The cost to fix your car has a major ZIP code factor. The average mechanic labor rate is variable across the country, from less than $100 to over $200 per hour. However, a new analysis from the 2025 PartsTech Report: State of General Auto Repair Shops in the U.S. pins the sweet spot: Almost half of all auto repair shops price their labor between $120 and $159 per hour.
Though many people think auto repair shops' rates are very high, most are actually close to industry averages. To help you better understand auto repair costs and feel more comfortable handing over your hard-earned money, we're diving into what goes into mechanic labor rates, including an overview of costs by state.
Average Mechanic Labor Rate by State
Here's an overview of the average cost of car repair labor by state, sourced from World Population Review:
| State | Average Cost of Labor |
| Alabama | $249.75 |
| Alaska | $238.39 |
| Arizona | $250.14 |
| Arkansas | $234.51 |
| California | $271.10 |
| Colorado | $268.48 |
| Connecticut | $281.53 |
| Delaware | $248.74 |
| District of Columbia | $270.00 |
| Florida | $253.55 |
| Georgia | $262.37 |
| Hawaii | $244.49 |
| Idaho | $245.21 |
| Illinois | $238.34 |
| Indiana | $221.30 |
| Iowa | $214.00 |
| Kansas | $227.57 |
| Kentucky | $238.55 |
| Louisiana | $239.32 |
| Maine | $213.90 |
| Maryland | $257.77 |
| Massachusetts | $253.37 |
| Michigan | $211.26 |
| Minnesota | $231.66 |
| Mississippi | $242.36 |
| Missouri | $232.36 |
| Montana | $242.56 |
| Nebraska | $227.12 |
| Nevada | $259.68 |
| New Hampshire | $239.41 |
| New Jersey | $261.11 |
| New Mexico | $246.71 |
| New York | $251.36 |
| North Carolina | $257.96 |
| North Dakota | $218.96 |
| Ohio | $217.69 |
| Oklahoma | $231.96 |
| Oregon | $254.32 |
| Pennsylvania | $244.67 |
| Rhode Island | $255.32 |
| South Carolina | $249.08 |
| South Dakota | $230.37 |
| Tennessee | $252.31 |
| Texas | $251.67 |
| Utah | $258.72 |
| Vermont | $247.30 |
| Virginia | $257.92 |
| Washington | $249.87 |
| West Virginia | $240.23 |
| Wisconsin | $222.16 |
| Wyoming | $246.61 |
How Mechanic Rates Are Calculated
A mechanic's labor rate is influenced by several factors, like wage costs, location, business expenses, regulations and the type of repair shop. You should know that the mechanic who does the work doesn't receive the entire hourly labor rate customers pay.
Running an auto repair shop today is a costly undertaking. In addition to the cost of the physical facility, high-tech diagnostic tools and equipment needed to service modern vehicles can easily require a six-figure investment. Let's break down the various factors that impact rates:
State and Local Regulations
State and local regulations set the standards for wages, labor practices, business licensing and consumer protections. These can all influence expenses for auto repair shops, and therefore the mechanic labor rate they charge.
For example, stricter employment laws and workplace protections, such as requiring overtime pay and a higher minimum wage, increase the costs of doing business. Fees for business licensing and local ordinances or taxes can also impact business costs.
Local Wages
Outside of state minimum wages, local average wages can impact mechanic labor rates. For example, in an area with higher average wages, auto repair shops will need to pay more to attract and retain mechanics.
Geographic Location
While labor rates are generally higher in metropolitan areas and states with a higher cost of living, geographic isolation can sometimes play a role. For example, the only auto repair shop within 100 miles may charge more because it spends more to get supplies in.
Technician Skill and Certification
Technicians with years of experience and advanced skills or certifications are paid accordingly for their knowledge and skills. For example, National Institute for Automotive Service Excellence (ASE) certified technicians, or those with specialized training in hybrid or diesel engines, can diagnose and repair a wide range of complex issues.
Cost of Living and Doing Business
The cost of living and doing business in different parts of the country greatly impacts mechanic labor costs. Regions with higher costs of wages, utility rates and rent will have higher labor rates to account for those expenses.
Type of Shop
The type of auto repair shop you use plays a role in the labor rates you will be charged. You might notice that you pay more at a dealership versus an independent shop, while chains vary compared to dealer prices but offer predictable prices for services. Here's a brief breakdown of shop types:
- Dealership: Dealerships typically charge higher labor rates due to factory-trained technicians, use of specialized diagnostic equipment, brand-specific expertise and higher overhead costs, such as franchise fees and facility expenses.
- Independent shop: Independent shops usually have lower labor rates as they operate with leaner overhead, have more flexible pricing and can source both OEM and aftermarket parts, appealing to customers seeking more affordable repairs.
- Specialty shop: Specialty shops, such as those focusing on luxury, vintage or fleet vehicles, often have above-average labor rates because they require highly skilled technicians and niche equipment to handle complex repairs.
