How Much to Charge as a Contractor (Real Numbers by Trade)

The wrong way to set your hourly rate is “what the next guy charges” or “what feels fair.” The right way is to work backward from your target take-home income, then sanity-check it against regional benchmarks. Here’s the four-step pricing framework, real 2026 hourly rates by trade and region, and the cardinal rule: your rate isn’t set by the market — it’s set by your math, then validated against the market.

The four-step framework

Step 1 — Know your target take-home

Pick a real number you want to keep, after taxes. For most solo trades the realistic range is $60,000-$120,000 take-home in 2026. Less than $60k and you’re working for less than the median wage; more than $120k solo and you typically need to bring on help.

Step 2 — Add the costs you can’t skip

Self-employment tax (15.3% on the first $168,600 in 2026), federal income tax (~22%), state income tax (varies), business expenses (insurance, vehicle, software, tools, marketing). For most solo trades, expenses run $10,000-$25,000/year on top of taxes.

Step 3 — Know your billable hours

Out of 2,080 working hours per year, solo trades realistically bill 1,200-1,600. Drive time, estimating, admin, and downtime eat the rest. Pad your math toward 1,400 if you’re honest with yourself; 1,500 if you’re aggressive.

Step 4 — Calculate, then sanity-check

Use the free hourly rate calculator to plug your numbers in. The output is your minimum bill rate. Then sanity-check against regional benchmarks below — if you’re 20%+ below market, you’re leaving money on the table; if you’re 20%+ above, you’d better justify it on quality or specialty.

Real 2026 contractor hourly rates by trade

These are residential service rates from BLS, NACM, ServiceTitan benchmarks, and contractor surveys for the past 12 months. Ranges reflect regional variation (low end = rural Midwest/South, high end = urban West Coast and Northeast):

HVAC

• Service call: $85-$200 (diagnostic flat rate)
• Hourly labor: $90-$180/hr
• System install (3-ton residential): $5,500-$12,000 all-in

Electrical

• Service call: $75-$150
• Hourly labor: $85-$175/hr
• Panel upgrade (200A): $2,800-$5,500
• EV charger install (Level 2): $1,200-$3,000 depending on run length

Plumbing

• Service call: $75-$200
• Hourly labor: $80-$200/hr
• Drain cleaning (residential): $200-$600
• Water heater swap (40-50 gal gas): $1,500-$3,200

General contracting / handyman

• Hourly labor: $60-$120/hr
• Bathroom remodel (small/mid): $12,000-$28,000
• Kitchen remodel (mid): $30,000-$70,000
• Deck build (300 ft²): $9,000-$18,000

Roofing

• Asphalt shingle replacement: $4-$8/sq ft
• Metal roofing: $9-$16/sq ft
• Hourly labor (repair): $60-$120/hr

Landscaping

• Hourly labor: $50-$100/hr
• Lawn mowing (residential): $35-$80 per visit
• Hardscape (paver patio): $15-$30/sq ft

Why trade-only rate comparisons mislead

Two contractors charging $120/hr can have wildly different actual income depending on:

• Travel time — rural contractors with 45-min drives between calls bill 30% fewer hours per day than urban contractors with 5-min drives
• Service vs project mix — service calls have lower utilization but higher per-hour rates; project work fills more hours at lower rates
• Subcontracting — a GC marking up subs at 15% on a $50k subcontract makes $7,500 in profit they didn’t bill an hour for
• Material markup — trades with high material throughput (HVAC, plumbing) make significant revenue from the markup, not just labor

The hourly rate is the headline number, but the take-home depends on your full revenue mix. Use the rate to set the floor, then track actual margins per job to see what’s working.

When to raise rates

Three signals that you’re underpriced:

1. You close more than 70% of quotes. A close rate above 70% almost always means you’re underpriced. Healthy is 40-55%.
2. You’re booked 4+ weeks out. Demand exceeds capacity — the market is signaling the price is too low.
3. You haven’t raised rates in 18+ months. Inflation alone is 3-4%/year. If your rate hasn’t moved in 2 years, you’ve effectively cut prices 7-8% in real terms.

Standard rate increase: 5-10% per year, communicated 30-60 days ahead. See our guide on how to write a price increase letter.

FAQ

How much should I charge per hour as a new contractor?

Don’t default to the low end — you’ll never recover from anchoring. Set your starting rate at 80-90% of the regional median for your trade, with a clear plan to move to median within 12 months as you demonstrate quality.

Should I publish my rates online?

Service-call flat rates: yes, publish. Hourly labor: rarely — varies too much by job complexity. Major project pricing (kitchen remodel, panel upgrade): publish ranges, not fixed prices. Customers respect transparency on the predictable stuff.

How do I justify higher rates to customers?

You don’t justify rates — you justify value. Specifics: your warranty length, response time, equipment quality, certifications, insurance coverage, and review track record. The cheapest contractor wins customers focused on price; the second-cheapest wins customers focused on value.