Here's the short answer. In most states a handyman can legally take small jobs without a contractor license, but only under a dollar limit, and only when the work doesn't need a building permit or a licensed trade. Go over that line and you need a license. The limit changes from state to state. California and Arizona sit at $1,000. Georgia is $2,500. Texas has no state general contractor license at all. With handyman license limits, though, the dollar figure is rarely what catches people out. It's the permit, the outlet they swapped, or the job they split into two invoices.
Last checked: October 2026. These rules change, so confirm your state's current position with its licensing board before you quote.
What's the difference between a handyman and a licensed contractor?
A handyman relies on an exemption. A licensed contractor holds a license.
That's the whole difference, and it matters more than people think. The exemption isn't a license. It's a narrow gap in the law that lets you do minor work without one. You don't get a classification, and you don't get permission to do bigger work just because you've been doing small jobs for ten years.
A licensed contractor has passed whatever the state requires. That might be exams, experience, a bond, insurance or a mix of all four. In return they can take on bigger jobs, pull permits and, depending on the license class, run subs.
Here's the part people hate hearing: the client doesn't care which one you are until something goes wrong. Then it's all they care about.
Handyman license limits by state: real examples
I'm not going to give you a 50-state table. Half of it would be out of date by the time you read it, and a wrong number in a table is worse than no number. These are the patterns, with real states as examples.
California: under $1,000, no employees, no permit
From January 1, 2025, California's minor work exemption went from $500 to $1,000. That was the first increase since 2005. The $1,000 covers everything: labor, materials, all of it. The catch is that the exemption only applies if the job needs no building permit and you don't hire workers. If you advertise, your ads have to say you're not licensed. Check the CSLB for the current wording.
Arizona: under $1,000 and no permit
Arizona's handyman exemption covers casual or minor work where the total contract price is under $1,000 and no local building permit is required. Both conditions have to be true. Electrical and plumbing work don't qualify, whatever the price. The Arizona Registrar of Contractors (ROC) enforces it.
Georgia: $2,500 on residential work
Georgia has no handyman license. Once a residential job goes over $2,500, you need a license from the state board for residential and general contractors. Electrical, plumbing and HVAC need their own trade licenses whatever the job is worth.
Tennessee: tiers, and it depends on the county
Tennessee uses three tiers. Under $3,000 you don't need a state license, but trade work is still out. From $3,000 up to $25,000, some counties require a Home Improvement License. At $25,000 and up you need a full contractor license from the state board. Which tier applies to you depends on where the job is, so check your county against the state's list.
Texas: no state general license, but the trades are licensed
Texas doesn't license general contractors at the state level. That doesn't make it a free-for-all. Electricians, plumbers and HVAC techs are all licensed by the state, and cities can add their own registration and permit rules. A Texas handyman can hang doors all day, but rewiring a circuit is still off the table.
Nevada: recently changed, so read the current rules
Nevada's minor work rules changed in 2025, and the state also created an entry-level contractor license. I'm not quoting a figure here because I'd rather you read it from the Nevada State Contractors Board than from a blog. That's true of every state on this list.
The things that kill the handyman exemption
The dollar limit is the bit everyone talks about. These are what actually get people fined:
- The job needs a permit. In California and Arizona, a permit means you need a license, even if the job is worth $300.
- You touch a licensed trade. Electrical, plumbing, gas and HVAC are carved out almost everywhere. Swapping a light fixture can count as electrical work.
- You split the job. Two $900 invoices for one bathroom count as one $1,800 job. States check for this.
- You hire help. California's exemption doesn't cover anyone hiring workers. Other states have their own versions of this rule.
- The scope grows on site. You quoted $800, the client asks you to "just do the other wall too", and now you're over the limit. The limit applies to the whole job, not just what you quoted at the start.
Number five is the one that gets good tradespeople. You don't plan to break the law. The job just keeps growing.
How to check your own state in 15 minutes
Do this once, write it down, and stick it in the van.
- Find your state's contractor licensing board. Use the official .gov site, not a lead-gen site with a table.
- Look for "exemptions" or "minor work". Write down the dollar figure and whether it includes materials.
- Write down what disqualifies you: permits, employees, specific trades.
- Check your city and county. Local registration and permit rules sit on top of state law.
- Check the trade boards separately. Electrical and plumbing licensing often sits with a different board.
If you can't find a clear answer, call the board. They answer this question every day.
If you run subs, the license question gets bigger
This is where I have strong opinions. I ran a property maintenance company in London using a network of subcontractors. Different country, different rules, same trap.
Once you're the operator, meaning the business that holds the client and hands work out to subs and your own crew, the question is no longer just "am I licensed?" Now it's two questions. Are you licensed to hold that contract? Is each person you send licensed for the part they're doing?
In plenty of states, a handyman exemption doesn't let you take a $15,000 remodel and sub the whole thing out. You'd be acting as a contractor without a license, even if every sub holds one.
The rule I ran my company on was simple. Whoever holds the contract carries the risk. If the sub's license lapses mid-job, the client calls you. If the inspector shows up, they're looking for you. A cheap sub with no license isn't a saving. It's a liability you're paying for.
If you want the bigger picture on running the middleman model properly, I write about it on Construction Arbitrage, a sister site of ours.
How Plan@Job fits, and what it won't do
Straight answer first. Plan@Job doesn't decide which license class a job needs, and it doesn't filter work by your license. That decision stays with you. Any software that claims to take the compliance guesswork away from you is overselling.
What it does is give you a clean place to make that decision and stick to it.
With Plan@Job project management, you split a job into internal stages, each with its own scope, dates, status and costs. Each stage can go to a sub or stay with your own crew. So the electrical stage goes to your licensed electrician, the drywall goes to whoever you trust, and you see the whole job in one place.
The client sees the agreed scope, the price and the evidence you choose to share. Your stage costs and the identity of your subs stay internal.
The AI staff help with the admin around this. Sophie Bennett, the AI Enquiries Coordinator, checks job briefs for missing information and asks for it. That matters when "small fix" turns out to mean a new circuit. Daniel Reed, the AI Operations Manager, chases quotes and proposed dates and sends a morning brief. Neither of them awards work. You approve who does what, and that's where you check their license.
One thing to be clear on: subs can sometimes price a job before they've been through vetting. A quote isn't an award. Do your license and insurance checks before you give anyone the job.
Illustrative example: a client asks for a kitchen refresh. You split it into stages: cabinet doors and paint with your own crew, a new outlet with a licensed electrician, the backsplash with a tile sub. Total value puts you over your state's handyman limit, so you only take it if you hold the right license. If you don't, you pass on it. That's a 30-second decision when the stages are laid out in front of you.
The UK is our live market right now. US contractors can join the waitlist on the Plan@Job US contractors page.
FAQ
Can a handyman legally do jobs over $1,000?
In some states, yes. Georgia's limit is $2,500, and Tennessee's tiers start at $3,000. In California and Arizona, $1,000 is the ceiling, so a job at $1,000 or more needs a license. Check your own state board, because the figure and what counts toward it both vary.
Does the handyman limit include materials?
Usually yes. California and Arizona both count labor, materials and everything else in the contract price. Some states have looked at excluding materials, so read the exact wording for your state rather than assuming.
Can a handyman do small electrical or plumbing jobs?
Almost never under the handyman exemption. Most states carve out electrical, plumbing, gas and HVAC regardless of job value. If the job touches those trades, send it to a licensed tradesperson. It's not worth the risk.