Reference · State of California

California trade labor costs

What a plumbing, HVAC or electrical tech earns in California, what the state adds to payroll, whether labor is taxed, what a license costs, how lien rights work and when the heating and cooling seasons peak — each figure from the agency that sets it, with the date we read it.

  • Wages BLS OEWS May 2025
  • Payroll and licenses state agencies
  • Checked and
Plumbing median
$35.01/h+14.2% vs the U.S.17th of 51
HVAC median
$34.88/h+18.9% vs the U.S.12th of 51
Electrical median
$36.62/h+20.5% vs the U.S.15th of 51
New-employer SUTA
3.40%on the first $7,000
Payroll programs
1 programSDI
Sales tax on labor
Not taxedrepair and installation on buildings

Pay in California

Hourly pay across all industries, May 2025. Half of the workers in each trade earn less than the median and half earn more; one in ten earns less than the 10th percentile. Union and non-union, no self-employed.

Hourly pay, 10th to 90th percentileDrawn to scale: one dollar axis for all three trades
  • PlumbingU.S. median $30.67

    plumbers: 10th percentile $22.76, 25th $28.36, median $35.01, 75th $48.17, 90th $63.03 an hour; U.S. median $30.67.

  • HVACU.S. median $29.33

    HVAC techs: 10th percentile $22.57, 25th $28.02, median $34.88, 75th $43.65, 90th $52.44 an hour; U.S. median $29.33.

  • ElectricalU.S. median $30.38

    electricians: 10th percentile $22.50, 25th $28.50, median $36.62, 75th $49.52, 90th $67.47 an hour; U.S. median $30.38.

  • 25th–75th percentile
  • State median
  • U.S. median
Hourly pay by percentile for plumbers, HVAC techs and electricians in California, BLS OEWS May 2025
PercentilePlumbingHVACElectrical
10th$22.76$22.57$22.50
25th$28.36$28.02$28.50
Median$35.01$34.88$36.62
75th$48.17$43.65$49.52
90th$63.03$52.44$67.47
Mean$39.58$36.24$41.28
U.S. median$30.67$29.33$30.38
vs U.S.+14.2%+18.9%+20.5%
Rank17th12th15th
Jobs47,66035,13073,310

Dollars an hour. BLS occupations: Plumbers, pipefitters and steamfitters (SOC 47-2152); Heating, air conditioning and refrigeration mechanics and installers (SOC 49-9021); Electricians (SOC 47-2111). “vs U.S.” compares the medians; rank 1 is the highest median of the 50 states and DC. Released May 15, 2026; the next survey is due each spring.

Payroll costs the state adds

What California charges an employer on top of wages: unemployment tax, and any paid-leave or disability program funded through payroll, and who must carry workers’ comp. Federal Social Security, Medicare and unemployment tax apply in every state and are already in the calculator. Workers’ comp premiums depend on the class code and the insurer, so the card gives the rules, not a rate.

State unemployment tax (SUTA)

California Employment Development Department (EDD)

Wage base
$7,000 per employee a year
New-employer rate
3.40%
Construction
No separate rate published

Charged with it

Per tech, a year 3.40% × $7,000 = $238With the Employment Training Tax (ETT) billed on top: (3.40% + 0.10%) × $7,000 = $245At the new-employer rate, for a plumber paid the state median ($35.01 × 2,080 h = $72,821). The calculator uses the rate alone.

