Maryland General Contractor License Requirements (2026)

Maryland does not issue a statewide commercial general contractor license. Residential contracting is regulated by the Maryland Home Improvement Commission (MHIC), housed in the Maryland Department of Labor under Maryland Code, Business Regulation Article §8-101 et seq. An MHIC contractor license is required for any residential improvement, repair, replacement, remodeling, alteration, conversion, modernization, improvement, or addition with a contract value over $1. The contractor license is issued to the business and requires a designated qualifying individual who has two years of experience, passes the PSI MHIC examination at 70%, and is covered by a $50,000 surety bond (or a $50,000 payment into the Maryland Home Improvement Guaranty Fund). Commercial general contracting work in Maryland is governed by county and municipal licensing rather than a state license.

Governing Authority

Maryland Home Improvement Commission (MHIC) administers and enforces this credential under the authority of Md. Code, Business Regulation §8-101 et seq.; COMAR 09.08. The Maryland Department of Labor houses the occupational boards that license home improvement contractors, master electricians, plumbers, and HVACR contractors statewide, adopts technical codes by reference, and conducts disciplinary proceedings.

Official portal: https://www.dllr.state.md.us/license/mhic/
Address: 1100 North Eutaw Street, Baltimore, MD 21201
Phone: (410) 230-6231

Eligibility Requirements

At a minimum the applicant has to be 18 years old and supply a valid Social Security Number. No Maryland residency requirement.

Good moral character

MHIC reviews the applicant's financial solvency and trustworthiness. Prior bankruptcies, judgments, and license revocations are reviewed individually.

Background investigation

Mandatory criminal history disclosure. The Commission may request a full background check before issuing the license.

Disqualifying conditions

Recent fraud, theft, or home improvement-related convictions
Outstanding civil judgments related to construction
Prior MHIC license revocation without rehabilitation

Experience & Education Matrix

The applicant must document and verify at least two years of experience in home improvement work or a related trade for the qualifying individual; the qualifying individual must be the sole proprietor, a partner, an officer, or a full-time employee of the applicant business. Keep payroll, tax, project, or supervisor records to support the claim, as the board can request proof for any period within its lookback window.

Accepted proof of experience or eligibility

MHIC Experience Verification Form signed by each prior employer
W-2 statements, pay stubs, or 1099 records covering the qualifying period
Notarized affidavits from prior supervising contractors

Education substitution

Accredited construction-related education may substitute for portions of the experience requirement at the Commission's discretion.

Examination Structure

The licensing examination is delivered by PSI Services LLC (under contract to MHIC). All of the following parts must be cleared prior to issuance:

MHIC Maryland Home Improvement Contractor Examination — Maryland law and rules, business and project management — 50 questions, 120 minutes, passing score 70%

Examination fee: $63 examination fee paid to PSI on the day of testing.

Retake policy: Failed examinations may be re-taken by paying a new $63 fee. Each application remains valid for one year from the application date.

Insurance & Financial Security

Licensure is conditioned on filing a $50,000 contractor license surety bond with the MHIC.

General liability

Minimum $50,000 general liability insurance is required for every MHIC contractor license. Higher limits are commonly carried for commercial general liability protection.

Workers' compensation

Workers' compensation insurance is mandatory in Maryland for any business with one or more employees under Md. Code, Labor and Employment §9-402.

Additional financial requirements

No formal net worth requirement. The Commission requires either a $50,000 surety bond or a $50,000 payment into the Maryland Home Improvement Guaranty Fund (the Guaranty Fund payment is a one-time contribution).

Application and License Fees

Fee	Amount
Application (non-refundable)	$250
Examination	$63
Initial license	$250
Renewal (every 2 years)	$250

Maintenance & Renewal

Expect to renew the Maryland Home Improvement Contractor (MHIC) every 2 years. Renewal currently costs $250. MHIC contractor licenses renew every two years. Bond and insurance must remain in force throughout the cycle.

Continuing education: No state-mandated continuing education for MHIC contractors as of the verified date.

Downloadable Asset

2026 Maryland General Contractor License Roadmap (PDF) — a printable step-by-step checklist for the application process.

Download the PDF roadmap →

Reciprocity and Endorsement

Maryland does not accept the NASCLA Accredited Examination for this classification.

Reciprocal State	Accepted Exam	Conditions
Virginia	Trade exam waived	Bilateral MHIC–Virginia DPOR reciprocity for active residential contractors in good standing.
Pennsylvania	—	Pennsylvania has no statewide contractor license; Maryland accepts experience documentation in lieu of a reciprocal credential.
West Virginia	Trade exam waived	Bilateral MHIC–West Virginia Contractor Licensing Board reciprocity.

