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Reference · State of Kentucky

Kentucky trade labor costs

What a plumbing, HVAC or electrical tech earns in Kentucky, 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
$30.84/h+0.6% vs the U.S.24th of 51
HVAC median
$28.18/h−3.9% vs the U.S.37th of 51
Electrical median
$28.71/h−5.5% vs the U.S.43rd of 51
New-employer SUTA
2.70%on the first $12,000
Payroll programs
Noneno paid-leave or disability program found
Sales tax on labor
Not taxedrepair and installation on buildings

Pay in Kentucky

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 $21.57, 25th $24.04, median $30.84, 75th $40.79, 90th $45.53 an hour; U.S. median $30.67.

  • HVACU.S. median $29.33

    HVAC techs: 10th percentile $18.65, 25th $22.97, median $28.18, 75th $32.47, 90th $38.47 an hour; U.S. median $29.33.

  • ElectricalU.S. median $30.38

    electricians: 10th percentile $17.84, 25th $22.37, median $28.71, 75th $37.46, 90th $40.99 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 Kentucky, BLS OEWS May 2025
PercentilePlumbingHVACElectrical
10th$21.57$18.65$17.84
25th$24.04$22.97$22.37
Median$30.84$28.18$28.71
75th$40.79$32.47$37.46
90th$45.53$38.47$40.99
Mean$33.11$28.30$29.52
U.S. median$30.67$29.33$30.38
vs U.S.+0.6%−3.9%−5.5%
Rank24th37th43rd
Jobs6,3605,10011,030

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 Kentucky 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)

Kentucky Education and Labor Cabinet, Office of Unemployment Insurance (OUI)

Wage base
$12,000 per employee a year
New-employer rate
2.70%
Construction
9.00%for new construction employers

Kentucky OUI Employer Guide 2026: new construction employers pay the highest rate on the schedule in effect until they have 12 consecutive quarters. 2026 uses Schedule A, whose top rate is 9.00% (Tax Rate Schedules page, updated August 3, 2026). Others: at least 2.7%.

Per tech, a year 9.00% × $12,000 = $1,080At the construction rate, for a plumber paid the state median ($30.84 × 2,080 h = $64,147). The calculator uses the rate alone.

State pages read

Workers’ compensation

Kentucky Department of Workers' Claims

Who must carry it
Any employeeAny employer, other than one engaged solely in agriculture, with one or more employees in Kentucky must carry workers’ compensation (KRS 342.630). Family members, temporary workers and part-time workers count as employees. elc.ky.gov
Where to buy it
Private insurers or the state fundEmployers' Mutual Insurance Authority (KRS 342.801)Employers insure with a company authorized to write workers’ compensation in Kentucky or self-insure with the commissioner’s approval (KRS 342.340). The legislature created the Employers’ Mutual Insurance Authority as a self-supporting competitive state fund that is both a market of last resort and a competitor in the voluntary market (KRS 342.801). apps.legislature.ky.gov
Owners
Business owners, qualified partners and qualified LLC members are employees only if they elect coverage and buy it, by an endorsement to a workers’ compensation policy (KRS 342.012). They must still cover their employees and any nonqualified partners or members. apps.legislature.ky.gov
Construction
A contractor that subcontracts any part of a job is liable for compensation to the subcontractor’s employees unless the sub has secured coverage (KRS 342.610(2)). Before issuing a building permit, the local building official must require proof of workers’ compensation coverage from the builder, or a written certification on the commissioner’s form from a builder who is exempt. apps.legislature.ky.gov

Statute and agency pages read

Paid leave and disability insurance

We found no state paid family and medical leave or temporary disability insurance program funded through payroll in Kentucky on October 28, 2026. State paid sick leave rules, where they exist, are not covered here.

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 construction 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 Kentucky needs to charge

The calculator’s example shop — three techs, $120,000 of overhead, a truck each, 10% net profit — with Kentucky’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 $30.84$113.73$126.37→ $130
HVACwage $28.18$108.02$120.03→ $125
Electricalwage $28.71$109.16$121.29→ $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 Kentucky: 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 Kentucky: 3 techs at the state’s median plumber wage, $120,000 overhead. Change any number or pick another state.

Charge at least Example shop · Kentucky

Charge at least $126.37 per billable hour; break-even $113.73.

