I talk to HVAC contractors in Texas pretty regularly, and the question that comes up more than anything is: "Am I charging enough?" That's fair. Texas is a weird market because the cost of living varies wildly from Houston to Lubbock, and a lot of guys set their rates years ago and never updated them.
So I dug into the numbers for 2026. What techs are actually charging across the state, broken down by city, service type, and experience level. If you're running an HVAC business in Texas right now, this should give you a solid benchmark.
Hourly Rates by City
Texas doesn't have one market. It has about six. What works in Austin won't fly in Amarillo. Here's where hourly rates are landing in 2026:
| City | Apprentice/Helper | Journeyman Tech | Senior/Lead Tech |
|---|---|---|---|
| Houston | $18 - $24/hr | $28 - $38/hr | $42 - $55/hr |
| Dallas-Fort Worth | $19 - $25/hr | $30 - $40/hr | $44 - $58/hr |
| Austin | $20 - $26/hr | $32 - $42/hr | $46 - $60/hr |
| San Antonio | $17 - $23/hr | $27 - $36/hr | $40 - $52/hr |
| El Paso | $16 - $21/hr | $25 - $33/hr | $36 - $48/hr |
| Corpus Christi | $16 - $22/hr | $26 - $34/hr | $38 - $49/hr |
Austin and DFW are running higher because of population growth. Both metros added over 100,000 residents in the past two years, which means more new construction and more service demand. If you're in those markets and still charging 2023 rates, you're leaving real money behind.
What Customers Actually Pay (Bill Rate vs. Tech Pay)
There's a big difference between what you pay a tech and what you bill a customer. Most profitable shops in Texas are running a 2.5x to 3.2x multiplier on labor. So if your tech makes $35/hr, you're billing the customer somewhere between $87 and $112 per hour of labor.
That multiplier covers your overhead: trucks, insurance, tools, office staff, callbacks, warranty work, marketing. It's not gouging. It's staying in business.
Service Call Fees Across Texas
The diagnostic or service call fee is where a lot of new business owners stumble. Charge too little and you attract tire-kickers. Charge too much and you scare off good customers before you even diagnose anything.
| Service Type | Typical Range (Texas) | Notes |
|---|---|---|
| Diagnostic/Service Call | $79 - $129 | Most shops land at $89 or $99 |
| After-Hours Emergency | $149 - $249 | Weekends and holidays at the higher end |
| Maintenance Tune-Up | $69 - $129 | AC tune-ups slightly higher than heating |
| AC System Install (per ton) | $2,800 - $4,200 | 3-ton system = $8,400 - $12,600 total |
| Furnace Install | $3,200 - $5,800 | Higher for two-stage or modulating units |
One thing I keep seeing in Texas: shops that charge $49 or $59 for a service call end up attracting customers who don't want to spend any money on the repair. The $89-$99 range actually converts better because it filters for people who are serious about getting the problem fixed.
Flat Rate vs. Hourly in Texas
About 65% of established HVAC shops in Texas metros have moved to flat rate pricing. The smaller markets like Midland, Tyler, and Waco still lean more toward hourly billing, but even those are shifting.
Flat rate works well in Texas because summers are brutal. When it's 104 degrees in July, nobody wants to hear "well, it depends on how long it takes." They want a number. They want their AC fixed. Flat rate gives them certainty, and it usually works out better for the contractor too.
If you're thinking about switching, our pricing calculator can help you build flat rate prices based on your actual costs.
How Texas Compares to Neighboring States
Texas HVAC rates fall in the middle nationally. You're lower than California (by about 20-30%) and slightly below the Northeast. But you're higher than Oklahoma, Arkansas, and Louisiana by roughly 10-15%.
The big advantage in Texas is volume. AC season runs from April through October, sometimes into November. That's seven months of peak demand. Compare that to a state like Minnesota where AC season might be three months. You can afford slightly lower per-job margins when you're running that many calls.
Common Pricing Mistakes Texas HVAC Contractors Make
After looking at a lot of P&L statements from Texas HVAC shops, here are the patterns I see:
- Not adjusting for fuel costs. Texas is a driving state. Your service area might cover 40-50 miles. Gas, truck maintenance, and windshield time need to be in your pricing. A lot of guys forget this.
- Underpricing maintenance agreements. The average maintenance agreement in Texas is $149-$189 per year for residential. If you're at $99, you probably aren't covering your costs on the second visit.
- Same rates for new construction and retrofit. Retrofit work in an older Houston home with a tight attic is genuinely harder than running ductwork in new construction. Price them differently.
- Ignoring the permit cost. Several Texas cities have raised HVAC permit fees in the last year. Dallas is at $150+ for a full system changeout permit. That should be in the price, not eating your margin.
What You Should Be Charging Right Now
If you're a solo operator or running a small crew in Texas, here's a quick gut-check. You should be billing at least $85-$110 per hour for residential service work after overhead. For installs, your gross margin should be 45-55% on equipment and 60-70% on labor.
If those numbers look high, you're probably underpricing. Go back to your costs, add them up honestly, and build your rates from there. Our contractor rate comparison tool shows how your rates stack up against other techs in your area.
Get the Full Rate Breakdown
Download our free rate guide with state-by-state comparisons, cost calculators, and pricing templates.
Download Free ToolsTexas is a great market for HVAC. The demand is there, the growth is there, and there's plenty of work. But you have to price it right or you'll burn out running jobs that barely break even. Take an hour this week, pull up your numbers, and make sure your rates match where the market actually is in 2026.
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