How Much Does It Cost to Start a Tire Shop?
Last updated: May 2026
National Average
Low
$50,000
Medium
$150,000
High
$400,000
A specialty automotive retailer and service business selling, installing, and repairing tires and wheels. Often also provides alignment and balancing services.
Time to Launch
3-6 months
Profit Margins
10-20%
Break-Even Timeline
12-24 months
Interactive Cost Calculator
Select a state below to see state-adjusted costs.
Startup Cost Calculator
Tire Shop in Nationally
Budget:
$40,000
$30,000
$25,000
$40,000
$1,500
$8,000
$4,000
$20,000
Options
Employees:
Startup Costs
$168,500
Monthly Costs
$20,000
First Year Total
$408,500
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $38,500 | $115,500 | $308,000 | $50 | 7.0% |
| West Virginia | $38,500 | $115,500 | $308,000 | $100 | 6.0% |
| Oklahoma | $40,000 | $120,000 | $320,000 | $100 | 4.5% |
| Alabama | $40,500 | $121,500 | $324,000 | $200 | 4.0% |
| Arkansas | $40,500 | $121,500 | $324,000 | $45 | 6.5% |
| North Dakota | $41,000 | $123,000 | $328,000 | $135 | 5.0% |
| Iowa | $41,500 | $124,500 | $332,000 | $50 | 6.0% |
| Kansas | $41,500 | $124,500 | $332,000 | $160 | 6.5% |
| Missouri | $41,500 | $124,500 | $332,000 | $50 | 4.2% |
| South Dakota | $41,500 | $124,500 | $332,000 | $150 | 4.2% |
| Kentucky | $42,000 | $126,000 | $336,000 | $40 | 6.0% |
| Louisiana | $42,000 | $126,000 | $336,000 | $100 | 5.0% |
| Wyoming | $42,000 | $126,000 | $336,000 | $100 | 4.0% |
| Nebraska | $42,500 | $127,500 | $340,000 | $105 | 5.5% |
| Indiana | $43,000 | $129,000 | $344,000 | $95 | 7.0% |
| Michigan | $44,000 | $132,000 | $352,000 | $50 | 6.0% |
| Ohio | $44,000 | $132,000 | $352,000 | $99 | 5.8% |
| New Mexico | $45,000 | $135,000 | $360,000 | $50 | 4.9% |
| South Carolina | $45,000 | $135,000 | $360,000 | $110 | 6.0% |
| Wisconsin | $45,500 | $136,500 | $364,000 | $130 | 5.0% |
| Tennessee | $46,000 | $138,000 | $368,000 | $300 | 7.0% |
| Texas | $46,000 | $138,000 | $368,000 | $300 | 6.3% |
| Georgia | $47,000 | $141,000 | $376,000 | $100 | 4.0% |
| Minnesota | $47,000 | $141,000 | $376,000 | $155 | 6.9% |
| Illinois | $47,500 | $142,500 | $380,000 | $150 | 6.3% |
| Idaho | $48,000 | $144,000 | $384,000 | $100 | 6.0% |
| North Carolina | $48,000 | $144,000 | $384,000 | $125 | 4.8% |
| Pennsylvania | $48,000 | $144,000 | $384,000 | $125 | 6.0% |
| Montana | $48,500 | $145,500 | $388,000 | $35 | 0.0% |
| Utah | $50,000 | $150,000 | $400,000 | $54 | 6.1% |
| Delaware | $52,000 | $156,000 | $416,000 | $110 | 0.0% |
| Nevada | $52,500 | $157,500 | $420,000 | $425 | 6.8% |
| Virginia | $53,500 | $160,500 | $428,000 | $100 | 5.3% |
| Vermont | $54,500 | $163,500 | $436,000 | $125 | 6.0% |
| Arizona | $55,000 | $165,000 | $440,000 | $50 | 5.6% |
| Colorado | $55,000 | $165,000 | $440,000 | $50 | 2.9% |
| Florida | $56,000 | $168,000 | $448,000 | $125 | 6.0% |
| Oregon | $56,000 | $168,000 | $448,000 | $100 | 0.0% |
| Rhode Island | $56,000 | $168,000 | $448,000 | $150 | 7.0% |
| Maine | $57,000 | $171,000 | $456,000 | $175 | 5.5% |
| New Hampshire | $58,500 | $175,500 | $468,000 | $102 | 0.0% |
| Washington | $59,000 | $177,000 | $472,000 | $200 | 6.5% |
| Connecticut | $59,500 | $178,500 | $476,000 | $120 | 6.3% |
| Maryland | $60,500 | $181,500 | $484,000 | $100 | 6.0% |
| New Jersey | $62,500 | $187,500 | $500,000 | $125 | 6.6% |
| Alaska | $63,500 | $190,500 | $508,000 | $250 | 0.0% |
| New York | $69,500 | $208,500 | $556,000 | $200 | 4.0% |
| California | $76,000 | $228,000 | $608,000 | $70 | 7.3% |
| Massachusetts | $77,000 | $231,000 | $616,000 | $500 | 6.3% |
| Hawaii | $96,500 | $289,500 | $772,000 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$115,500
- West Virginia$115,500
- Oklahoma$120,000
- Alabama$121,500
- Arkansas$121,500
5 Most Expensive States
- Hawaii$289,500
- Massachusetts$231,000
- California$228,000
- New York$208,500
- Alaska$190,500
Frequently Asked Questions
Opening a tire shop spans a wide range. A small 2-bay tire-only shop can open in the high five to low six figures. A 4-bay shop with alignment equipment and comprehensive tire inventory requires meaningfully more — well into the mid-six figures. A large tire and auto service center requires materially more capital. Use the calculator on this page to model your specific scenario.
Tire shops achieve healthy net profit margins for the automotive-services category. Tire gross margins are moderate. A multi-bay shop installing a steady daily car count at typical per-tire revenue generates meaningful annual revenue. Net profit scales with installation volume and add-on attach rate (alignment, TPMS, balancing).
Major tire distributors include American Tire Distributors (ATD), TBC Corporation, and direct manufacturer accounts (Michelin, Goodyear, Bridgestone). Most small shops order from ATD or TBC with same-day delivery. Franchise brands (Discount Tire, Mavis) have proprietary buying arrangements. Account minimums vary by distributor.
Most states require a general business license and EPA compliance for waste tire disposal. Some states require a motor vehicle service license or auto dealer license. EPA registration for waste tire management is required — tires cannot be landfilled in most states and must go to licensed recyclers.
Essential equipment includes a tire changer, wheel balancer, and vehicle lifts. Hunter and Hofmann make industry-standard equipment. Adding a wheel alignment machine is highly recommended — alignment adds meaningful per-vehicle revenue with very low marginal parts cost.
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