Round up to $130 (+$3.63)

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 $126.37 per billable hour, drawn to scale: wage $52.72, taxes & benefits $14.40, overhead $32.87, truck $13.74, profit 10% $12.64. Break-even line at $113.73. Rounded up to $130.12345$0Labor$67.12Break-even$113.73Your rate$126.37Round up to$130
  1. Wage$64,147.20 ÷ 1,216.8 h$52.72
  2. Taxes & benefits27.32% of pay$14.40
  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$12.64
Break-even
$113.73
Profit per hour
$12.64
Revenue a year
$461,303

$113.73 ÷ (1 − 10%) = $126.37rounded 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
$39.27per paid hour
Labor
$67.12per billable hour
Overhead
$32.87per billable hour
Truck
$13.74per billable hour
Labor burden
27.32%over gross pay

What moves your rate

  • Every billable hour sold under $113.73 loses money.
  • At 70% billable instead of 65%, break-even drops to $105.61, $8.12 an hour less.
  • Cut $10,000 of overhead a year and break-even drops $2.74 an hour, to $110.99.
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$30.84 × 2,080 h = $64,147.20
  4. Employer taxes and comp$3,977.13 SS + $930.13 Medicare + $42.00 FUTA + $1,080.00 SUTA + $1,712.73 comp = $7,741.99
  5. Benefits$64,147.20 × 15.25% = $9,782.45
  6. Labor per billable hour$81,671.64 ÷ 1,216.8 h = $67.12
  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$67.12 + $32.87 + $13.74 = $113.73
  10. Rate at 10% profit$113.73 ÷ (1 − 10%) = $126.37

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 Kentucky3 figures
Wage Plumbing
$30.84/hr
Kentucky median for plumbers · BLS OEWS May 2025
SUTA rate Construction
9.00%
Construction rate; other new employers pay 2.70% · Kentucky OUI, 2026 (top of Schedule A)
SUTA wage base Per tech
$12,000
Kentucky · 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.

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

Kentucky OUI Employer Guide 2026: new construction employers pay the highest rate on the schedule in effect until they have 12 consecutive quarters. 2026 uses Schedule A, whose top rate is 9.00% (Tax Rate Schedules page, updated August 3, 2026). Others: at least 2.7%.

Crew and pay

People who bill hours. Office staff go in overhead.

Average base pay. Filled: Kentucky 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+27.32% of pay

Filled: Kentucky construction rate, Kentucky OUI, 2026 (top of Schedule A). Your notice wins.

Pay per tech the rate applies to. Filled: Kentucky, 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$39.27per paid hour · burden 27.32%

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: $126.37 per billable hour · break-even $113.73. Back to the result

Sales tax on your work

What Kentucky’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 taxedThe Department of Revenue says improvements or repairs to real property are not services subject to sales tax.The same treatment applies to lump-sum, cost-plus and other contracts. A freestanding appliance sold by a contractor-retailer is a retail sale, taxed with its delivery and installation charges.
Materials
Contractor, when buyingContractors pay sales or use tax on materials when buying them and may not bill sales tax as a separate charge, even on a water heater repair.

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

Kentucky Department of Housing, Buildings and Construction, Division of Plumbing

Master Plumber license (journeyman plumber license for workers)

No person may engage in or work in the trade of plumbing without a valid Kentucky journeyman and/or master license; plumbing permits are issued to licensed master plumbers.

FeeAmount
Master plumber examination fee (non-refundable)per exam$150
Master plumber license fee(initial; may be prorated 7-18 months)initial license (to licensee's birth month in following year)$250
Master plumber renewal feeper year$250

Initial fee may be prorated (7-18 months) to expire at the end of the birth month; renewed licenses expire at the end of the birth month each year (KRS 318.054). Late revival fee $5 for a master plumber (KRS 318.054(4)).

Keeping the license

Renewal
Master and journeyman plumber licenses renew every year and expire on the last day of the licensee’s birth month (KRS 318.054); a license not renewed within 180 days is canceled. apps.legislature.ky.gov
Continuing ed.
Master and journeyman plumbers need at least 6 hours of DHBC-approved continuing education in the 12 months before each annual renewal, on business, job safety, the Kentucky State Plumbing Code or plumbing subject matter; no more than 2 safety hours count (815 KAR 2:010). apps.legislature.ky.gov
Reciprocity
Kentucky does not accept another state’s plumbing license; an out-of-state licensee may sit for the Kentucky exam without the experience requirement. KRS 318.040(6) allows reciprocity only with a state that has a statewide plumbing code, an equal exam and agrees to reciprocate, and DHBC names no such state. dhbc.ky.gov · apps.legislature.ky.gov

Sources read

HVAC

State license

Kentucky Department of Housing, Buildings and Construction, Division of HVAC

Master HVAC Contractor license (journeyman HVAC mechanic license for workers)

The master HVAC contractor supervises and is primarily responsible for all HVAC work performed by the employees and subcontractors of the licensee or the company the licensee represents (815 KAR 8:010, Section 1).

