Tennessee electrical license requirements and insurance

Who it applies to

1Who needs an electrical license in Tennessee? What is this?

Contractor License, electrical classification: a business that takes electrical jobs of $25,000 or more, including labor and materials. The license is issued to the business, not to the person

License	Who needs it	What it covers
Contractor License, electrical classification	A business that takes electrical jobs of $25,000 or more, including labor and materials. The license is issued to the business, not to the person	Electrical work up to the monetary limit the board sets for your business
Limited Licensed Electrician (LLE)	A person doing electrical jobs under $25,000 in a town or county where the state Division of Fire Prevention issues the permits and does the inspections. The board says to check with your local government first, to see whether they accept the LLE or run a license of their own	Electrical jobs under $25,000 each, in your own name. It is a personal license, not a business license, and you may not call yourself a contractor
Local licenses	Anyone working where a city or county runs its own electrical permits and inspections	Set locally. The state license does not replace a local one, and a job under $25,000 may need only the local license

License

Who needs it

What it covers

Contractor License, electrical classification

A business that takes electrical jobs of $25,000 or more, including labor and materials. The license is issued to the business, not to the person

Electrical work up to the monetary limit the board sets for your business

Limited Licensed Electrician (LLE)

A person doing electrical jobs under $25,000 in a town or county where the state Division of Fire Prevention issues the permits and does the inspections. The board says to check with your local government first, to see whether they accept the LLE or run a license of their own

Electrical jobs under $25,000 each, in your own name. It is a personal license, not a business license, and you may not call yourself a contractor

Local licenses

Anyone working where a city or county runs its own electrical permits and inspections

Set locally. The state license does not replace a local one, and a job under $25,000 may need only the local license

Who runs it

2Who issues electrician licenses in Tennessee? What is this?

Tennessee Department of Commerce and Insurance, Board for Licensing Contractors (BLC) issues electrical licenses in Tennessee.

See how this compares in every state: How to check a contractor's license, state by state

Name	Tennessee Department of Commerce and Insurance, Board for Licensing Contractors (BLC)
Website	tn.gov
Look up a license	verify.tn.gov
The law	Tennessee Code Annotated Title 62, Chapter 6
The rulebook	Tennessee Rules and Regulations chapter 0680 (0680-01 for licensing, 0680-06 for insurance)
About the exam provider	Prov runs the exams from 1 July 2026. PSI kept running them until September 2026 while the change happened.

The board covers general contractors, home improvement contractors, limited licensed electricians and limited licensed plumbers. It was set up in 1931.

Checked by a person against the official page·tn.gov

Getting licensed

3How to become an electrician in Tennessee What is this?

Tennessee has 3 licenses that matter to an electrician: Contractor License, electrical classification, Limited Licensed Electrician (LLE), Local licenses. Each is below, with what you need before you apply.

License	Experience required	Training required	Exam
Contractor License, electrical classification	The board judges experience alongside the financial statement, and publishes no number of years	None found	Yes, two open-book exams run by Prov. A Tennessee Business and Law exam, plus the Electrical (CE) trade exam. The same person does not have to take both, and up to two people from the company may sit them. A pass is usually good for two years
Limited Licensed Electrician (LLE)	None stated. The board's page lists photo ID, a Social Security number and the trade exam, and nothing about years of work	—	Yes, the LLE trade exam, run by Prov. The license is issued to individuals who pass it
Local licenses	—	—	—

License

Experience required

Training required

Exam

Contractor License, electrical classification

The board judges experience alongside the financial statement, and publishes no number of years

None found

Yes, two open-book exams run by Prov. A Tennessee Business and Law exam, plus the Electrical (CE) trade exam. The same person does not have to take both, and up to two people from the company may sit them. A pass is usually good for two years

Limited Licensed Electrician (LLE)

None stated. The board's page lists photo ID, a Social Security number and the trade exam, and nothing about years of work

—

Yes, the LLE trade exam, run by Prov. The license is issued to individuals who pass it

Local licenses

—

What it costs

4How much does an electrical license cost in Tennessee? What is this?

