Handyman work · The $1,000 rule

Do you need a contractor license for jobs under $1,000 in California?

Checked 20 October 2026 against the Business and Professions Code, the AB 2622 bill text, CSLB Industry Bulletin #24-07 and CSLB's licensing and enforcement pages · Written by the License Ladder team · Reviewed by AJ Sokol, Co-Founder

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No, not if the whole job is under $1,000 and it also needs no building permit, you employ no one on it and you don't advertise as a contractor. The $1,000 counts labor, materials and every other cost, across all contracts on the project. California raised the line from $500 to $1,000 on January 1, 2025, under AB 2622 (B&P 7048). A job of $1,000 or more needs a license.

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$1,000The line since January 1, 2025: the whole job must cost less
$500The old line, still printed in older CSLB documents
$1,500Minimum CSLB citation for unlicensed work, since July 1, 2026
$5,000Top fine on a first criminal conviction

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The rule What changed Exceptions Advertising Penalties Bigger jobs Questions Sources
The $1,000 rule

What is the $1,000 handyman rule in California?

Business and Professions Code section 7048 lets you work without a contractor license only when all of these are true. The whole project costs less than $1,000. It needs no building permit. You employ no one on it. You don't advertise as a contractor. And it isn't part of a bigger job. Miss any one, and the job needs a license, whatever its price.

Under $1,000 for the whole project

Add up labor, materials and all other items on the project, across every contract for it. The law says less than $1,000, so a job priced at exactly $1,000 needs a license.

No building permit

If the work needs a building permit, the exemption is gone, even on a small job. Your city or county decides which work needs a permit, and CSLB tells people to check with the local building department (CSLB).

No helpers

The exemption does not apply to anyone who employs another person to do the work or help with it (section 7048(c)(2)). Hire a helper, and the job needs a license.

No contractor advertising

A sign, card or ad that suggests you are a contractor ends the exemption. You may advertise jobs under $1,000 only if the ad says you are not licensed. The ad rules.

What counts toward the $1,000

Everything on the job. CSLB counts materials whether you buy them or the customer does: its 2025 guide covers projects where labor and materials, “whether purchased by the contractor or the consumer,” total less than $1,000. CSLB's announcement of the new line said the $1,000 includes all costs associated with the project.

Sources: B&P 7048; CSLB, Get Licensed to Build (2025 edition); CSLB press release #24-21 (December 30, 2024); CSLB, Do I need a building permit for my project? Checked 20 October 2026.

The change, with dates

When did the limit change from $500 to $1,000?

On January 1, 2025. The Governor signed AB 2622 on September 14, 2024, and it took effect on January 1, 2025. It raised the line from under $500 to under $1,000, and it added two conditions: the work needs no building permit, and you employ no one on it. A page that still says $500 is out of date.

How California's small-job license line changed, from the bill text, the statute and CSLB (checked 20 October 2026)
DateWhat happenedSource
Until January 1, 2025The exemption covered jobs under $500 in labor, materials and all other items.AB 2622 digest
September 14, 2024The Governor approved AB 2622 (Chapter 240, Statutes of 2024). This is the signing date, not the start date.AB 2622, chaptered
December 30, 2024CSLB announced the “Handyperson Exemption” at $1,000 in press release #24-21.CSLB #24-21
December 31, 2024CSLB Industry Bulletin #24-07: the work cannot require a permit, and the unlicensed person cannot employ anyone.CSLB #24-07
January 1, 2025The $1,000 line took effect, with the permit and no-employee conditions. The advertising rule in section 7027.2 moved to $1,000 the same day.B&P 7027.2
January 1, 2026AB 1170, a code-maintenance bill, amended section 7048 with no change to the $1,000 line or the conditions.B&P 7048
July 1, 2026The minimum CSLB citation for unlicensed contracting rose to $1,500 (SB 779).B&P 7028.7

Why you still read $500 online: it was the law until January 1, 2025, and older CSLB material is still posted. CSLB's October 24, 2023 sting release (#23-20) says a license is required for work “exceeding $500,” and an older edition of its Get Licensed to Build guide still says $500. The 2025 edition says $1,000.

