Maryland Contractor License Requirements: Complete 2026 Guide

Introduction to Maryland Contractor Licensing

Maryland takes contractor licensing seriously, and the regulatory landscape involves multiple boards depending on the type of work you perform. The primary licensing authority for most contractors is the Maryland Home Improvement Commission (MHIC), which operates under the Division of Occupational and Professional Licensing within the Maryland Department of Labor. The MHIC regulates anyone who performs home improvement work on residential properties containing one to three dwelling units.

Beyond the MHIC, Maryland maintains separate licensing boards for specialty trades. The State Board of Electricians licenses master electricians, the Board of Plumbing oversees plumbers and gas fitters, and the Board of Heating, Ventilation, Air Conditioning and Refrigeration (HVACR) Contractors regulates HVAC professionals at every level from apprentice to master. If you build new homes, you also need to register with the Home Builder Registration Unit under the Attorney General's Office — a completely separate process from MHIC licensing.

This guide covers the requirements, fees, exams, and processes for all of these licensing paths. Whether you are a general contractor handling renovations, an electrician, a plumber, or an HVAC technician, you will find the specific information you need to get licensed and stay compliant in Maryland.

Table of Contents

1. Types of Contractor Licenses in Maryland
2. MHIC Home Improvement Licensing Requirements
3. Application Process
4. Examination Requirements
5. License Fees and Costs
6. Insurance and Bond Requirements
7. Specialty Trade Licenses (Electrical, Plumbing, HVAC)
8. License Renewal
9. Reciprocity with Other States
10. How to Verify a Contractor's License
11. Penalties for Working Without a License
12. Frequently Asked Questions

Types of Contractor Licenses in Maryland

Maryland does not have a single "general contractor" license at the state level. Instead, the licensing structure is organized by the type of work being performed. Here are the main license categories:

MHIC Home Improvement Contractor License

The MHIC contractor license is required for anyone who performs, offers to perform, or agrees to perform home improvement work on residential properties (one to three dwelling units). This covers a broad range of work including remodeling, roofing, siding, painting, decks, additions, kitchens, bathrooms, basements, and general renovation work. The license is valid for two years from the date of issuance.

MHIC Salesperson License

Anyone who sells or offers to sell home improvement services on behalf of a licensed contractor must hold a separate salesperson license. A salesperson may represent a maximum of two licensed contractors simultaneously, but may only represent one contractor per individual homeowner contract. The salesperson license also lasts two years.

Master Electrician License

Issued by the Maryland State Board of Electricians, this license authorizes the holder to provide electrical services for all types of electrical equipment. It requires seven years of supervised experience and passing a board-administered exam.

Plumber and Gas Fitter Licenses

The Maryland Board of Plumbing issues journeyman and master plumber/gas fitter licenses. Journeyman licensure requires four years (7,500 hours) of supervised experience under a master plumber. Master licensure requires an additional two years (3,750 hours) beyond journeyman status.

HVACR Licenses

The Maryland Board of HVACR Contractors licenses every level of the HVAC workforce, including apprentices, journeymen, limited contractors, and master contractors. Maryland is one of the few states that requires licensing even at the apprentice level.

Home Builder Registration

New residential construction is not covered by the MHIC license. Builders constructing new homes must register with the Home Builder Registration Unit of the Attorney General's Consumer Protection Division. This is a completely separate regulatory path with its own application, fees, and guaranty fund.

Subcontractor Exemption

As of July 1, 2016, Maryland eliminated the subcontractor license category. Home improvement subcontractors may work without an MHIC license when performing work for an MHIC-licensed contractor. However, any contractor who deals directly with homeowners must be licensed.

MHIC Home Improvement Licensing Requirements

The MHIC contractor license is the most common license Maryland contractors need. Here are the requirements as outlined by the Commission's licensing requirements page:

Experience

You must provide proof of at least two years of experience in home improvement work, construction, or related education. The MHIC evaluates this on a case-by-case basis. Relevant education from trade schools or community colleges can count toward this requirement.

