North Carolina plumbing license requirements and insurance
To work for yourself as a plumber in North Carolina, you need the Plumbing Contractor, Class I license. North Carolina has 4 plumbing license types, and which one you need depends on the work you take on. The state sets no minimum liability insurance, and workers' comp is required once you have three or more employees on a regular basis. The state does not ask for a bond.
1Who needs a plumbing license in North Carolina? What is this?
Plumbing Contractor, Class I: anyone who contracts, bids, or advertises to do plumbing work in any building, for anyone other than themselves
| License | Who needs it | What it covers |
|---|---|---|
| Plumbing Contractor, Class I | Anyone who contracts, bids, or advertises to do plumbing work in any building, for anyone other than themselves | All plumbing systems in all structures, homes and commercial |
| Plumbing Contractor, Class II | Same as Class I, but for a business that only works on houses | Plumbing systems in single-family detached homes only |
| Plumbing Technician, Class I and Class II | An employee of a licensed Plumbing Contractor who wants to supervise work on site. You cannot contract or pull permits in your own name with this | Class I any structure, Class II single-family homes, always as a full-time employee of a Plumbing Contractor |
| Restricted Limited Plumbing Contractor and Limited Plumbing Water Heater Replacement Contractor | Smaller licenses for people who are not full plumbers. The water heater one is new from June 1, 2026 and covers like-for-like water heater swaps in a single-family home with no more than 10 feet of new pipe | — |
2Who issues plumber licenses in North Carolina? What is this?
North Carolina State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors (the Board) issues plumbing licenses in North Carolina.
See how this compares in every state: How to check a contractor's license, state by state
| Name | North Carolina State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors (the Board) |
|---|---|
| Website | nclicensing.org |
| Look up a license | public.nclicensing.org |
| The law | General Statutes chapter 87, Article 2 (G.S. 87-16 to 87-27.1) |
| The rulebook | 21 NCAC chapter 50 |
3How to become a plumber in North Carolina What is this?
North Carolina has 4 licenses that matter to a plumber: Plumbing Contractor, Class I, Plumbing Contractor, Class II, Plumbing Technician, Class I and Class II, Restricted Limited Plumbing Contractor and Limited Plumbing Water Heater Replacement Contractor. Each is below, with what you need before you apply.
| License | Experience required | Training required | Exam |
|---|---|---|---|
| Plumbing Contractor, Class I | 2 years (4,000 hours) of full-time work installing, maintaining, servicing, or repairing plumbing systems. Up to half (2,000 hours) can be school time in a related college or technical program. The Board counts 66.66 hours for each semester hour. Part-time work under 40 hours a week is prorated. | None required. You must own the current NC State Building Code books, the Board's Laws and Rules book, and the NC Business and Project Management for Contractors book before you apply | Yes, a computer exam run by PSI at seven NC test centers, with a business and law part and a technical part. You must test within 90 days of approval and wait 90 days to retake after a fail |
| Plumbing Contractor, Class II | Same as Class I, 2 years (4,000 hours), up to half from school | Same as Class I | Yes, the Class II business and technical exam through PSI. A South Carolina Residential Plumbing license can waive the technical part, not the business part |
| Plumbing Technician, Class I and Class II | Class I 3,000 hours (18 months). Class II 2,500 hours (15 months). Up to half can be school time | — | Yes, a technical part and a Board laws and rules part. A technician who later has 4,000 hours can get the contractor license by passing only the business part |
| Restricted Limited Plumbing Contractor and Limited Plumbing Water Heater Replacement Contractor | Restricted Limited needs 1,500 hours, about nine months | — | — |
4How much does a plumbing license cost in North Carolina? What is this?