State pages read

Workers’ compensation

California Department of Industrial Relations, Division of Workers' Compensation

Who must carry it
Any employeeEvery California employer with even one employee must have workers’ compensation insurance (Labor Code § 3700). dir.ca.gov
Where to buy it
Private insurers or the state fundState Compensation Insurance Fund (State Fund)Employers buy coverage from a licensed insurance company or from the State Compensation Insurance Fund (State Fund), or may self-insure. dir.ca.gov
Owners
A sole proprietor is covered only if the policy names the owner or adds an endorsement. Corporate executive officers and directors must be covered unless they own the whole corporation, in which case they may elect to be excluded (Labor Code § 3351). dir.ca.gov
Construction
Every CSLB licensee must file a workers’ compensation certificate or a signed exemption saying it has no employees; C-20 HVAC, C-8 concrete, C-22 asbestos, C-39 roofing and C-61/D-49 tree service contractors must carry coverage even with no employees (Bus. & Prof. Code § 7125). A licensee that hires someone must get proof of coverage to CSLB within 90 days of the hire. cslb.ca.gov

Statute and agency pages read

SDI: disability insurance and paid family leave

In effect in 2026 California Employment Development Department (EDD)

Total rate
1.30%of all subject wages, 2026
Employer pays
No employer contribution; SDI is withheld from employees
Wage cap
No cap
Employees
Mandatory withholding of 1.3% from all subject wages

Employer’s own cost, share of wages 5 employees: None20 employees: None

Approved Voluntary Plan (VP) may replace SDI, with employer and majority-of-employees consent.

New-employer rates usually last one to three years — longer in some states (four years in Indiana, four to five in D.C.); then the state assigns your own rate, and your rate notice wins over any figure here. The calculator below uses the new-employer rate where one is clear. Where a state’s own pages could not be read, the card says so and gives the U.S. Labor Department’s figure.

What a shop in California needs to charge

The calculator’s example shop — three techs, $120,000 of overhead, a truck each, 10% net profit — with California’s median wage for each trade and its unemployment tax filled in. Your own numbers will differ; change them in the calculator below.

The example’s federal unemployment tax is the standard 0.6%. California employers pay more because of the FUTA credit reduction — 1.20% more for 2025, and the U.S. Labor Department lists 1.50% as California’s potential reduction for 2026 — on the first $7,000 of each worker’s pay.

Example shopBreak-evenRate, 10% profit
Plumbingwage $35.01$121.99$135.55→ $140
HVACwage $34.88$121.71$135.24→ $140
Electricalwage $36.62$125.45$139.39→ $140

Per billable hour; → is the rate rounded up, as the calculator rounds it. Everything except the wage and the unemployment tax is the national example (BLS, IRS and DOL figures listed on the labor rate calculator).

Change the numbers for your shop

The labor rate calculator, opened on California: pick your trade, put in your own crew, pay and overhead, and the rate and break-even redraw as you type.

Your labor rate

Who does the billable work?

Example shop in California: 3 techs at the state’s median plumber wage, $120,000 overhead. Change any number or pick another state.

Charge at least Example shop · California

Charge at least $135.55 per billable hour; break-even $121.99.

Round up to $140 (+$4.45)

See it drawn to scale
Rate build-upDrawn to scale: every dollar the same height
Rate build-up for the example, drawn to scaleColumn from $0 to $135.55 per billable hour, drawn to scale: wage $59.85, taxes & benefits $15.53, overhead $32.87, truck $13.74, profit 10% $13.55. Break-even line at $121.99. Rounded up to $140.12345$0Labor$75.38Break-even$121.99Your rate$135.55Round up to$140
  1. Wage$72,820.80 ÷ 1,216.8 h$59.85
  2. Taxes & benefits25.95% of pay$15.53
  3. Overhead$120,000 ÷ 3,650.4 h$32.87
  4. Truck$16,719.14 ÷ 1,216.8 h$13.74
  5. Profit 10%of the price$13.55
Break-even
$121.99
Profit per hour
$13.55
Revenue a year
$494,801

$121.99 ÷ (1 − 10%) = $135.55rounded up to $140

Already showing the example.

Price your tasks at $140 an hourOpens the price book builder with this rate.