Examination

All applicants must pass the MHIC licensing exam before submitting their license application. The exam tests your knowledge of Maryland home improvement laws and regulations. It is administered by PSI Exams (1-800-367-1565). You need a score of at least 70% to pass.

Financial Solvency

Applicants must demonstrate financial solvency based on total assets, liabilities, a full credit report, and net worth. The MHIC evaluates your personal assets — business assets alone do not satisfy this requirement. If you cannot meet the financial solvency guidelines, you have two alternatives:

• Obtain a $30,000 surety bond and provide financial statements
• Obtain a $100,000 surety bond in lieu of providing any financial statements

Insurance

Effective June 1, 2024, all MHIC-licensed contractors must maintain general liability insurance of at least $500,000. This was a significant increase from the previous $50,000 minimum, enacted through Senate Bill 806. Proof of current insurance must be filed with your application, and coverage must remain active continuously. You must notify the Commission at least 10 days before any cancellation of your policy.

Business Registration

If you operate as a corporation, you must submit articles of incorporation and a Certificate of Good Standing from the Maryland Department of Assessments and Taxation. Trade names must be registered with the same department.

Criminal Background

Applicants with misdemeanor convictions related to home improvement work or any felony conviction must submit documentation of their conviction. The MHIC evaluates these based on the nature of the crime, relevance to home improvement activities, time elapsed since the conviction, and post-conviction behavior.

Salesperson Requirements

Salesperson applicants must pass the salesperson exam through PSI and provide written employment verification signed by a licensed contractor. No prior experience requirement applies to salesperson licenses.

Application Process

Here is the step-by-step process for obtaining your MHIC contractor license:

1. Register your business. Register your business name through the Maryland Department of Assessments and Taxation. If incorporating, obtain articles of incorporation and a Certificate of Good Standing.
2. Pass the MHIC exam. Contact PSI Exams at 1-800-367-1565 to register for the contractor or salesperson exam. You must pass with a score of 70% or higher. No prior coursework is required, though community colleges and prep courses are available.
3. Obtain insurance. Secure general liability insurance of at least $500,000. Your insurance provider will need to file a certificate directly with the MHIC.
4. Gather financial documents. Prepare bank statements, real estate and property assessment notices, a full credit report, and proof of net worth. If you do not meet solvency guidelines, purchase a $30,000 or $100,000 surety bond.
5. Submit the application. Complete the MHIC contractor application and submit it with all required documents and fees. Applications are available through the MHIC Forms and Fees page.
6. Wait for processing. Processing typically takes 2 to 3 weeks. This includes check clearance (about one week), MHIC staff review (about five business days), supervisory approval, and database entry. Incomplete applications will take longer.
7. Receive your license. Once approved, your license number is added to the online database immediately. Your paper license arrives by mail within about 10 days of approval.

Examination Requirements

All MHIC license applicants must pass an exam before applying. Here are the details:

MHIC Contractor Exam

• Administrator: PSI Exams
• Contact: 1-800-367-1565
• Passing score: 70%
• Exam fee: $63 per attempt
• Content: Maryland home improvement laws, regulations, and contractor obligations
• Prerequisites: None — no coursework or prior licensing required
• Retake policy: If you fail, you must wait 30 days before your first retake. Subsequent retakes require 60-day waiting periods. You must pay the exam fee each time.

MHIC Salesperson Exam

• Administrator: PSI Exams
• Passing score: 70%
• Content: Maryland home improvement sales regulations
• Same retake policy as the contractor exam

Specialty Trade Exams

Each specialty trade board administers its own exam through PSI:

• Master Electrician: 90 questions, 4-hour time limit, 70% passing score, $65 exam fee. Contact PSI at 1-800-733-9267.
• Journeyman/Master Plumber: 100 questions, 4-hour time limit, 70% passing score for journeyman, 75% for master, $65 exam fee.
• HVACR (all levels): 70% passing score required for all classifications.

License Fees and Costs

The MHIC updated its fee schedule effective August 1, 2024. All fees are non-refundable. Licenses are valid for two years.

