Occupational Licensing in Texas

Texas is often described as a state with a pro-growth economy and a strong commitment to free enterprise. Yet occupational licensing remains one of the most significant and least examined barriers to work in the state.

This page provides a data-driven snapshot of occupational licensing in Texas using the most recent license records published by the Texas Department of Licensing and Regulation (TDLR). The goal is simple: show the scale of licensing, who bears the compliance burden, and how licensing functions as a recurring regulatory obligation rather than a one-time requirement.

Key Takeaways

Texas occupational licensing affects everyday work at scale. The largest license categories include trades and personal services, which are common entry points into employment and small business ownership.

Most license records reflect independent workers rather than large commercial entities, based on address matching in the dataset.

Licensing also creates ongoing compliance pressure through renewals and continuing education requirements, creating a recurring cost of participation in the workforce.

License Volume by Occupation in Texas

What This Shows

A small number of occupations account for a large share of all license records in Texas. This concentration matters because it shows that licensing policy impacts mainstream work, not just niche professions.

Top-Ten Occupational Licenses

OccupationNumber of Licenses
Apprentice Electrician226,187
Cosmetology Operator193,978
Cosmetology Manicurist68,914
A/C Technician56,842
Cosmetology Esthetician45,963
Journeyman Electrician44,211
Class A Barber28,964
Master Electrician27,846
Electrical Contractor24,931
A/C Contractor22,784

Who Bears the Burden

What This Shows

Occupational licensing in Texas largely regulates individuals rather than facilities. Most license records list the same mailing and business address, suggesting many license holders are independent operators or sole proprietors.

Broken Down by License Holder Type

License Holder ClassificationNumber of Licenses
Same Mailing and Business Address779,842
Different Mailing and Business Address123,617
Other or Incomplete Address Records37,520

Renewal and Compliance Pressure

What This Shows

Licensing is not a one-time hurdle. The dataset contains many licenses that are expired, nearing expiration, or within a near-term renewal window. This illustrates how licensing creates continuous compliance obligations.

Continuing Compliance Obligations

License StatusNumber of Licenses
Expired or Past Due207,184
Expiring Within 90 Days122,317
Expiring Within 1 Year498,924
Valid Longer Than 1 Year112,554

Methodology Notes

Data source: Texas Department of Licensing and Regulation (TDLR) license records

Counts shown reflect license records in the dataset at the time of review. Records may include active licenses, expired licenses, and licenses within renewal windows.

Address classification is based on whether the mailing address and business address fields match within a given record.

Why This Matters for Public Policy

Occupational licensing is often justified as consumer protection, but the size and structure of Texas’s licensing system show a much broader impact. Licensing shapes who can enter key occupations, how easily people can transition into better work, and how much recurring compliance cost is imposed on everyday labor.

Texas lawmakers should evaluate licensing requirements with a clear standard: regulation should be narrowly tailored to genuine public safety risks, and low-risk occupations should not face unnecessary barriers to entry.

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