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Reference · State of Colorado

Colorado trade labor costs

What a plumbing, HVAC or electrical tech earns in Colorado, 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
$30.40/h−0.9% vs the U.S.30th of 51
HVAC median
$31.35/h+6.9% vs the U.S.16th of 51
Electrical median
$29.92/h−1.5% vs the U.S.33rd of 51
New-employer SUTA
3.05%on the first $30,600
Payroll programs
1 programFAMLI
Sales tax on labor
Not taxedrepair and installation on buildings

Pay in Colorado

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 $22.97, 25th $25.18, median $30.40, 75th $37.86, 90th $48.19 an hour; U.S. median $30.67.

  • HVACU.S. median $29.33

    HVAC techs: 10th percentile $23.18, 25th $27.91, median $31.35, 75th $39.43, 90th $49.83 an hour; U.S. median $29.33.

  • ElectricalU.S. median $30.38

    electricians: 10th percentile $21.88, 25th $23.50, median $29.92, 75th $37.73, 90th $45.27 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 Colorado, BLS OEWS May 2025
PercentilePlumbingHVACElectrical
10th$22.97$23.18$21.88
25th$25.18$27.91$23.50
Median$30.40$31.35$29.92
75th$37.86$39.43$37.73
90th$48.19$49.83$45.27
Mean$33.22$34.29$31.88
U.S. median$30.67$29.33$30.38
vs U.S.−0.9%+6.9%−1.5%
Rank30th16th33rd
Jobs10,0808,94017,010

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 Colorado 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)

Colorado Department of Labor and Employment (CDLE), Division of Unemployment Insurance

Wage base
$30,600 per employee a year
New-employer rate
3.05%
Construction
Same as other new employers

Colorado Department of Labor and Employment 2026 introductory rate: 1.53% beginning rate (DOL’s figure) plus a 0.17% support rate and a 1.35% solvency surcharge, for 3.05% combined. This site uses the combined rate. Non-construction, general construction and the construction trades all pay 3.05%; heavy construction pays 6.285% combined (4.28% beginning).

Charged with it

Per tech, a year 3.05% × $30,600 = $933At the new-employer rate, for a plumber paid the state median ($30.40 × 2,080 h = $63,232). The calculator uses the rate alone.

State pages read

Workers’ compensation

Colorado Department of Labor and Employment, Division of Workers' Compensation

Who must carry it
Any employeeEvery Colorado employer with one or more employees must carry workers’ compensation, whether the employees are part-time, full-time or family members. Anyone paid for their work is presumed to be an employee. cdle.colorado.gov
Where to buy it
Private insurers or the state fundPinnacol AssuranceEmployers buy from commercial insurers authorized in Colorado or from Pinnacol Assurance, which is required to provide coverage to any Colorado employer; self-insurance is also available. cdle.colorado.gov
Owners
Corporate officers and LLC members count as employees; one who owns at least 10% and is president, vice-president, secretary, treasurer or board chair (or an LLC member) may reject coverage. With no other employees, file the Rejection of Coverage form with the Division; with a policy, reject through the insurer. cdle.colorado.gov
Construction
A construction business must either insure its owner or file a rejection of coverage, even as a sole proprietorship or partnership. Since May 29, 2026 (SB 26-093), anyone applying for a building or construction permit for a project over $1 million must file a declaration with the local permitting agency, before work begins, that all workers under the permit have workers’ compensation coverage. cdle.colorado.gov

Statute and agency pages read

Colorado Paid Family and Medical Leave Insurance (FAMLI)

In effect in 2026 Colorado Department of Labor and Employment - FAMLI Division

Total rate
0.88%
Employer pays
0.44% (50%) for employers with 10+ employees
Small employers
Employers with 9 or fewer employees (counted over 20+ weeks of the prior year) remit only the 0.44% employee share; 10+ employees remit the full 0.88%
Wage cap
$184,500 a year per employee
Employees
Employer may deduct up to 50% of the premium (0.44%) from wages; may choose to pay all

Employer’s own cost, share of wages 5 employees: None20 employees: 0.44%In a 20-person shop that is about $278 a year for a plumber paid the state median. Add it to Benefits in the calculator.

Next: 2027: premium drops to 0.86% of gross wages (split rules unchanged on the pages)

Approved private plan (insured or self-insured) may replace the state plan.