MHIC Contractor Fees

MHIC Salesperson Fees

Specialty Trade License Fees

Miscellaneous MHIC Fees

• Letter under seal (status certification): $1.25
• Photocopying: $0.25 per page
• Certification of copies: Additional $1.00

For the most current fee schedules, visit the MHIC Forms and Fees page.

Insurance and Bond Requirements

MHIC General Liability Insurance

As of June 1, 2024, Maryland requires all MHIC-licensed contractors to carry a minimum of $500,000 in general liability insurance. This was a major increase from the previous $50,000 threshold, mandated by Section 8-302.1 of the Business Regulation Article. Key points:

• Proof of insurance must be filed with your application
• Coverage must remain active and continuous for the life of your license
• You must notify the MHIC at least 10 days before cancellation of your policy
• Failure to maintain insurance can result in license suspension

MHIC Surety Bond

A surety bond is not required for all contractors — only those who do not meet the MHIC's financial solvency guidelines. There are two options:

• $30,000 bond: Required if you do not meet the personal net worth requirements. You must still provide financial statements.
• $100,000 bond: May be filed in lieu of providing any financial statements at all.

Bond premiums vary based on your credit history and the surety company. Typical premiums for the $30,000 bond range from approximately $263 to $900+ for a two-year term.

MHIC Guaranty Fund

All MHIC-licensed contractors must pay into the Maryland Home Improvement Guaranty Fund. This fund compensates homeowners (up to $20,000 per claim) for actual losses caused by a licensed contractor who performed unworkmanlike, incorrect, or incomplete work, or who abandoned a job. The Guaranty Fund assessment is $100 for new licenses and $175 upon each two-year renewal.

Specialty Trade Insurance

• Master Electricians: $300,000 general liability insurance and $100,000 property damage insurance
• Master Plumbers: $300,000 general liability insurance and $100,000 property damage insurance
• HVACR Contractors (all classifications except Journeyman): General liability coverage of at least $300,000

Specialty Trade Licenses (Electrical, Plumbing, HVAC)

Electrician Licensing

The Maryland State Board of Electricians issues master electrician licenses. Key requirements:

• Experience: Seven years of regular employment in electrical services under the supervision of a master electrician or equivalent government employee
• Education credit: The Board may grant up to three years of experience credit for completion of a formal course of study or professional training in electrical installation
• Exam: 90 questions, 4-hour time limit, 70% passing score, administered by PSI Exams (1-800-733-9267). Exam fee is $65.
• License fee: $190 after passing the exam
• Insurance: $300,000 general liability and $100,000 property damage
• Renewal: Every two years, $25 fee, 10 hours of continuing education required (5 hours may be taken online)

Plumber and Gas Fitter Licensing

The Maryland Board of Plumbing issues journeyman and master level licenses. PSI Exams administers all testing at centers in Baltimore, College Park, Hagerstown, Lanham, and Salisbury.

Journeyman Plumber/Gas Fitter

• Experience: Four years of board-approved work experience (minimum 7,500 hours) under a licensed Maryland master plumber
• Exam: 100 questions, 4-hour time limit, 70% passing score, $65 exam fee
• Application fee: $35

Master Plumber/Gas Fitter

• Experience: Two additional years as a licensed journeyman (minimum 3,750 hours) under a licensed master plumber
• Exam: 100 questions, 4-hour time limit, 75% passing score, $65 exam fee
• Application fee: $70
• Insurance: $300,000 general liability and $100,000 property damage

All plumbing licenses are valid for two years.

HVACR Licensing

The Maryland HVACR Board licenses every level of the workforce. To legally perform any HVACR work in Maryland, you must be licensed — even at the apprentice level.