Billable hours
1,216.8per tech a year
Loaded wage
$44.10per paid hour
Labor
$75.38per billable hour
Overhead
$32.87per billable hour
Truck
$13.74per billable hour
Labor burden
25.95%over gross pay

What moves your rate

  • Every billable hour sold under $121.99 loses money.
  • At 70% billable instead of 65%, break-even drops to $113.28, $8.71 an hour less.
  • Cut $10,000 of overhead a year and break-even drops $2.74 an hour, to $119.25.
Show the math
  1. Worked hours2,080 h − 26 days × 8 h = 1,872 h
  2. Billable hours per tech1,872 h × 65% = 1,216.8 h
  3. Gross pay per tech$35.01 × 2,080 h = $72,820.80
  4. Employer taxes and comp$4,514.89 SS + $1,055.90 Medicare + $42.00 FUTA + $238.00 SUTA + $1,944.32 comp = $7,795.11
  5. Benefits$72,820.80 × 15.25% = $11,105.17
  6. Labor per billable hour$91,721.08 ÷ 1,216.8 h = $75.38
  7. Overhead per billable hour$120,000 ÷ (3 × 1,216.8 h) = $32.87
  8. Truck per billable hour$16,719.14 ÷ 1,216.8 h = $13.74
  9. Break-even$75.38 + $32.87 + $13.74 = $121.99
  10. Rate at 10% profit$121.99 ÷ (1 − 10%) = $135.55

Change the numbers

State and trade
Trade

Fills the wage and state unemployment tax (SUTA). Workers’ comp and everything else stay as they are.

Filled for California3 figures
Wage Plumbing
$35.01/hr
California median for plumbers · BLS OEWS May 2025
SUTA rate New employer
3.40%
New-employer rate; no separate construction rate found · DOL Significant Provisions, July 2026
SUTA wage base Per tech
$7,000
California · DOL Significant Provisions, July 2026

Your own rate notice wins. These are new-employer rates: after one to three years the state sets your own, and construction employers often pay a different rate.

California: pay, payroll taxes and licensesSee all 50 states and DC
Crew and pay

People who bill hours. Office staff go in overhead.

Average base pay. Filled: California median for plumbers, BLS OEWS May 2025.

Hours and time off2,080 h · 26 days off

40 hours × 52 weeks = 2,080.

Holidays, vacation and sick days, 8 h each. Example: 8 + 11 + 7 (BLS).

Optional. Paid at 1.5 × the wage. Leave 0 if none.

Billable time

Share of worked hours that ends up on invoices. Published figures run from 30% to 65%.

Billable hours1,216.8 hper tech · 3,650.4 h for the shop
Payroll taxes and benefits+25.95% of pay

Filled: California new-employer rate, DOL Significant Provisions, July 2026. Your notice wins.

Pay per tech the rate applies to. Filled: California, DOL Significant Provisions, July 2026.

Use the rate on your policy. Example: BLS construction average.

Health, retirement and other benefits. Example: BLS construction average.

Loaded wage$44.10per paid hour · burden 25.95%

Included automatically (IRS, tax year 2026): Social Security 6.2% of pay up to $184,500, Medicare 1.45%, federal unemployment (FUTA) 0.6% of the first $7,000.

Shop costs

An example figure. Everything except field pay and trucks — split it in the worksheet below.

Payments, fuel, insurance and upkeep. Enter 0 if trucks are already in overhead.

Profit

Profit as a share of the price, not a markup on cost.

Your rate: $135.55 per billable hour · break-even $121.99. Back to the result

Sales tax on your work

What California’s tax agency says about repair and installation labor on buildings and the parts and fixtures that go into them. This is what the agency’s pages say, not tax advice.

Labor
Not taxedInstallation labor on construction contracts is not taxed. CDTFA treats contractors as consumers of the materials they install and retailers of the fixtures they install.Materials (piping, electric wiring) are treated differently from fixtures (furnaces, air-conditioning units, plumbing and lighting fixtures). In a fixture repair, parts billed separately from the labor are a sale.
Materials
Depends on the job or contractContractors generally pay tax on their cost of materials. On fixtures they owe tax as retailers on the price stated in the contract or, in a lump-sum contract, on their cost.

