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Guides for auto repair shops

Auto repair labor rates by state, and how to read them

The average independent shop labor rate in the US is about $132 an hour, according to Tekmetric's 2026 index of more than 10,000 shops. State averages run from about $100 (West Virginia) to $161 (Alaska), with California, Washington, Nevada, Colorado and Oregon all at $150 or more [1].

Below is the full table for all 50 states, how other surveys compare, why rates differ so much even inside one state, how to find the going rate in your own town, and how to use these numbers when you set or raise your own rate.

Average labor rate by state (2026)

Figures are Tekmetric's state averages for shops using its software, published June 2026 [1]. The last column is the gap to the $132 national average. The District of Columbia isn't in the table.

StateAverage per hourvs $132
Alabama$124−8
Alaska$161+29
Arizona$145+13
Arkansas$116−16
California$156+24
Colorado$151+19
Connecticut$141+9
Delaware$141+9
Florida$138+6
Georgia$137+5
Hawaii$142+10
Idaho$136+4
Illinois$135+3
Indiana$123−9
Iowa$123−9
Kansas$120−12
Kentucky$126−6
Louisiana$132+0
Maine$110−22
Maryland$141+9
Massachusetts$133+1
Michigan$130−2
Minnesota$137+5
Mississippi$125−7
Missouri$120−12
Montana$135+3
Nebraska$127−5
Nevada$152+20
New Hampshire$128−4
New Jersey$140+8
New Mexico$141+9
New York$125−7
North Carolina$123−9
North Dakota$135+3
Ohio$125−7
Oklahoma$129−3
Oregon$150+18
Pennsylvania$115−17
Rhode Island$134+2
South Carolina$130−2
South Dakota$120−12
Tennessee$127−5
Texas$141+9
Utah$135+3
Vermont$110−22
Virginia$136+4
Washington$152+20
West Virginia$100−32
Wisconsin$125−7
Wyoming$134+2

The middle state sits at about $133.50, so the national figure isn't pulled far by a few expensive states. Half the states fall between $124 and $141.

The highest and lowest states

HighestRateLowestRate
Alaska$161West Virginia$100
California$156Maine$110
Washington$152Vermont$110
Nevada$152Pennsylvania$115
Colorado$151Arkansas$116
Oregon$150Kansas, Missouri, South Dakota$120

The pattern is mostly the West. Six of the seven states at $145 or more are western states with high rents and high technician pay. The low end is a mix of rural states in the Northeast, the Appalachians and the Plains.

Some results surprise people. New York averages $125 in this table, under Texas at $141. A state average blends a whole state: New York's figure includes many upstate towns, and a shop in Manhattan or on Long Island will charge well above it. Don't use the state line as your price; use it as a starting point.

Why the surveys don't agree

Search "labor rates by state" and you'll find numbers that look nothing alike. That's because each survey counts different shops, in different years, in different ways.

SourceWhat it foundWho it counts
Tekmetric shop index, 2026 [1]$132 national; states $100–$16110,000+ shops on its software
PartsTech report, early 2025 [2]Nearly half of shops charge $120–$159752 US shops, survey answers
AMN Labor Rate Tracker, cited by MOTOR in 2025 [3]California highest at $176, Mississippi lowest at $1101,082 shops reporting their own rate
AAA state page [4]$211–$281 per stateTaken from World Population Review, no date; these sit far above every shop survey and look like an average repair cost, not an hourly rate

The honest summary: most independent general repair shops charge somewhere between about $110 and $160 an hour, and rates of $200 and up are now seen in expensive metros and at specialists [3]. Any one state figure can be off by $20 either way depending on the survey.

Two more reasons the numbers drift:

Why rates differ inside one state

A state average hides a wide spread. In 2023 MOTOR reported California shops charging from $140 in Bakersfield to $297 in San Leandro [5]. The same forces drive the gap anywhere:

How to find the labor rate in your town or zip code

No public database is complete for every zip code, so build your own short list. It takes about an hour.

  1. List 8–10 shops within a short drive: 2–3 independents like yours, 1–2 specialists, the nearest dealers for the brands you see most, and a chain.
  2. Check their websites and Google listings. Some post their labor rate or a price for diagnosis. Note the date you looked.
  3. Call and ask. "What's your hourly labor rate, and what do you charge to diagnose a check engine light?" Most shops will just tell you.
  4. Use owner networks. The AMN Labor Rate Tracker is free with membership and lets you filter by state, region, shop type and vehicle type [3]. Local owner groups and 20 groups share rates too.
  5. Write it in a table with shop, type, rate and diagnosis fee. Repeat every year, at the same time you review your own costs.

