How Much Should You Charge as a Tradesperson in 2026?
· 6 min read
One of the hardest things about running a trade business is knowing what to charge. Too low and you're grinding yourself into the ground for nothing. Too high and the phone stops ringing. Getting your pricing right is less about guesswork and more about understanding your real costs — and then building a sustainable margin on top.
What are other tradespeople charging in 2026?
Rates vary depending on your trade, location, and experience, but here's a rough guide to what tradespeople are charging across Australia in 2026. Electricians are typically charging $95–$140 per hour. Plumbers are sitting at $100–$150 per hour. Builders and carpenters range from $70–$120 per hour. Painters charge anywhere from $45–$85 per hour depending on whether they're solo or running a crew. These are ballpark figures — your local market may differ significantly, so it's worth checking what competitors in your area are advertising.
Work out your true cost of doing business
Here's where most tradespeople go wrong: they charge based on what feels fair for their hands-on labour, but forget to include all the costs that come with running a business. Before you set your hourly rate, add up your annual costs. That includes vehicle registration, insurance, fuel, tool maintenance and replacement, phone bills, software, accounting fees, licences and tickets, and any employees or subcontractors. Divide that total by the number of billable hours you realistically work in a year — usually around 1,200–1,500 hours for a sole trader once you subtract admin, travel, quoting time, and holidays. That gives you your break-even rate. Your actual charge-out rate needs to sit well above that to be profitable.
Don't forget to pay yourself properly
A lot of sole traders treat their business revenue like personal income, which leads to a distorted picture of what they're actually earning. Separate your wage from your business profit. Set a salary for yourself (what you'd pay a qualified tradesperson to do what you do), and then aim for the business to make a profit on top of that. If the numbers don't stack up, something in your pricing needs to change.
How to mark up materials
Supplying materials isn't a favour to the client — it's a service. You spend time sourcing them, paying for them upfront, and managing the risk if they're wrong or need returning. A standard markup on materials is 15–30%. For specialist items, trade-only products, or anything requiring significant sourcing effort, a higher markup is entirely reasonable. Be upfront about this in your quotes — most clients understand and respect transparency.
Fixed-price vs hourly rate: which is better?
For short, well-defined jobs, an hourly rate is fine. But for larger projects, a fixed-price quote protects both you and the client. It gives the client budget certainty, and it rewards your efficiency — if you get faster at a job over time, a fixed price means you earn more per hour without the client feeling ripped off. The key is quoting accurately so you're not losing money on those fixed prices. Tools like instanttradequote make it easier to build detailed, itemised quotes quickly so you can price fixed-rate jobs with confidence.
Review your rates regularly
Costs go up every year. Materials, fuel, insurance, wages — all of it creeps up. But many tradespeople haven't raised their rates in years because it feels uncomfortable. Get into the habit of reviewing your rates at least once a year. A 5% increase annually is reasonable and expected by most clients. If you haven't raised your rates in three years, you're effectively taking a pay cut.
The bottom line is simple: charge what your work is worth. Know your costs, build in a real profit margin, mark up materials fairly, and review your rates regularly. Tradespeople who price properly build sustainable businesses. Those who don't eventually burn out.