Short answer: A Texas Electrical Contractor license requires a Master Electrician of record (the owner or an employee), liability insurance of at least $300,000 per occurrence, $600,000 aggregate and $300,000 products and completed operations, proof of workers’ compensation coverage or a filed election not to carry it, and a $110 mailed application. It renews yearly for $110.
Part of Texas Electrician Exams: every Texas license step and exam in one place.
Planning to open an electrical contracting business in Texas? Start with the Master of record. That can be a licensed Master Electrician you employ, or you, if you hold the Master license. If you will serve as your own Master of record and do not yet hold a Texas Master Electrician license, passing the Master exam is one step toward that role. If your business already employs a licensed Master Electrician, go straight to the application and insurance checklist below. The Texas Master Practice Pack has 368 practice questions and 10 timed two-part mocks in the PSI format. US$79 once.
Tsai Electro is an independent learning site. Not affiliated with TDLR or PSI. This page summarizes TDLR’s public pages and the Texas Occupations Code as we checked them in October 2026. It is not legal, insurance or tax advice. Confirm every requirement with TDLR before you apply.
What the license covers
TDLR describes electrical contractors as licensed to engage in the business of designing, installing, erecting, repairing or altering electrical wiring for light, heat, power or signaling, including raceways and electrical machinery and apparatus (TDLR Electrical Contractor page). Put simply: the contractor license is for the business that sells and performs electrical work. The individual licenses (Master, Journeyman, Apprentice) are for the people who do the work.
Requirements at a glance
| Requirement | What TDLR asks for |
|---|---|
| Master Electrician of record | The business must employ a licensed Master Electrician, who may also be the owner |
| One contractor per Master | A Master may be assigned to only one electrical contractor, unless the Master owns more than 50% of the business |
| Liability insurance | At least $300,000 per occurrence, $600,000 aggregate, and $300,000 aggregate for products and completed operations |
| Proof of insurance | TDLR’s Electrical Contractor Certificate of Insurance form, with the business name matching the application |
| Workers’ compensation | Proof of coverage, a certificate of authority to self-insure, or a statement that you elected not to carry it, with the online notice of no coverage filed with the Texas Department of Insurance |
| Application | Mailed application with a $110 non-refundable fee |
| Background check | Criminal history check, including fingerprinting |
| Term | One year; renew annually |
Sources: TDLR Electrical Contractor application page and TDLR Electrical Contractor renewal page. The Master of record rule, the insurance (financial responsibility) requirement and the workers’ compensation choice also appear in the law itself, Texas Occupations Code section 1305.159 (statute text).
Bonds: TDLR’s contractor pages do not list a bond requirement. Check TDLR and the local permit office for each job before you assume none is needed.
If your Master of record leaves
TDLR’s application page says that when the Master of record leaves your business, you must notify TDLR and designate a new Master within thirty business days of the separation, using the Electrical Contractor Notice of Change form. Plan for this before it happens: a one-Master shop that loses its Master has a short window.
Worked example: does this policy meet the minimums?
A new shop’s insurance quote lists $500,000 per occurrence, $500,000 aggregate and $500,000 products and completed operations.
- Per occurrence: $500,000 is at least $300,000. Meets.
- Aggregate: $500,000 is less than $600,000. Does not meet.
- Products and completed operations: $500,000 is at least $300,000. Meets.
- Result: the policy fails on the aggregate limit. It needs at least $100,000 more aggregate coverage ($600,000 − $500,000).
Check: each line must meet its own minimum; a higher limit on one line does not make up for a lower one on another.
Renewal and late fees
| When you renew | Fee |
|---|---|
| On time | $110 |
| Expired 90 days or less | $165 |
| Expired 91 days to 18 months | $220 |
| Expired over 18 months, under 3 years | $220, by mail with a request form |
| Expired 3 years or more | Cannot be renewed; apply as new |
From the TDLR renewal page. A certificate of insurance must be attached to the renewal, and its business name must match the application.
Late by a month costs $165 − $110 = $55 more than renewing on time. Put the date in two calendars.
