basics.
- [North Carolina Contractor Taxes and Licensing: RMI Sales Tax, Licenses and Income Tax](https://www.brix.so/taxes/north-carolina): North Carolina taxes repair, maintenance and installation labor on real property. RMI vs. capital improvement, Form E-589CI, licenses and 3.99% tax.
- [North Dakota Contractor Taxes and Licensing: Materials, the $4,000 Rule and WSI](https://www.brix.so/taxes/north-dakota): North Dakota contractors pay tax on materials they install and can't itemize it as sales tax. The $4,000 license rule, WSI state-fund comp and 2026 rates.
- [Ohio Contractor Taxes and Licensing: Taxable Services, the CAT and BWC](https://www.brix.so/taxes/ohio): Ohio contractors pay tax on materials for real property jobs, but lawn care, janitorial and carpet installs are taxable. CAT, city income tax and BWC comp.
- [Oklahoma Contractor Taxes and Licensing: Materials Tax, CIB Licenses and Income Tax](https://www.brix.so/taxes/oklahoma): Oklahoma contractors pay tax on materials, not labor. No state GC license, CIB trade licenses, a new roofing endorsement in 2028, 4.5% top income tax.
- [Oregon Contractor Taxes and Licensing Guide](https://www.brix.so/taxes/oregon): Oregon has no sales tax, so labor and materials go untaxed at the counter. What contractors still owe: income tax, CAT, Portland taxes, CCB and comp.
- [Pennsylvania Contractor Taxes and Licensing: What Trades Need to Know](https://www.brix.so/taxes/pennsylvania): Pennsylvania contractors pay 6% tax on materials, register with the Attorney General for home improvement work and get trade licenses locally. Here's how.
- [Rhode Island Contractor Taxes and Licensing: A Guide for Trades](https://www.brix.so/taxes/rhode-island): Rhode Island contractors: who pays the 7% tax on materials, CRLB registration and the 2028 residential license, income tax brackets and workers' comp.
- [South Carolina Contractor Taxes and Licensing: Sales Tax, Licenses and Income Tax](https://www.brix.so/taxes/south-carolina): South Carolina contractor guide: contractor vs. retailer for sales tax, licenses at $500, $5,000 and $10,000, 2026 income tax brackets, comp at four.
- [South Dakota Contractor Taxes: Excise Tax, Taxed Services and No Income Tax](https://www.brix.so/taxes/south-dakota): South Dakota charges a 2% contractor's excise tax on realty improvement contracts and taxes most services. No income tax, trade licenses and workers' comp.
- [Tennessee Contractor Taxes and Licensing: Sales Tax, Business Tax and Licenses](https://www.brix.so/taxes/tennessee): Tennessee contractor guide: no income tax on wages, but a business tax over $100,000, F&E tax for LLCs, a $25,000 license trigger and comp from one.
- [Texas Contractor Taxes and Licensing: Labor, Materials, Franchise Tax and Licenses](https://www.brix.so/taxes/texas): Is labor taxable in Texas? Residential vs. nonresidential repair rules, lump-sum vs. separated contracts, TDLR licenses and the franchise tax.
- [Utah Contractor Taxes and Licensing Guide](https://www.brix.so/taxes/utah): Utah furnish-and-install contractors pay tax on materials and can't bill it to the owner. Repair labor rules, DOPL licenses, 4.45% income tax and comp.
- [Vermont Contractor Taxes and Licensing: What You Need to Know](https://www.brix.so/taxes/vermont): Vermont contractor rules: why you can't put sales tax on real property invoices, the $10,000 residential registration, income tax rates and workers' comp.
- [Virginia Contractor Taxes and Licensing: What Trades Need to Know](https://www.brix.so/taxes/virginia): Virginia treats contractors as consumers of materials, licenses them in Class A, B or C by job size, and adds local BPOL tax. Rates, rules and sources.
- [Washington Contractor Taxes and Licensing Guide](https://www.brix.so/taxes/washington): Washington taxes the whole construction contract, labor included, and adds B&O tax on gross receipts. Licensing, L&I comp and sources for contractors.
- [West Virginia Contractor Taxes and Licensing: Repair vs. Capital Improvement](https://www.brix.so/taxes/west-virginia): West Virginia taxes repair labor but not capital improvements. The 6% rate, TSD-310 test, $5,000 residential license line and workers' comp rules.
- [Wisconsin Contractor Taxes and Licensing: Real Property Work, Lawn Care and DSPS Credentials](https://www.brix.so/taxes/wisconsin): Wisconsin contractors pay tax on materials and don't charge it on real property work, but lawn care is taxable. Dwelling contractor rules and 2026 rates.
- [Wyoming Contractor Taxes and Licensing](https://www.brix.so/taxes/wyoming): In Wyoming, contractors pay sales tax on materials and labor on real property isn't taxed. Nonresident bond rules, licensing, state-fund comp and sources.

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Canonical: https://www.brix.so/taxes