Average Auto Repair Labor Rates by State

Benjamin Johnson

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June 30, 2026

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Read time: 3 min

Find out what shops in your state are charging, and how to set a labor rate that keeps your shop profitable

In the automotive repair industry, your labor rate is more than just a number on an invoice — it is one of the key metrics that drives your business's profitability and overall growth. For shop owners, staying competitive while maintaining healthy margins requires a clear understanding of how labor costs fluctuate across the country. But knowing the national average is only half the picture. The more important question is: how does your shop compare?

Whether you are running a small independent shop or a high-volume operation, knowing where you stand relative to the average labor rate in your state — and against top-performing shops in your market — is essential.

This guide covers the current landscape of automotive repair labor rates across all 50 states, the factors that drive those numbers, and a step-by-step roadmap for setting a rate that supports your shop's long-term success.

Methodology and Key Terms

Tekmetric built this auto repair shop index as a community resource, backed by data from more than 10,000 shops across North America. Shops can use this tool to benchmark themselves and see how they compare state by state.

Key Terms to Know

Labor rate: The retail price per hour charged to the customer for repair services.

Flat-rate: A pricing model where a job is billed based on a predetermined number of hours from a labor guide, regardless of how long the actual repair takes.

Effective labor rate (ELR): The actual amount of labor revenue earned per billed hour after accounting for discounts, menu pricing, and unbilled time.

Understanding these terms will help you interpret the data below and apply it to your specific situation.

Mechanic Labor Rates by State

The average labor rate across the United States is $132 per hour, with the lowest state at $85 per hour and the highest at $197 per hour. Labor rates vary significantly by state, primarily driven by local cost of living and competition.

📊 See How Your Shop Compares — Free

The data below tells you what shops in your state are charging. But the labor rate is only one piece of the picture. The Tekmetric Shop Index lets you benchmark your shop across the four metrics that actually drive profitability — ARO, car count, parts margin, and effective labor rate — against thousands of real shops nationwide.

It's free, takes less than two minutes, and requires no Tekmetric account.

➡ Benchmark Your Shop Now →

Hourly Automotive Labor Rates by State

  • Alabama $124
  • Alaska $161
  • Arizona $145
  • Arkansas $116
  • California $156
  • Colorado $151
  • Connecticut $141
  • Delaware $141
  • Florida $138
  • Georgia $137
  • Hawaii $142
  • Idaho $136
  • Illinois $135
  • Indiana $123
  • Iowa $123
  • Kansas $120
  • Kentucky $126
  • Louisiana $132
  • Maine $110
  • Maryland $141
  • Massachusetts $133
  • Michigan $130
  • Minnesota $137
  • Mississippi $125
  • Missouri $120
  • Montana $135
  • Nebraska $127
  • Nevada $152
  • New Hampshire $128
  • New Jersey $140
  • New Mexico $141
  • New York $125
  • North Carolina $123
  • North Dakota $135
  • Ohio $125
  • Oklahoma $129
  • Oregon $150
  • Pennsylvania $115
  • Rhode Island $134
  • South Carolina $130
  • South Dakota $120
  • Tennessee $127
  • Texas $141
  • Utah $135
  • Vermont $110
  • Virginia $136
  • Washington $152
  • West Virginia $100
  • Wisconsin $125
  • Wyoming $134

Factors That Impact Automotive Labor Rates

Why do auto repair labor rates vary so widely from state to state? A few key factors drive the differences.

Cost of Living

In states with a higher cost of living, shop owners face higher wages to attract technicians, more expensive rent, and elevated utility and supply costs. Those overhead realities push labor rates up — not because shops are padding their margins, but because the math demands it.

Shop Type and Specialization

Dealerships typically carry the highest labor rates because of their overhead, factory-trained technicians, and reliance on OEM parts. Independent shops often have more pricing flexibility, particularly for routine services like oil changes. Specialty shops — focused on European vehicles, diesel, or performance — tend to command higher rates as well.

➡ Benchmark Your Shop Now →

Technician Expertise and Certifications

A diagnostic job requires a different skill set than a brake job. Shops that employ ASE-certified technicians or master technicians can and should charge accordingly. The rate reflects the expertise required to do the work correctly.