The government fees on this page add up to about $300 in North Carolina. Add insurance, tools, and a vehicle to get the real number.
| License | Application | Exam | First license | Renewal | Yearly license fee | Background check | Exam application | Exam application, total | Late renewal penalty | Application without an exam |
|---|---|---|---|---|---|---|---|---|---|---|
| Plumbing Contractor, Class I | $75 | $75 | $150 | $150 | — | null | — | $150 | $25 | $30 |
| Plumbing Contractor, Class II | $75 | $75 | $150 | $150 | — | — | — | — | — | — |
| Plumbing Technician, Class I and Class II | — | — | — | — | $75 | — | $150 | — | — | — |
| Restricted Limited Plumbing Contractor and Limited Plumbing Water Heater Replacement Contractor | — | — | — | — | $150 | — | — | — | — | — |
Added up
| Government fees, added up | $300 |
|---|
Does not include the CastleBranch background report, the required code books, insurance premiums, tools, a vehicle, or city permits. Pass the exam on or after October 1 and the first license costs $75 for the rest of that year
5How much plumbing insurance do you need in North Carolina? What is this?
North Carolina sets no minimum liability insurance for this license. Customers and general contractors usually ask for $1,000,000 anyway. Workers' comp is required once you have three or more employees on a regular basis.
| Minimum liability insurance | None required by the state |
|---|---|
| Type of policy | None required by the state to hold the license |
| Who this applies to |
|
| Who must be named on the certificate | None |
| Workers' comp required? | Yes, once you have three or more employees on a regular basis |
| Who can opt out | Corporate officers count as employees toward the three but can exclude themselves from the policy in writing. Sole proprietors, partners, and LLC members are not counted and are not covered unless they choose to add themselves |
·4 official pages
- ncrules.state.nc.us/ncac/title%2021%20-%20occupational%20licensing%20boards%20and%20commissions/chapter%2050%20-%20plumbing,%20heating%20and%20fire%20sprinkler%20contractors/chapter%2050%20rules.pdf
- codes.findlaw.com/nc/chapter-87-contractors/nc-gen-st-sect-87-21/
- ic.nc.gov/wcinsrqmt.html
- ic.nc.gov/workers-compensation-claims/employers
6Does North Carolina check your credit for a plumber license? What is this?
North Carolina does not check your credit for this license.
| Credit score you need | None |
|---|---|
| If your score is lower | None needed. The application asks for a criminal background report from CastleBranch and proof of your hours (W-2s or 1099s), not a credit check |
7Does a plumber need a bond in North Carolina? What is this?
North Carolina does not require a state bond for this license. Some cities ask for one before they issue permits.
| Does the state require a bond? | No |
|---|---|
| Amount | Not listed yet |
The state does not ask for one to hold the license. A city or county permit office may, and public jobs use payment bonds under G.S. 44A Article 3
8Where must a North Carolina plumber show the license number? What is this?
In North Carolina: post the license at your place of business. Your license number must appear on every proposal, bid, and contract and on every permit request. The Board's rule adds that the firm's license number and qualification go on contracts, proposals, permit applications, and yellow page ads. A non-binding estimate does not count as a proposal. Do not let your number go on a permit for work you will not do or supervise.
| The rule |
|
|---|---|
| If you forget | The Board treats misuse of the license or number as misconduct and can discipline the license. Contracting or bidding without a license is a Class 2 misdemeanor |
·3 official pages
- codes.findlaw.com/nc/chapter-87-contractors/nc-gen-st-sect-87-21/
- ncrules.state.nc.us/ncac/title%2021%20-%20occupational%20licensing%20boards%20and%20commissions/chapter%2050%20-%20plumbing,%20heating%20and%20fire%20sprinkler%20contractors/chapter%2050%20rules.pdf
- codes.findlaw.com/nc/chapter-87-contractors/nc-gen-st-sect-87-25/
9Does a plumber charge sales tax on labor in North Carolina? What is this?
Whether North Carolina taxes your labor, your materials, or neither.
