Tennessee

Contractor licensing thresholds, regulator routing, requirements, reciprocity, and license types for Tennessee’s tiered licensing model administered through the Board for Licensing Contractors.

Tennessee runs a tiered licensing system through a single primary board — the Board for Licensing Contractors — with four license types keyed to project value and trade. Separate agencies handle alarm systems, highway prequalification, and environmental abatement.

Always verify statutes, fees, and application details with the live regulator before making bidding, licensing, or legal decisions.

At a glance

The fastest way to orient yourself in Tennessee is to know three thresholds and the subcontractor rules.

Signal	Value
Contractor license trigger	$25,000 or more (as prime, construction manager, or covered subcontractor)
Home Improvement license trigger	$3,000 to $24,999 (9 specified counties only)
Masonry subcontractor trigger	$100,000 or more
Licensed subcontractor trades	Mechanical, plumbing, HVAC, electrical, roofing
Monetary limit	Set by Board based on CPA financial statement
Reciprocity model	Trade exam waivers — 9 states + NASCLA

Frequently asked questions

Pick the tab that matches your situation. Each FAQ gives a direct answer and points you to the full detail below.

Contractors

What is the minimum contract value that requires a contractor license in Tennessee?

The primary threshold is $25,000 or more, applying to prime contractors, construction managers, and covered subcontractors (mechanical, plumbing, HVAC, electrical, roofing). Masonry subcontractors trigger at $100,000. See Construction work regulated.

What is a Home Improvement license, and when is it required?

The Home Improvement license covers remodeling work from $3,000 to $24,999 but only in 9 specified counties: Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby. No exam or Board review is required, but you need insurance and a $10,000 surety bond. See Requirements.

Which subcontractor trades must be licensed?

Mechanical, plumbing, HVAC, electrical, and roofing subcontractors must be licensed at the $25,000 threshold. Masonry subcontractors trigger at $100,000. The subcontractor’s license information must appear on the bid envelope. See Construction work regulated.

Where do I go to get licensed in Tennessee?

Most work goes through the Board for Licensing Contractors. Alarm and fire sprinkler systems route to the Alarm Systems Contractors Board. Highway/bridge work routes to TDOT. Environmental abatement routes to the Department of Environment and Conservation. See Who regulates construction.

How much does it cost to get licensed?

The Contractor License application is $250 (biennial) with a $200 biennial renewal. The PSI exam fee is $55. Home Improvement licenses cost the same: $250 application, $200 renewal. LLE and LLP licenses are $50—$75 with $50 renewals. See Requirements.

What is the monetary limit on a contractor license?

The Board assigns a monetary limit on each contractor license based on the CPA-prepared financial statement. A review is required for limits at $3,000,000 or below; an audit is required above $3,000,000. The license is issued to the business entity, not the qualifying individual. See Requirements.

Can I use my out-of-state license in Tennessee?

Tennessee offers trade exam waivers with 9 states plus NASCLA accredited exams. The trade exam may be waived, but the Business and Law exam is always required, and all other application requirements still apply. See Reciprocal agreements.

What about electrical or plumbing work under $25,000?

Outside municipal code offices, electrical work under $25,000 requires a Limited Licensed Electrician (LLE) license. Plumbing under $25,000 outside municipal code offices requires a Limited Licensed Plumber (LLP) license. Both require a trade exam but no Business and Law exam. See Requirements.

Does Tennessee require a license for roofing work?

Yes. Roofing subcontractors are one of the trades that must be licensed at the $25,000 threshold. Roofing falls under the Contractor License from the Board for Licensing Contractors. See Construction work regulated.

Does Tennessee require a license for residential work?

Yes. Residential construction at $25,000 or more requires a Contractor License with the residential classification (BC-A or BC-A/r). Home improvement work from $3,000 to $24,999 in the 9 designated counties requires a Home Improvement license. See Types of licenses.

Is continuing education required?

Only for residential classification holders (BC-A or BC-A/r) whose initial license was issued after January 1, 2009. They must complete 8 hours of CE per renewal period. Other classifications have no CE requirement. See Requirements.

Regulators

How does Tennessee's licensing model compare to multi-board states?

Tennessee is primarily a single-board state — the Board for Licensing Contractors handles all four license tiers. Alarm systems, highway work, and environmental abatement route to separate agencies, but the core licensing structure is centralized. This contrasts with states like Alabama (8 boards) or North Carolina (7 boards). See Who regulates construction.

How does Tennessee's $25,000 threshold compare to other states?

The $25,000 threshold is moderate. Some states trigger as low as $500 or $1,000 (Virginia at $1,000), while others like Alabama trigger at $100,000. Tennessee’s Home Improvement license creates a lower entry point at $3,000 in 9 counties. For cross-state comparison, see Licensing thresholds.