How to Set Your Labor Rate (Step by Step)

Setting your rate shouldn't be based on what the shop down the street is charging. It should be a data-driven decision grounded in your actual costs and performance targets.

Step 1: Calculate Your "Loaded" Labor Cost

Start with what it actually costs you to have a technician on the floor. This includes:

  • Wages and overtime
  • Payroll taxes
  • Benefits (health insurance, 401k)
  • Workers' comp and liability insurance
  • Training and certifications

Divide that total annual cost by the number of billable hours that technician produces in a year. That's your loaded cost — and it doesn't include any profit margin yet.

Step 2: Account for Overhead

Your labor revenue also needs to cover the cost of running the business:

  • Rent
  • Utilities and shop supplies
  • Marketing and software
  • Taxes

Step 3: Determine Your Target Profit Margin

Tekmetric shops average 65% labor profit margins. If your loaded cost for a technician is $45 per hour and you want a 65% margin, your base labor rate should be at least $128 per hour.

Step 4: Benchmark Against Your Market

Your internal numbers come first, but you can't ignore the local market. If your rate is $128 and every comparable independent in your area is at $100, you need to either clearly justify your value — through better inspections, faster turnaround, stronger communication — or find ways to reduce overhead. Benchmark against shops of similar size, service mix, and geography.

Step 5: Implement a Labor Matrix

Not every repair order is equal. Shops that implement a labor matrix can automatically adjust rates based on job complexity — billing more appropriately for diagnostic work or specialty repairs without manually recalculating every estimate.

➡ Benchmark Your Shop Now →

How Tekmetric Helps Your Shop Stay Profitable

Managing labor rates manually is a recipe for inconsistency and missed revenue. Here's how Tekmetric gives you the tools and data to stay ahead.

Know Where You Stand with the Tekmetric Shop Index

Before you can optimize your labor rate, you need to know how your performance compares to other shops. The Tekmetric Shop Index gives you free, instant benchmarking across four metrics: ARO, car count, parts margin, and effective labor rate. Enter your shop's numbers and see exactly where you rank against thousands of shops nationwide — no account required, no sales call, no commitment.

You can't improve what you don't measure. This is where that work starts.

➡ Benchmark Your Shop Now →

Real-Time Profitability Tracking

Tekmetric's reporting features give you live visibility into ARO, car count, revenue, and technician productivity — so you always know how your shop is performing, not just at the end of the month.

Custom Labor and Parts Matrices

Tekmetric lets you build a labor matrix that automatically adjusts rates by job type. A custom parts matrix works the same way on the parts side, protecting your margins consistently across every repair order.

Digital Inspections That Justify Your Rate

Tekmetric's digital vehicle inspections let your team send photos and videos of needed repairs directly to a customer's phone. When a customer can see the worn brake pad or the leaking gasket for themselves, they're far more likely to approve the work — and far more comfortable with the rate attached to it.

Accurate Labor Guide Integration

Tekmetric integrates with industry-standard labor guides so your estimates are based on real, accurate times — not guesswork or memory. That means technicians get credited fairly under a flat-rate system, and your service advisers spend less time on paperwork and more time with customers.

Benchmark Your Insights Now

Knowing the average labor rate in your state gives you a useful reference point. But the shops that stay profitable long-term don't stop at state averages — they benchmark continuously, track the right metrics, and make adjustments based on data instead of instinct.

Your labor rate should reflect your actual overhead, your team's capabilities, and the quality of service your customers experience. Use the state data above as a starting point, then go deeper with the Tekmetric Shop Index to see how your shop compares across every metric that drives profitability.

Ready to see where you stand? Benchmark your shop free with the Tekmetric Shop Index →

👉 Ready to grow your automotive business? [Book a personalized Tekmetric Demo Here]

FAQ

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Old habits are hard to break, especially when it comes to the physicality of handwritten notes.

A pen and a piece of paper can provide a better sense of security—they’re tangible and tactile. In our minds, we view paper as something we “own”, which makes it seem more reliable and easily obtainable.

But is pen and paper more reliable than digital tools?

Although the trusty pen and paper method does have perks, there’s a time and a place for everything. Which leads us to paper’s modern day competitor: digital software.

