Contractors are the backbone of many industries, bringing specialized skills to projects big and small. For their skillset, contractors can earn $42,000 to $104,000 or more annually, depending on their experience level, specialization, type of employer, and location.
Whether you’re considering starting a career as a contractor or a seasoned professional looking to increase your earnings, this article will help you answer the question of how much do contractors make and what factors influence their income. This guide will also present the factors influencing these earnings and offer tips to maximize them.
Here’s an overview of how much contractors make in America.
The average contractor makes $30 per hour, or $62,125 per year, according to Finturf’s evaluation of the most recent U.S. employment, wage, and recruitment data.
Earnings for contractors vary greatly by location, experience, and employer. While hourly salaries provide a clear picture of immediate earning potential, annual earnings offer a broader perspective on a contractor’s income, accounting for variations in workload, project sizes, and seasonal demands.
Contractors who secure a steady project stream throughout the year have higher earning potential; however, the home improvement industry is particularly vulnerable to seasonal lulls, which could affect total earnings. Taking on larger or more complex projects can also significantly boost annual earnings, and offering a specialized skillset can also boost your earning potential. (More on salaries by specialization below.)
The average contractor hourly rate in the United States is $30 per hour but can range from $21.62 to $35.82, depending on the state of employment. This rate also depends on the contractor’s skills and years of experience, area of specialization, and geographic location.
The average annual salary of a general contractor in the United States is $62,125. This figure depends on location—salaries in Florida will differ from salaries in New York.
California, Washington, and Massachusetts offer the highest average salaries, mainly due to higher costs of living and increased demand for contracting services. Conversely, Mississippi, Arizona, and West Virginia have the lowest average wages among all states.
The table below breaks down the average yearly salary of a contractor in each state:
| State | Average Annual Salary |
| Alabama | $60,728 |
| Alaska | $66,629 |
| Arizona | $54,344 |
| Arkansas | $56,630 |
| California | $74,667 |
| Colorado | $67,344 |
| Connecticut | $62,814 |
| Delaware | $65,091 |
| Florida | $52,734 |
| Georgia | $56,140 |
| Hawaii | $63,382 |
| Idaho | $59,050 |
| Illinois | $64,925 |
| Indiana | $59,389 |
| Iowa | $57,970 |
| Kansas | $56,246 |
| Kentucky | $59,199 |
| Louisiana | $55,445 |
| Maine | $60,930 |
| Maryland | $64,589 |
| Massachusetts | $71,720 |
| Michigan | $60,365 |
| Minnesota | $61,358 |
| Mississippi | $55,880 |
| Missouri | $61,225 |
| Montana | $57,231 |
| Nebraska | $61,031 |
| Nevada | $67,413 |
| New Hampshire | $61,762 |
| New Jersey | $65,029 |
| New Mexico | $57,942 |
| New York | $66,875 |
| North Carolina | $60,845 |
| North Dakota | $62,156 |
| Ohio | $59,115 |
| Oklahoma | $59,517 |
| Oregon | $63,000 |
| Pennsylvania | $61,957 |
| Rhode Island | $61,685 |
| South Carolina | $60,677 |
| South Dakota | $57,557 |
| Tennessee | $56,188 |
| Texas | $60,266 |
| Utah | $57,010 |
| Vermont | $63,377 |
| Virginia | $64,222 |
| Washington | $69,921 |
| West Virginia | $52,034 |
| Wisconsin | $61,235 |
| Wyoming | $59,416 |
*The information in the table above represents averages derived from data from ZipRecruiter, Indeed, and Salary.com.
Large construction projects usually require several types of contractors and managers on site, each with its own skill set, tasks, and pay grade. Here’s how much contractors in the United States get paid on average by specialization:
| Job Title | Average Annual Salary |
| Project Manager | $94,000–$104,000 |
| General Contractor | $75,000–$95,000 |
| Electrician | $55,000–$59,000 |
| Plumber | $63,000–$69,000 |
| Plasterer | $50,000–$54,000 |
| Carpenter | $51,000–$54,000 |
| Cable Technician | $45,000–$47,000 |
| Insulation Contractor | $49,000–$52,000 |
| Mason | $42,000–$44,000 |
| Roofer | $53,000–$57,000 |
| Flooring Contractor | $48,000–$50,000 |
| HVAC Technician | $70,000–$74,000 |
| Excavator | $74,000–$82,000 |
The information in the table above represents averages derived from data from U.S. News and Indeed.
Owning a contracting business offers the potential for higher earnings compared to working as an individual contractor because the job comes with increased responsibilities and risks.
The average salary of a contracting business owner is $95,168 to $102,102 per year. Owners of larger firms with multiple employees and a higher volume of projects typically earn more than those running smaller operations.