FeeAmount
Master HVAC contractor examination fee(non-refundable, department exam)per exam$150
Master HVAC contractor initial license application fee12 months (may be prorated 7-18 months)$250
Master HVAC contractor renewal feeper year$250

Exam fee shown applies to examinations provided by the department; exams at other approved testing facilities (e.g. PROV) are requested directly from that facility and their fee is not stated in the regulation. Restoration fee for an expired master license is $125.

Keeping the license

Renewal
Master HVAC contractor and journeyman HVAC mechanic licenses renew every year by the last day of the licensee’s birth month, with a 60-day grace period (KRS 198B.664). apps.legislature.ky.gov
Continuing ed.
Master HVAC contractors and journeyman HVAC mechanics need at least 6 hours of DHBC-approved continuing education in the 12 months before each annual renewal, on business, job safety, HVAC codes or HVAC subject matter (815 KAR 2:010). apps.legislature.ky.gov
Reciprocity
Check with the boardThe official pages and rules we read on November 4, 2026 do not settle it.

Sources read

Electrical

State license

Kentucky Department of Housing, Buildings and Construction, Electrical Division

Electrical Contractor license (requires an affiliated Kentucky Master Electrician)

Licensed electrical contractors must have a Master license holder associated with the license at all times; contractor applicants who are not masters must provide the master’s license number (Form EL-2).

FeeAmount
Electrical contractor application fee (biennial license)2 years (initial may be prorated, min. 13 months)$400
Electrical contractor renewal fee2 years$400

Licenses are valid for two years under 815 KAR 35:060 (as amended effective May 6, 2025) and are renewed by the last day of the licensee’s birth month in the second year. The master electrician exam is taken with PROV, NASCLA or Pearson VUE, and the contractor business and law exam with PROV or Pearson VUE; exam fees are set by the testing company and are not shown here. Master electrician license: $200 per 2 years. Late renewal fee $50.

Keeping the license

Renewal
Electrical contractor, master electrician and electrician licenses issued or renewed on or after July 15, 2024 are two-year licenses, renewed by the last day of the licensee’s birth month in the second year (KRS 227A.100). apps.legislature.ky.gov
Continuing ed.
KRS 227A.100(7) requires at least 6 hours of approved continuing education per year, i.e. 12 hours for each two-year license; electrical contractors take business or job-safety courses and cannot count a master electrician’s or electrician’s hours (815 KAR 2:010). apps.legislature.ky.gov
Reciprocity
Check with the boardThe official pages and rules we read on November 4, 2026 do not settle it.

Sources read

Beyond the trade license

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

Registration
Kentucky has no statewide general, residential or home-improvement contractor license or registration on top of the trade licenses; the Department of Housing, Buildings and Construction (DHBC) licenses master plumbers (KRS ch. 318), master HVAC contractors (KRS 198B.650-198B.689) and electrical contractors (KRS ch. 227A) directly. apps.legislature.ky.gov · dhbc.ky.gov
Bond
Kentucky’s trade-license statutes require liability insurance, not a surety bond: KRS 318.030 for plumbing, KRS 198B.668 for HVAC and KRS 227A.060 for electrical contractors set insurance minimums and no bond amount. apps.legislature.ky.gov
Insurance
A plumbing business must carry at least $250,000 general liability insurance (KRS 318.030); an HVAC contractor at least $500,000 general liability plus $300,000 property damage (KRS 198B.668); an electrical contractor at least $1,000,000 general liability (KRS 227A.060 and 227A.100(8)). Proof goes to DHBC before the license is issued or renewed, and workers’ compensation compliance must also be shown for plumbing and electrical. apps.legislature.ky.gov

Board and statute pages read

State or city license?

