At a Glance
Quick Answer
Maryland requires a state-level contractor license for projects above All residential remodeling and home improvement work; new home builders register separately. Exam required. NASCLA not accepted. Administered by Maryland Home Improvement Commission (MHIC).
Context
Licensing & Bidding in Maryland
Maryland licenses contractors primarily through the Maryland Home Improvement Commission (MHIC), which governs residential remodeling and home improvement work and requires an exam to qualify. The MHIC license covers most residential construction and remodeling, and crucially, subcontractors performing home improvement work also need their own MHIC license — not just the prime. New home builders register separately with the Attorney General, and home improvement salespersons must be registered under a licensed contractor. For estimators, that structure means you must confirm the right credential for the work category before bidding: residential remodeling routes to MHIC, while new construction routes to the separate builder registration.
An exam is required and NASCLA is not accepted, so out-of-state firms cannot shortcut qualification with a NASCLA credential, and Maryland lists no GC reciprocity. Specialty trades such as electrical, plumbing, HVAC, and master gas fitting are licensed separately, so price licensed trade subcontractors into your bid and verify each holds the proper Maryland license. Because subcontractors doing home improvement work need their own MHIC license, build that verification into your subcontractor selection rather than assuming the prime's license covers the chain.
The penalties for unlicensed contracting in Maryland are among the most serious: a misdemeanor, fines up to $5,000, imprisonment up to two years, and loss of the right to file liens. Losing lien rights on a Maryland project can leave you unable to collect on work you performed, which is a direct hit to the margin you bid. The safeguard is to identify the correct license category early, confirm your MHIC qualification and any separate builder registration, and verify that every home improvement subcontractor is independently licensed before you submit and before work begins.
Details
Key Facts & Fees
Key Facts
- GC License Required
- Yes
- Threshold
- All residential remodeling and home improvement work; new home builders register separately
- Exam Required
- Yes
- NASCLA Accepted
- No
Fees
- Application Fee
- $200
- License Fee
- $300 for initial MHIC registration
- Renewal Fee
- $300 biennially
Reference
Key Facts
MHIC license covers most residential construction and remodeling
New home builders register with the Attorney General separately
Subcontractors performing home improvement work also need MHIC license
Home improvement salespersons must be registered under a licensed contractor
Requirements
Insurance Requirements
Education
Continuing Education
Not required
Specialty
Specialty Licenses Required
Process
How to Apply
- 1Submit application to the Maryland Home Improvement Commission
- 2Pass the PSI MHIC exam (70% passing score)
- 3Obtain general liability insurance ($50,000 minimum)
- 4Obtain workers compensation insurance for employees
- 5Complete the guaranty fund assessment
- 6Pay $200 application fee and $300 license fee
Enforcement
Penalties for Unlicensed Work
Misdemeanor; fines up to $5,000; imprisonment up to 2 years; loss of right to file liens
Resources
Related Templates
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FAQ
Questions Contractors Ask
Do I need a contractor license in Maryland?
Yes. Maryland requires a state-level contractor license for projects above All residential remodeling and home improvement work; new home builders register separately. The administering board is Maryland Home Improvement Commission (MHIC).
Is an exam required in Maryland?
Yes. Maryland requires a licensing exam. You must pass the state-specific exam.
What insurance is required in Maryland?
General Liability: $50,000 minimum. Workers Comp: Required for all employers. Bond: Not required for MHIC registration.
What are the penalties for unlicensed contracting in Maryland?
Misdemeanor; fines up to $5,000; imprisonment up to 2 years; loss of right to file liens
Do subcontractors need their own license in Maryland?
Yes. Subcontractors performing home improvement work in Maryland must hold their own MHIC license, not just the prime contractor. Build this verification into your subcontractor selection during estimating, because an unlicensed sub can stall the project and expose the chain to enforcement and penalties under Maryland's home improvement rules.
What license do I need for new home construction in Maryland?
New home builders register separately with the Attorney General, distinct from the MHIC home improvement license that covers residential remodeling. Confirm the correct credential for your work category before bidding: remodeling routes to MHIC, while new construction routes to the separate builder registration with its own requirements.
What are the penalties for unlicensed contracting in Maryland?
Unlicensed contracting in Maryland is a misdemeanor carrying fines up to $5,000, imprisonment up to two years, and loss of the right to file liens. Losing lien rights can prevent you from collecting on completed work, so secure the proper MHIC or builder credential before bidding and before starting any project.