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 Colorado needs to charge

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

Example shopBreak-evenRate, 10% profit
Plumbingwage $30.40$112.67$125.19→ $130
HVACwage $31.35$114.71$127.45→ $130
Electricalwage $29.92$111.64$124.04→ $125

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

Charge at least Example shop · Colorado

Charge at least $125.19 per billable hour; break-even $112.67.

Round up to $130 (+$4.81)

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 $125.19 per billable hour, drawn to scale: wage $51.97, taxes & benefits $14.09, overhead $32.87, truck $13.74, profit 10% $12.52. Break-even line at $112.67. Rounded up to $130.12345$0Labor$66.05Break-even$112.67Your rate$125.19Round up to$130
  1. Wage$63,232.00 ÷ 1,216.8 h$51.97
  2. Taxes & benefits27.11% of pay$14.09
  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$12.52
Break-even
$112.67
Profit per hour
$12.52
Revenue a year
$456,983

$112.67 ÷ (1 − 10%) = $125.19rounded up to $130

Already showing the example.

Price your tasks at $130 an hourOpens the price book builder with this rate.

Billable hours
1,216.8per tech a year
Loaded wage
$38.64per paid hour
Labor
$66.05per billable hour
Overhead
$32.87per billable hour
Truck
$13.74per billable hour
Labor burden
27.11%over gross pay

What moves your rate

  • Every billable hour sold under $112.67 loses money.
  • At 70% billable instead of 65%, break-even drops to $104.62, $8.05 an hour less.
  • Cut $10,000 of overhead a year and break-even drops $2.74 an hour, to $109.93.
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$30.40 × 2,080 h = $63,232.00
  4. Employer taxes and comp$3,920.38 SS + $916.86 Medicare + $42.00 FUTA + $933.30 SUTA + $1,688.29 comp = $7,500.84
  5. Benefits$63,232.00 × 15.25% = $9,642.88
  6. Labor per billable hour$80,375.72 ÷ 1,216.8 h = $66.05
  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$66.05 + $32.87 + $13.74 = $112.67
  10. Rate at 10% profit$112.67 ÷ (1 − 10%) = $125.19

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 Colorado3 figures
Wage Plumbing
$30.40/hr
Colorado median for plumbers · BLS OEWS May 2025
SUTA rate New employer
3.05%
New-employer rate, construction included (CDLE, 2026) · CDLE, 2026 combined rate (state agency override)
SUTA wage base Per tech
$30,600
Colorado · 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.

Colorado: pay, payroll taxes and licensesSee all 50 states and DC
Colorado: the fine print

Colorado Department of Labor and Employment 2026 introductory rate: 1.53% beginning rate (DOL’s figure) plus a 0.17% support rate and a 1.35% solvency surcharge, for 3.05% combined. This site uses the combined rate. Non-construction, general construction and the construction trades all pay 3.05%; heavy construction pays 6.285% combined (4.28% beginning).

Crew and pay

People who bill hours. Office staff go in overhead.

Average base pay. Filled: Colorado 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+27.11% of pay

Filled: Colorado new-employer rate, CDLE, 2026 combined rate (state agency override). Your notice wins.

Pay per tech the rate applies to. Filled: Colorado, 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$38.64per paid hour · burden 27.11%

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: $125.19 per billable hour · break-even $112.67. Back to the result

Sales tax on your work

What Colorado’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 taxedColorado does not generally tax services, and separately listed installation or labor charges are not taxed.Lump-sum contracts: the contractor pays tax on building materials and collects none. Time-and-materials contracts: tax on the marked-up materials. Items that aren’t building materials, such as furnaces, air conditioners and electrical fixtures in the Department’s examples, are retail sales taxed to the customer.
Materials
Depends on the job or contractLump-sum: the contractor pays tax on building materials. Time-and-materials: it buys them tax-free and collects tax from the customer on the marked-up price.
Also
Home-rule cities run their own sales and use taxes.

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

State license

Colorado State Plumbing Board (Department of Regulatory Agencies, Division of Professions and Occupations)

Master Plumber license; the business registers as a Plumbing Contractor with a responsible master plumber

A registered plumbing contractor must have a responsible master plumber; if it loses that master and does not hire another within twenty days, its registration is placed in 'Need Master Hire-Cannot Practice' status (3 CCR 720-1).

Fees: check with the state. The board’s fee schedule could not be confirmed on October 28, 2026.