Sources: AB 2622 bill text and Legislative Counsel's Digest; the history notes of B&P 7048 and 7027.2; AB 1170; CSLB Industry Bulletin #24-07, press release #24-21 and release #23-20. Checked 20 October 2026.

Where the exemption ends

What makes you lose the exemption on a job under $1,000?

Five things end the exemption, even on a small job. The work needs a building permit. You employ anyone on it. The job is part of a larger project. A job is split into contracts under $1,000. Or your ad or sign suggests you are a contractor. Each one comes straight from section 7048.

Each way to lose the section 7048 exemption, and the part of the law that says so (checked 20 October 2026)
If this is trueThe exemptionWhere the law says it
The work needs a building permitLost, at any priceB&P 7048(a)
You employ anyone to do the work or help with itLostB&P 7048(c)(2)
The job is only part of a larger project, run by you or by another contractorLostB&P 7048(b)
A job is divided into contracts under $1,000LostB&P 7048(b)
Your ad, sign or card suggests you are a contractorLostB&P 7048(c)(1)
The project totals $1,000 or more, counting materials the customer buysNever appliedB&P 7048(a); CSLB guide (2025)

Who decides about permits

Your city or county. CSLB says code requirements vary in different cities and counties around the state, and it points people to the local building department (CSLB).

Billing by the hour

Section 7048 adds up labor, materials and all other items on the project. For penalties, when an unlicensed person works by the hour, the law counts the price as the materials and labor furnished plus the cost to finish the job (B&P 7028(f)).

A piece of a bigger job

A small part of a licensed contractor's larger project is not exempt work: section 7048(b) covers a larger operation run “by the same or a different contractor.” Working for that contractor as a paid employee is a separate exemption (CSLB).

Sources: B&P 7048 and 7028; CSLB, Get Licensed to Build (2025 edition); CSLB, Do I need a building permit for my project?; CSLB, Before Applying for the Examination. Checked 20 October 2026.

Ads, signs and cards

Can an unlicensed handyman advertise in California?

Yes, but only for jobs under $1,000, and the ad must say you are not licensed (B&P 7027.2). An ad, sign or card that suggests you are a contractor ends the small-job exemption. Advertising work that needs a license, without that license, is a misdemeanor with a fine of $700 to $1,000.

An ad that stays inside the law

  • Offer only jobs where the whole project costs less than $1,000.
  • Say in the ad that you are not licensed.
  • Don't call yourself a contractor, or say you are licensed or qualified as one.
  • The rule reaches business cards, signs, markings on a building, newspapers and magazines, radio and TV, any electronic transmission such as an online ad, and directory listings.

CSLB says the same in its own words: unlicensed people can advertise for work up to $1,000 if the ad discloses that they are not licensed, and the minor work exemption does not apply to people who advertise that they are licensed or qualified to act as contractors (CSLB #24-07). The statute's word is less than $1,000.

Sources: B&P 7027.2, 7027.1 and 7048(c)(1); CSLB Industry Bulletin #24-07. Checked 20 October 2026.

If you work without a license

What are the penalties for contracting without a license?

Two tracks can apply at once. Since July 1, 2026, a CSLB citation for unlicensed work carries a civil penalty of $1,500 to $15,000. Separately, unlicensed contracting is a misdemeanor: a first conviction can bring a fine of up to $5,000, up to six months in county jail, or both. Penalties rise with each conviction, and you lose the right to sue for your pay.

Penalties for contracting without a license in California, from the Business and Professions Code (checked 20 October 2026)
What happensThe penaltyLaw
CSLB citation (since July 1, 2026)An order to stop, plus a civil penalty of $1,500 to $15,000B&P 7028.7
First criminal convictionA fine up to $5,000, up to six months in county jail, or bothB&P 7028(b)
Second convictionA fine of 20% of the contract price or payments, or $5,000, whichever is greater, and at least 90 days in county jailB&P 7028(c)
Third or later convictionA fine of $5,000 up to the greater of $10,000 or 20%, and 90 days to one year in county jailB&P 7028(d)
Unlicensed disaster repairCan be charged as a felony: a fine up to $10,000, a felony term of 16 months, two or three years, or both. Penal Code 1170(h) has that term served in county jail unless the person has certain prior convictionsB&P 7028.16; Penal Code 1170(h)
Getting paidYou cannot sue to collect, and the customer can sue to get back everything paidB&P 7031
Advertising without a licenseA misdemeanor, with a fine of $700 to $1,000B&P 7027.1

Some CSLB pages still show older numbers. On October 20, 2026, CSLB's Before Applying page listed a $500 fine for a first offense, an administrative fine of $200 to $15,000 and a $4,500 fine for a second conviction, and its 2025 Get Licensed to Build guide listed $200 to $15,000. The statutes in the table are the current law: up to $5,000 on a first conviction, and a $1,500 minimum citation since July 1, 2026.