Reciprocity waives the trade examination but not Maryland-specific application, bond, and insurance requirements. Out-of-state applicants must still designate a Maryland-approved qualifying individual.

Weighing more than one jurisdiction? The national hub compares General Contractor license requirements in every state — exam, bond, fee, and experience thresholds side by side.

Step-by-Step Application Roadmap

Confirm the work requires an MHIC license. Any residential improvement over $1 requires the license. Commercial work is licensed at the county level instead.
Document two years of qualifying experience. The qualifying individual must show two years of home improvement or related trade experience.
Secure the bond or Guaranty Fund payment. Obtain a $50,000 surety bond from a Maryland-admitted surety, or pay $50,000 into the MHIC Guaranty Fund.
Obtain $50,000 general liability insurance. Provide a certificate of insurance naming MHIC as a certificate holder.
Submit the MHIC application. File the contractor license application with fees, experience documentation, bond, and insurance certificate.
Pass the PSI MHIC examination at 70%. Score 70% or better on the 50-question MHIC law, business, and project management exam.
Receive the MHIC license. MHIC issues the license after the exam is passed and all documentation is complete. The license must be renewed every two years.

Pre-Submission Checklist

The items below are the ones worth confirming before the application is filed with MHIC:

☐ MHIC contractor license application with $250 fee
☐ Designated qualifying individual with two years of documented experience
☐ PSI MHIC exam pass certificate at 70%+
☐ $50,000 surety bond or $50,000 Guaranty Fund payment
☐ $50,000 general liability insurance certificate
☐ Workers compensation coverage certificate (if any employees)
☐ Trade name registration with the Maryland Department of Assessments and Taxation

Study and Reference Materials

What follows are the regulator-cited and commonly used preparation references for this trade. They appear here for convenience only; CLR takes no compensation for them.

MHIC Maryland Home Improvement Contractor Candidate Information Bulletin — PSI Services LLC. Free PDF from PSI. Contains the exam outline, references, and sample questions.
Md. Code, Business Regulation §8-101 et seq. and COMAR 09.08 — State of Maryland. Licensing law and rules. Open-book reference at the PSI test center.
NASCLA Contractors Guide to Business, Law and Project Management — Maryland edition — NASCLA. Standard reference for the business and project management portion.

Common Filing Mistakes

Drawn from the board instructions and sources cited on this page, the pitfalls below are the ones most likely to slow down or sink a Maryland General Contractor application.

Confusing MHIC with a commercial contractor license

MHIC only authorizes residential home improvement work. Commercial general contracting in Maryland is regulated at the county and municipal level, not by the state.

Operating as a salesperson without registration

Maryland separately requires home improvement salespersons to register with MHIC. An unregistered salesperson exposes the contractor to discipline.

Allowing the bond or insurance to lapse

A lapsed bond or insurance certificate automatically suspends the MHIC license. Both must remain in force for the entire two-year cycle.

Misclassifying the qualifying individual

The qualifying individual must be the sole proprietor, a partner, an officer, or a full-time employee. Borrowed qualifiers from outside the business are not allowed.

Skipping county licensing

Several Maryland counties (notably Montgomery, Prince George's, Anne Arundel, and Baltimore County) impose additional contractor registration on top of the MHIC license. Check the local jurisdiction before bidding.

Other Maryland Trade Licenses

Should the General Contractor path not apply, these other Maryland trade guides from CLR may help:

Frequently Asked Questions

When do I need a Maryland MHIC license?

Any residential home improvement, repair, remodeling, replacement, alteration, or addition with a contract value over $1 requires an MHIC license under Md. Code, Business Regulation §8-101. There is no minimum project threshold.

Does Maryland have a state commercial general contractor license?

No. Maryland licenses residential home improvement contractors through MHIC but does not issue a statewide commercial general contractor license. Commercial work is regulated at the county and municipal level.

What is the difference between the MHIC bond and the Guaranty Fund?

A $50,000 surety bond is an annual insurance product paid through premiums to a surety company. The $50,000 Guaranty Fund payment is a one-time contribution into a state-administered fund that protects consumers in lieu of a bond.

Does Maryland accept the NASCLA exam?

No. MHIC does not accept the NASCLA Accredited Examination. The PSI MHIC examination is required for the qualifying individual.

How often does the MHIC license renew?

Every two years. Renewal requires payment of the renewal fee and proof that the bond and insurance remain in force.

Primary Sources

Regulatory requirements on this page are drawn from the official board, statute, and exam-provider materials listed below.

Verified 2026-06-02 · Next scheduled review 2026-08-31