The State Plumbing Board does not list fee amounts on its web pages; fees are printed on each application form ('All fees and mailing instructions are available on the respective applications and forms'). Exams are given by PSI; the exam fee is in PSI’s candidate handbook. Plumbing licenses and contractor registrations expire on the last day of February of odd-numbered years.

Keeping the license

Renewal
Colorado plumber licenses currently run on a two-year license period (licensure years March 1 to February 28); under the State Plumbing Board rules effective April 30, 2025, the period becomes three years starting March 1, 2027, with the next expiration in 2030. content.govdelivery.com · dpo.colorado.gov
Continuing ed.
Residential, journeyworker and master plumbers need at least 8 hours of continuing education in each licensure year (16 hours per current two-year period); at least 4 hours in every 24 months must cover codes, and no more than 2 hours may be safety training. dpo.colorado.gov
Reciprocity
The State Plumbing Board lists no reciprocity agreements; plumbers licensed by another state (not a city or county) for at least six months may apply by endorsement if their credentials are substantially equivalent to Colorado’s. dpo.colorado.gov

Sources read

Electrical

State license

Colorado State Electrical Board (Department of Regulatory Agencies, Division of Professions and Occupations)

Electrical Contractor registration, which must hold or employ a licensed Master Electrician as responsible individual

To perform electrical contracting in Colorado you must be a licensed Electrical Contractor registered with the State, and hold or employ a licensed master electrician as the company’s responsible individual.

Fees: check with the state. The board’s fee schedule could not be confirmed on October 28, 2026.

The State Electrical Board does not list fee amounts on its web pages; fees are printed on each application form ('All fees and mailing instructions are available on the respective applications and forms'). The exam vendor’s fee is not stated on the board pages.

Keeping the license

Renewal
Colorado electrician licenses run on a three-year license period; the current period ended September 30, 2026, with renewal allowed through November 30, 2026. dpo.colorado.gov
Continuing ed.
Residential wiremen, journeyman electricians and master electricians need at least 24 hours of continuing education in each three-year license period; new licensees by exam start after their first renewal. dpo.colorado.gov
Reciprocity
Through the National Electrical Reciprocal Alliance, Colorado grants journeyman electrician licenses by reciprocity to journeymen (or masters) licensed by exam for at least one year in Alaska, Arkansas, Idaho, Iowa, Minnesota, Montana, Nebraska, New Hampshire, New Mexico, North Dakota, Oklahoma, South Dakota, Utah and Wyoming. Other state licenses may be endorsed if earned by testing on the current NEC. dpo.colorado.gov

Sources read

Beyond the trade license

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

Registration
Colorado has no statewide general or home-improvement contractor license on top of the trade credentials; plumbing and electrical companies register as contractors with their state boards, and other contractor licensing is left to cities and counties (for example Denver’s contractor license). dpo.colorado.gov · denvergov.org
Bond
The State Plumbing Board and State Electrical Board registration requirements and the plumbing board rules set no surety bond for licenses or contractor registrations. dpo.colorado.gov · sos.state.co.us
Insurance
To register as an electrical contractor with the Colorado State Electrical Board, a company must show it complies with the workers’ compensation and unemployment insurance laws; no liability insurance minimum is set by the state boards. dpo.colorado.gov

Board and statute pages read

State or city license?

State and local Who licenses the trades in Colorado

Plumbing and electrical licenses are issued by the state, but cities and counties add their own contractor licenses, and HVAC is licensed only locally. Denver requires a city contractor’s license backed by a supervisor certificate or a state electrical or plumbing license. denvergov.org · dpo.colorado.gov

