2025 Auto Repair Labour Rates by US State

Running a profitable repair shop isn’t just about fixing cars—it’s about fixing the numbers. Labour pricing is the single biggest lever you control, yet many garages either under-charge (and bleed profit) or over-charge (and bleed customers). In this guide we’ll show you:

1. The current average labour rates across the United States (so you can benchmark with confidence).
2. The five factors that push those rates up or down.
3. How smart software—specifically autoGMS—lets you nail your numbers every time.

What Are Auto Repair Labor Rates?

Think of it as the price tag on your technicians’ time. Most shops use one of two models:

Both sit alongside parts mark-up and diagnostic fees to form the final invoice.

Average Auto Repair Labor Rates by State in 2025

Auto repair labor costs can vary dramatically from one state to another. These differences are often influenced by factors like the local cost of living, regional wage trends, and market demand. For example, while a shop in Mississippi may charge over $150 per hour, a shop in Vermont might charge closer to $127. Understanding these differences can help shop owners set realistic, competitive rates that align with their region.

Here’s a breakdown of the average auto mechanic labor rate by state, based on recent data:

(Data: 2025 industry survey of 4,000 independent workshops and dealership service departments.)

What Affects Auto Repair Labor Rates?

Several key factors influence labor rates for automotive repair services:

• Location: States with a higher cost of living (e.g., California, New York) often have higher labor rates.
• Shop Type: Dealerships tend to charge more than independent auto repair shops.
• Technician Expertise: ASE-certified or master technicians typically command higher rates.
• Repair Complexity: Engine and transmission work usually costs more than simple maintenance like oil changes or tire rotations.
• Business Costs: Rent, insurance, and wages all play a role in determining what a shop must charge to stay profitable.

Why It Matters for Auto Repair Businesses

Setting the right labor rate is critical for profitability. Charge too little, and you risk losing money. Charge too much, and you might lose customers to competitors. Finding the right balance is essential.

Accurate pricing helps:

• Boost revenue without overcharging.
• Increase customer trust with transparent estimates.
• Reflect technician skills and service quality.

Auto repair shops should regularly review their local market rates and adjust pricing accordingly.

Tools That Help Set the Right Labor Rate

Modern auto repair businesses rely on digital tools to estimate jobs accurately and set competitive labor rates. This is where auto repair estimator software and automotive labor guide software come in.

These tools help:

• Generate accurate estimates based on real-time data.
• Account for region-specific pricing trends.
• Standardize labor times for common repairs.

Platforms like autoGMS make this process easier by offering integrated pricing, labor time tracking, and job order management—all in one system.

The takeaway

Labour pricing isn’t static. Review it quarterly, benchmark locally, and let data—not gut feel—drive your decision. With autoGMS doing the heavy lifting, you can:

• Raise revenue without scaring off customers.
• Prove the value of your technicians’ expertise.
• Deliver crystal-clear estimates that build lifelong trust.

Ready to see how effortless, data-driven pricing looks? Book a free demo of autoGMS today and start charging what you’re truly worth.