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Reference · State of Michigan

Michigan trade labor costs

What a plumbing, HVAC or electrical tech earns in Michigan, 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
$38.56/h+25.7% vs the U.S.9th of 51
HVAC median
$29.26/h−0.2% vs the U.S.25th of 51
Electrical median
$36.67/h+20.7% vs the U.S.14th of 51
New-employer SUTA
2.70%on the first $9,000
Payroll programs
Noneno paid-leave or disability program found
Sales tax on labor
Not taxedrepair and installation on buildings

Pay in Michigan

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 $22.38, 25th $27.93, median $38.56, 75th $45.86, 90th $49.73 an hour; U.S. median $30.67.

  • HVACU.S. median $29.33

    HVAC techs: 10th percentile $19.33, 25th $23.09, median $29.26, 75th $37.40, 90th $45.81 an hour; U.S. median $29.33.

  • ElectricalU.S. median $30.38

    electricians: 10th percentile $20.66, 25th $24.21, median $36.67, 75th $44.38, 90th $49.58 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 Michigan, BLS OEWS May 2025
PercentilePlumbingHVACElectrical
10th$22.38$19.33$20.66
25th$27.93$23.09$24.21
Median$38.56$29.26$36.67
75th$45.86$37.40$44.38
90th$49.73$45.81$49.58
Mean$37.14$31.01$35.50
U.S. median$30.67$29.33$30.38
vs U.S.+25.7%−0.2%+20.7%
Rank9th25th14th
Jobs14,12012,59023,530

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 Michigan 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)

Michigan Department of Labor and Economic Opportunity, Unemployment Insurance Agency (UIA)

Wage base
$9,000 per employee a year
New-employer rate
2.70%
Construction
5.00%for new construction employers

Michigan Unemployment Insurance Agency, Tax Rate Summary for 2026: “New Employer Rate 2.7% Construction Rate 5.0%.” New construction employers pay the construction rate; all other new employers pay 2.7%.

Per tech, a year 5.00% × $9,000 = $450At the construction rate, for a plumber paid the state median ($38.56 × 2,080 h = $80,205). The calculator uses the rate alone.

State pages read

Workers’ compensation

Michigan Department of Labor and Economic Opportunity, Workers' Disability Compensation Agency

Who must carry it
3 employees, or 1 working 35 h a weekA private employer must carry coverage if it regularly employs three or more employees at one time, counting part-time workers, or if even one employee has worked 35 or more hours a week for 13 weeks or longer in the past 52 weeks (MCL 418.115). legislature.mi.gov · michigan.gov
Where to buy it
Private insurersMost Michigan employers buy a policy from a private insurance company; others are approved self-insurers or members of self-insured groups. Employers that cannot find coverage can use the Michigan Workers’ Compensation Placement Facility (assigned risk pool). michigan.gov
Owners
A sole proprietor is self-employed and not covered by the Act (employees of the business are). Under MCL 418.161, named partners and shareholder-officers of small, closely held corporations may exempt themselves, through the insurer if there are other employees, or with an Agency certificate if all workers are partners or owners. michigan.gov
Construction
If a business contracts out part of its work to a contractor that is not insured, it is liable to the contractor’s workers for compensation as if it had employed them directly (MCL 418.171). legislature.mi.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 Michigan 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 Michigan needs to charge

The calculator’s example shop — three techs, $120,000 of overhead, a truck each, 10% net profit — with Michigan’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 $38.56$129.79$144.21→ $145
HVACwage $29.26$109.82$122.03→ $125
Electricalwage $36.67$125.73$139.70→ $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 Michigan: 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 Michigan: 3 techs at the state’s median plumber wage, $120,000 overhead. Change any number or pick another state.

Charge at least Example shop · Michigan

Charge at least $144.21 per billable hour; break-even $129.79.

Round up to $145 (+$0.79)

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 $144.21 per billable hour, drawn to scale: wage $65.91, taxes & benefits $17.26, overhead $32.87, truck $13.74, profit 10% $14.42. Break-even line at $129.79. Rounded up to $145.12345$0Labor$83.17Break-even$129.79Your rate$144.21Round up to$145
  1. Wage$80,204.80 ÷ 1,216.8 h$65.91
  2. Taxes & benefits26.18% of pay$17.26
  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$14.42
Break-even
$129.79
Profit per hour
$14.42
Revenue a year
$526,414

$129.79 ÷ (1 − 10%) = $144.21rounded up to $145

Already showing the example.