Read October 24, 2026 on the agency pages listed under Sources. All 50 states and DC side by side.

Licenses and state fees

The license a shop needs from the state to contract for each trade, the board that issues it and the fees on its own schedule. Cities and counties can add their own licenses, registrations and permit fees; exam vendors and fingerprinting may charge more.

Plumbing, HVAC and Electrical

State license

Contractors State License Board (CSLB)

  • Plumbing C-36 Plumbing Contractor
  • HVAC C-20 Warm-Air Heating, Ventilating and Air-Conditioning Contractor
  • Electrical C-10 Electrical Contractor

All businesses or individuals who construct or alter structures in California must be CSLB-licensed if the project needs a building permit, uses additional workers, or totals $1,000 or more in labor and materials.

FeeAmount
All three
Original application fee(exam or waiver, one classification; nonrefundable)one-time$450
Initial license fee – sole owner2 years (first license period)$200
Initial license feenon-sole owner (partnership, corporation, LLC)2 years (first license period)$350
Plumbing and HVAC
Active timely renewal – sole owner2 years$450
Active timely renewal – non-sole owner2 years$700
Electrical · C-10 Electrical Contractor
Active timely renewal – sole owner2 years$470
Active timely renewal – non-sole owner2 years$720

Application fee covers the exam (no separate exam fee listed on the CSLB fee page). Live Scan fingerprint fees ($32 DOJ + $17 FBI + site rolling fee) are extra. A contractor bond and other requirements apply (not fees).

Plumbing and HVAC Delinquent renewal costs more (e.g. $675 sole owner); inactive licenses expire every four years.

Electrical Delinquent renewal costs more (e.g. $695 sole owner for C-10); inactive licenses expire every four years. C-10 renewals carry a $20 surcharge ($470/$720).

Keeping the license

Renewal
PlumbingActive CSLB licenses, including C-36 plumbing, expire every two years (inactive licenses every four); CSLB mails a renewal application about 60 days before expiration. cslb.ca.govHVACActive CSLB licenses, including C-20 HVAC, expire every two years (inactive licenses every four); CSLB mails a renewal application about 60 days before expiration. cslb.ca.govElectricalActive CSLB licenses, including C-10 electrical, expire every two years (inactive licenses every four). Separately, the state certification that electricians working for C-10 contractors must hold (Department of Industrial Relations) renews every three years. cslb.ca.gov · dir.ca.gov
Continuing ed.
Plumbing and HVACCSLB’s renewal requirements for a contractor license include no continuing-education hours. cslb.ca.govElectricalThe C-10 contractor license itself carries no continuing-education requirement at CSLB renewal. The electricians the contractor employs, certified by the Department of Industrial Relations, need 32 hours of further electrical education and 2,000 hours of work in the trade every three years to renew their certification (8 CCR 291.5). cslb.ca.gov · dir.ca.gov
Reciprocity
CSLB has reciprocity with Arizona, Louisiana, Mississippi, Nevada and North Carolina: a qualifying licensee from those states may skip the trade exam but must still pass CSLB’s business-and-law exam, and CSLB may still require the trade exam. cslb.ca.gov

Beyond the trade license

Contractor registration, bond and insurance the state asks of a trade shop

Registration
In California the trade license is itself a CSLB contractor license (C-36 plumbing, C-20 HVAC, C-10 electrical), required whenever a job needs a building permit, uses employees, or totals $1,000 or more in labor and materials; no separate statewide contractor registration sits on top of it. cslb.ca.gov
Bond
$25,000Every active CSLB license needs a $25,000 contractor’s bond (or a $25,000 cashier’s check on deposit) before it is issued; a qualifying individual’s bond is also $25,000. LLC licensees post an additional $100,000 employee/worker bond (B&P 7071.6.5). cslb.ca.gov
Insurance
$1,000,000An LLC contractor must carry liability insurance with a cumulative limit of at least $1 million when it lists five or fewer personnel, plus $100,000 per additional person up to $5 million (B&P 7071.19). Active licensees with employees must file workers’ compensation proof, and C-20 HVAC contractors must carry workers’ compensation whether or not they have employees (B&P 7125). cslb.ca.gov

Board and statute pages read

State or city license?

