Auto Repair Labor Rates in 2026: What Shops Actually Charge
Updated 2026-10-17. Sources are listed at the end.
“What should I charge per hour?” is the most common pricing question in independent repair. Two 2026 data sources give a real answer, and they measure slightly different things.
Source 1: OEC (PartsTech) survey of ~700 general repair shops
OEC, which took over PartsTech’s annual shop report, surveyed about 700 U.S. general repair shops for its 2026 report (PartsTech/OEC):
| Average labor rate reported | Share of shops |
|---|---|
| $100 | 7% |
| $100-$119 | most common band |
| $100-$139 combined | nearly 50% |
| $140-$159 | 19% |
| $160-$179 | 12% |
| $180-$200 | 9% |
| Above $200 | 3% |
The same survey found that 42% of shops reported an average repair order (ARO) of $250-$499, 28% reported $500-$749, 12% reported $750-$1,000, and 8% reported over $1,000. The report also notes that “industry experts caution that current labor rates remain too low,” and links that to technician shortages (source).
Source 2: Tekmetric Shop Index (10,000+ shops)
Tekmetric publishes quarterly benchmarks from shops using its software, with data through June 2026 (Tekmetric Shop Index):
| Metric | National average | Median shop | Top 25% |
|---|---|---|---|
| Effective labor rate | $134.92 | $134.31 | $154.06 |
| Average repair order | $704.25 | $649.88 | $879.38 |
| Parts margin | 58% | 56% | 65% |
| Monthly car count | 118 | 97 | 180 |
Keep in mind that the sample is shops that use Tekmetric, not a random sample of all shops.
Posted rate vs effective rate: why the two sources differ
- Posted (door) rate is the hourly number on your menu board or estimate.
- Effective labor rate is what you actually collect per labor hour after discounts, warranty work, comebacks and jobs where real time beat (or lost to) book time.
The survey asks shops for their average labor rate. Tekmetric reports effective labor rate from software data. Treat them as two views of the market, not the same statistic. Track your own effective rate by dividing labor dollars collected by labor hours sold each month. If it’s well below your posted rate, you’re leaking money to discounts or underquoted jobs.
How to use these numbers
- Build your rate from your costs first. Use the labor rate calculator, the cost-based pricing formula and the free labor quote calculator.
- Then compare it with the market bands above. If your cost-based rate is under $100, check for missing overhead.
- Consider a labor matrix. In the OEC survey, shops named digital vehicle inspections, upselling/cross-selling, parts matrices and labor matrices as their top drivers of a higher ARO (source). Most shop management systems support labor matrices. See our Tekmetric vs Shopmonkey vs AutoLeap pricing comparison.
- Look up local wages. The BLS reports a national median of $24.34/hour for automotive technicians (May 2025) and links to state and metro wage data (BLS). If you plan to hire, your labor rate has to cover a competitive wage plus overhead.
What these rates mean for an owner’s income: how much do mobile mechanics make?
Sources
- PartsTech/OEC, Shop Stats: The Operational Numbers Behind Top Shops (April 13, 2026): https://partstech.com/resource/blog/shop-stats-the-operational-numbers-behind-top-shops/
- Tekmetric Shop Index: https://tours.tekmetric.com/answers/tekmetric-shop-index
- BLS OOH, Automotive Service Technicians and Mechanics: https://www.bls.gov/ooh/installation-maintenance-and-repair/automotive-service-technicians-and-mechanics.htm