Apprentice

• Entry-level license for individuals beginning their HVACR career
• Fee: $11
• No exam required

Journeyman / Journeyman Restricted

• Experience: Four years as a licensed apprentice with a minimum of 6,000 training hours under a licensed contractor
• Exam: 70% passing score
• Fee: $22.50

Limited Contractor

• Experience: Two years as a licensed journeyman with a minimum of 1,000 hours in the year prior to application
• Scope: May maintain and repair HVACR systems but may not perform installations or retrofits
• Exam: Limited contractor exam, 70% passing score
• Fee: $84

Master / Master Restricted

• Experience: Three years as a licensed journeyman with a minimum of 1,875 hours in the year prior to application
• Scope: Full installation and maintenance in all (master) or specified (master restricted) HVACR areas
• Exam: Master or master restricted exam, 70% passing score
• Fee: $84 (master), $28 per category up to $84 (master restricted)
• Insurance: General liability of at least $300,000

All HVACR licenses are valid for two years.

License Renewal

MHIC Renewal

MHIC licenses are valid for two years from the date of issuance. To renew:

• Renewal fee: $281.25 for contractors, $112.50 for salespersons
• Guaranty Fund assessment: $175 for contractors at each renewal
• Continuing education: None required — Maryland does not mandate CE for MHIC license renewal
• Insurance: You must maintain continuous $500,000 general liability coverage

If you allow your license to lapse, you can apply for inactive status ($126.75 for contractors, $42.25 for salespersons) and later reactivate by paying the reactivation fee ($135 for contractors, $11.25 for salespersons) plus a reactivation application fee of $56.25.

Electrician Renewal

• Renewal period: Every two years
• Renewal fee: $25
• Continuing education: 10 hours required per renewal cycle (up to 5 hours may be completed online)

Plumbing Renewal

• Renewal period: Every two years
• Contact the Board of Plumbing for current renewal fees and CE requirements

HVACR Renewal

• Renewal period: Every two years
• Continuing education: 16 hours required per renewal cycle
• Renewal fees: Same as original license fees (Master: $84, Journeyman: $22.50, etc.)

Reciprocity with Other States

MHIC — No Reciprocity

The Maryland Home Improvement Commission does not offer reciprocity with any state. All out-of-state contractors must complete the full application process, including passing the Maryland MHIC exam, regardless of any licenses held in other states. Maryland is also not a NASCLA (National Association of State Contractors Licensing Agencies) accredited exam state for general contractor licensing.

Electrician Reciprocity

The State Board of Electricians does have reciprocal agreements with four jurisdictions:

• District of Columbia: Licensed electricians who passed the D.C. exam may apply without taking the Maryland exam
• Virginia: Master and journeyperson electricians who passed the Virginia exam may apply without taking the Maryland exam. Maryland is one of the few states that reciprocates journeyperson licenses, and it does so only with Virginia.
• Delaware: Licensed electricians who have held a Delaware license in good standing for at least five years and passed the Delaware exam may apply without taking the Maryland exam
• West Virginia: Electricians licensed by the WV State Fire Marshal who have held their license for at least two years in good standing may apply without taking the Maryland exam

Important: If you obtained your license through reciprocity from a local jurisdiction (rather than by state exam), you cannot use that state license to obtain reciprocal licensure in another state.

Plumbing and HVACR — No Reciprocity

Neither the Board of Plumbing nor the HVACR Board offer reciprocity with other states. All applicants must meet Maryland-specific experience and exam requirements.

How to Verify a Contractor's License

Maryland offers free online tools to verify contractor licenses. Before hiring any contractor, homeowners should check that the license is active and in good standing.

MHIC License Verification

Use the MHIC Public Query Tool to search for contractors. You can search by:

• Contractor's last name
• Trade name / business name
• Location
• Salesperson's name
• License registration number

The database shows the contractor's license status, license number, business information, and complaint history.

All Professional Licenses

For electricians, plumbers, HVACR contractors, and other licensed professionals, use the Division of Occupational and Professional Licensing Query tool. This single portal lets you search across all boards.

By Phone

You can also verify an MHIC license by calling 410-230-6309.