CSLB's Statewide Investigative Fraud Team runs stings and sweeps job sites. On a complaint, CSLB can send a warning letter, issue a citation or refer the case to the district attorney (CSLB). Prosecutors have four years to file charges, counted from the last of these: the contract proposal, the contract, or the completion or abandonment of the work (B&P 7028(g)).

Sources: B&P 7028.7, 7028, 7028.16, 7031 and 7027.1; Penal Code 1170(h); CSLB, Before Applying for the Examination; CSLB, Complaint Process Against Unlicensed Contractors; CSLB, What is illegal contractor activity? Checked 20 October 2026.

The next step up

Which license lets a handyman take bigger jobs?

California has no handyman license. The step up is a contractor license in the classification that fits your work. For home remodels with three or more unrelated trades on one contract, that is the B-2 Residential Remodeling license. For one trade, such as painting, flooring or tile, it is that trade's C specialty license.

B-2 Residential Remodeling

For improvements to an existing wood-frame home, on contracts with at least three unrelated trades. The law's list reads like a handyman's week: drywall, finish carpentry, flooring, insulation, painting, plastering, roof repair, siding, tiling, and electrical, plumbing and mechanical fixtures. No structural work on load-bearing parts, and no new or extended electrical, plumbing or mechanical systems without the right license or a licensed subcontractor. B or B-2?

A C specialty license

For work in one specialized trade, such as C-33 Painting and Decorating, C-15 Flooring and Floor Covering or C-54 Ceramic and Mosaic Tile. Those three trade exams have Spanish versions, like Law and Business; the B-2 exam does not. Find the license for your work.

  1. 1

    Pick your classification

    Match the license to the jobs you want: B-2 for multi-trade home remodels, a C class for one trade. Every CSLB classification.

  2. 2

    Document four years of experience

    The person who qualifies the license needs at least four years of journey-level experience in that classification within the last 10 years, certified by someone who knows the work firsthand. What counts.

  3. 3

    Apply to CSLB

    File the application with the $450 fee. CSLB keeps the fee whether or not it approves the application.

  4. 4

    Pass two exams

    Law and Business, plus the trade exam for your classification. For Law and Business, prepare with License Ladder: study the printed cards and digital guides, then work the app's practice questions and timed mock exams until your readiness score turns green.

  5. 5

    File a bond and pay the license fee

    File a $25,000 contractor bond and pay the initial license fee: $200 for a sole owner or $350 for other business types. Every step, with forms and waits.

In CSLB, PSI and fingerprint fees, a sole owner who passes both exams on the first try pays $801.86 (October 2026), before the Live Scan site's fee, the bond premium and insurance. What a California contractor license costs.

Sources: B&P 7057.5 and 7058; CSLB, Licensing Classifications; CSLB, Examinations FAQ (Spanish exams); CSLB, form 13A-1; CSLB, Issuing My License; CSLB, List of All CSLB Fees. Checked 20 October 2026.

FAQ

Questions handymen ask about the $1,000 rule

In 2026, California's handyman limit is less than $1,000 for the whole project. That counts labor, materials and every other cost, across all contracts, under Business and Professions Code section 7048 (checked October 2026). The job must also need no building permit. You must employ no one on it, and you can't advertise as a contractor. An amendment by AB 1170 took effect on January 1, 2026 without changing these terms.

California's handyman limit rose from $500 to $1,000 on January 1, 2025. The Governor signed AB 2622 on September 14, 2024, but that is the signing date: the law took effect on January 1, 2025, as CSLB's Industry Bulletin #24-07 says. AB 2622 also added two conditions: no building permit and no one employed on the job (AB 2622 bill text).

