Tennessee Contractor License Requirements (TN)
Tennessee requires a contractor license from the Board for Licensing Contractors for projects valued at $25,000 or more. Applicants must pass a business and law exam plus a trade exam. Insurance is mandatory. Home improvement contractors working on projects under $25,000 are exempt from state licensing but may need local permits.
License Requirements in Tennessee
| State License Required | Yes |
| License Threshold | $25,000+ |
| Exam Required | Yes |
| Insurance Required | Yes |
| Bond Required | No |
| Experience Required | None |
| License Fee | $350 |
| Renewal Period | Biennial |
Specialty Licenses in Tennessee
In addition to the general contractor license, Tennessee requires separate licenses for the following specialty trades:
Specialty trade licenses typically have their own exam, experience, and insurance requirements separate from the general contractor license. Contact Tennessee's licensing board for specific requirements for each trade.
City-Specific Requirements in Tennessee
In addition to the state-level license, many cities in Tennessee have additional local requirements. Below are the major cities and their specific contractor requirements.
| City | Additional Requirements | Notes |
|---|---|---|
| Nashville | Davidson County business license | Metro Nashville handles its own building permits |
| Memphis | City contractor license required for projects under state threshold | -- |
| Knoxville | City business license | -- |
What Happens If You Work Without a License in Tennessee?
Working without a required contractor license in Tennessee can result in significant penalties including fines, criminal charges (misdemeanor in most states), inability to enforce contracts or collect payment, and being barred from obtaining a license in the future. Consumers may also have difficulty obtaining insurance coverage for work performed by unlicensed contractors. Tennessee's licensing board actively investigates complaints about unlicensed contracting.
How to Get Licensed in Tennessee
- 1 Prepare for and pass the required exam(s). Tennessee requires passing a contractor licensing exam. Study materials are typically available from the state licensing board or approved exam providers.
- 2 Submit your application and fee. The license fee in Tennessee is $350. Applications are submitted to the state licensing board.
- 3 Obtain required insurance. You must provide proof of general liability insurance and, in most cases, workers' compensation coverage.
How Tennessee Compares to Other States
Below is a comparison of Tennessee with five states that have similar licensing strictness levels. Understanding how your state compares can help you assess whether the regulatory environment is typical or unusual.
| State | License | Threshold | Exam | Bond | Strictness |
|---|---|---|---|---|---|
| Tennessee (TN) | Yes | $25,000+ | Yes | No | 5/10 |
| Arkansas (AR) | Yes | $2,000+ | Yes | No | 5/10 |
| Georgia (GA) | Yes | $2,500+ | Yes | No | 5/10 |
| Idaho (ID) | Yes | All projects | No | No | 5/10 |
| Maryland (MD) | Yes | All projects | No | No | 5/10 |
| Montana (MT) | Yes | All projects | No | No | 5/10 |
Need More Information?
Use our contractor license lookup tool to quickly check requirements for any state, or browse all 50 states and DC ranked by strictness to compare licensing environments. Remember: this information is for general educational purposes only. Licensing requirements change, and specific situations may have additional requirements. Always verify current rules directly with Tennessee's contractor licensing board before starting work.