Independent salary reference. Not affiliated with the BLS, United Association (UA), or any plumbing union. All wage figures cite the source; individual earnings vary by employer, certifications, and market.
Home/Self-Employed Income

2026 Income Guide

Self-Employed Plumber Income:
$60k Solo, $250k+ with a Crew

Updated 17 April 2026

Your income as a self-employed plumber depends on crew size more than anything else. Here is what the real numbers look like at each tier.

Solo Net Income

$60k - $110k

2-3 Crew Net

$80k - $160k

5+ Shop Net

$120k - $250k+

Typical Owner Rate

$120 - $150/hr

Income by Business Size

Crew size is the biggest lever on owner take-home. Here is what each tier looks like in practice.

Solo Operator

Gross Revenue

$80k - $150k

Owner Net Income

$60k - $110k

Typical Overhead

30-40%

One truck, one plumber. You do every job yourself.

  • +1,000-1,300 billable hours per year
  • +Service calls, repairs, smaller installs
  • +Gross revenue driven by charge rate
  • +Overhead: truck, insurance, tools, licensing
  • +No payroll complexity

2-3 Person Crew

Gross Revenue

$200k - $400k

Owner Net Income

$80k - $160k

Typical Overhead

45-55%

Owner works jobs plus manages crew.

  • +2-3 vehicles on the road daily
  • +Mix of service calls + new construction
  • +Owner still produces revenue directly
  • +Overhead jumps with payroll taxes
  • +Owner earns more in good seasons, margin risk in slow

5+ Person Shop

Gross Revenue

$500k - $1M+

Owner Net Income

$120k - $250k+

Typical Overhead

50-65%

Owner manages, rarely touches tools.

  • +Multiple crews running simultaneously
  • +Commercial contracts typical at this size
  • +Operations manager or foreman handles day-to-day
  • +Owner salary + profit distributions
  • +Highest risk, highest ceiling

What to Charge Per Hour as a Self-Employed Plumber

Charge rates vary significantly by market, service type, and whether you use hourly billing or flat-rate pricing. These are representative US ranges for 2026.

Service TypeTypical RateHigh-Cost Metro
Residential Service Call$75 - $125/hr$120 - $200/hr
Residential New Construction$85 - $150/hr$130 - $220/hr
Commercial Hourly$100 - $200/hr$150 - $275/hr
Emergency After-Hours1.5x - 2x + $100-$250 call-out1.5x - 2x + $200-$400 call-out
Drain Cleaning (flat rate)$150 - $350 per job$250 - $500 per job
Water Heater Replacement (flat)$800 - $2,000 per job$1,200 - $3,500 per job
Toilet Replacement (flat)$200 - $500 per job$350 - $750 per job
Leak Repair (flat)$150 - $400 per job$250 - $600 per job

How to set your rate

A common formula: divide your target annual net income by 0.6 (to account for 40% overhead), then divide by your realistic billable hours (typically 1,000 to 1,200 per year for solo operators after unbillable time, callbacks, and downtime). A target net of $90,000 requires a gross of $150,000. At 1,200 billable hours, that is $125 per hour. Check that rate against local market rates before locking in.

Annual Overhead Breakdown

Solo operators spend 30 to 40 percent of gross revenue on these costs. Most underestimate insurance and truck costs going in.

Solo Operator Annual Overhead

  • General liability insurance$1,200 - $3,000
  • Commercial auto insurance$2,000 - $4,500
  • Truck payment + fuel + maintenance$8,000 - $16,000
  • Tools, parts, and equipment$2,000 - $6,000
  • State licensing + bonding$500 - $2,000
  • Accounting and tax prep$600 - $2,000
  • Marketing (Google Ads, website, flyers)$1,000 - $5,000
  • Business software (scheduling, invoicing)$600 - $1,500
  • Phone, uniforms, miscellaneous$800 - $2,000
  • Total Annual Overhead$16,700 - $42,000

Startup Costs (One-Time)

  • Work truck (used)$15,000 - $30,000
  • Work truck (new)$35,000 - $55,000
  • Tools and equipment$5,000 - $15,000
  • Insurance (first year, upfront)$3,000 - $8,000
  • State master or journeyman license$200 - $1,000
  • Business registration and bonding$300 - $1,000
  • Initial marketing setup$500 - $3,000
  • 6 months living expenses (recommended)$20,000 - $40,000
  • Total to Start (used truck)$25,000 - $68,000

Gross vs Net: A Worked Example

Scenario: a solo journeyman plumber in a mid-size US market charging $120/hr, averaging 1,000 billable hours per year.

Gross revenue (1,000 hrs x $120/hr)$120,000
General liability + auto insurance- $6,000
Truck payment, fuel, and maintenance- $12,000
Tools and materials- $4,000
Licensing, bonding, accounting- $2,500
Marketing and miscellaneous- $2,500
Total overhead- $27,000 (22.5%)
Pre-tax net income$93,000
Self-employment tax (15.3%)- $14,229
Federal income tax (est. 22% bracket)- $15,000
Take-home after taxes$63,771

Note: Tax estimate assumes standard deductions and no retirement contributions. S-Corp election, SEP-IRA, and business deductions can significantly reduce the tax bill.

