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Guide

Why shop labor rates differ by city

If you compare two quotes in different cities, most of the difference is labor. Parts cost about the same everywhere. The hourly rate does not.

What is in an hourly rate

A technician is paid an hourly wage. The shop's posted rate is several times that, because it also pays for the building, tools, scan equipment, insurance, software, a service writer, parts handling and profit. A technician is also not billing every hour they are at work.

We use the US Bureau of Labor Statistics average wage for auto technicians in each metro area, then multiply by 4.0 to 5.5 to get a typical shop rate range. These multipliers are our assumption, and we show them on every page.

Why cities differ

Wages follow the cost of living and the local supply of technicians. In May 2025 the average auto technician wage was about $31.54 an hour in the Boston area and about $26.39 in Houston, according to BLS. That gap carries straight through into the shop rate.

Dealers and independents

Dealers usually charge more per hour than independent shops. The top of our ranges is meant to cover dealer pricing and the bottom independent pricing, but a single shop can sit outside the range.

What to do with this

If you are quoted an hourly rate far outside the range for your area, ask why. There can be a good reason, like a specialty or a luxury make. You can also check a whole quote with our quote checker.

Updated 2026-10-28. Not a repair shop, estimates only.