When determining total earnings for construction owners and contractors, you must also factor in overhead costs and expenses, such as employee wages, equipment and materials, and insurance. You’ll need to set pricing for your services strategically, ensuring your rates are high enough to earn a profit for the business and pay your own salary.
The number of projects you take on, the efficiency of your operations, and the local demand for your services also play a role. Luckily, construction specializations are in high demand—the U.S. Bureau of Labor Statistics reports that the number of jobs for electricians is projected to increase 11% between 2023 and 2033, while laborer jobs are predicted to jump 7%.
A contractor’s salary depends on your experience and skill level, geographic location, and economic conditions.
The more work experience you have, the more you’ll make as a contractor. This is because on-the-job experience helps refine and build the skills required in the trade. Specialists in niche areas like eco-friendly construction, plumbing, grading and excavating, welding, or HVAC can charge higher premiums because their skills are in high demand but in short supply.
Additionally, contractors who invest in ongoing education and certifications stay ahead of home renovation industry trends, making them more valuable and justifying higher fees. Regulatory changes that influence building codes, for example, can cause a surge in demand for homeowners who need to comply with the new rules, allowing you to capitalize on these changes.
Your earning potential also depends on the state where you’re registered and offer services. Your salary will be higher in areas with high costs of living, like New York City or San Francisco. Regions experiencing economic growth or real estate booms have a higher demand for construction and renovation services, increasing your earning potential.
You might face less competition in areas with fewer contractors, allowing you to charge more. Conversely, you may need to adjust your rates to compete more in oversaturated markets.
When the economy is strong, homeowners are more likely to invest in construction projects, which is great news for contractors looking to earn a decent living. However, contractors may see less activity when times are tough, and homeowners look for ways to save money.
External factors sometimes cause significant shifts in the industry, and contractors should be prepared to ebb and flow as demand does. For example, spending on home improvements and repairs during the pandemic grew by 24% between 2019 and 2021, even though the economy sank.
The nature of construction projects can also affect a contractor’s earnings. More extensive projects typically have larger budgets, allowing for higher contractor salaries. Projects that require more complex designs, specialized materials, or advanced technical requirements can command higher rates. For instance, constructing a custom-designed home with unique architectural features or installing sophisticated HVAC systems requires specialized knowledge and skills.
Moreover, projects with higher risk levels or stricter deadlines may offer higher compensation to offset the increased responsibility and potential for issues.
Here are a few ways you can earn more money as a contractor:
If you’re wondering how much contractors make in America, the average number is around $62,125. Staying informed about industry trends and continuously improving your skills will keep you competitive in the ever-evolving contracting landscape.
Here are the answers to some common questions about working as a contractor.
General contractors typically have a high school diploma or GED and a state-issued license. Requirements to get a general contractor license vary by state, but most boards require that you pass a state-approved exam and demonstrate experience in your field. You can gain experience in many contractor specialties by working as an apprentice, which provides on-the-job training and the time required to develop the necessary skills and knowledge.
A general contractor is the main contractor who oversees the execution of a construction project and hires subcontractors. Subcontractors are specialists with expertise in a particular area and perform specific tasks within a large project, such as plumbing or electrical work.
Typically, independent contractors do not receive traditional employee benefits such as health insurance, retirement plans, or paid time off. Since they are self-employed, contractors are responsible for securing their own benefits. Contractor professionals who are employed by a company may receive employer-sponsored benefits if the company offers them, such as health insurance and disability insurance.
Most contractors set their rates based on experience level, specialization, overhead costs, and market demand. Calculate your business expenses, including materials, insurance, taxes, and equipment maintenance, to ensure your rates are profitable. Some contractors use value-based pricing, charging based on the value of their services to clients rather than just the labor and materials involved.
To start your own contractor business, begin by gaining experience in your trade and obtaining any required state licenses and certifications. Next, register your business legally, secure necessary insurance like liability and workers’ compensation, and set up your operations, including accounting and marketing strategies. Building a strong reputation through quality work and networking will help attract clients and grow your business.
Contractors can make good money, especially those with specialized skills, extensive experience, and a solid client base. While the average annual salary for contractors is around $61,000, many earn significantly more depending on their area of specialization, location, and the demand for their services.
Contractors specializing in high-demand and complex fields typically earn the most. Though not always contractors in the traditional sense, project managers, mechanical engineers, and HVAC technicians often command higher salaries due to the specialized skills and expertise required. Additionally, contractors focusing on niche areas like renewable energy installations, advanced electrical systems, or eco-friendly construction can charge premium rates because of the specialized knowledge and high demand in these sectors.