Taxes for Self-Employed Plumbers

Self-employment creates both a higher tax burden and more deduction opportunities than W-2 employment. Understanding both is essential.

Tax Obligations

  • Self-employment tax (15.3%): Covers Social Security (12.4%) and Medicare (2.9%). You pay both employer and employee share. However, 50% of SE tax is deductible from gross income.
  • Quarterly estimated payments: Due April 15, June 15, September 15, January 15. Underpaying triggers a penalty from the IRS. Pay at least 90% of current-year tax or 100% of prior-year tax.
  • State income tax: Varies from 0% (Texas, Florida, Nevada) to 13.3% (California top bracket). Major variable in take-home.

Key Deductions

  • +Vehicle mileage ($0.67 per mile, 2024 rate) or actual vehicle expenses
  • +Tools, equipment, and work materials
  • +Home office (dedicated workspace only)
  • +Health insurance premiums (100% deductible from gross income)
  • +Business phone and internet portion
  • +Professional subscriptions and software
  • +Continuing education and license renewal
  • +SEP-IRA contributions (up to 25% of net, max $66,000 in 2024)
  • +50% of self-employment tax

For a personalised estimate of your effective tax rate as a self-employed plumber, see effectivetaxratecalculator.com.

When to Make the Jump: W-2 to Self-Employed

Most successful solo operators spent 2 to 3 years building side jobs before going full-time. Jumping too early is the leading cause of failure in the first year.

Ready to Go Independent

  • +Hold a master plumber license (or journeyman license in states that allow independent work)
  • +Have 6 to 12 months of living expenses saved
  • +Have at least $5,000/month in confirmed recurring work or a pipeline of leads
  • +Truck, tools, and insurance arranged
  • +Accounting system and bank account set up

Not Ready to Go Independent

  • -Still holding only an apprentice card
  • -No savings buffer beyond 1 month
  • -No established customer relationships or referral sources
  • -Planning to start on your own state license without one
  • -No business plan or pricing model worked out

Frequently Asked Questions

How much do solo self-employed plumbers make?
A solo self-employed plumber typically grosses $80,000 to $150,000 per year. After overhead of 30 to 40 percent, net income lands between $60,000 and $110,000. Plumbers who specialise in emergency service or commercial work often reach the top of that range.
What should a self-employed plumber charge per hour?
Residential service work typically runs $75 to $150 per hour in most US markets. Commercial work ranges from $100 to $250 per hour. Emergency after-hours calls are billed at 1.5x to 2x standard rate plus a $100 to $250 call-out fee. Rates in high-cost metros can run 30 to 50 percent above these ranges.
What are typical overhead costs for a self-employed plumber?
Solo operators typically spend 30 to 40 percent of gross revenue on overhead. Main categories: insurance ($3,000 to $8,000/yr), truck and fuel ($8,000 to $16,000/yr), tools and materials ($2,000 to $6,000/yr), licensing and bonding ($500 to $2,000/yr), and marketing ($1,000 to $5,000/yr). Total annual overhead runs roughly $15,000 to $37,000.
How much does it cost to start a plumbing business?
Startup costs for a solo plumbing business typically range from $25,000 to $75,000. The biggest expense is a work truck ($15,000 to $45,000). Add tools and equipment ($5,000 to $15,000), first-year insurance ($3,000 to $8,000), licensing and bonding ($500 to $2,000), and initial marketing ($1,000 to $3,000).
Do self-employed plumbers need to incorporate?
Incorporation is not legally required in most states, but an LLC or S-Corp provides liability protection and can reduce self-employment tax. Most solo operators benefit from an LLC with S-Corp tax election once net income exceeds $50,000 per year. Consult a CPA for your specific situation.
What insurance does a self-employed plumber need?
At minimum: general liability insurance ($1 million to $2 million coverage, roughly $1,200 to $3,000/yr), commercial auto insurance on the work truck ($2,000 to $4,500/yr), and tools and equipment coverage ($200 to $600/yr). Total annual insurance cost for a solo operator: $3,000 to $8,000.
How does self-employment tax work for plumbers?
Self-employed plumbers pay self-employment tax at 15.3 percent on net earnings, plus federal and state income tax. However, 50% of the SE tax is deductible. Key deductions include mileage ($0.67/mile), tools, home office, health insurance premiums, and SEP-IRA contributions of up to 25% of net income.
When is the right time to go from W-2 to self-employed?
The ideal timing: you hold a master or journeyman license, have 6 to 12 months of living expenses saved, have at least $5,000/month in confirmed recurring work, and have your truck, tools, and insurance arranged. Most successful operators spent 2 to 3 years building side jobs before going full-time.

Related Resources

Master Plumber SalaryMost states require a master license to operate independently. See pay, licensing, and business economics.Plumbing License Requirements by StateWhat license you need to work independently in your state, and how long it takes to get there.Union vs Non-Union PayWhy many plumbers leave union jobs to go independent, and what they gain and lose.Plumber Salary by StateCharge rates vary significantly by state and metro. See where your market stands.

Source notes: ZipRecruiter self-employed plumber average $69,284/yr (February 2026). Overhead percentages from HousecallPro and ServiceTitan industry reports. SE tax rates from IRS Publication 334 (2024). Charge rate ranges from industry surveys.