Arizona contractor license requirements

Licenses and registrations

B - General Residential Contractor

Building and repairing all or part of a residential structure (houses, townhouses, condominiums, cooperative units).

• When it applies: Required unless the aggregate contract price is less than $1,000, including labor, materials and all other items, and no local building permit is needed.
• Good to know: Electrical, plumbing, HVAC, boilers, pools and wells must be subcontracted to properly licensed contractors.

B-3 - General Remodeling and Repair Contractor

Remodeling and repairing existing residential structures, such as kitchen and bath remodels.

• When it applies: Same $1,000 / building permit trigger.
• Good to know: Includes R-7 carpentry. Same subcontracting limits as the B class.

R-61 - Carpentry, Remodeling and Repairs

General residential remodeling, additions and repairs.

• When it applies: For projects of $50,000 or less including labor and materials.

R-62 - Minor Home Improvements

Small residential remodeling and repair jobs.

• When it applies: For projects of $5,000 or less including labor and materials.
• Good to know: No structural work. The ROC points handymen who exceed the exemption to this class.

Residential specialty classes (R series)

Single-trade residential work, such as R-42 Roofing, R-34 Painting and Wall Covering, R-8 Floor Covering, R-48 Tile, R-60 Finish Carpentry (cabinets, countertops), R-10 Drywall.

• When it applies: Same $1,000 / building permit trigger.
• Good to know: Siding has no separate classification. Dual (CR) versions cover both commercial and residential work.

Dual and commercial licenses (KB-1, KB-2, B-1, B-2, C series)

Contractors doing both residential and commercial work (KB-1, KB-2) or commercial only (B-1, B-2, C classes).

• Good to know: B-2 General Small Commercial covers projects of $2,000,000 or less.

What you need to qualify

• Exams: The qualifying party must pass the online Arizona Statutes and Rules Training Course and Exam (cannot be waived) and a trade exam for the classification, with a score of at least 70%. The trade exam may be waived if the qualifying party held the same or a comparable license in good standing within the past five years. B-1/B-2 applicants may use the NASCLA commercial exam.
• Experience: The business must name a qualifying party with the experience required for the classification; minimum years are listed on the ROC License Classification Requirements form.
• Bond: License bond by class and estimated annual volume. General residential (B): $9,000 if under $750,000, $15,000 if $750,000 or more. Specialty residential (R): $4,250 if under $375,000, $7,500 if $375,000 or more. Dual license bonds combine the residential and commercial amounts. Residential contractors must also either pay the Residential Recovery Fund assessment or post a $200,000 surety or cash bond.
• Business registration: LLCs and corporations must register with and be in good standing with the Arizona Corporation Commission; partnerships register with the Arizona Secretary of State.
• Also required: The applicant and qualifying party must complete background checks and submit government-issued ID. Everyone listed on the application must be at least 18.

Fees, renewal and continuing education

• Fees: New license (two-year): General Residential $180 application + $320 license + $370 recovery fund = $870. Specialty Residential (R) $80 + $270 + $370 = $720. General Dual $200 + $480 + $370 = $1,050. Specialty Dual (CR) $100 + $380 + $370 = $850. General Commercial $780; Specialty Commercial $580. Exam fees are extra.
• Renewal: Licenses are issued for two years. Renewal: General Residential $320 + $270 recovery fund = $590; Specialty Residential $540; General Dual $750; Specialty Dual $650; General Commercial $580; Specialty Commercial $480.

Contracts and homeowner protections

Contracts over $1,000 with a property owner must be in writing and include the contractor's name, address and license number, the job address, signing date, estimated completion date, scope of work, total price including taxes, any deposit, the progress payment schedule, and a signed notice (at least 10-point bold) that the owner may file a complaint with the ROC, with the ROC's phone number and website. The Residential Contractors' Recovery Fund pays up to $30,000 per residence and up to $200,000 per residential license, after a complaint results in discipline. Unlicensed persons must include the words 'not a licensed contractor' in all advertising.

Electrical, plumbing and HVAC work

The Registrar of Contractors licenses electrical (R-11, C-11, CR-11), plumbing (R-37) and air conditioning and refrigeration (R-39) contractors. General residential and remodeling licenses must subcontract this work.

City and county rules

Any job that requires a local building permit needs an ROC license, regardless of cost.

Working without a license

Acting as a contractor without a license is a class 1 misdemeanor, with a minimum fine of $1,000 for a first offense and $2,000 for later offenses. Courts must also order payment of any state, county and city transaction privilege or use taxes owed. Persons who claim the handyman exemption but do not qualify can be prosecuted for consumer fraud under A.R.S. 44-1522.

What to confirm with the state

We couldn't confirm these on an official page when we checked. Ask the licensing office before you rely on them:

• Minimum years of experience for each license classification.
• Insurance and workers' compensation requirements (not stated on the ROC pages we checked)
• Continuing education (no CE requirement found on the ROC pages we checked)
• Status of bills to raise the $1,000 handyman exemption (SB1715 in 2023 proposed $2,500, HB2120 in 2025 proposed $3,500); the current statute online still shows $1,000
• Local city licensing or tax license requirements

Sources

1. A.R.S. 32-1121 - Persons not required to be licensed (handyman exemption)
2. A.R.S. 32-1121 (Version 1)
3. Contracting in Arizona? Here's What You Need to Know! (ROC news, April 6, 2021)
4. License Classifications
5. Applying for a License
6. License and Renewal Fees
7. Bond Information
8. Recovery Fund
9. Frequently Asked Questions
10. A.R.S. 32-1164 - Violation; classification
11. A.R.S. 32-1158 - Contract requirements