- Chain: Chain shops tend to have standardized pricing structures with moderate to high labor rates that reflect brand consistency, marketing and economies of scale, sometimes offering flat-rate pricing to compete with independent shops and dealerships.
Type and Complexity of the Repair
The complexity of the repair might also impact the labor rate charged. For example, transmission or engine work is more difficult than a simple oil change and may cost more (especially where the shop may charge flat rates for basic car maintenance).
Types of Mechanic Labor Rates
There are a few methods auto repair shops may use to charge mechanic labor rates:
Flat-Rate Pricing
Flat-rate pricing is when a fee is established per service or repair task based on the estimated time it takes to complete the task.
The technician will be paid a predetermined amount, no matter how many hours they work on the task. For example, if a task is estimated to take two hours and the mechanic takes more or less time, they get paid the same amount. Flat-rate pricing allows shops to give repair estimates that are consistent and fair while paying their mechanics based on ability.
Flat rates are generally calculated using a flat-rate manual or computer program that provides industry-standard times for completing tasks. This is also known as book time or flag time.
Hourly-Rate Pricing
Hourly-rate pricing is when the technician gets paid for every hour worked on the service. It's much less common in auto repair shops because it doesn't incentivize efficiency, and hourly rates can make for unpredictable customer invoices and labor costs for the shop.
Menu Pricing
Some auto repair shops advertise certain jobs using package or menu pricing. You have probably seen coupons for $49.95 oil changes that include the parts and labor required to do the job on most cars. Or maybe you have read ads that offer a brake job for $99.95 per axle. A labor cost is included in the menu price you are quoted.
Menu pricing is a common marketing tool, so be sure to note any limitations and exclusions. For example, an oil change will likely cost you more than the coupon price if:
- Your car requires synthetic motor oil.
- Your car needs more than five quarts of oil.
- Your car takes an uncommon filter.
Similarly, most brake jobs will require more work than can be included in a $99.95 special.
When you purchase menu-priced services, don't be surprised if the auto repair shop calls you and requests approval to perform additional work. Before giving an okay, ask for a written estimate that details the parts and labor costs to help prevent any misunderstandings. If you have any questions, make sure they are answered to your satisfaction prior to approving the work.
Diagnosis Pricing
Not all services can be estimated using the flat-rate system. Diagnostic work is a good example because every troubleshooting process is unique. Charging for diagnostic time often works like this:
- The auto repair shop quotes a basic diagnostic charge that includes certain procedures and a maximum time limit.
- If the problem can't be identified within that time, they will contact you, describe what has been done to that point and ask for more time (and money) to do further diagnosis.
While this can be frustrating for both you and the shop, there is no practical alternative, especially when it comes to complex or intermittent troubles.
For some problems , electrical issues in particular , it is not unusual for the diagnosis cost to exceed that of the actual repair. For example, a shop may spend two hours tracking down an open circuit in a wire under the dash, and then fix the problem in five minutes with some solder and electrical tape. In these situations, you are mainly paying for the expertise required to locate the problem, not the repair itself.
How to Find the Best Mechanic Labor Rate
Consumers looking for the best mechanic labor rate should start by researching average rates in their local area, as these can vary widely by region, shop type and technician expertise.
It's important to get multiple quotes or auto repair estimates and understand what's included , sometimes a low rate comes with hidden fees or lower-quality parts. Consider shops that use flat-rate pricing versus hourly rates, depending on which is more suitable for the specific repair needed.
You should also beware of rates that seem significantly below or above averages, as unusually low prices may indicate subpar service, and excessively high prices may not guarantee better outcomes. For AAA members, some regions offer discounts through the AAA Approved Auto Repair facility network, which can provide added savings and quality assurance. However, members should still compare rates and reviews to ensure they get a fair deal.
Find Quality Auto Repair With AAA
Plan ahead for vehicle service by finding an auto repair shop and technician you can trust before you need them. AAA's Approved Facility Locator provides information on more than 7,000 Approved Auto Repair facilities that have met AAA's high standards for appearance, technician training and certification, insurance coverage and customer satisfaction.
Start with a AAA membership to access a range of benefits, including roadside assistance when you need it.
FAQ
Here are answers to some common questions about mechanic labor rates.
What is a flat-rate manual?
A flat-rate manual is a guidebook or computer program that lists typical vehicle service tasks and the average industry hours for each. This helps auto repair shops set flat rates for different tasks.
How can I find a reliable mechanic?
You can find a reliable mechanic by asking around and looking at reviews for repair shops in your area. Another way is using AAA's Approved Auto Repair Facility Locator to find repair shops that have met AAA's high standards.
Do dealer mechanics cost more than independent mechanics?
Dealer mechanics generally cost more than independent mechanics, often by 25 percent or more. This is because dealerships typically have factory-trained technicians, specialized diagnostic equipment and higher overhead expenses, including franchise fees and larger facility costs.