Price your tasks at $145 an hourOpens the price book builder with this rate.

Billable hours
1,216.8per tech a year
Loaded wage
$48.66per paid hour
Labor
$83.17per billable hour
Overhead
$32.87per billable hour
Truck
$13.74per billable hour
Labor burden
26.18%over gross pay

What moves your rate

  • Every billable hour sold under $129.79 loses money.
  • At 70% billable instead of 65%, break-even drops to $120.52, $9.27 an hour less.
  • Cut $10,000 of overhead a year and break-even drops $2.74 an hour, to $127.05.
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$38.56 × 2,080 h = $80,204.80
  4. Employer taxes and comp$4,972.70 SS + $1,162.97 Medicare + $42.00 FUTA + $450.00 SUTA + $2,141.47 comp = $8,769.14
  5. Benefits$80,204.80 × 15.25% = $12,231.23
  6. Labor per billable hour$101,205.17 ÷ 1,216.8 h = $83.17
  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$83.17 + $32.87 + $13.74 = $129.79
  10. Rate at 10% profit$129.79 ÷ (1 − 10%) = $144.21

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 Michigan3 figures
Wage Plumbing
$38.56/hr
Michigan median for plumbers · BLS OEWS May 2025
SUTA rate Construction
5.00%
Construction rate; other new employers pay 2.70% · Michigan UIA, Tax Rate Summary for 2026
SUTA wage base Per tech
$9,000
Michigan · 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.

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

Michigan Unemployment Insurance Agency, Tax Rate Summary for 2026: “New Employer Rate 2.7% Construction Rate 5.0%.” New construction employers pay the construction rate; all other new employers pay 2.7%.

Crew and pay

People who bill hours. Office staff go in overhead.

Average base pay. Filled: Michigan 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+26.18% of pay

Filled: Michigan construction rate, Michigan UIA, Tax Rate Summary for 2026. Your notice wins.

Pay per tech the rate applies to. Filled: Michigan, 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$48.66per paid hour · burden 26.18%

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: $144.21 per billable hour · break-even $129.79. Back to the result

Sales tax on your work

What Michigan’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 taxedContractors who build, alter, repair or improve real estate don’t charge sales tax to customers; they are the consumers of the materials they use.A contractor that consistently holds itself out as a retailer may instead charge tax on materials, with labor itemized separately; for such a contractor, a lump-sum bill that doesn’t itemize installation labor and materials is taxed on the total.
Materials
Contractor, when buyingThe contractor pays sales tax to its supplier or use tax (generally 6% of material cost) and may build it into the contract price but not charge it to the customer as tax.

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

Michigan Department of Licensing and Regulatory Affairs (LARA), Bureau of Construction Codes - State Plumbing Board

Plumbing Contractor license (requires an associated Master Plumber license)

No one may engage in the business of a plumbing contractor or master plumber unless licensed; a licensed master plumber is in charge of code conformance (MCL 339.6107); no contractor license without master plumber representation.

FeeAmount
Plumbing contractor examination fee (paid to PSI)per exam$100
Plumbing contractor initial license fee(non-refundable, due with application)up to 3 years (prorated by year)$300
Plumbing contractor renewal fee3 years$300

Master plumber license: $100 exam, $300 initial/renewal per 3 years (MCL 339.6121). Initial licenses outside the April 30-June 30 window are prorated by year. Relicensure after 60 days late: renewal fee + $100. Exam fee is paid to PSI.

Keeping the license

Renewal
Master plumber and plumbing contractor licenses are issued for up to 3 years and renew for 3-year periods (MCL 339.6121(6)); journey plumber and apprentice fees are annual. legislature.mi.gov
Continuing ed.
There is no fixed hour requirement: to renew, a master plumber must complete a board-approved course on any update or change in the state construction code within 12 months after that update, and only in years when the code changes (MCL 339.6113(2)). legislature.mi.gov
Reciprocity
Check with the boardThe official pages and rules we read on November 4, 2026 do not settle it.