Switching paper out for a modern, digital format will enhance legibility, make archiving far easier than having file cabinets full of papers, and will strengthen collaboration across your team. Not to mention, you don’t run the risk of a fire or flood destroying your shop’s backed up data the way a natural disaster would with paper files and documents.

Now, this isn’t to say that digital software will replace every single piece of paper; however, software can successfully improve the efficiency of projects—especially when it comes to running an auto shop.

Let’s bring it back to the initial question: is automotive work order software a replacement for pen and paper? The rough answer is "yes," although there may be times where you still want to have paper as an option.

But many pen and paper tasks can be replaced, and should, for better productivity and organization. Automotive work order software can astronomically enhance your shop’s productivity and organization in ways that traditional methods cannot.

In your personal life, paper can take precedence in whichever way you wish. But in your shop, opting in for a digital system instead of pen and paper has more pros than cons.

How Automotive Work Order Software Replaces Pen and Paper

May 22, 2023

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When he set off to create Tekmetric, founder and CEO Sunil Patel had an ace up his sleeve: experience running his independent auto repair shop.

Running a repair shop is the background of everything we do. It's that partnership between Tekmetric and the auto repair shops that leverage the platform daily that enable us to build the absolute best tool for the job: running an independent auto repair shop.

So we set out on a mission to deepen our connection with our customers and understand each shop's unique challenges and wins by visiting as many customers as possible.

We wanted to understand the unique challenges and victories each shop faces, to truly deepen our connection with you. The results? It blew us away. Your stories, your shops and your teams are the heart of what we do. You inspire us every day to provide the best solutions for the independent auto repair industry.

Tekmetric's Customer Obsession

Whether your shop is general repair, like brakes, fluids and check engine lights, or a specialized business focused on older European cars, there’s one thing that’s always the same: the amazing, critical work your shop does to get people back on the road!

And it’s your amazing shops that use Tekmetric that make all this possible. Our customers' valuable feedback is what helps us develop a better platform, and the proof is in the pudding.

Just look at all the awards we’ve been winning because of our users, like you!

What We Hear from Independent Auto Repair Shops

No one knows what it takes to run an independent auto repair shop better than the teams that rely on Tekmetric to power their operations.

Here's what we heard from shops and why they love Tekmetric:

Tekmetric's ease of use and simplicity in running your shop

‍Everything you need to run your shop is organized, tracked, and maintained in one tool.

Whether you're a shop owner peaking into real-time performance reports or analyzing shop trends, a general manager ensuring cars flow quickly and efficiently through your shops, a service advisor supporting customers, or even a technician fixing cars, Tekmetric can help your shop operate like a well-oiled inline 6.

Tekmetric empowers shop to grow and reach their next level

‍We constantly hear how shop owners have leveraged Tekmetric to grow their business in ways they never expected.

Whether that means opening and managing multiple locations, simply adding a few new bays moving into a larger location, or even expanding your operations to service more customers, Tekmetric's simplicity and complete control over your shop makes it easy to track, plan, and grow.

Tekmetric's commitment to transparency and communication

Because we're so customer-obsessed, we're always here to help! As a cloud-based solution, Tekmetric helps run your shop by doing a lot of the operational "heavy lifting," so to speak.

Not only do we provide the right tools for the job, but we're here to partner with your shop. Our support doesn't end, and we're always a quick message or phone call away, anytime you need support!

Our Commitment to Shops Like Yours

Because we're here to help your great shop get even better, we're always open to hearing how we can make Tekmetric even better! 

Want to see Tekmetric in action? Book a demo today to see how you can revolutionize your shop operations.

Tekmetric is Made By Shops Like Yours

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Every vehicle that rolls into your shop is an opportunity to protect a customer's family, uncover real problems before they become roadside emergencies, and build the kind of trust that earns repeat business—but only if your team catches what matters every time.

A consistent inspection process is how shops do that. And when you pair it with the right tools, it pays off: Tekmetric shops using Digital Vehicle Inspections (DVIs) average $741 per repair order, compared to $612 without them.