What types of construction work are regulated at the state vs. local level?

Tennessee regulates at the state level through the Board for Licensing Contractors for most construction. The Home Improvement license applies only in 9 specified counties. LLE and LLP licenses apply outside municipal code offices. Highway work routes to TDOT. Local jurisdictions may impose additional requirements beyond state licensing.

How does the monetary limit system work?

The Board assigns a monetary limit to each contractor license based on the CPA-prepared financial statement. Reviews are accepted for limits at $3,000,000 or below; audits are required above that. This creates a financial-capacity layer on top of classification, similar to North Carolina’s tier system but more granular. See Requirements.

What license classifications does Tennessee use?

Tennessee has five major classification families: Building Construction (BC) with residential, commercial, small commercial, and industrial; Heavy Construction (HC); Highway, Railroad, and Airport (HRA); Municipal and Utility (MU); and Licensed Masonry Contractor (LMC). Mechanical (MC) and Electrical (CE) are separate classification families. Environmental and specialty categories also exist. See Types of licenses.

How does reciprocity work in Tennessee?

Tennessee offers trade exam waivers with 9 states covering building, electrical, and mechanical classifications. NASCLA accredited exams are accepted for commercial general building, electrical, and journeyman electricians. The Business and Law exam is always required. See Reciprocal agreements.

What exam requirements exist across the license tiers?

The Contractor License requires a Business and Law exam (passing score 73, PSI-administered) plus trade exams for certain classifications. Home Improvement licenses require no exam. LLE and LLP require trade exams only (passing score 72). Plumbing contractors need 3 years of experience. See Requirements.

What are the renewal cycles?

Contractor and Home Improvement licenses are biennial. LLE and LLP licenses are biennial. The Board meets 6 times per year to approve Contractor License applications. TDOT prequalification has its own renewal cycle. See Requirements.

How does the 9-county Home Improvement rule affect regulatory analysis?

The Home Improvement license (covering $3,000 to $24,999 in Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby counties) creates a geographic exception to the normal $25,000 threshold. Outside these counties, work under $25,000 is regulated locally, not at the state level. This geographic variation is unusual among Southern states.

How does Tennessee compare to other Southern states?

Tennessee’s single-board model with tiered licenses is moderately complex. The monetary limit system based on financial statements is structurally similar to North Carolina’s tiers but more flexible. The 9-county Home Improvement rule is a geographic variation not common in other states. See the South region guide.

Start with your goal

Pick the card that matches what you need right now. Each one links to the relevant section on this page.

Is licensure triggered?

Start with contract value and work lane to determine which license tier applies.

Find the right regulator

Use the regulator directory to route your question to the correct Tennessee agency.

Application and renewal details

Exams, fees, bonds, continuing education, and renewal cycles for each license type.

Reciprocity direction

Find out which states have trade exam waiver agreements with Tennessee.

Special considerations

Different roles need different things from a Tennessee page. Use the tab that matches your situation to see what matters most before you read the full detail below.

Contractors

Start with contract value. Tennessee tiers everything from that number.

• The primary contractor license threshold is $25,000.
• Mechanical, plumbing, HVAC, electrical, and roofing subcontractors must also be licensed at $25,000; masonry subcontractors at $100,000.
• Home Improvement licenses cover $3,000—$24,999 but only in 9 counties.
• Outside municipal code offices, electrical work under $25,000 requires a separate LLE license and plumbing requires an LLP.
• The Board assigns a monetary limit on each contractor license based on the CPA-prepared financial statement.
• Highway and bridge work routes to TDOT, not the Board for Licensing Contractors.

Regulators

Tennessee is a single-board state with tiered licenses — not a multi-board split.

• The Board for Licensing Contractors handles all four license tiers (Contractor, Home Improvement, LLE, LLP).
• Alarm systems, highway prequalification, and environmental abatement route to separate agencies.
• Reciprocity operates as trade exam waivers covering 9 states plus NASCLA accredited exams.
• Monetary limits on contractor licenses create a financial-capacity layer on top of classification.
• CE is only required for residential classification holders licensed after January 1, 2009.
• The four license tiers each have different exam, insurance, and fee requirements.
• Reciprocity is trade-exam-waiver only — the Business and Law exam is always required.

Readiness checklist

Four things you need to confirm before you can treat Tennessee as “ready” for a bid or an application. If any of these are unclear, you are not ready yet.

1. Classify the project lane

   Identify whether the work is general construction, a home improvement project, a limited electrical or plumbing job, highway/bridge, alarm system, or environmental abatement.

2. Apply the right threshold test

   Check $25,000 for contractor, $3,000 for home improvement (9 counties), $100,000 for masonry sub, or confirm whether LLE/LLP applies under $25,000.

3. Route to the correct regulator

   Most work goes through the Board for Licensing Contractors. Highway, alarm, and environmental work route to separate agencies.