Sources read

HVAC

State license

Michigan Department of Licensing and Regulatory Affairs (LARA), Bureau of Construction Codes - Board of Mechanical Rules

Mechanical Contractor license with work classification(s) (e.g. HVAC equipment, ductwork, refrigeration, limited/unlimited heating or refrigeration & AC service)

No person may perform installations, alterations or servicing in the mechanical work classifications unless the person or an employee holds a classified mechanical contractor’s license (MCL 339.5809); municipalities may not add local licensing (339.5811).

FeeAmount
Work classification examination fee, per classification (state law sets it at $100 or less; paid to PSI)per exam (maximum)$100
Mechanical contractor license fee (initial and per year)per year (license expires August 31 every third year)$100

The license runs a 3-year cycle (expires Aug 31 every third year; renew by Oct 31); initial licenses outside the renewal window are charged pro rata by year. Exams are given by PSI.

Keeping the license

Renewal
Mechanical contractor licenses expire August 31 every third year and are renewable by October 31 (MCL 339.5813(2)). legislature.mi.gov
Continuing ed.
Michigan’s mechanical contractor renewal (MCL 339.5813) takes the application and fee; neither the statute nor LARA’s mechanical licensing pages list continuing education. legislature.mi.gov · michigan.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; local rules may add more

Michigan Department of Licensing and Regulatory Affairs (LARA), Bureau of Construction Codes - Electrical Administrative Board

Electrical Contractor license (requires an associated Master Electrician license)

A person shall not engage in the business of electrical contracting unless the person has received from the board or from the appropriate municipality an electrical contractor’s license (MCL 339.5737); the contractor license requires an associated Master Electrician.

FeeAmount
Electrical contractor license fee(3-year license; initial prorated by year)3 years$300

LARA states no examination is now required for the Electrical Contractor license (statute still lists a $100 exam fee). Master electrician: $100 exam (PSI), $50 initial/annual renewal (MCL 339.5707). Contractor licenses expire Dec 31 every third year, renewable by March 1.

Keeping the license

Renewal
Electrical contractor licenses expire December 31 of every third year and are renewable by March 1 ($300); master electrician and journeyman licenses expire December 31 of each year (MCL 339.5707). legislature.mi.gov
Continuing ed.
There is no fixed hour requirement: to renew, a master electrician must complete a board-approved course on any update or change in the state construction code within 12 months after that update, only in years when the code changes (MCL 339.5713(4)); approved code-update courses are listed through CE Broker. legislature.mi.gov
Reciprocity
Michigan has no electrical licensing reciprocity with any state; out-of-state applicants submit their license and that jurisdiction’s requirements for review. michigan.gov

Sources read

Beyond the trade license

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

Registration
Michigan’s residential builder and residential maintenance and alteration contractor license (MCL 339.2401 et seq.) does not apply to electrical, plumbing or mechanical contractors licensed under the Skilled Trades Regulation Act, but only for the electrical, plumbing or mechanical work they perform (MCL 339.2403(g)-(i)); other remodeling work on homes above $600 needs the residential license. legislature.mi.gov
Bond
The Skilled Trades Regulation Act articles for electrical, mechanical and plumbing contractors set licensing, fees and renewal but no surety bond, and LARA’s licensing pages list none. legislature.mi.gov · michigan.gov
Insurance
No liability insurance minimum for getting or renewing a Michigan electrical, mechanical or plumbing license appears in the Skilled Trades Regulation Act articles or LARA’s licensing pages; MCL 339.5733 only bars cities from demanding more public liability insurance than the act requires. legislature.mi.gov · michigan.gov

Board and statute pages read

State or city license?

State and local Who licenses the trades in Michigan

Plumbing and mechanical contractors are licensed only by the state: local governments may not require their own plumbing or mechanical licenses (MCL 339.6125, 339.5811), though a contractor may have to register its state license with the local permit office. Electrical is the exception: a city with its own ordinance at least as strict as the act may license electricians and electrical contractors itself, and the City of Detroit issues its own electrical licenses and registrations. legislature.mi.gov · michigan.gov

State and city pages read

What Michigan 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

MCL 570.1101 to 570.1305CONSTRUCTION LIEN ACT (Act 497 of 1980)