State license only Who licenses the trades in Kentucky

Kentucky licenses plumbers, HVAC contractors and electricians statewide through DHBC. KRS 227A.020(6) supersedes city and county ordinances regulating electricians and electrical contractors; cities and counties may run state-authorized plumbing and HVAC permit and inspection programs and collect occupational license fees, but no new local HVAC permit programs may be created after January 1, 2007 (KRS 198B.6673(4)). apps.legislature.ky.gov

State and city pages read

What Kentucky 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

KRS 376.010 to 376.130CHAPTER 376 STATUTORY LIENS

You, hired by the owner
No notice to startA contractor who contracted directly with the owner gives no pre-lien notice; the notice of intent in KRS 376.010(4) is required only of those who did not contract with the owner. After filing the lien statement, every claimant must mail a copy to the owner within 7 days or the lien is dissolved (KRS 376.080(1)). apps.legislature.ky.gov
Subs and suppliers
Notice requiredA sub or supplier who did not contract with the owner must notify the owner in writing of its intent to hold the property liable and the amount, within 75 days after its last labor or materials on claims under $1,000 and within 120 days on claims over $1,000 (KRS 376.010(4)). On an owner-occupied single or double family dwelling the notice is due within 75 days regardless of amount (KRS 376.010(5)). apps.legislature.ky.gov
File the lien
6 monthsFile the lien statement with the county clerk within 6 months after you stop working or furnishing materials, and mail a copy to the owner within 7 days of filing (KRS 376.080). The same 6 months applies to subs. apps.legislature.ky.gov
Enforce it
1 yearSue to enforce the lien within 12 months from the day the lien statement was filed, or the lien is dissolved (KRS 376.090(1)). apps.legislature.ky.gov
Homes
On an owner-occupied single or double family dwelling, a sub or supplier without a contract with the owner must give notice within 75 days after last furnishing, and has no lien to the extent the owner already paid the contractor before receiving that notice (KRS 376.010(5)). apps.legislature.ky.gov

Statutes read

Payment deadlines and retainage

Private jobs (public contracts have their own rules)

Prompt payment
Statute sets deadlinesOn private commercial jobs (not residential construction), the owner must pay an undisputed pay request within 30 business days, then owes 12% a year interest; the contractor must pay subs within 15 business days of being paid, also at 12% interest if late (KRS 371.405, applied by KRS 371.425). KRS 371.405 was last amended effective June 27, 2025 (2025 Ky. Acts ch. 156, which voided contract clauses waiving delay damages); the payment periods were not changed. apps.legislature.ky.gov
Retainage
Capped at 10%On covered (non-residential) jobs, retainage may not exceed 10% until the project is 50% complete and 5% of the total contract after 51%; it must be released within 30 days after substantial completion (less 200% of the cost of unfinished work), and the contractor must pass subs their share within 15 business days, with 12% interest if late (KRS 371.410). apps.legislature.ky.gov

Statutes read

Heating and cooling season in Kentucky

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 Louisville airport, month by month.

Heating degree days
3,936
Cooling degree days
1,742
Nights ≤ 32 °F
74
Days ≥ 90 °F
43
Normal heating and cooling degree days (base 65 °F) and freezing nights by month at Louisville airport, NOAA 1991–2020 normals
MonthHeatingCoolingNights ≤ 32 °F
Jan908021
Feb715117
Mar524810
Apr222441
May59160–
Jun3346–
Jul0462–
Aug0433–
Sep22233–
Oct198521
Nov49948
Dec786117

Louisville airport has two working seasons: 3,936 heating and 1,742 cooling degree days a year, heating peaking in January and cooling in July.

The lightest months for heating and cooling together are May and October (218 and 250 degree days).

Nights at or below 32 °F: about 74 a year, ten or more a month in December through February. Days reaching 90 °F: about 43 a year, the most in July.

Weighted by where Kentucky’s people live, NOAA’s statewide normals (1981–2010) are 4,452 heating and 1,220 cooling degree days — 33rd for heating and 16th for cooling among the 48 contiguous states (the contiguous U.S.: 4,332 and 1,272).

Station: Louisville airport (USW00093821), NOAA NCEI U.S. Climate Normals 1991–2020 — station file; statewide figures: NOAA Climate Prediction Center. Bars share one scale: the longest is 908 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 (ui.ky.gov)Kentucky Education and Labor Cabinet, Office of Unemployment Insurance (OUI) · 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. Labor Charges for InstallationKentucky Department of Revenue · no date shown · read October 24, 2026
  7. 103 KAR 26:070, ContractorsKentucky Department of Revenue (Kentucky Administrative Regulations) · effective November 1, 2019 · read October 24, 2026
  8. KRS 376.010 to 376.130 — CHAPTER 376 STATUTORY LIENSOfficial state code · read November 4, 2026
  9. Workers’ compensation coverage requirementsKentucky Department of Workers' Claims · read November 4, 2026
  10. U.S. Climate Normals 1991–2020, Louisville airport (USW00093821)NOAA National Centers for Environmental Information · read November 4, 2026
  11. 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