4. Confirm the requirement set

   Confirm exams, experience, fees, insurance, bond, renewal cycle, and reciprocity rules for the exact license type before filing.

If you can identify lane, threshold, regulator, and requirement set, you have the minimum package needed for a Tennessee readiness check.

Navigation

Use these links to jump to related cross-state comparisons and workflows.

• New state evaluation if you are screening Tennessee for the first time.
• Multi-state bid readiness if you need to compare Tennessee with nearby jurisdictions.
• Licensing thresholds or prequalification patterns for cross-state context.

Construction work regulated

Tennessee’s licensing triggers depend on contract value, trade, and — for home improvement — which county the project is in.

Work lane	What triggers regulation
Prime contractor (general)	$25,000 or more
Subcontractor — mechanical, plumbing, HVAC, electrical, roofing	$25,000 or more
Subcontractor — masonry	$100,000 or more
Home improvement (remodeling)	$3,000 to $24,999 in 9 specified counties
Limited Licensed Electrician (LLE)	Electrical work under $25,000 outside municipal code offices
Limited Licensed Plumber (LLP)	Plumbing work under $25,000 outside municipal code offices
Highway and bridge construction	TDOT prequalification required

The nine Home Improvement counties are Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby. Outside these counties, work under $25,000 is regulated locally.

Common determination scenarios

If you are trying to figure out where to start, expand the scenario that is closest to your situation.

General contractor bidding a $25,000+ project

You need a Contractor License from the Board for Licensing Contractors. The Board will assign a monetary limit based on your CPA-prepared financial statement. Business and Law exam is required; trade exams apply to certain classifications.

Home remodeler in a covered county

If you are remodeling in Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, or Shelby County and the contract is between $3,000 and $24,999, you need a Home Improvement License. No exam or Board review is required, but you need insurance and a $10,000 surety bond.

Electrician working outside city limits

If the project is under $25,000 and the area does not have a municipal code inspection office, you need a Limited Licensed Electrician (LLE) license. A trade exam is required but no Business and Law exam.

HVAC or plumbing subcontractor on a large project

Mechanical, plumbing, HVAC, electrical, and roofing subcontractors must be licensed as a contractor at the $25,000 threshold. Masonry subcontractors trigger at $100,000. The subcontractor’s license information must appear on the bid envelope.

Reciprocity request from another state

Tennessee offers trade exam waivers only — the Business and Law exam is always required. Confirm your state and classification are covered in the reciprocal agreements section below.

Who regulates construction

Tennessee routes construction licensing through the Board for Licensing Contractors for most work, with three additional agencies handling specialized lanes.

Most construction — Board for Licensing Contractors

500 James Robertson Parkway, Nashville, TN 37243-0565

Phone: [phone] or [phone] | Fax: [phone]

Email: [e-mail]

Website: tn.gov/commerce/regboards/contractors.html

Alarm and fire sprinkler systems — Alarm Systems Contractors Board

Division of Regulatory Boards

Website: tn.gov/commerce/regboards/alarm.html

Highway and bridge prequalification — Department of Transportation

Website: tn.gov/tdot/tdot-construction-division.html

Lead, asbestos, and soil remediation — Department of Environment and Conservation

Website: tn.gov/environment.html

Requirements

Tennessee’s four license types each have distinct exam, insurance, fee, and renewal requirements. Expand the license tier that applies to your situation.

Contractor License ($25,000+)

Requirement	Detail
Exam	Business and Law exam required for all applicants; trade exams for certain classifications. Administered by PSI Services. Passing score: 73.
Experience	No set experience requirement except plumbing (3 years).
Financial statement	CPA-prepared. Review required for limits at $3,000,000 or below; audit required above $3,000,000.
Insurance	General liability and workers’ compensation required.
Bond	Not required for the state license; may be required locally for bidding or permits.
Continuing education	8 hours required for residential classification (BC-A or BC-A/r) if initial license was issued after January 1, 2009.
Board approval	Applications are approved by the Board, which meets 6 times per year.

Fee	Amount
Application (biennial license)	$250
Biennial renewal	$200
Exam (PSI)	$55

Each license is assigned a classification and a monetary limit. Licenses are issued to the business entity providing the financial statement, not to the qualifying individual unless they have ownership.

Home Improvement License ($3,000--$24,999)

Requirement	Detail
Exam	None required.
Board review	None required.
Counties	Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, Shelby.
Insurance	General liability and workers’ compensation required.
Bond	$10,000 surety bond or equivalent financial responsibility.

Fee	Amount
Application (biennial license)	$250
Biennial renewal	$200

Limited Licensed Electrician — LLE

Requirement	Detail
Exam	Trade exam via PSI. No Business and Law exam required. Passing score: 72.
Insurance	Not required for the state license; may be required locally.

