- The application must include a record of your home improvement or construction experience. The commission may ask about your character, experience and financial stability.
- Plan for a trade exam.
- If you do not meet the commission's financial solvency guidelines, you can use an indemnitor or buy a $30,000 or $100,000 surety bond.
- MHIC licenses renew every two years, with a Guaranty Fund assessment at each renewal.
Do you need a state license in Maryland?
Maryland licenses some general contractor work at the state level and leaves the rest alone. Which side of that line a job falls on decides whether you need the state license.
Builders who build new homes only in Montgomery County do not register with the Attorney General, but builders building only there pay a $250 Guaranty Fund administrative fee.
Maryland license types for general contractor work
Maryland splits the work into 3 licenses. Pick the one that matches the jobs you take, since working outside its scope is the same as working without one.
| License | What it covers |
|---|---|
| MHIC Contractor license | Contract with homeowners for remodeling, repair and additions on existing homes |
| MHIC Salesperson license | Sell home improvement jobs for a licensed contractor |
| Home Builder registration (Attorney General) | Build or sell new homes |
Steps to get licensed in Maryland
- Pass the MHIC contractor's exam through PSI.
- Get at least $500,000 general liability coverage.
- Fill out the contractor's personal financial statement, or arrange an indemnitor or surety bond.
- Apply to the Maryland Home Improvement Commission and pay the license fee and Guaranty Fund assessment.
- If you build new homes, also register with the Attorney General's Home Builder Registration Unit.
- Renew the MHIC license every two years.
Experience and other requirements
Experience. The application must include a record of your home improvement or construction experience. The commission may ask about your character, experience and financial stability.
The license to apply for. MHIC Home Improvement Contractor license.
Maryland general contractor exams
Trade exam. Yes. The MHIC contractor's exam, given by PSI.
Business and law exam. The official pages we read do not say. Check with the board (official site).
What it costs in Maryland
The board lists 6 fees along the way. These are the state's own numbers. Insurance, any bond, exam prep and your business registration come on top.
| Fee | Amount |
|---|---|
| MHIC contractor license, per place of business | $281.25 |
| MHIC application processing fee | $22.50 |
| Guaranty Fund assessment, new license (two years) | $100 |
| Guaranty Fund assessment, renewal (two years) | $175 |
| MHIC contractor renewal, per place of business | $281.25 |
| New home builder registration, initial (Attorney General) | $800 |
Insurance and bond
Insurance. Since June 1, 2024, every MHIC contractor must carry at least $500,000 general liability insurance.
Bond. If you do not meet the commission's financial solvency guidelines, you can use an indemnitor or buy a $30,000 or $100,000 surety bond.
Renewal and licenses from other states
Renewal. MHIC licenses renew every two years, with a Guaranty Fund assessment at each renewal.
Reciprocity. The official pages we read do not say. Check with the board (official site).
Good to know in Maryland
- New home builders register with the Attorney General's Home Builder Registration Unit. The first registration is $800, and later fees run $400 to $1,200 based on building permits in the prior year.
- New home construction is not home improvement under the MHIC law.
- Work on apartment buildings with four or more units and on condo common areas is outside the home improvement law.
After you are licensed
The license lets you take the work. Getting the work is the next job.
- Register the business. If you work under a name other than your own, register it where your state asks (often the Secretary of State, sometimes the county), and keep the name the same on your license, your truck and your invoices.
- Claim your Google Business Profile. It is the listing people see when they search for a contractor near them. Fill in your service area, hours and real photos of your work.
- Put up a website that shows the license. Customers look for it before they call. Koira builds a contractor website for you and keeps it current.
- See where you stand. The free Koira report checks how your business shows up in search and on maps against shops near you.
Where this comes from
Every fact on this page comes from the Maryland Home Improvement Commission (MHIC), Maryland Department of Labor and the official pages below, checked October 8, 2026. Fees and rules change, so confirm with the board before you file.