How to get a contractor license in Maryland
Maryland requires a license from the Maryland Home Improvement Commission for home improvement work: repairing, remodeling, or adding to existing residential property. There is no dollar minimum worth planning around, so remodelers should assume the license is required. New home builders register separately with the Attorney General's Home Builder Registration Unit, and the electrical, plumbing, and HVACR trades have their own state boards. The MHIC route means two years of experience, an exam, and proof you are financially solvent.
Licensing authority
Maryland Home Improvement Commission: https://labor.maryland.gov/license/mhic/
When a license is required
Home improvement contracting on existing residential property requires an MHIC license; the scope of the work, not a dollar threshold, is what triggers it. New home construction falls under the Attorney General's builder registration instead, and licensed trade work runs through the trade boards. When a job mixes categories, the MHIC license covers the improvement contracting.
License classes in Maryland
MHIC contractor license
The license to sell and perform home improvement work. Requires experience, the exam, financial solvency, and insurance.
MHIC salesperson license
Required for people selling home improvement contracts on behalf of a licensed contractor. Common in roofing and remodeling sales organizations.
Home builder registration
New home builders register with the Home Builder Registration Unit of the Attorney General's office. This is separate from MHIC, which does not cover new construction.
Trade licenses
Electricians, plumbers, and HVACR contractors license through their own state boards, layered on top of MHIC when the business also sells improvement work.
What you need before you apply
- Two years of experience in home improvement work, construction, or related education
- Pass the PSI exam: 55 questions, open book, 70 percent to pass
- Proof of financial solvency including a credit report and net worth review
- A surety bond or indemnitor if your finances fall short of the guideline
- General liability insurance of at least $50,000 naming MHIC as certificate holder
- Guaranty Fund contribution with the application
- A registered Maryland business entity
How to get licensed in Maryland
- Verify your two years. MHIC wants documented experience or equivalent education before you test. Line up the work history and references first.
- Schedule the PSI exam. The exam is 55 questions, open book, with 70 percent passing. Fail and you wait 30 days to retake, so prepare properly the first time.
- Assemble the financial package. The commission reviews solvency with a credit report and net worth. Weak numbers are not fatal; a surety bond or indemnitor can bridge the gap.
- File the application with insurance. Submit proof of at least $50,000 in liability coverage naming MHIC, the Guaranty Fund payment, and the fee. The license issues once everything clears.
- Put the number everywhere. Maryland expects the MHIC number on contracts and advertising, and homeowners are trained to look for it. It is a sales asset as much as a legal requirement.
Reciprocity with other states
Maryland does not maintain home improvement license reciprocity with other states; the MHIC exam and application apply to everyone. Experience earned in other states counts toward the two-year requirement, and the trade boards have their own policies on out-of-state credentials.
Working without a license
Contracting home improvement work without an MHIC license is a criminal misdemeanor in Maryland, and the commission pursues unlicensed operators with fines and prosecution referrals. Homeowners can only tap the Guaranty Fund for losses caused by licensed contractors, which gives clients a strong reason to verify your number. Confirm current insurance and fund amounts with MHIC before applying.
Frequently asked questions
Do handymen need a license in Maryland?
If the work qualifies as home improvement on existing residential property, yes, an MHIC license is required, and Maryland does not offer a practical dollar exemption to hide under. Small repair work still counts when it improves the property. The realistic path for a working handyman is simply getting the license.
How hard is the MHIC exam?
It is 55 questions, open book, with a 70 percent passing score, covering Maryland law and business practices more than trade skills. Most prepared applicants pass, and a failed attempt means a 30-day wait to retake. The financial solvency review trips up more applicants than the exam does.
What is the Maryland Guaranty Fund?
It is a fund administered by MHIC, financed by licensed contractors, that compensates homeowners for actual losses caused by a licensed contractor's poor or unfinished work. Claims can only be made against licensed contractors, so the license is what puts your clients under its protection. That coverage is a genuine selling point at the kitchen table.
Does my MHIC license cover building a new house?
No. New home construction requires registration with the Home Builder Registration Unit of the Attorney General's office, which is a separate credential from MHIC. A business doing both remodels and new builds carries both. Trade work like electrical and plumbing needs its own board licenses on top.
What software do MHIC contractors use for quotes and payments?
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