Yes. CSLB's Get Licensed to Build guide (2025 edition) counts labor and materials toward the $1,000 limit “whether purchased by the contractor or the consumer” (CSLB’s guide). The statute adds every other item on the project too (B&P 7048). In CSLB's reading, having the homeowner buy the materials does not keep a job under the limit.

No. Section 7048 exempts only work whose total price is “less than” $1,000, so a job priced at exactly $1,000 needs a contractor license (B&P 7048(a), checked October 2026). CSLB's announcements say “up to $1,000,” but the statute is the law, and CSLB's Before Applying page says a license is needed when the total is $1,000 or more.

No, not without a license. The section 7048 exemption does not apply to anyone who “employs another person to perform, or assist in performing” the work (B&P 7048(c)(2)). CSLB puts it this way: if an unlicensed person hires one or more workers to help with or do the work, a license is required even if the project is under $1,000 (CSLB #24-07).

Not as unlicensed work. Since January 1, 2025, the section 7048 exemption covers only work that “does not require a building permit,” so a job that needs a permit needs a contractor license, whatever it costs (B&P 7048(a)). Which jobs need a permit depends on your city or county; CSLB tells people to check with the local building department (CSLB).

Only inside the same small-job rule. Section 7048 has no separate trade list: electrical or plumbing work is exempt only if the whole project is under $1,000, needs no building permit, uses no employees and isn't advertised as contractor work (B&P 7048). Your city or county sets the permit rules. A licensed B-2 contractor may install or replace electrical and plumbing fixtures on a three-trade remodel, but may not extend those systems without the right license or a licensed subcontractor (B&P 7057.5).

No. Section 7048 does not apply when a job is divided into contracts of less than $1,000 “for the purpose of evasion” of the license law “or otherwise,” or when the work is only part of a larger project (B&P 7048(b)). CSLB's guide says it plainly: it is illegal to divide a job into smaller parts to get around the $1,000 limit (CSLB, Get Licensed to Build).

No. Section 7048 adds up the price of labor, materials and all other items on the project, across all of its contracts (B&P 7048(a)). For penalties, the law spells out hourly work: when an unlicensed person agreed to furnish labor and materials by the hour, the contract price is the cost of what was furnished plus the cost of completing the work (B&P 7028(f)).

Yes, with two limits. Under B&P 7027.2, a person without a contractor license may advertise only for projects that total less than $1,000, and the ad must state that the person is not licensed. That rule moved from $500 to $1,000 on January 1, 2025, with AB 2622. An ad that suggests you are a contractor ends the small-job exemption (B&P 7048(c)(1)).

In California, advertising construction work without a license in the classification you advertise is a misdemeanor. The fine is $700 to $1,000, on top of any other penalty (B&P 7027.1). The exception for unlicensed people is section 7027.2: an ad for projects under $1,000 that says you are not licensed. The law counts cards, signs, print, radio and TV, “any electronic transmission” and directory listings. An ad that suggests you are a contractor also ends the small-job exemption (B&P 7048(c)(1)).

Two penalties can apply. Since July 1, 2026, a CSLB citation for unlicensed contracting carries a civil penalty of $1,500 to $15,000 (B&P 7028.7). Separately, it is a misdemeanor: a first conviction can mean a fine of up to $5,000, up to six months in county jail, or both (B&P 7028(b)). Some CSLB pages still list an older $200 minimum citation.

On a second conviction, the court must order a fine of 20% of the contract price or of the payments received, or $5,000, whichever is greater. It must also order at least 90 days in county jail, unless it finds an unusual case and states its reasons (B&P 7028(c)). A third conviction brings a fine of $5,000 up to the greater of $10,000 or 20%, and 90 days to one year in jail.

Not for work that needed a license. A California court won't let a person collect pay for work that required a license unless they were licensed the whole time (B&P 7031(a)). It runs the other way too: the customer can sue to get back everything paid to an unlicensed contractor, and a security interest taken for the payment can't be enforced. Section 7031 is part of the license law, which does not apply to a job that fits section 7048.