The government fees on this page, added up.

License	Application	Exam	Renewal	Getting a lapsed license back	Late renewal, per month late
Contractor License, electrical classification	$250	null	$200	—	$20
Limited Licensed Electrician (LLE)	$50	—	$50	$80	$10

Added up

Government fees, added up	Not listed yet

We have not printed a total because the Tennessee electrical fees have not been read. The plumbing equivalent of the small license costs $75 for two years. Check the board's own pages before you budget.

Taken from the linked page, not separately checked·tn.gov

Insurance

5How much electrical contractor insurance do you need in Tennessee? What is this?

The least liability insurance Tennessee lets an electrician work with is $100,000. Most customers ask for more. Workers' comp is required as soon as you have one employee.

Minimum liability insurance	$100,000
Liability insurance by license size	$100,000 if your monetary limit is $500,000 or less. $500,000 if it is $500,001 to $1,500,000. $1,000,000 if it is $1,500,001 or more, including unlimited.
Type of policy	General liability insurance
Who this applies to	Every business holding the contractor license. You send a certificate with the application and again at every two-year renewal
Who must be named on the certificate	The Board itself. Rule 0680-06-.03(3) says applicants and licensees must name the Board as the certificate holder on the general liability policy
Insurance for the limited license	No insurance rule for the Limited Licensed Electrician
Workers' comp required?	Yes, as soon as you have one employee. Construction businesses must cover everyone, owners included, unless the owner registers an exemption. Most other Tennessee businesses only need cover at five or more employees
Who can opt out	Owners can register themselves as exempt. A sole owner must own all of the business. A partner or LLC member needs at least 20 percent. A family that together owns 95 percent also qualifies. Up to five owners per business. It costs $50 if you hold a contractor license and $100 if you do not, lasts two years, and renewing is reported at $20. Exempt owners must still cover every employee

Checked by a person against the official page

·7 official pages

Money checks

6Does Tennessee check your credit for an electrician license? What is this?

Tennessee does not check your credit for this license.

Credit score you need	None
Financial statement	A reviewed financial statement from a licensed CPA, less than 12 months old, in the exact name of the business. Audited if you want a monetary limit above $3,000,000. Your limit is ten times the lower of your working capital or net worth. For an unlimited license you need $300,000 in both
If your score is lower	From 1 July 2026 you can post a Contractors' Surety Bond for at least half the monetary limit you ask for instead of a financial statement
At renewal	A CPA-compiled statement if your limit is above $1,500,000. Below that a balance sheet you prepare yourself is enough

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·3 official pages

Bonds

7Does an electrician need a bond in Tennessee? What is this?

Tennessee 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 a bond to hold the contractor license. From 1 July 2026 a surety bond (a promise, backed by an insurance company, that customers can be paid if you do not finish the job) is an option in place of the CPA financial statement, at half your monetary limit. Cities and counties that run their own electrical license may ask for one, so check locally.

Checked by a person against the official page

·2 official pages

Showing your number

8Where must a Tennessee electrician show the license number? What is this?

In Tennessee: your name, license number, expiry date, and classification must be on the outside of every bid envelope, or in the electronic bid, for any job that needs the license. We found no state rule putting the number on ads, invoices, or trucks.

The rule	Your name, license number, expiry date, and classification must be on the outside of every bid envelope, or in the electronic bid, for any job that needs the license. We found no state rule putting the number on ads, invoices, or trucks
If you forget	A bid without the license details is thrown out. The board can fine you up to $5,000 for a wilful breach. Taking a job of $25,000 or more with no license is a Class A misdemeanour

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·2 official pages

Tax

9Does an electrician charge sales tax on labor in Tennessee? What is this?