You, hired by the owner
A contractor who contracted directly with the owner does not send a notice of furnishing (MCL 570.1109(1)). But the contractor must give the owner a sworn statement listing its subs and suppliers whenever payment is due or requested; without it the contractor is not entitled to payment and cannot file suit to enforce the lien until it is provided (MCL 570.1110(1), (9)). legislature.mi.gov
Subs and suppliers
Notice requiredSubs and suppliers must serve a notice of furnishing on the owner’s designee (or the owner) and the general contractor named in the notice of commencement, personally or by certified mail, within 20 days after first furnishing labor or material (MCL 570.1109(1)). A late notice still preserves the lien, except for amounts the owner already paid on a sworn statement or lien waiver. legislature.mi.gov
File the lien
90 daysRecord the claim of lien with the register of deeds in each county where the property lies within 90 days after your last furnishing of labor or material under your contract (MCL 570.1111(1)); the same deadline applies to subs. legislature.mi.gov
Enforce it
1 yearFile the foreclosure action no later than 1 year after the claim of lien was recorded, and record a notice of lis pendens when you file (MCL 570.1117(1), (2)). legislature.mi.gov
Homes
For a residential structure, the owner does not record a notice of commencement; the owner must prepare one only for a contractor, sub, supplier or laborer who asks for it in writing (MCL 570.1108a). A sub’s or supplier’s lien on a residential structure may include contract interest only, and no interest accruing more than 90 days after the claim of lien is recorded (MCL 570.1107(7)). The Homeowner Construction Lien Recovery Fund was repealed in 2010. legislature.mi.gov

Statutes read

Payment deadlines and retainage

Private jobs (public contracts have their own rules)

Prompt payment
No private-job statuteMichigan has no statute setting payment deadlines on private jobs. The prompt-payment act at MCL 125.1561 et seq. covers only contracts with a public agency, and the Construction Lien Act sets no payment deadlines; a private construction payment bill (2023 HB 4837) was only referred to committee. legislature.mi.gov
Retainage
No private-job capNo Michigan statute caps or times the release of retainage on private jobs; the retainage rules in MCL 125.1561 et seq. apply only to public-agency contracts. legislature.mi.gov

Statutes read

Heating and cooling season in Michigan

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 Detroit Metro airport, month by month.

Heating degree days
6,067
Cooling degree days
847
Nights ≤ 32 °F
120
Days ≥ 90 °F
13
Normal heating and cooling degree days (base 65 °F) and freezing nights by month at Detroit Metro airport, NOAA 1991–2020 normals
MonthHeatingCoolingNights ≤ 32 °F
Jan1,217027
Feb1,036025
Mar861121
Apr48856
May19850–
Jun28177–
Jul2283–
Aug7233–
Sep9190–
Oct382102
Nov713014
Dec1,046024

Heating carries the load at Detroit Metro airport: 6,067 heating degree days a year against 847 cooling degree days, peaking in January (1,217).

The lightest months for heating and cooling together are June and September (205 and 181 degree days).

Nights at or below 32 °F: about 120 a year, ten or more a month in November through March; 4 at or below 0 °F. Days reaching 90 °F: about 13 a year, the most in July.

Weighted by where Michigan’s people live, NOAA’s statewide normals (1981–2010) are 6,792 heating and 574 cooling degree days — 13th for heating and 35th for cooling among the 48 contiguous states (the contiguous U.S.: 4,332 and 1,272).

Station: Detroit Metro airport (USW00094847), NOAA NCEI U.S. Climate Normals 1991–2020 — station file; statewide figures: NOAA Climate Prediction Center. Bars share one scale: the longest is 1,217 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 (michigan.gov)Michigan Department of Labor and Economic Opportunity, Unemployment Insurance Agency (UIA) · read October 28, 2026
  5. Unemployment insurance tax rates (michigan.gov)Michigan Department of Labor and Economic Opportunity, Unemployment Insurance Agency (UIA) · 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. Construction FAQMichigan Department of Treasury · no date shown · read October 24, 2026
  8. Contractor ManualMichigan Department of Treasury · May 2026 · read October 24, 2026
  9. Revenue Administrative Bulletin 2025-18Michigan Department of Treasury · approved December 10, 2025 · read October 24, 2026
  10. MCL 570.1101 to 570.1305 — CONSTRUCTION LIEN ACT (Act 497 of 1980)Official state code · read November 4, 2026
  11. Workers’ compensation coverage requirementsMichigan Department of Labor and Economic Opportunity, Workers' Disability Compensation Agency · read November 4, 2026
  12. U.S. Climate Normals 1991–2020, Detroit Metro airport (USW00094847)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