It can be. B&P 7028.16 covers unlicensed offers or work to repair or improve property damaged in a natural disaster. The disaster must have a state of emergency from the governor, or an emergency or major disaster declared by the president. A felony can bring a fine of up to $10,000, a term of 16 months, two or three years, or both. Penal Code 1170(h) has that term served in county jail unless the person has certain prior convictions. It can also be charged as a misdemeanor.

Not as exempt work. Section 7048 does not apply when the work is only part of a larger job, “whether undertaken by the same or a different contractor” (B&P 7048(b)). So a small part of a licensed contractor's project doesn't qualify. Working as that contractor's paid employee is different. CSLB lists as exempt a wage employee who doesn't run an independent business or direct the work (CSLB).

Only for finished products that don't become a fixed part of the building, and not for installing home improvement goods. B&P 7045 exempts the sale or installation of finished products that do not become a fixed part of the structure. But the same section says the license law applies to installing home improvement goods. Section 7151 counts goods attached so that they become part of the property, and it names carpeting, fencing, and heating or air conditioning equipment.

No. California has no handyman license, so there is no handyman test; CSLB calls the small-job rule the “Handyperson Exemption” (CSLB #24-21). Exempt jobs under $1,000 need no exam. The tests come when you apply for a contractor license, such as the B-2 or a C class: CSLB's Law and Business exam plus the trade exam for your classification (CSLB, Get Licensed to Build).

It can be, if your jobs mix three or more trades. The B-2 Residential Remodeling license covers improvements to existing wood-frame homes. Each contract must use at least three unrelated trades. Its statute lists drywall, finish carpentry, flooring, painting, tiling and fixture work (B&P 7057.5). A B-2 can't take one-trade jobs or structural work. It can't add new electrical, plumbing or mechanical systems without the right license or a licensed subcontractor. B or B-2?

In state and exam fees, a sole owner who passes both exams on the first try pays $801.86 as of October 2026: the $450 CSLB application, $102.86 to PSI for two exams, $49 in fingerprint fees and the $200 license fee (CSLB fee list). Add the Live Scan site's fee, the premium on the $25,000 bond and any insurance. Other business types pay $951.86. Full cost breakdown.

When you're ready to get licensed

Every license a handyman moves up to, B-2 or C, also takes CSLB's Law and Business exam. License Ladder covers it for $99: the printed 142-card deck, digital study guides and one year of the app. Use it as directed until your readiness score turns green. The cards come printed in Spanish.

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Sources

Where every fact on this page comes from

We fetched and read each source below on 20 October 2026. CSLB revises its pages and forms; if anything here differs from CSLB’s own wording when you read it, CSLB’s governs.

Statutes and bills (leginfo.legislature.ca.gov): Business and Professions Code 7048 (minor work exemption) · B&P 7027.2 (advertising by unlicensed persons) · B&P 7027.1 (advertising without a license) · B&P 7028 (criminal penalties) · B&P 7028.7 (citations, operative July 1, 2026) · B&P 7028.16 (disaster areas) · Penal Code 1170(h) (where felony terms are served) · B&P 7031 (suits for payment) · B&P 7045 (finished products) · B&P 7151 (home improvement goods) · B&P 7057.5 (B-2 Residential Remodeling) · B&P 7058 (specialty contractors) · AB 2622 (2024), chaptered text and digest · AB 1170 (2025), Maintenance of the codes

CSLB bulletins and press releases: Industry Bulletin #24-07, License Requirement for Minor Work Increases from $500 to $1,000 (December 31, 2024) · Press release #24-21, Handyperson Exemption to Increase to $1,000 in 2025 (December 30, 2024) · Press release #23-20, Oakdale sting (October 24, 2023)

CSLB pages, guides and forms: Step 1: Before Applying for the Examination · Complaint Process Against Unlicensed Contractors · What is illegal contractor activity? · Do I need a building permit for my project? · Licensing Classifications · Examinations FAQ · Get Licensed to Build (2025 edition) · Obtenga una Licencia para Construir (the guide's Spanish edition) · Get Licensed to Build (older edition, still posted) · Application for Original Contractor License, form 13A-1 · Step 8: Issuing My License · List of All CSLB Fees · California Contractors License Law and Reference Book (2026)

License Ladder is independent study material, not affiliated with or endorsed by CSLB or PSI.

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