Cities and permits
Texas law lets cities require inspections, give exams and issue local licenses, but a city may not make a person with the matching state license take a local exam for the same work. A city may not charge a state-licensed electrician a permit, registration or administrative fee for work in the city, though it may still charge a building permit fee (Texas Occupations Code section 1305.201). Electrical work inside city limits must also meet local ordinances, including any local NEC amendments. Before you bid, ask the local permitting authority which permits, inspections, local code amendments and permit fees apply to the project. Keep those separate from the statewide TDLR license requirements.
Check yourself
Our own practice questions. Answers below each.
- Can one Master Electrician be the Master of record for more than one electrical contractor? Answer: Generally no. TDLR allows an exception when the Master owns more than 50% of the electrical contracting business. Check the ownership and assignment conditions before relying on it.
- A policy shows $300,000 per occurrence, $600,000 aggregate and $250,000 products and completed operations. Does it meet the minimums? Answer: No. Products and completed operations must be at least $300,000.
- Your license expired 4 months ago. Renewal fee? Answer: $220.
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A field reference for your crew
Ugly’s Electrical References, 2026 Edition. The publisher’s description lists mathematical formulas, ampacity and conduit fill information, conversion tables, and transformer and control circuit wiring diagrams. It is a field reference, not a substitute for the NEC.
The full Texas ladder to running your own shop
| Stage | Requirement | Exam |
|---|---|---|
| Electrical Apprentice | None, $20 online | None |
| Journeyman Electrician | 8,000 hours under a Texas master (exam allowed at 7,000) | Two parts on the 2026 NEC |
| Master Electrician | Journeyman for 2 years and 12,000 hours | Two parts on the 2026 NEC |
| Electrical Contractor | Master of record, insurance, $110 | No separate exam listed |
Most of the waiting time is the experience requirement, and most of the risk is in the exams. The Texas electrician timeline estimates how long each step takes. In TDLR fiscal year 2025, only 22.21% of Master NEC Knowledge attempts and 19.08% of Master Calculations attempts passed. See the Texas Master Electrician exam guide and the Texas Journeyman exam guide.
Still on the way to Master?
The exams are the hardest gates on this ladder. Start with the 70 free Texas Journeyman practice questions on the 2026 NEC, available in rounds of 20 with no sign-up. Already a Journeyman? Try 20 free Master questions, or see the Texas Master practice pack, US$79.
FAQ
What do you need to get an electrical contractor license in Texas?
How much insurance does a Texas electrical contractor need?
Does a Texas electrical contractor need a bond?
Can a Master Electrician work for two contractors in Texas?
Is there an exam for the Texas electrical contractor license?
How much does a Texas electrical contractor license cost?
Do Texas electrical contractors need continuing education?
Is this the same as an Electrical Sign Contractor or Residential Appliance Installation Contractor license?
Next step on the Texas ladder
You are here: Contractor license. Next: Continuing education. Your Master Electrician license still needs continuing education at each renewal.
Also useful: License types compared · All Texas electrician exams
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Texas license ladder
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Sources checked October 2026
- TDLR Electrical Contractor application page: https://www.tdlr.texas.gov/electricians/apply/businesses/contractor-elec.htm
- TDLR Electrical Contractor renewal page: https://www.tdlr.texas.gov/electricians/renew/businesses/contractor-elec.htm
- Texas Occupations Code section 1305.159, Electrical Contractor: https://texas.public.law/statutes/tex._occ._code_section_1305.159
- Texas Occupations Code section 1305.201, Municipal or Regional Regulation: https://texas.public.law/statutes/tex._occ._code_section_1305.201
- TDLR FY2025 exam statistics: https://www.tdlr.texas.gov/electricians/elecExamStats2025.htm
- TDLR electrician FAQ: https://www.tdlr.texas.gov/electricians/elecfaq.htm
- TDLR Active License Search: https://www.tdlr.texas.gov/LicenseSearch/
- Texas Open Data Portal, TDLR All Licenses dataset: https://data.texas.gov/dataset/TDLR-All-Licenses/7358-krk7