How Much Does It Cost to Start a Tire Shop?
Last updated: March 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:
One-Time Costs
$168,500
Monthly Costs
$0
First Year Total
$168,500
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $42,500 | $127,500 | $340,000 | $50 | 7.0% |
| West Virginia | $43,000 | $129,000 | $344,000 | $100 | 6.0% |
| Alabama | $44,000 | $132,000 | $352,000 | $200 | 4.0% |
| Arkansas | $44,500 | $133,500 | $356,000 | $45 | 6.5% |
| Oklahoma | $44,500 | $133,500 | $356,000 | $100 | 4.5% |
| Kansas | $45,000 | $135,000 | $360,000 | $160 | 6.5% |
| Indiana | $45,500 | $136,500 | $364,000 | $95 | 7.0% |
| Iowa | $45,500 | $136,500 | $364,000 | $50 | 6.0% |
| Michigan | $45,500 | $136,500 | $364,000 | $50 | 6.0% |
| Nebraska | $45,500 | $136,500 | $364,000 | $105 | 5.5% |
| Ohio | $45,500 | $136,500 | $364,000 | $99 | 5.8% |
| Kentucky | $46,000 | $138,000 | $368,000 | $40 | 6.0% |
| Louisiana | $46,000 | $138,000 | $368,000 | $100 | 4.5% |
| Missouri | $46,000 | $138,000 | $368,000 | $50 | 4.2% |
| 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% |
| Illinois | $47,500 | $142,500 | $380,000 | $150 | 6.3% |
| New Mexico | $47,500 | $142,500 | $380,000 | $50 | 5.1% |
| Wisconsin | $47,500 | $142,500 | $380,000 | $130 | 5.0% |
| North Carolina | $48,000 | $144,000 | $384,000 | $125 | 4.8% |
| South Carolina | $48,000 | $144,000 | $384,000 | $110 | 6.0% |
| South Dakota | $48,500 | $145,500 | $388,000 | $150 | 4.5% |
| Minnesota | $49,000 | $147,000 | $392,000 | $155 | 6.9% |
| North Dakota | $49,500 | $148,500 | $396,000 | $135 | 5.0% |
| Wyoming | $50,000 | $150,000 | $400,000 | $100 | 4.0% |
| Nevada | $51,000 | $153,000 | $408,000 | $425 | 6.8% |
| Arizona | $51,500 | $154,500 | $412,000 | $50 | 5.6% |
| Florida | $51,500 | $154,500 | $412,000 | $125 | 6.0% |
| Idaho | $51,500 | $154,500 | $412,000 | $100 | 6.0% |
| Pennsylvania | $51,500 | $154,500 | $412,000 | $125 | 6.0% |
| Delaware | $52,000 | $156,000 | $416,000 | $110 | 0.0% |
| Virginia | $52,000 | $156,000 | $416,000 | $100 | 4.3% |
| Colorado | $53,000 | $159,000 | $424,000 | $50 | 2.9% |
| Montana | $53,000 | $159,000 | $424,000 | $70 | 0.0% |
| Utah | $53,000 | $159,000 | $424,000 | $54 | 4.8% |
| Oregon | $56,000 | $168,000 | $448,000 | $100 | 0.0% |
| Vermont | $56,000 | $168,000 | $448,000 | $125 | 6.0% |
| Maine | $57,000 | $171,000 | $456,000 | $175 | 5.5% |
| Rhode Island | $58,000 | $174,000 | $464,000 | $150 | 7.0% |
| 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% |
| New Jersey | $62,500 | $187,500 | $500,000 | $125 | 6.6% |
| Alaska | $63,500 | $190,500 | $508,000 | $250 | 0.0% |
| Maryland | $64,500 | $193,500 | $516,000 | $100 | 6.0% |
| California | $67,500 | $202,500 | $540,000 | $70 | 7.3% |
| New York | $69,500 | $208,500 | $556,000 | $200 | 4.0% |
| Massachusetts | $75,000 | $225,000 | $600,000 | $500 | 6.3% |
| Hawaii | $96,500 | $289,500 | $772,000 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$127,500
- West Virginia$129,000
- Alabama$132,000
- Arkansas$133,500
- Oklahoma$133,500
5 Most Expensive States
- Hawaii$289,500
- Massachusetts$225,000
- New York$208,500
- California$202,500
- Maryland$193,500
Frequently Asked Questions
Opening a tire shop costs $50,000 to $400,000. A small 2-bay tire-only shop can open for $50,000-$100,000. A 4-bay shop with alignment equipment and comprehensive tire inventory typically costs $150,000-$280,000. A large tire and auto service center can exceed $400,000.
Tire shops achieve 10-20% net profit margins. Tire margins are 20-35% gross. A 4-bay shop installing 20-30 tires/day at $150 average revenue per tire generates $3,000-$4,500/day. Annual revenue of $800,000-$1,200,000 nets $80,000-$240,000 with good management.
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: tire changer ($5,000-$15,000), wheel balancer ($4,000-$10,000), and vehicle lifts ($3,000-$6,000 each). Hunter and Hofmann make industry-standard equipment. Adding a wheel alignment machine ($25,000-$60,000) is highly recommended — alignment adds $70-$120 revenue per vehicle with no additional parts cost.
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