Fee	Amount
Application (biennial license)	$50
Biennial renewal	$50
Exam (PSI)	$55

Limited Licensed Plumber — LLP

Requirement	Detail
Exam	Trade exam via PSI. No Business and Law exam required. Passing score: 72.
Insurance	Not required for the state license; may be required locally.

Fee	Amount
Application (biennial license)	$75
Biennial renewal	$50
Exam (PSI)	$55

Reciprocal agreements

Tennessee offers trade exam waivers through the Board for Licensing Contractors. A reciprocal agreement waives only the trade exam — the Business and Law exam is always required, and all other application requirements still apply.

Reciprocity in Tennessee means a trade exam waiver, not a full license transfer. The Business and Law exam and financial requirements still apply.

Classification	Reciprocal states	Coverage
Building (residential / commercial)	Alabama, Arkansas, Louisiana, Mississippi, North Carolina, South Carolina, West Virginia	7 states
Electrical	Alabama, Georgia, Louisiana, Mississippi, North Carolina, Ohio, West Virginia	7 states
Mechanical (HVAC / plumbing)	Alabama, Louisiana, Mississippi, Ohio, West Virginia	5 states
Masonry	West Virginia	1 state
NASCLA accredited exams	Commercial General Building, Electrical, Journeyman Electricians	3 exams

State-by-state reciprocity detail

State	Classifications covered
Alabama	General, Residential, Electrical, HVAC
Arkansas	Commercial / Residential Building only
Georgia	Electrical
Louisiana	Residential, Commercial, Electrical, Mechanical
Mississippi	Residential, Commercial, Electrical, Mechanical
North Carolina	Residential / Commercial Building, Electrical
Ohio	Electrical, Plumbing, HVAC
South Carolina	Commercial Contractors
West Virginia	Residential, Commercial, Industrial Building, Electrical, Mechanical, Masonry

Types of licenses

Tennessee assigns classifications within the Contractor License. Each classification defines the scope of work permitted. Use these tabs to find the classification that matches your project.

Building Construction (BC)

• Residential
• Commercial
• Small Commercial
• Industrial
• 34 specialty building categories

Heavy and Infrastructure

HC — Heavy Construction:

• Marine (wharves, docks, harbor improvements, terminals)
• Tunnel and shaft
• Energy and power plants
• Dams, dikes, levees, and canals
• Mining — surface and underground
• Oil field construction; oil refineries
• Landfill construction
• Storm damage clean-up
• Structural steel erection
• Tower and stack construction
• Foundation construction, pile driving, drilling, and stabilization
• Demolition and movement of structures
• Clearing, grubbing, snagging, and rip rap
• Slipform concrete structures
• Rigging and crane rigging; welding

HRA — Highway, Railroad, and Airport:

• Grading and drainage
• Base and paving
• Bridges and culverts
• Railroad construction
• Miscellaneous and specialty items

MU — Municipal and Utility:

• Underground piping
• Water and sewer systems (requires BC-B for plant construction)
• Grading and drainage
• Base and paving
• Miscellaneous concrete (sidewalks, driveways, curb and gutter, box culverts)

LMC — Licensed Masonry Contractor

Mechanical (MC)

• Plumbing and gas piping
• Process piping
• HVAC, refrigeration, and gas piping
• Sprinklers and fire protection
• Insulation of mechanical work
• Pollution control
• Pneumatic tube systems
• Temperature controls (pneumatic)
• Boiler construction and repairs
• Fuel gas piping

Electrical (CE)

• Electrical transmission lines
• Electrical work for buildings and structures
• Underground electrical conduit installation
• Electrical signs
• Data communication systems (fiber optics, cabling)
• Cable TV
• Substations
• Building automation controls
• Roadway lighting, attenuators, and signalization
• Electric meter installation

Sound, intercom, fire detection, signal, burglar alarm, and security systems up to 70 volts do not require an electrical exam. Above 70 volts, an electrical exam is required. Alarm systems also require a separate license from the Alarm Systems Contractors Board.

Specialty and Environmental (S)

• Asbestos material handling and removal
• Underground storage tank
• Lead-based paint abatement
• Hazardous waste remediation
• Air, water, or soil remediation
• Mold remediation
• Medical gas piping

See also

South region guide

Browse all South jurisdictions for comparison.

Contractors guide

Cross-state guidance for contractors evaluating new jurisdictions.

Regulators guide

Cross-state guidance for comparing regulatory models and agency structures.

Neighboring jurisdictions with reciprocity ties:

Alabama

Building, electrical, residential, and HVAC trade exam waivers with Tennessee.

Mississippi

Residential, commercial, electrical, and mechanical trade exam waivers with Tennessee.

North Carolina

Building and electrical trade exam waivers with Tennessee.