State and city pages read

What Colorado 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

C.R.S. §§ 38-22-100.3 to 38-22-133Title 38, Article 22 General Mechanics’ Lien

You, hired by the owner
Every lien claimant, including the prime contractor, must serve a notice of intent to file a lien statement on the owner or reputed owner (or the owner’s agent) and the principal contractor at least 10 days before filing the lien statement, by personal service or registered or certified mail, return receipt requested. An affidavit of service is recorded with the lien statement (C.R.S. § 38-22-109(3)). olls.info
Subs and suppliers
Notice requiredColorado has no start-of-job preliminary notice; subs and suppliers must serve the same notice of intent on the owner and the principal contractor at least 10 days before filing the lien statement (C.R.S. § 38-22-109(3)). olls.info
File the lien
4 monthsFile the lien statement with the county clerk and recorder within 4 months after the day you last performed labor or furnished materials (C.R.S. § 38-22-109(5)); workers paid by the day or piece who furnish no materials have until 2 months after completion of the improvement (§ 38-22-109(4)). olls.info
Enforce it
6 monthsThe lien ends 6 months after the last work or materials were furnished, or after completion of the improvement, unless within that time you file suit to enforce it and record a notice that the action was commenced with the county clerk and recorder (C.R.S. § 38-22-110). olls.info
Homes
On an existing single-family home, or a single-family owner-occupied home or primary residence, the owner has an affirmative defense to a lien if the owner already paid the contract amount (plus change orders) to the principal contractor or a sub (C.R.S. § 38-22-102(3.5)). The permit office mails homeowners a notice of this rule when it issues a residential building permit (§ 38-22-105.5). olls.info

Statutes read

Payment deadlines and retainage

Private jobs (public contracts have their own rules)

Prompt payment
No private-job statuteNo Colorado statute sets payment deadlines or late-payment interest between owners, contractors and subs on private jobs. The general mechanics’ lien article has no such rule, and the private retainage law states that it does not change contract provisions on the timing of payment (C.R.S. § 38-46-103(2)). olls.info
Retainage
Capped at 5%On private contracts of at least $150,000 between an owner and a contractor, and their subcontracts and supply agreements, no one may withhold more than 5% retainage of the price of work completed (C.R.S. §§ 38-46-102, 38-46-103(1)(a)). A single contract to build one single-family home, or one building of four or fewer units, is exempt, and no release deadline is set. For contracts created on or after August 12, 2026, a contractor or sub may post a retainage bond (up to 5% of money earned) in place of retainage, and the owner or contractor must accept it (HB 26-1311). olls.info

Statutes read

Heating and cooling season in Colorado

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 Denver airport, month by month.

Heating degree days
5,862
Cooling degree days
850
Nights ≤ 32 °F
156
Days ≥ 90 °F
46
Normal heating and cooling degree days (base 65 °F) and freezing nights by month at Denver airport, NOAA 1991–2020 normals
MonthHeatingCoolingNights ≤ 32 °F
Jan1,034029
Feb904026
Mar726023
Apr517113
May261263
Jun52147–
Jul4315–
Aug9254–
Sep105991
Oct43679
Nov767023
Dec1,048029

Heating carries the load at Denver airport: 5,862 heating degree days a year against 850 cooling degree days, peaking in December (1,048).

The lightest months for heating and cooling together are June and September (199 and 205 degree days).

Nights at or below 32 °F: about 156 a year, ten or more a month in November through April; 6 at or below 0 °F. Days reaching 90 °F: about 46 a year, the most in July.

Weighted by where Colorado’s people live, NOAA’s statewide normals (1981–2010) are 6,947 heating and 350 cooling degree days — 10th for heating and 41st for cooling among the 48 contiguous states (the contiguous U.S.: 4,332 and 1,272).

Station: Denver airport (USW00003017), NOAA NCEI U.S. Climate Normals 1991–2020 — station file; statewide figures: NOAA Climate Prediction Center. Bars share one scale: the longest is 1,048 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 (cdle.colorado.gov)Colorado Department of Labor and Employment (CDLE), Division of Unemployment Insurance · read October 28, 2026
  5. Unemployment insurance tax rates (cdle.colorado.gov)Colorado Department of Labor and Employment (CDLE), Division of Unemployment Insurance · read October 28, 2026
  6. Significant Provisions of State Unemployment Insurance Laws, Effective July 2026U.S. Department of Labor, Office of Unemployment Insurance · read October 28, 2026
  7. Colorado Paid Family and Medical Leave Insurance (FAMLI)Colorado Department of Labor and Employment - FAMLI Division · read October 28, 2026
  8. FYI Sales 6: Contractors and Retailer-ContractorsColorado Department of Revenue · 03/20 · read October 24, 2026
  9. Colorado Sales Tax GuideColorado Department of Revenue · revised May 2026 · read October 24, 2026
  10. C.R.S. §§ 38-22-100.3 to 38-22-133 — Title 38, Article 22 General Mechanics’ LienOfficial state code · read November 4, 2026
  11. Workers’ compensation coverage requirementsColorado Department of Labor and Employment, Division of Workers' Compensation · read November 4, 2026
  12. U.S. Climate Normals 1991–2020, Denver airport (USW00003017)NOAA National Centers for Environmental Information · read November 4, 2026
  13. 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