See how this compares in every state: Can you charge sales tax on labor? The rule in 25 states
| Repairs and service calls |
|
|---|---|
| Homes versus businesses | No difference. A home and a business are taxed the same way |
| New buildings and additions |
|
| Materials on work that becomes part of the building | You are the consumer. Pay tax at the supply house and build it into your price. Keep a Form E-589CI (Affidavit of Capital Improvement) on file for each job |
| Materials on taxable repairs | You charge the customer tax on the parts as part of the taxable bill. Whether you can buy those parts tax-free with a resale certificate (Form E-595E) was not confirmed by the state's page |
| Jobs that are part repair, part new work | If the taxable repair part of a capital improvement job is 25 percent or less of the contract price, treat the whole job as a capital improvement. If it is more than 25 percent, charge tax on the repair part |
| Tax rate | 4.75 percent state plus local rates, for a total of 6.75 to 8.25 percent depending on the county |
·5 official pages
- ncdor.gov/taxes-forms/sales-and-use-tax/taxable-items/real-property-contracts/services-real-property-taxability-chart
- ncdor.gov/taxes-forms/sales-and-use-tax/taxable-items/repair-maintenance-and-installation-services-and-other-repair-information
- ncdor.gov/taxes-forms/sales-and-use-tax/real-property-contracts
- codes.findlaw.com/nc/chapter-105-taxation/nc-gen-st-sect-105-164-4h/
- ncdor.gov/taxes-forms/sales-and-use-tax/sales-and-use-tax-rates/current-sales-and-use-tax-rates
10Getting paid: lien and notice deadlines for a North Carolina plumber What is this?
If you are not paid in North Carolina, a lien on the property is your backstop, but only if your notice goes out on time: within 15 days after your first day of furnishing labor or materials (first day on site March 1 means notice by March 16). Miss it and your lien ranks behind any mortgage recorded before you file, and on some projects you cannot perfect a lien at all. Send it through the lien agent's approved website, certified mail, email, fax, or hand delivery.
- Day 0Your first day on the job
The clock starts here.
- Day 120File your lien
File a Claim of Lien on Real Property with the clerk of superior court in the county where the property is, within 120 days after your last day of furnishing labor or materials (last day April 1 means file by July 30)
Each day count is counted from the day the rule beside it names, which is not always the same day. Read the sentence under each one.
| Who has to send a notice |
|
|---|---|
| Send your notice to the lien agent by |
|
| Notice when you are a subcontractor | If you were hired by the contractor, not the owner, you serve a Notice of Claim of Lien upon Funds on the person who owes your customer money. The statute sets no deadline for it, but nothing is protected until it is served. |
| File your lien by | File a Claim of Lien on Real Property with the clerk of superior court in the county where the property is, within 120 days after your last day of furnishing labor or materials (last day April 1 means file by July 30) |
·5 official pages
- codes.findlaw.com/nc/chapter-44a-statutory-liens-and-charges/nc-gen-st-sect-44a-11-1/
- codes.findlaw.com/nc/chapter-44a-statutory-liens-and-charges/nc-gen-st-sect-44a-11-2/
- codes.findlaw.com/nc/chapter-44a-statutory-liens-and-charges/nc-gen-st-sect-44a-12/
- codes.findlaw.com/nc/chapter-44a-statutory-liens-and-charges/nc-gen-st-sect-44a-19/
- ncleg.gov/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_44A/Article_2.html
11How do you renew a plumbing license in North Carolina? What is this?
The Plumbing Contractor, Class I renews every year. No training hours are required.
| License | Renewal | Training hours each year |
|---|---|---|
| Plumbing Contractor, Class I | Annual. Every license expires December 31. Renew in January or pay $25 extra. After three years unrenewed you must retest | — |
| Plumbing Contractor, Class II | Annual, expires December 31 | — |
| Plumbing Technician, Class I and Class II | Annual, expires December 31 | — |
Renewal fees are in what the license costs. The official page for each license is linked under how you get it.