Check Who licenses the trades in California

Check with the state Whether cities and counties also license these trades: The official pages and rules we read on November 4, 2026 do not settle it.

State and city pages read

What California law says about lien rights on private jobs — the notices, the deadline to file and the deadline to sue — and whether a statute sets payment deadlines or caps retainage. Read from the statute itself; it is not legal advice.

Mechanic’s lien

Cal. Civ. Code §§ 8400–8494 (within Title 2, Private Works of Improvement, §§ 8160–8851)Civil Code, Division 4, Part 6, Title 2 Private Works of Improvement, Chapter 4. Mechanics Lien

You, hired by the owner
A direct contractor (one who contracts with the owner) must give the preliminary notice only to the construction lender, if there is one, within 20 days after first furnishing work (Civ. Code §§ 8200(e)(2), 8204). On home improvement contracts over $500, the contract itself must include the statutory ‘Mechanics Lien Warning’ (Bus. & Prof. Code § 7159). downloads.leginfo.legislature.ca.gov
Subs and suppliers
Notice requiredSubs and suppliers must give a preliminary notice to the owner, the direct contractor and the construction lender (if any) within 20 days after first furnishing work; it is a prerequisite to a valid lien (Civ. Code §§ 8200, 8204). A late notice covers only work furnished within 20 days before it was served and afterward; laborers need not give it. downloads.leginfo.legislature.ca.gov
File the lien
90 daysA direct contractor must record the claim of lien after completing its contract and before the earlier of 90 days after completion of the work of improvement or 60 days after the owner records a notice of completion or cessation (Civ. Code § 8412). Subs and suppliers must record after they stop work and before the earlier of 90 days after completion or 30 days after a recorded notice of completion or cessation (§ 8414). downloads.leginfo.legislature.ca.gov
Enforce it
90 daysFile suit to enforce the lien within 90 days after the claim of lien is recorded, or it expires (Civ. Code § 8460). If the owner and claimant agree to extend credit and record notice of it, suit is due within 90 days after the credit expires, but never later than one year after completion of the work. downloads.leginfo.legislature.ca.gov
Homes
A home improvement contract (aggregate price over $500) must contain the ‘Mechanics Lien Warning’ notice in the wording set by Bus. & Prof. Code § 7159(e)(4), section as amended by SB 517, effective January 1, 2026; service and repair contracts that comply with §§ 7159.10–7159.14 are exempt. The new 5% private retention cap (Civ. Code § 8811) does not apply to residential projects that are not mixed-use and do not exceed four stories. downloads.leginfo.legislature.ca.gov

Statutes read

Payment deadlines and retainage

Private jobs (public contracts have their own rules)

Prompt payment
Statute sets deadlinesUnless otherwise agreed in writing, the owner must pay an undisputed progress payment within 30 days after the contractor’s notice demanding payment, or owe a 2% per month penalty (Civ. Code § 8800). A prime contractor or sub must pay its subs within 7 days after receiving each progress payment unless otherwise agreed in writing, also with a 2% per month penalty; this applies to all private works (Bus. & Prof. Code § 7108.5). downloads.leginfo.legislature.ca.gov
Retainage
Capped at 5%For private contracts signed on or after January 1, 2026, retention may not exceed 5% of any payment or 5% of the contract price, and a sub’s retention percentage may not exceed the owner–contractor percentage (Civ. Code § 8811, added by SB 61); residential projects that are not mixed-use and no more than four stories are exempt. The owner must pay retention within 45 days after completion (§ 8812), and the direct contractor must pass each sub’s share on within 10 days after receiving it (§ 8814), with a 2% per month penalty for late retention (§ 8818). downloads.leginfo.legislature.ca.gov

Statutes read

Heating and cooling season in California

Degree days, NOAA’s index of the energy it takes to heat or cool a building: each degree a day’s mean temperature falls below 65 °F is one heating degree day, each degree above is one cooling degree day. Thirty-year normals for Los Angeles airport (LAX), month by month.

