Contractor bond in California: amount and cost

Every active California contractor license needs a $25,000 bond filed with the CSLB; with good credit it costs about $188 to $375 a year.

States whose rule we read on an official page

The owner’s score; sureties price most bonds on it

More options

1 to 3 years; longer terms cost less a year

Contractor bond premium in California

$188 to $375

estimated, per year, for a $25,000 bond

Bond the state requires$25,000
Which amountContractor license bond
Rate for credit 700 or higher0.75 % to 1.5 % a year
Term1 year, renewed yearly

Estimate from published rate grids, not a quote. Cal. Bus. & Prof. Code § 7071.6 (SB 607). Amount read on the official page, October 22, 2026.

How this is computed

Compiled by Radif Partners · Method and sources · rule read October 22, 2026

California's Contractors State License Board requires a $25,000 contractor license bond to issue, reactivate or renew an active license, under section 7071.6 of the Business and Professions Code. The amount rose from $15,000 on January 1, 2023, under Senate Bill 607, and the CSLB states the change in a single line. The same law raised the bond of qualifying individual, needed when the license is qualified by a responsible managing employee or officer who owns less than ten percent, and the disciplinary bond, to $25,000 each. A limited liability company also files a separate $100,000 bond for the benefit of its employees, on top of the license bond. The license bond protects homeowners, workers and suppliers harmed by a contractor's violation of the license law. Its price depends on the owner's credit: on published grids, about $188 to $375 a year with a score of 700 or more, $625 to $1,250 between 600 and 649, and $1,250 to $3,750 under 550. Rule read on October 22, 2026.

Three bonds, one amount

The CSLB's bond page sums up the 2023 change: "On January 1, 2023, the contractor license bond, bond of qualifying individual, and disciplinary bond, increased to $25,000 as a result of Senate Bill 607." (CSLB). Every active license needs the contractor license bond. A license qualified by a responsible managing employee, or by a responsible managing officer or manager who holds less than ten percent of the voting stock or membership interest, also needs a bond of qualifying individual, unless that person is exempt. The disciplinary bond is ordered by the Registrar after a disciplinary action, as a condition of reinstatement, and can be set higher.

LLCs carry an extra layer: a $100,000 bond for the benefit of employees, covering unpaid wages and benefits. It does not replace the license bond; an LLC files both.

Which California bond, and its premium

Contractor bond premium in California

$250 to $625

Bond the state requires$25,000
Which amountContractor license bond
Rate for credit 650 to 6991 % to 2.5 % a year
Term1 year, renewed yearly
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Inactive licenses and renewals

An inactive license needs no bond. The bond must be on file before the CSLB issues an active license, and before it reactivates an inactive one; a license whose bond is cancelled is suspended on the cancellation date unless a replacement is filed. The bond itself is continuous, while the license renews every two years. The surety bills its premium each year, and some sell two-year terms that match the renewal cycle.

What it covers and what it does not

Claims on the license bond come from homeowners who paid for work never performed, from workers with unpaid wages, and from suppliers who were not paid and liened a property. The bond's $25,000 is shared among all claimants, which is small next to a typical remodeling contract, and California law gives homeowners other remedies, including a civil action against the contractor. General liability insurance and workers' compensation are separate requirements, depending on the license class and staff.

For the other states read, see Washington, which raised its bond in 2024, and the contractor bond overview.

The California rule as read

Required to issue, reactivate or renew an active license. A separate $25,000 bond of qualifying individual can apply to an RME or RMO, and an LLC also needs a $100,000 worker bond.
ItemValue
Contractor license bond$25,000
Bond of qualifying individual (RME/RMO)$25,000
LLC employee/worker bond (in addition)$100,000
Amount before the change$15,000
RuleCal. Bus. & Prof. Code § 7071.6 (SB 607)
Line read“On January 1, 2023, the contractor license bond, bond of qualifying individual, and disciplinary bond, increased to $25,000 as a result of Senate Bill 607.”
Pagewww.cslb.ca.gov
Read onOctober 22, 2026

Questions bond buyers ask

What bond does a California contractor need in 2026?

A $25,000 contractor license bond for any active CSLB license, since January 1, 2023. A license qualified by an RME or a minority RMO adds a $25,000 bond of qualifying individual, and an LLC adds a $100,000 employee bond. Inactive licenses need no bond.

How much does a $25,000 California contractor bond cost?

With a credit score of 700 or more, about $188 to $375 a year on published license bond grids. Between 600 and 649, about $625 to $1,250. Under 550 the published estimate reaches $1,250 to $3,750, and some sureties decline.

When did California raise the contractor bond to $25,000?

On January 1, 2023, under Senate Bill 607. The contractor license bond, the bond of qualifying individual and the disciplinary bond all went from $15,000 to $25,000. Contractors renewing or reactivating after that date had to file the larger bond.

Next steps

Contractor license bond

Contractor license bond amounts set by state boards (CA, WA, OR, AZ, NV, FL) and the yearly premium by credit score.

Contractor bond in Washington

Washington raised its contractor bonds on July 1, 2024: $30,000 for general and $15,000 for specialty contractors.

Contractor bond in Arizona

Arizona's Registrar of Contractors sets the bond by license type and estimated annual volume, from $4,250 to $100,000 in the tiers read.

Performance bond

Performance and payment bonds on construction: when the Miller Act requires them, 100 percent amounts, the premium scale.

Statutes, agency pages and rate grids behind this page

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Independent publisher of surety bond requirements read from state statutes, licensing agencies and federal rules

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Bond amounts are read on the statute or the agency page of each state. Premiums are estimates: the range of rates bond agencies publish for each credit score, not a quote. A surety prices your bond after reviewing your file; the official page wins over ours.

Rules of 2026, official pages last read on