12What catches people out in North Carolina What is this?
The things people get wrong or do not expect about North Carolina, in a few sentences.
- North Carolina does not ask a plumbing contractor for liability insurance or a bond to get or keep the license. Nothing in G.S. 87 Article 2 or the Board's rules sets an insurance minimum. Websites that list one are quoting another state or a city permit rule.
- There is no continuing education. The Board dropped the requirement on December 31, 2012, and the CE rule (21 NCAC 50 .1401) is repealed.
- Replacing a water heater, a toilet, or a sink is a taxable service in North Carolina. You charge sales tax on the whole bill, labor included, whether the customer is a home or a business. Adding new piping that needs a building permit is the opposite. You charge the customer no tax and pay tax yourself when you buy the materials.
- On a job worth $40,000 or more you must send a Notice to Lien Agent within 15 days of your first day on site or your lien loses priority. Remodels of a home the owner lives in are exempt from the lien agent rule.
- Workers' comp starts at three employees, and corporate officers count toward the three. A corporation with two officers and one worker must carry it.
- The whole state fee path is $300. A $150 exam application (half of it the exam fee) and a $150 annual license.
·5 official pages
- ncrules.state.nc.us/ncac/title%2021%20-%20occupational%20licensing%20boards%20and%20commissions/chapter%2050%20-%20plumbing,%20heating%20and%20fire%20sprinkler%20contractors/chapter%2050%20rules.pdf
- nclicensing.org/faq/
- ncdor.gov/taxes-forms/sales-and-use-tax/taxable-items/real-property-contracts/services-real-property-taxability-chart
- codes.findlaw.com/nc/chapter-44a-statutory-liens-and-charges/nc-gen-st-sect-44a-11-2/
- ic.nc.gov/wcinsrqmt.html
13Where these numbers come from
The labels under each table are explained on how to read a page.
- ncrules.state.nc.us/ncac/title%2021%20-%20occupational%20licensing%20boards%20and%20commissions/chapter%2050%20-%20plumbing,%20heating%20and%20fire%20sprinkler%20contractors/chapter%2050%20rules.pdf
- nclicensing.org/faq/
- ncdor.gov/taxes-forms/sales-and-use-tax/taxable-items/real-property-contracts/services-real-property-taxability-chart
- codes.findlaw.com/nc/chapter-44a-statutory-liens-and-charges/nc-gen-st-sect-44a-11-2/
- ic.nc.gov/wcinsrqmt.html
- nclicensing.org/wp-content/uploads/2026/02/PHFP-Exam-App-2026-01.pdf
- nclicensing.org/wp-content/uploads/2022/11/gs_87-22.pdf
- nclicensing.org/applicant-information/
- nclicensing.org/license-renewal/
- codes.findlaw.com/nc/chapter-87-contractors/nc-gen-st-sect-87-21/
- ic.nc.gov/workers-compensation-claims/employers
- codes.findlaw.com/nc/chapter-87-contractors/nc-gen-st-sect-87-25/
- ncdor.gov/taxes-forms/sales-and-use-tax/taxable-items/repair-maintenance-and-installation-services-and-other-repair-information
- ncdor.gov/taxes-forms/sales-and-use-tax/real-property-contracts
- codes.findlaw.com/nc/chapter-105-taxation/nc-gen-st-sect-105-164-4h/
- ncdor.gov/taxes-forms/sales-and-use-tax/sales-and-use-tax-rates/current-sales-and-use-tax-rates
- codes.findlaw.com/nc/chapter-44a-statutory-liens-and-charges/nc-gen-st-sect-44a-11-1/
- codes.findlaw.com/nc/chapter-44a-statutory-liens-and-charges/nc-gen-st-sect-44a-12/
- codes.findlaw.com/nc/chapter-44a-statutory-liens-and-charges/nc-gen-st-sect-44a-19/
- ncleg.gov/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_44A/Article_2.html