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Texas Contractor License BondMunicipal Requirements

Texas contractor bonding made simple. While Texas has no state-level contractor bond requirement, individual cities and counties require bonds ranging from $5,000 to $50,000. Instant approval available.

All TX municipalities | 15-30 day TDLR processing | From $100/year

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$5K-$50K
Bond Range
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TX Contractors

Texas Contractor Requirements

Understanding Texas's unique municipal system

Municipal Bond Requirements
City/county bonding varies by location
Texas has NO state-level general contractor licensing or bonding requirement
TDLR licenses specialty contractors: HVAC, electrical, plumbing (requires insurance, not bonds)
Individual cities and counties may require contractor bonds (amounts vary by location)
Common municipal bond amounts: $5,000 (Mesquite), $25,000 (Beaumont), $50,000 (Longview)
Workers compensation insurance required when you have employees
General liability insurance typically required (minimum $300,000 for TDLR specialty licenses)
Valid Texas business license and sales tax permit
Check with your specific city/county for local bonding requirements
Cost Breakdown
TDLR specialty contractor costs
TDLR Application$100 (initial)
Examination Fees$136 total
License Fee$111 (2-year term)
Bond Cost (Annual)$100-$800 annually
Total First-Time$547-$1,247

Texas Contractor Types

TDLR specialty vs municipal general contractors

Air Conditioning and Refrigeration
$300K liability

HVAC installation, repair, and maintenance

TDLR exam + insurance (no state bond)

Electrical Contractor
$300K liability

Electrical wiring, installation, repair

Master electrician + insurance (no state bond)

Plumbing Contractor
$300K liability

Plumbing installation and repair services

TSBPE license + insurance (no state bond)

Municipal General Contractor
Varies by city

General building construction

City/county registration may require bond

How to Get Licensed in Texas

Steps for TDLR specialty licensing

1

Determine License Type

Identify if you need TDLR specialty license or municipal registration

2

Complete TDLR Application

Submit application and $100 fee for specialty contractors

3

Pass Required Exams

Business law and trade-specific examinations ($136 total)

4

Get Insurance/Bond

TDLR requires $300K liability insurance; municipalities may require bonds

5

Receive License

Pay $111 license fee and receive your Texas contractor license

Major Texas Markets

Municipal bonding by metro area

Houston
$10K-$50K

Petrochemical, commercial construction, hurricane recovery

Dallas-Fort Worth
$5K-$25K

Commercial high-rise, corporate facilities, infrastructure

Austin
$10K-$30K

Sustainable construction, tech campuses, rapid residential growth

San Antonio
$5K-$20K

Government contracting, healthcare facilities, tourism infrastructure

Frequently Asked Questions

Common Texas contractor bond questions

How do I get a Texas contractor license and bond?
To get licensed and bonded in Texas: (1) Determine if you need TDLR specialty licensing (HVAC, electrical, plumbing) or municipal general contractor registration, (2) For TDLR: complete application ($100), pass trade exam ($136 total), obtain $300K liability insurance, (3) For municipal contractors: register with your city/county, purchase required bond ($5K-$50K depending on location), (4) Submit all documentation and fees. TDLR processing takes 15-30 days. Municipal bonds can be purchased instantly while waiting for license approval.
How much is a Texas contractor license bond?
Texas contractor license bond costs vary by municipality and bond amount. A $5,000 municipal bond (Mesquite) costs $100-$250 annually. A $25,000 bond (Beaumont) costs $250-$1,250 annually. A $50,000 bond (Longview) costs $500-$2,500 annually. Rates depend on your credit score: excellent credit (750+) pays 1-2%, good credit (680-749) pays 2-5%, fair credit (620-679) pays 5-8%. TDLR specialty contractors need insurance, not bonds.
Does Texas require a state-level contractor license bond?
No. Texas does NOT have a statewide contractor license bond requirement. Texas does not license general building contractors at the state level. However, individual cities and counties may require contractor bonds, with amounts typically ranging from $5,000 to $50,000 depending on the municipality.
What is the difference between TDLR licensing and municipal contractor bonds?
TDLR licenses specialty contractors (HVAC, electrical, plumbing) and requires insurance, not bonds. Municipal contractor bonds are required by individual cities/counties for general contractors performing work in their jurisdiction. Check with your specific city or county for local bonding requirements.
How fast is TDLR processing compared to other states?
Texas has the fastest contractor licensing in the US at 15-30 days for initial applications and 7-14 days for renewals. The digital system implemented in September 2024 further reduced processing times.
How much does a Texas municipal contractor bond cost?
Municipal contractor bond costs vary by bond amount and credit score. A $5,000 bond typically costs $100-$250 annually. A $25,000 bond costs $250-$1,250 annually. Premium rates range from 1-10% of the bond amount, with better credit receiving lower rates.

Other State Contractor Bonds

Compare requirements in other states

California
CSLB Required
$25,000

State-level requirement

Florida
DBPR Division I & II
$10K-$20K

Division-based requirements

All States
Complete directory
50 States

View all requirements

Official Resources

TDLR Contact

Phone: (512) 463-6599

Website: https://www.tdlr.texas.gov/

Visit TDLR
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