Contractor Licensing Requirements in Maryland

Maryland licenses contractors through a mix of statewide boards rather than a single umbrella system. Most residential remodelers and repair contractors fall under the Maryland Home Improvement Commission (MHIC), while electricians and plumbers/HVAC techs answer to their own dedicated state boards. Knowing which one governs your work is the first step to getting licensed and insured correctly.

Maryland’s Contractor Licensing System

The Maryland Home Improvement Commission (MHIC), part of the Department of Labor’s Division of Occupational and Professional Licensing, statewide-licenses contractors and salespersons who perform home improvement work — repairs, remodels, additions, and alterations to existing residential structures. MHIC does not cover new home construction (handled separately as new home builder registration) or commercial work. There are no county-level add-on licenses required on top of MHIC statewide authority, though local building permits still apply.

License Classes in Maryland

• MHIC Contractor License — for businesses/individuals contracting directly with homeowners for home improvement work
• MHIC Salesperson License — for individuals who solicit or sell home improvement contracts on a contractor’s behalf
• Maryland State Board of Electricians — Apprentice, Journeyperson, and Master Electrician licenses for electrical work statewide
• Maryland Board of Plumbing, Heating, Ventilation, Air Conditioning and Fuel Gas Fitters — journeyman/master plumber and HVACR contractor licenses, issued separately from MHIC

Exam & Experience Requirements

MHIC applicants generally need two years of trade experience or equivalent education, and must pass the MHIC licensing exam (administered by a third-party testing vendor such as PSI) covering Maryland home improvement law before submitting an application. Electricians and plumbers/HVAC techs face separate trade-specific exam and apprenticeship/journeyman experience ladders through their own boards.

NASCLA Reciprocity

Maryland is not a NASCLA state and does not accept the NASCLA Accredited Examination — every applicant must sit for Maryland’s own MHIC exam regardless of out-of-state credentials.

Bonding & Insurance to Get Licensed

Rather than a traditional surety bond, MHIC contractors pay into the state Guaranty Fund ($100 at initial licensing, reassessed at renewal) which reimburses homeowners for certain contractor misconduct. MHIC also requires applicants to carry general liability insurance and to file continuous proof of coverage with the Commission.

For exact GL and workers’ comp dollar minimums required to get licensed, see Insurance Minimums to Get Licensed.

Reciprocity with Other States

MHIC does not offer reciprocity with any other state — every applicant, regardless of out-of-state licensure, must demonstrate knowledge of Maryland-specific home improvement law by passing the Maryland exam.

Maryland Licensing Fees & Timeline

Penalties for Unlicensed Contracting

Acting as a home improvement contractor or subcontractor without an MHIC license is a misdemeanor under Maryland’s Business Regulation Article, punishable by a fine of up to $1,000, imprisonment up to 6 months, or both — and homeowners who hire unlicensed contractors cannot recover from the Guaranty Fund.

Resources: Maryland Home Improvement Commission (MHIC) Licensing, MHIC Forms and Fees, Maryland State Board of Electricians

Frequently Asked Questions

Licensing requirements and fees change; verify current details with the Maryland Department of Labor’s Division of Occupational and Professional Licensing before applying.