Penalties for Working Without a License

Maryland treats unlicensed contracting as a criminal offense. Under Maryland Business Regulation Article, Section 8-601, it is illegal to:

• Act or offer to act as a contractor without an MHIC license
• Sell or offer to sell a home improvement without a contractor or salesperson license

Criminal Penalties

A violation of Section 8-601 is a misdemeanor:

Additional Consequences

• Forfeiture of earnings: Courts may require repayment of all money earned through unlicensed work, as it is considered profit from unlawful activity
• License bar: Upon conviction, you may be barred from receiving an MHIC license for one year
• No contract enforcement: Contracts entered into by unlicensed contractors may be unenforceable, leaving the contractor with no legal recourse to collect payment
• No Guaranty Fund protection: Homeowners cannot file Guaranty Fund claims against unlicensed contractors, which means disputes must be resolved through civil courts

Reporting Unlicensed Activity

Anyone can report unlicensed home improvement activity to the MHIC using the Report Unlicensed Home Improvement Activity form, available on the MHIC Forms and Fees page.

Frequently Asked Questions

Do I need an MHIC license to build a new home in Maryland?

No. The MHIC license covers home improvement work on existing residences (one to three units). New home construction requires registration with the Home Builder Registration Unit under the Attorney General's Office. If you do both renovation work and new construction, you need both the MHIC license and home builder registration.

Do subcontractors need an MHIC license?

Not if they are working under a licensed contractor. As of July 1, 2016, Maryland eliminated the subcontractor license category. Subcontractors performing home improvements for an MHIC-licensed contractor do not need their own license. However, any contractor who deals directly with a homeowner must hold a valid MHIC license.

Does my out-of-state license transfer to Maryland?

For MHIC licensing, no. Maryland does not offer reciprocity for home improvement contractor licenses. You must pass the Maryland exam and complete the full application process. For master electricians, limited reciprocity exists with D.C., Virginia, Delaware, and West Virginia. Plumbing and HVACR licenses have no reciprocity.

How long does the MHIC application take to process?

A complete application typically takes two to three weeks to process. This includes check clearance (about one week), staff review (about five days), supervisory approval, and database entry. Incomplete applications require additional time. Your license number will appear in the online database before your paper license arrives in the mail.

Do I need a separate license for mold remediation?

No. As of 2008 legislation (with the program terminated July 1, 2019), no additional license is required for mold remediation work in Maryland. Your MHIC contractor license covers this type of work.

What insurance do I need for an MHIC license?

As of June 1, 2024, all MHIC-licensed contractors must carry a minimum of $500,000 in general liability insurance. This was a tenfold increase from the previous $50,000 requirement. Proof of coverage must be filed with the MHIC and maintained continuously.

Board Contact Information

Maryland Home Improvement Commission (MHIC)

• Address: 100 S. Charles Street, Tower I, Baltimore, MD 21201
• Phone: 410-230-6231
• Toll-Free: 1-888-218-5925
• Email: DLOPLMHIC-LABOR@maryland.gov
• Hours: Monday–Friday, 8:30 a.m. – 4:30 p.m.
• Website: labor.maryland.gov/license/mhic/

State Board of Electricians

• Website: labor.maryland.gov/license/elec/
• Exam registration (PSI): 1-800-733-9267

Board of Plumbing

• Website: labor.maryland.gov/license/pl/

Board of HVACR Contractors

• Website: labor.maryland.gov/license/hvacr/

Home Builder Registration Unit

• Address: Consumer Protection Division, 200 St. Paul Place, Baltimore, MD 21202
• Website: oag.maryland.gov

Conclusion

Maryland's contractor licensing system is spread across multiple boards, but the requirements are straightforward once you understand which license applies to your work. Most general contractors and remodelers will need an MHIC license — which requires two years of experience, a passing exam score, proof of financial solvency, and $500,000 in general liability insurance. Specialty trades each have their own board, experience thresholds, and exam requirements.

The MHIC does not offer reciprocity with any state, and Maryland is not a NASCLA state, so plan on completing the full application process regardless of your credentials elsewhere. Keep your insurance current, renew on time every two years, and maintain your Guaranty Fund contributions to stay in compliance. For the most current requirements and forms, visit the MHIC website or call them at 410-230-6231.