Maryland Home Improvement Contractor License Requirements (2026)

Maryland does not issue one statewide commercial general-contractor license. The Maryland Home Improvement Commission (MHIC) licenses contractors who act as contractors on covered home improvements. Home improvement includes alteration, remodeling, repair, replacement, and certain adjacent-land improvements to a residence; new-home construction is outside MHIC and builders must use the Attorney General’s Home Builder Registration Unit. A contractor who solicits or performs covered home improvement work must hold MHIC licensure unless a statutory exception applies. Commercial work and new-home construction can require a construction license from the appropriate Clerk of the Circuit Court, while local permits and trade licenses remain separate.

Regulatory Body

Maryland Home Improvement Commission (MHIC) administers the credential or scope-specific rules discussed here under Md. Code, Business Regulation Title 8; COMAR 09.08. Whether that pathway applies depends on the work scope and conditions explained below. MHIC licenses and regulates home improvement contractors and salespersons, administers the Home Improvement Guaranty Fund, and enforces Maryland home-improvement law.

Official portal: https://www.labor.maryland.gov/license/mhic/
Address: 100 S. Charles Street, Tower I, Baltimore, MD 21201
Phone: (410) 230-6231

Eligibility Requirements

Applicants must be at least 18 years old. Applicants must provide a Social Security Number. Out-of-state contractors that solicit or perform home improvement services in Maryland must hold an MHIC license and register with the Maryland Department of Assessments and Taxation.

Good moral character

MHIC evaluates financial solvency and the applicant information required by its licensing process. An applicant with a relevant misdemeanor conviction or a felony must provide conviction records.

Background investigation

Provide conviction records when the MHIC application rules require them; follow the current application checklist for all documentation.

Experience and Education

The applicant must document and verify at least 2 years of at least two years of experience in home improvement work, construction, and/or related education. 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

Experience, education, and financial-solvency documentation required by MHIC’s current contractor application
Credit report, financial information, and net-worth documentation used by MHIC to evaluate financial solvency
Business organizing documents, Certificate of Good Standing, and trade-name registration when applicable

Education substitution

MHIC expressly permits related education as part of the two-year contractor qualification. Use its current requirements to document the experience/education mix.

Exam Requirements

Testing provider or authority: PSI, MHIC’s examination vendor. The following examination requirements cover the pathways described in this guide; follow each part's classification, waiver, and local-scope conditions. Unpublished format details do not remove an examination requirement:

Maryland Home Improvement Contractor examination — 55 questions, 150 minutes, passing score 70%

Examination fee: Confirm the current PSI examination fee during registration.

Retake policy: Follow the current PSI Candidate Information Bulletin and MHIC application instructions for retesting.

Insurance and Bonds

This credential carries no state-level surety bond requirement under the cited sources. Individual jobs may still trigger a permit or public-works bond, which should be verified before bidding.

General liability

Effective June 1, 2024, MHIC requires contractors to maintain at least $500,000 in general liability insurance. Proof is required for original and renewal licensure, and coverage must remain in effect.

Workers' compensation

Workers’ compensation is a separate Maryland employer obligation. Confirm coverage requirements for the business and workforce.

Additional financial requirements

MHIC reviews financial solvency in relation to the business’s scope, assets, liabilities, credit report, and net worth. An applicant that does not meet the guidelines may use a surety bond or an indemnitor. The Home Improvement Guaranty Fund is not an alternative $50,000 bond: it is funded by mandatory licensee assessments.

Fee Schedule

Fee	Amount
Application	$303.75
Initial license	No separate amount recorded; confirm in the fee guidance
Renewal (every 2 years)	$456.25

To turn these board fees into a realistic year-one budget — bond premium, liability insurance, and exam prep included — open the cost calculator preloaded for Maryland general contractor.

Renewal and Continuing Education

Expect to renew the Maryland Home Improvement Contractor (MHIC) License every 2 years. Renewal currently costs $456.25. MHIC requires proof of current liability insurance at renewal. The $456.25 figure combines the published $281.25 contractor renewal charge and $175 Guaranty Fund assessment.

Continuing education: The cited MHIC licensing materials do not state a statewide continuing-education requirement. Confirm the current renewal instructions before filing.

Downloadable Asset

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

Download the PDF roadmap →

Reciprocity

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

Reciprocal State	Accepted Exam	Conditions
No formal bilateral reciprocity agreements identified.

Do not assume interstate MHIC reciprocity. The Commission’s current materials require an MHIC license for out-of-state contractors performing covered work in Maryland.