Below, you'll find a downloadable 100-point vehicle inspection checklist, a breakdown of what every technician should check, and an overview of how digital vehicle inspections can sharpen your workflow.

Printable vehicle inspection checklist (PDF)

Free Download: Download our comprehensive vehicle inspection checklist (PDF) to use in your shop.

Vehicle inspection checklist template.

100-Point vehicle inspection checklist

A full inspection covers every system that affects safety, drivability, and reliability. The comprehensive 100-point checklist below gives your technicians a strong baseline they can follow on every repair order.

Vehicle intake

  1. Log the VIN and license plate to confirm the vehicle's identity and match past service records.
  2. Record odometer reading in and out.
  3. Note customer-reported concerns and the reason for the visit.
  4. Document the fuel level at drop-off.
  5. Check for open safety recalls tied to the VIN.
  6. Gather customer contact information.

Do you like free resources? Download our free automotive repair work order template to use in your shop.

Exterior condition

  1. Check the body for dents, scratches, and any signs of damage.
  2. Inspect the bumpers front and rear for cracks, loose mounts, or impact marks.
  3. Confirm the license plate is secure, legible, and properly mounted.
  4. Note any rust, paint issues, or trim damage.
  5. Inspect fenders, rocker panels, and body panel alignment.
  6. Inspect glass, windshield, and mirrors for chips, cracks, or pitting.
  7. Check door handles, hinges, and weather stripping.
  8. Inspect child safety locks.
  9. Inspect the trailer hitch.

Lights and electrical

  1. Headlights on low and high beam.
  2. Taillights and brake lights.
  3. Turn signals front and rear.
  4. Hazard flashers.
  5. License plate lights and dashboard illumination.
  6. Reverse lights, fog lights, and daytime running lights.
  7. Interior dome, map, and courtesy lights.
  8. Any warning light that's illuminated on the dashboard. A check engine light, ABS warning, or airbag indicator tells you where to focus diagnostic time.
  9. Battery voltage, terminals, and charge/discharge load test.
  10. Alternator output and starter draw.
  11. Ignition switch and accelerator pedal function.
  12. Horn operation.

Tires and wheels

  1. Check tire pressure on all four tires plus the spare.
  2. Measure tire tread depth.
  3. Check for uneven wear patterns that can point to alignment or suspension issues.
  4. Inspect sidewalls for cracks, bulges, or embedded objects.
  5. Check valve stems and caps for leaks or damage.
  6. Review the tire DOT date code for age.
  7. Verify wheel condition, lug nut torque, and hub cap security.
  8. Check the spare tire, jack, lug wrench, and locking wheel lock key.
  9. Confirm the tire pressure monitoring system (TPMS) is functioning.

Brake system

  1. Check brake pads for thickness and wear patterns.
  2. Inspect rotors for scoring, warping, or excessive wear.
  3. Examine brake drums and shoes, if equipped.
  4. Check brake calipers for sticking, leaks, or damaged boots.
  5. Check brake fluid level and condition at the master cylinder.
  6. Examine brake lines and hoses for cracks or leaks.
  7. Test parking brake function and adjustment.
  8. Evaluate overall brake pedal feel, travel, and pulsation.
  9. Verify ABS sensors, wiring, and warning light operation.

Steering and suspension

  1. Inspect the steering wheel for play and responsiveness.
  2. Check steering column and intermediate shaft for looseness.
  3. Check power steering fluid level and condition.
  4. Examine tie rods and ball joints for wear.
  5. Check struts for leaks or damage.
  6. Inspect shock absorbers for proper dampening and leaks.
  7. Check CV boots and axle shafts.
  8. Inspect wheel bearings for noise or excessive play.
  9. Inspect sway bar links, bushings, and control arms.
  10. Look for uneven ride height or sagging that can indicate a failing spring.