What the list tells you: if you're $30 under the dealers and $15 under the other independents, the market already accepts a higher rate than yours. If you're the highest independent in town, check that your reviews, warranty and wait times back it up.

How to use these numbers to set your own rate

A state average tells you what customers in your area are used to paying. It doesn't tell you what your shop needs to charge. That comes from your own costs:

  1. Add up a year of costs: pay and payroll taxes, rent, insurance, software, equipment, everything.
  2. Divide by the labor hours you actually bill in a year, not the hours you pay for.
  3. Add the profit you want.
  4. Compare that number with your local list and the state average.

The full method, with a worked example for a two-tech shop and a parts matrix, is in how to charge for auto repair. Tekmetric frames the same check another way: its shops average a 65% gross profit on labor, so a technician who costs you $45 an hour fully loaded means a rate of at least $128 [1].

If your cost-based rate is…What it usually meansWhat to do
Well under your area's going rateYou're leaving money on the tableRaise toward the local middle; most customers won't notice a few dollars
About the sameHealthyReview every year as costs rise
Well over itToo few billed hours, or costs too highFix comebacks, parts delays and empty bays before you cut the rate

Should you charge more than the average?

Often, yes. An average includes struggling shops that underprice out of fear. Charging above it works when customers can see why:

Most people find you on their phone before they call, so your homepage does a lot of this selling. It should show your services, the makes you work on, your warranty and your reviews on the first screen; our guide to auto repair shop website design shows the layout. If you'd like to see that page made for your own shop, email us your shop name and we'll build a free preview from what you already publish.

When and how to raise your labor rate

Labor rate isn't the whole price

Two shops with the same posted rate can earn very different money per hour. Watch your effective labor rate: labor dollars billed ÷ labor hours billed. Discounts, free re-checks and warranty work pull it under the posted rate. Parts markup, diagnosis fees and shop supplies also shape what a repair costs the customer and what it earns you. Our guide on shop fees in auto repair covers supplies, disposal and diagnosis charges, and how much to charge for a car service covers pricing oil changes and maintenance.

FAQ

What is the average hourly labor rate for auto repair?

About $132 an hour across US independent shops in Tekmetric's 2026 data [1]. PartsTech's 2025 survey found nearly half of shops charging between $120 and $159 [2].

Which state has the highest auto repair labor rate?

Alaska at $161 in Tekmetric's 2026 table, then California at $156 [1]. The AMN tracker, a different group of shops, puts California highest at $176 [3].

Which state has the lowest?

West Virginia at $100, then Maine and Vermont at $110 [1]. AMN's tracker lists Mississippi lowest at $110 [3].

How do I find labor rates by zip code?

Call or check the websites of 8–10 shops near you, including dealers and specialists, and use an owner network's tracker such as AMN's. No free public list covers every zip code reliably.

Are dealer labor rates higher than independent shops?

Usually, yes. Check the dealers near you; their rate is a useful upper marker for your local list.

Should I set my rate by the state average?

No. Set it from your own costs and billed hours, then use the state and local numbers to check customers will accept it.

When your rate is set, make sure your website says what you do and why you're worth it. Ask us for a free homepage preview for your shop. More guides are on the auto repair guides page.

Sources

  1. Tekmetric, "Average Auto Repair Labor Rates by U.S. State", June 30, 2026. https://www.tekmetric.com/post/average-auto-repair-labor-rates-by-state
  2. PartsTech, "The State of General Auto Repair Shops in the United States", 2025 report (752 shops). https://get.partstech.com/report2025
  3. MOTOR, "The State of Auto Repair: By the Numbers", July 2025 (PartsTech and AMN Labor Rate Tracker figures). https://www.motor.com/2025/07/the-state-of-auto-repair-by-the-numbers/
  4. AAA, "Average Mechanic Labor Rate and Repair Costs in Your State". https://www.aaa.com/autorepair/articles/average-mechanic-labor-rate-repair-costs-in-your-state-2026
  5. MOTOR, "A Look at Shop Labor Rates Across the Country", May 2023. https://www.motor.com/2023/05/a-look-at-shop-labor-rates-across-the-country/