Tennessee Contractor License Requirements
verifiedState-Level License RequiredTennessee requires licensing for contractors on projects over $25,000. Multiple license classifications with monetary limits from $25,000 to unlimited.
gavelHow Contractor Licensing Works in Tennessee
Tennessee requires a license from the Tennessee Board for Licensing Contractors on any project of $25,000 or more, a threshold that catches most real construction work while leaving small jobs open. Classifications divide the field — BC for building construction, BC-A for unlimited building work, HH for highway and heavy, ME for mechanical and electrical, and SP for specialties — and each license carries a monetary limit running from $25,000 up to unlimited, set by your financial statement. The threshold sits below North Carolina's $30,000 and well below Oklahoma's $50,000 commercial line, making Tennessee comparatively strict among threshold states. The Board signs no reciprocity agreements, so arriving contractors start from scratch.
Build the application in order: document your experience with a solid reference, pass the PSI exam for your classification, and prepare the financial statement strategically — it fixes your monetary limit, and a thin statement means turning down work you could otherwise win. Insurance at the $300,000 liability level and workers compensation complete the file, and renewal runs annually from your issue date. Tennessee's enforcement pattern highlights two errors worth avoiding: bidding jobs above your monetary limit, and splitting contracts to stay under $25,000, both of which the Board treats as violations. Choose between BC and BC-A deliberately at application time; upgrading a limit later reopens the financial review.
account_balanceLicensing Board
Board Name
Tennessee Board for Licensing Contractors
Phone
(615) 741-8307
descriptionLicense Types
| Type | Threshold | Notes |
|---|---|---|
| General Contractor (BC) | $25,000+ | Building construction over $25,000 |
| General Contractor (BC-A) | $25,000+ | Unlimited building construction |
| Highway/Heavy (HH) | $25,000+ | Highway and heavy construction |
| Mechanical/Electrical (ME) | $25,000+ | Mechanical and electrical work |
| Specialty (SP) | $25,000+ | Specific specialty classifications |
checklistRequirements
- check_circlePass trade exam (PSI)
- check_circleFinancial statement
- check_circleProof of insurance
- check_circleWorkers compensation
- check_circleExperience reference
paymentsFee Schedule
Application
$350
Annual Renewal
$175
Exam Fee
$200
event_repeatRenewal Period
Annual — license issue date
shieldInsurance Minimums
General Liability
$300,000
Workers Compensation
Required
swap_horizReciprocity
- arrow_forwardNo reciprocity agreements
helpFrequently Asked Questions
Do I need a contractor license in Tennessee?
Yes, for any project of $25,000 or more — the Tennessee Board for Licensing Contractors requires a license above that line across building (BC/BC-A), highway and heavy (HH), mechanical/electrical (ME), and specialty (SP) classifications. Each license carries a monetary limit based on your financial statement, from $25,000 up to unlimited.
What are the penalties for unlicensed contracting in Tennessee?
Contracting at or above $25,000 without a license invites Board enforcement and seriously damages your ability to recover payment — Tennessee courts sharply limit what unlicensed contractors can collect. Splitting one project into smaller contracts to dodge the threshold is treated as the same violation, not a workaround.
Does Tennessee have contractor license reciprocity?
No — Tennessee maintains no reciprocity agreements. Contractors licensed in Georgia, North Carolina, Alabama, or elsewhere complete the full Tennessee process: PSI exam, financial statement, experience reference, insurance at the $300,000 level, and workers compensation. Out-of-state experience counts toward the requirement when properly documented, but no exam waivers exist.
How long does it take to get licensed in Tennessee?
Most contractors should budget one to two months after deciding to apply: exam scheduling and passage, then Board review of the financial statement, experience reference, and insurance proof. The financial statement is the strategic document — it sets the monetary limit on your license, so preparing it well up front avoids a constrained license or a reopened review later.
infoData sourced from state licensing board websites. Requirements change frequently — verify with your state board before applying. Last updated April 2026.