Under the hood

  1. Check the battery capacity.
  1. Check engine oil level and condition.
  2. Check the oil filter for leaks and proper seating.
  3. Inspect transmission fluid.
  4. Check coolant level, condition, and the cooling system for leaks.
  5. Inspect brake fluid, power steering fluid, and washer fluid reservoirs.
  6. Inspect the battery, cables, and hold-down hardware.
  7. Examine the serpentine belt and any drive belts for cracks, glazing, or fraying.
  8. Check all hoses for soft spots, swelling, bulges, or leaks.
  9. Inspect the engine air filter and cabin air filter.
  10. Check the fuel filter, if serviceable.
  11. Inspect the PCV valve and evaporative emissions components.
  12. Check the radiator and condenser fins for debris or damage.
  13. Check engine and transmission mounts.
  14. Look for oil leaks at the valve cover, oil pan, and gaskets.
  15. Test the spark plugs and ignition components.
  16. Inspect air intake.
  17. Inspect fuses.

Under the car

  1. Check the exhaust system for leaks, rust, and damaged hangers.
  2. Inspect the muffler, resonator, and heat shields.
  3. Inspect fuel system components, lines, and the fuel tank for leaks or corrosion.
  4. Look at the transmission and differential housings for leaks.
  5. Check the oil pan and drain plug for seepage or stripped threads.
  6. Examine the frame, subframe, and undercarriage for rust or impact damage.
  7. Check emissions-related components like the catalytic converter and oxygen sensors.
  8. Inspect the driveshaft, U-joints, and center support bearings.
  9. Verify skid plates and underbody shielding are secure.
  10. Scan the ground under the vehicle for any fluid drips or leaks.

Interior and safety equipment

  1. Test seat belts for retraction, fraying, and buckle function.
  2. Confirm airbag and supplemental restraint indicators clear properly.
  3. Inspect windshield wipers and wiper blades for streaking or splitting.
  4. Test washer fluid spray on the windshield and rear glass, if equipped.
  5. Inspect interior warning lights.
  6. Check AC, heat, and all fan speeds.
  7. Test front and rear defrosters.
  8. Inspect infotainment displays and systems.
  9. Test door locks, power windows, and the key fob.
  10. Inspect driver-assist systems, backup camera, and parking sensors.
  11. Inspect lane departure systems.

Road test

  1. Confirm smooth engine start and stable idle.
  2. Evaluate transmission shift quality and clutch engagement, if manual.
  3. Test braking response, pedal feel, and stopping distance.
  4. Listen and feel for suspension noise, vibration, or harshness.
  5. Check cruise control and driver-assist system operation.
  6. Note any dashboard warning indicator, abnormal smoke from the exhaust, or unusual vibration that appears during the drive.

What are digital vehicle inspections (DVIs)?

Paper inspection checklists worked for decades, but they come with real costs: illegible handwriting, lost sheets, no documentation, and frustrating back-and-forth among the technician, service advisor, and customer.

Digital Vehicle Inspections change that. With Tekmetric, your technicians perform the inspection on a tablet or phone, attach photos and videos of anything that needs attention, and send a vehicle health report straight to the customer's phone.

Here's what that looks like in practice: A technician notices worn brake pads on a 2019 Toyota Highlander. Instead of writing a note the customer may not understand, the technician snaps a photo of the worn pad next to a new one, records a short video, and marks the task red for immediate attention. The service advisor builds the estimate and texts it to the customer. Whether they're an in-store customer in the waiting room or at work across town, the customer approves the job with a digital signature.

Tired of piles of paper inspections? Upgrade your shop with digital vehicle inspections. Send inspections to the customer for approval with the visual proof needed to close the deal.

Why car inspections matter

Every car owner is counting on your team to catch what they can't see. A consistent inspection process gives your technicians a repeatable way to do exactly that on every repair order, every time.

Inspections also drive revenue. When you document a vehicle's condition clearly with photos and notes, customers understand exactly what their car needs and why. They approve more of the work they genuinely need when they can see the evidence.

Build customer trust with digital vehicle inspections

A great inspection process isn't about checking boxes. It's about giving every vehicle owner a clear, honest picture of their car's condition so they can make informed decisions about their safety and their budget. When your shop pairs a thorough inspection process with a digital tool like Tekmetric's DVI, you give your team the speed and consistency they need and your customers the transparency they want.

Your next inspection starts with the right checklist. Download the free 100-point vehicle inspection checklist or upgrade to digital vehicle inspections.

Free Vehicle Inspection Checklist (Printable PDF)

April 22, 2026

Read time: 3 min

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