Whether Tennessee 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

Materials	You are the final buyer. You pay sales tax when you buy pipe, fittings, water heaters, and fixtures, and you do not charge the customer tax on them
Labor on work that becomes part of the building	No sales tax. Installing or repairing something that becomes part of the house or building is not taxed
Labor on items that can be moved	You charge tax. Repairing or installing something that stays movable, like an appliance, is a taxable service
Homes versus businesses	No difference. The test is the property, not the customer
New buildings	Same rule. You pay tax on materials and charge none on labor
Working for a tax exempt customer	You still pay the tax on your materials even when the customer is a church, a school, or a government body. Their exemption is theirs, not yours
Tax rate	7 percent state plus a local rate of up to 2.75 percent, paid where you buy the materials

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·5 official pages

Getting paid

10Getting paid: lien and notice deadlines for a Tennessee electrician What is this?

If you are not paid in Tennessee, a lien on the property is your backstop, but only if your notice goes out on time: a Notice of Nonpayment within 90 days after the last day of each month you did unpaid work (work done in January means notice by about May 1). Miss it and you lose the lien for that month's work.

The order things have to happen in, counted in days

Day 0
Your first day on the job
The clock starts here.
Day 90
Send your notice
A Notice of Nonpayment within 90 days after the last day of each month you did unpaid work (work done in January means notice by about May 1). Miss it and you lose the lien for that month's work
Day 90
File your lien
Record a sworn Notice of Lien with the county register within 90 days after the whole project is finished or abandoned. A prime contractor's lien lasts one year after completion, and any lawsuit to enforce it must start within that year

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	A remote contractor, meaning anyone hired by the contractor rather than by the property owner, on any job that is not a one- to four-family home. It goes to the owner and the prime contractor. If you were hired by the owner you do not send one
Send your notice by	A Notice of Nonpayment within 90 days after the last day of each month you did unpaid work (work done in January means notice by about May 1). Miss it and you lose the lien for that month's work
File your lien by	Record a sworn Notice of Lien with the county register within 90 days after the whole project is finished or abandoned. A prime contractor's lien lasts one year after completion, and any lawsuit to enforce it must start within that year
About home jobs	On an owner-occupied home of one to four units, only the prime contractor can claim a lien. Subcontractors and suppliers cannot

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·5 official pages

Keeping it

11How do you renew an electrical license in Tennessee? What is this?

The Contractor License, electrical classification renews on this cycle: not published. The board gives the renewal fee but never the length of the term. Your expiry date shows in your CORE account, and you can renew from 90 days before it.

License	Renewal
Contractor License, electrical classification	Not published. The board gives the renewal fee but never the length of the term. Your expiry date shows in your CORE account, and you can renew from 90 days before it
Limited Licensed Electrician (LLE)	Not published. The board gives the renewal fee but never the length of the term. Your expiry date shows in your CORE account, and you can renew from 90 days before it

License

Renewal

Contractor License, electrical classification

Not published. The board gives the renewal fee but never the length of the term. Your expiry date shows in your CORE account, and you can renew from 90 days before it

Limited Licensed Electrician (LLE)

Not published. The board gives the renewal fee but never the length of the term. Your expiry date shows in your CORE account, and you can renew from 90 days before it

Renewal fees are in what the license costs. The official page for each license is linked under how you get it.

Watch out

12What catches people out in Tennessee What is this?

The things people get wrong or do not expect about Tennessee, in a few sentences.

Tennessee splits electrical work at $25,000. At or above that you need a contractor license, issued to the business. Below it the state only steps in where its own Division of Fire Prevention does the permits.
The small-job license is called a Limited Licensed Electrician, and it belongs to a person rather than to a business. You may not call yourself a contractor while holding only that.
Where a city or county does its own electrical permits and inspections, its rules apply instead of the state's, so the same job can need a different license one town over.
The contractor license has no fixed insurance number. The board sets a monetary limit for your business and your liability insurance floor follows it.
To get the contractor license you must pay a CPA for a reviewed financial statement. From 1 July 2026 you may post a surety bond for half your monetary limit instead.
The exam provider changed on 1 July 2026, from PSI to Prov. PSI kept running already-booked exams until September 2026.

Checked by a person against the official page

·4 official pages

13Where these numbers come from

The labels under each table are explained on how to read a page.