Best States for HVAC Contractor (Residential)s to Start a Home Business
We ranked all 51 states based on licensing requirements, earning potential, LLC costs, and tax burden. Here are the best (and worst) states for hvac contractor (residential)s.
16 states don't require a license · National median: N/A · Updated 2025
▲ Top 5 Best States
Full Ranking: All 51 States
| # | State | License | Fee | Median Wage | LLC Cost | Score |
|---|---|---|---|---|---|---|
| 1 | Colorado | No | — | $30.49/hr | $50 | 98 |
| 2 | Missouri | No | — | $29.00/hr | $50 | 98 |
| 3 | Montana | No | — | $28.17/hr | $35 | 98 |
| 4 | Indiana | No | — | $28.99/hr | $100 | 94 |
| 5 | New Hampshire | No | — | $30.97/hr | $100 | 94 |
| 6 | Ohio | No | — | $29.08/hr | $99 | 94 |
| 7 | Alabama | No | — | $23.70/hr | $200 | 90 |
| 8 | Illinois | No | — | $34.44/hr | $150 | 90 |
| 9 | Kansas | No | — | $27.29/hr | $165 | 90 |
| 10 | Maine | No | — | $29.87/hr | $175 | 90 |
| 11 | Minnesota | No | — | $35.29/hr | $155 | 90 |
| 12 | New York | No | — | $32.05/hr | $200 | 90 |
| 13 | South Dakota | No | — | $28.59/hr | $150 | 90 |
| 14 | Vermont | No | — | $28.93/hr | $125 | 90 |
| 15 | Wyoming | No | — | $24.48/hr | $102 | 90 |
| 16 | Massachusetts | No | — | $37.02/hr | $500 | 85 |
| 17 | Pennsylvania | Yes | $50 | $29.38/hr | $125 | 80 |
| 18 | District of Columbia | Yes | $45 | $40.09/hr | $99 | 79 |
| 19 | Michigan | Yes | $200 | $28.89/hr | $50 | 78 |
| 20 | Mississippi | Yes | $290 | $22.73/hr | $50 | 78 |
| 21 | North Dakota | Yes | $100 | $32.10/hr | $135 | 75 |
| 22 | Georgia | Yes | $297 | $26.45/hr | $100 | 74 |
| 23 | Iowa | Yes | $433 | $28.60/hr | $50 | 73 |
| 24 | Kentucky | Yes | $405 | $28.31/hr | $40 | 73 |
| 25 | New Mexico | Yes | $323 | $26.45/hr | $50 | 73 |
| 26 | Delaware | Yes | $153 | $28.82/hr | $110 | 70 |
| 27 | Nebraska | Yes | — | $28.70/hr | $110 | 70 |
| 28 | North Carolina | Yes | $280 | $24.97/hr | $125 | 70 |
| 29 | South Carolina | Yes | $280 | $26.57/hr | $110 | 70 |
| 30 | Washington | Yes | $117 | $32.51/hr | $200 | 70 |
| 31 | Wisconsin | Yes | $175 | $29.82/hr | $130 | 70 |
| 32 | Idaho | Yes | $355 | $25.35/hr | $100 | 69 |
| 33 | Louisiana | Yes | $400 | $25.73/hr | $100 | 69 |
| 34 | Maryland | Yes | $405 | $31.25/hr | $100 | 69 |
| 35 | Oregon | Yes | $310 | $30.16/hr | $100 | 69 |
| 36 | Utah | Yes | $405 | $27.02/hr | $54 | 69 |
| 37 | West Virginia | Yes | $355 | $22.13/hr | $100 | 69 |
| 38 | Arizona | Yes | $596 | $27.20/hr | $50 | 68 |
| 39 | Arkansas | Yes | $305 | $22.71/hr | $50 | 68 |
| 40 | Florida | Yes | $364 | $24.32/hr | $125 | 65 |
| 41 | Texas | Yes | $195 | $25.99/hr | $300 | 65 |
| 42 | California | Yes | $579 | $31.39/hr | $70 | 64 |
| 43 | Hawaii | Yes | $694 | $30.67/hr | $51 | 64 |
| 44 | Oklahoma | Yes | $615 | $24.48/hr | $100 | 64 |
| 45 | Virginia | Yes | $720 | $29.15/hr | $100 | 64 |
| 46 | Alaska | Yes | $850 | $40.22/hr | $250 | 60 |
| 47 | New Jersey | Yes | $331 | $33.56/hr | $125 | 60 |
| 48 | Rhode Island | Yes | $660 | $30.57/hr | $150 | 60 |
| 49 | Tennessee | Yes | $364 | $24.75/hr | $300 | 60 |
| 50 | Connecticut | Yes | $705 | $35.53/hr | $120 | 55 |
| 51 | Nevada | Yes | $1040 | $28.48/hr | $425 | 55 |
▼ 5 Most Challenging States
Nevada
Fee: $1040$28.48/hr55
Connecticut
Fee: $705$35.53/hr55
Tennessee
Fee: $364$24.75/hr60
Rhode Island
Fee: $660$30.57/hr60
New Jersey
Fee: $331$33.56/hr60
How We Scored Each State
Each state starts with a base score of 50, then we add or subtract points based on:
- No license required: +20 points (biggest single factor — lower barriers to entry)
- License fee: −10 for fees over $500, −5 for over $300, +10 for under $50
- Wages above national median: Up to +15 points for states paying 20%+ above national median
- LLC formation cost: +8 for states under $50, −5 for states over $300
- No sales tax on services: +5 points
Data sources: Institute for Justice License to Work 3 (licensing), BLS OEWS May 2024 (wages), state Secretary of State offices (LLC costs). This ranking reflects factors relevant to home-based operators — commercial location costs, local zoning, and cost of living are not included.
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