Heating degree days
1,214
Cooling degree days
720
Nights ≤ 32 °F
0
Days ≥ 90 °F
5
Normal heating and cooling degree days (base 65 °F) and freezing nights by month at Los Angeles airport (LAX), NOAA 1991–2020 normals
MonthHeatingCoolingNights ≤ 32 °F
Jan2276–
Feb2077–
Mar1909–
Apr13317–
May7025–
Jun1357–
Jul2143–
Aug1179–
Sep2155–
Oct2691–
Nov11130–
Dec2323–

Los Angeles airport (LAX) has two working seasons: 1,214 heating and 720 cooling degree days a year, heating peaking in December and cooling in August.

The lightest months for heating and cooling together are May and June (94 and 70 degree days).

The normals show no nights at or below freezing. Days reaching 90 °F: about 5 a year, the most in October.

Weighted by where California’s people live, NOAA’s statewide normals (1981–2010) are 2,583 heating and 850 cooling degree days — 43rd for heating and 24th for cooling among the 48 contiguous states (the contiguous U.S.: 4,332 and 1,272).

Station: Los Angeles airport (LAX) (USW00023174), NOAA NCEI U.S. Climate Normals 1991–2020 — station file; statewide figures: NOAA Climate Prediction Center. Bars share one scale: the longest is 232 degree days. Read .

Sources

Each page opened on the date shown. License, registration, lien and workers’ comp sources are linked beside each fact above. Figures change: the agency’s own page wins over this one.

  1. May 2025 State Occupational Employment and Wage Estimates (state file oesm25st)U.S. Bureau of Labor Statistics · read October 28, 2026
  2. Occupational Employment and Wages — May 2025 (news release USDL-26-0725, May 15, 2026)U.S. Bureau of Labor Statistics · read October 28, 2026
  3. Public Data API (national OEWS series for the three occupations)U.S. Bureau of Labor Statistics · read October 28, 2026
  4. Unemployment insurance tax rates (edd.ca.gov)California Employment Development Department (EDD) · read October 28, 2026
  5. Significant Provisions of State Unemployment Insurance Laws, Effective July 2026U.S. Department of Labor, Office of Unemployment Insurance · read October 28, 2026
  6. FUTA credit reductionsU.S. Department of Labor, Office of Unemployment Insurance · read October 28, 2026
  7. Publication 9, Construction and Building ContractorsCalifornia Department of Tax and Fee Administration · February 2025 · read October 24, 2026
  8. Tax Guide for Construction Contractors: Industry TopicsCalifornia Department of Tax and Fee Administration · no date shown · read October 24, 2026
  9. Cal. Civ. Code §§ 8400–8494 (within Title 2, Private Works of Improvement, §§ 8160–8851) — Civil Code, Division 4, Part 6, Title 2 Private Works of Improvement, Chapter 4. Mechanics LienOfficial state code · read November 4, 2026
  10. Workers’ compensation coverage requirementsCalifornia Department of Industrial Relations, Division of Workers' Compensation · read November 4, 2026
  11. U.S. Climate Normals 1991–2020, Los Angeles airport (LAX) (USW00023174)NOAA National Centers for Environmental Information · read November 4, 2026
  12. Population-weighted daily heating and cooling degree day normals, 1981–2010 (states and CONUS)NOAA National Weather Service, Climate Prediction Center · read November 4, 2026