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

General Contractor Licensing in Neighboring States

Contractors working near a state line, or weighing where to qualify first, should compare Maryland's requirements against the bordering jurisdictions before committing to an application:

Delaware General Contractor License Requirements — Delaware Contractor Business License
District of Columbia General Contractor License Requirements — DC General Contractor/Construction Manager or Home Improvement Contractor Basic Business License
Pennsylvania General Contractor License Requirements — Pennsylvania Home Improvement Contractor Registration — No General Contractor License
Virginia General Contractor License Requirements — Virginia Class A, B, or C Contractor (RBC, CBC, or BLD)
West Virginia General Contractor License Requirements — West Virginia Contractor License

Step-by-Step Application Roadmap

Confirm the work falls within MHIC. MHIC covers covered home improvement, not new-home construction. Check statutory exceptions and required local permits or trade credentials.
Meet the experience and financial-solvency requirements. Document at least two years of home-improvement, construction, and/or related education, then provide the required financial information.
Pass the PSI examination. All applicants must pass the licensing exam before filing the license application. Use the current PSI bulletin for permitted references and registration details.
Obtain $500,000 liability coverage. File current general-liability insurance meeting the MHIC minimum; the policy must remain in force.
Prepare business records. Submit trade-name registration, entity documents, and Certificate of Good Standing when they apply.
Apply and pay the stated MHIC charges. The current original contractor charges are $281.25, $100 Guaranty Fund assessment, and $22.50 processing fee for the initial two-year period.
Use compliant contracts and obtain permits. MHIC licensing does not replace municipal permits, specialty-trade licenses, or the statutory home-improvement contract requirements.

Application Checklist

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

Pass the MHIC/PSI contractor examination
Document two years of qualifying experience, construction experience, and/or related education
Submit financial-solvency and credit information
Provide $500,000 general-liability insurance
Provide entity, Certificate of Good Standing, and trade-name records when applicable
Pay the current MHIC original-license charges and Guaranty Fund assessment
Confirm required local permits and separate trade licenses

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.

Treating the Guaranty Fund as a bond

The required Fund assessment is not an optional $50,000 payment in lieu of a bond.

Using the pre-June 2024 insurance amount

MHIC’s published liability minimum is now $500,000.

Assuming an MHIC license covers new homes

MHIC does not cover new-home construction; builders must use the Attorney General’s home-builder registration process.

Ignoring statutory exceptions and local requirements

MHIC does not replace permits, local construction licenses, or separately licensed trade work.

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/PSI Candidate Information Bulletin — Maryland Home Improvement Commission / PSI. Use the current bulletin for the examination outline, permitted references, fee, and retesting procedures.
Maryland Home Improvement law — Maryland General Assembly. Primary source for scope, licensing, contracts, and enforcement.

Other Maryland Trade Licenses

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

Frequently Asked Questions

Does Maryland have a statewide general contractor license?

Maryland does not issue one statewide commercial general-contractor license. MHIC licenses covered home improvement contractors; commercial work and new-home construction can require construction licensing through the appropriate Clerk of the Circuit Court.

What work needs an MHIC contractor license?

A person acting as a contractor on covered home improvement work must be licensed unless an exception applies. The statutory definition includes many improvements, repairs, remodels, and adjacent-land improvements to residences; new-home construction is outside MHIC.

Is the MHIC Guaranty Fund a $50,000 bond alternative?

No. Licensed contractors pay a statutory Fund assessment—currently $100 on an original license and $175 at renewal. MHIC may require a surety bond or indemnitor when an applicant does not meet its financial-solvency guidelines.

How much liability insurance does MHIC require?

MHIC states that contractors must maintain at least $500,000 of general-liability insurance, effective June 1, 2024.

How often does an MHIC contractor license renew?

The license period is two years. The currently published renewal charges are $281.25 plus a $175 Guaranty Fund assessment for each contractor.

Primary Sources

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

Verified 2026-09-04 · Next scheduled review 2026-12-03

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Corrections and presentation updates

2026-09-30: Corrected examination detection when format details are unpublished and updated the summary layout and requirements score. Source-check dates are unchanged.
2026-09-08: Shared template updated to distinguish unspecified eligibility requirements, retain cost qualifications, and use consistent headings. Source-check dates are unchanged by presentation updates.
2026-09-21: Local-only guides now use a compliance-focused structure and terminology instead of implying a statewide license application. Source-check dates are unchanged by this presentation update.