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.
| State | Average per hour | vs $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
| Highest | Rate | Lowest | Rate |
|---|---|---|---|
| Alaska | $161 | West Virginia | $100 |
| California | $156 | Maine | $110 |
| Washington | $152 | Vermont | $110 |
| Nevada | $152 | Pennsylvania | $115 |
| Colorado | $151 | Arkansas | $116 |
| Oregon | $150 | Kansas, 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.
| Source | What it found | Who it counts |
|---|---|---|
| Tekmetric shop index, 2026 [1] | $132 national; states $100–$161 | 10,000+ shops on its software |
| PartsTech report, early 2025 [2] | Nearly half of shops charge $120–$159 | 752 US shops, survey answers |
| AMN Labor Rate Tracker, cited by MOTOR in 2025 [3] | California highest at $176, Mississippi lowest at $110 | 1,082 shops reporting their own rate |
| AAA state page [4] | $211–$281 per state | Taken 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:
- Posted rate vs collected rate. Some surveys ask for the rate on the board; software data can reflect what was actually billed per hour. The second is usually lower, because of discounts and warranty work.
- Which shops answer. Shops that use management software or join owner networks tend to be better run, and better-run shops tend to charge more. Treat any survey as describing the shops that answered it.
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:
- Rent and wages. The two biggest costs of a shop. A bay in a big metro costs far more to rent and staff than one in a small town.
- The work you do. European cars, diesel, hybrids and EVs, and electrical diagnosis need costly tools, scan subscriptions and trained techs. Specialists usually charge above general repair shops in the same street.
- Dealer vs independent. Dealers usually post higher rates than independents nearby. That gap is room for you to price up, not a reason to price down.
- Demand. A shop booked two weeks out can charge more than one with empty bays. Wait time is a pricing signal.
- State rules. Licensing, shop registration, environmental fees and paperwork add cost in some states. California's rules, for example, are covered in our guide to opening an auto repair shop in California.
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.
- 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.
- Check their websites and Google listings. Some post their labor rate or a price for diagnosis. Note the date you looked.
- 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.
- 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.
- 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:
- Add up a year of costs: pay and payroll taxes, rent, insurance, software, equipment, everything.
- Divide by the labor hours you actually bill in a year, not the hours you pay for.
- Add the profit you want.
- 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 means | What to do |
|---|---|---|
| Well under your area's going rate | You're leaving money on the table | Raise toward the local middle; most customers won't notice a few dollars |
| About the same | Healthy | Review every year as costs rise |
| Well over it | Too few billed hours, or costs too high | Fix 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:
- A clear warranty, stated on the estimate and on your website.
- Photos or video of the worn part sent with every estimate.
- Strong recent reviews that mention honesty and explaining the work.
- Specialist skills, tools or makes the shops around you don't handle.
- Short wait times and a clean, easy front desk.
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
- Review once a year, with last year's real costs and billed hours. Costs rise every year; a rate that stands still is a pay cut.
- Raise in steps. Several modest raises over the years are easier for regulars than one big jump after five years of nothing.
- Raise when something changes: a new lease, a new tech, a new scan tool subscription, a full schedule.
- Tell your team first. Service advisors who believe the price explain it better.
- Update everything at once: your shop software, any posted signs and your website.
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
- 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
- PartsTech, "The State of General Auto Repair Shops in the United States", 2025 report (752 shops). https://get.partstech.com/report2025
- 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/
- 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
- 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/