Heads Up: California Contractor License Bond Increasing to $40,000 in 2027

Senate Bill 1455 raised the CSLB contractor license bond from $25,000 to $40,000 effective January 1, 2027. Here is what licensed contractors and applicants need to do.

California Senate Bill 1455, signed into law in 2024, raises the required CSLB contractor license bond from $25,000 to $40,000 effective January 1, 2027. The Contractors State License Board (CSLB) has confirmed it will not accept any new or renewing license filings on or after that date with a bond amount below $40,000.

Who is affected?

• All Class A, B, and C licensees at renewal after 1/1/2027.
• New applicants filing on or after 1/1/2027.
• Reactivations after that date.

What will premiums look like?

Because surety pricing is a percentage of bond amount, premiums will scale roughly proportionally. A contractor paying $200/year on a $25,000 bond should expect to pay closer to $320/year on the new $40,000 amount with the same credit profile. Pricing will continue to depend on personal credit.

Do you need to file a new bond now?

No. Existing $25,000 bonds remain valid through their current term. The increase applies at the first renewal that falls on or after January 1, 2027. We will reach out to existing bondholders 90 days before their renewal to issue the larger bond.

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