Maryland Contractor License Requirements: 2026 Comprehensive Guide
Maryland requires a Home Improvement Contractor license for any contractor performing residential home improvement work at $500 or more. The Maryland Home Improvement Commission (MHIC) administers the program. Maryland uses a Guaranty Fund instead of a surety bond. The application fee was updated to $281.25 effective August 1, 2024 and many sources still show the prior $250 figure. Maryland has no reciprocity with any state. This guide covers every MHIC requirement in effect for 2026.
MHIC License - Residential Only
The MHIC license covers residential home improvement work only. Commercial GC work in Maryland has no statewide license requirement. MHIC's jurisdiction is any contractor performing home improvement work at a Maryland residential property for $500 or more per contract - one of the lowest thresholds in the country.
Exam and Experience
Two years of verifiable residential home improvement experience within the past five years required. Written exam administered by PSI, 70% passing score. NASCLA is not accepted - Maryland uses its own exam. Background check required.
Guaranty Fund - No Surety Bond
Maryland uses a Guaranty Fund in place of a surety bond. New applicants: $100 Guaranty Fund assessment at initial application. Renewals: $175 per biennial cycle. Maximum consumer payout: $30,000 per claim. Application Fee - Updated August 2024 Application fee: $281.25, effective August 1, 2024 (prior fee was $250). Any source showing $250 is outdated. Verify current fee at mhic.maryland.gov before submitting payment. Biennial renewal cycle.
No Reciprocity
Maryland has no reciprocity agreements with any state. All applicants meet Maryland's full requirements regardless of other state licenses held. Written contracts required for all work over $500 with MHIC-required disclosure language. MHIC conducts active enforcement including undercover operations.
For insurance requirements for Maryland, see our full requirments guide.
Pro tip: Maryland’s written contract requirement has specific MHIC-required disclosure language. If you are entering Maryland from another state, review your existing contract template against Maryland’s required disclosures before your first job - a licensed contractor using a non-compliant contract is still subject to MHIC penalties.
Bottom Line and Next Steps
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Proof of Insurance Guide - What to have ready when clients or GCs ask
Insurance requirements, license requirements, and market premiums are subject to change alongside state legislation and carrier appetite. While we audit and update this data regularly to ensure reliability (Last Updated: May 2026), these figures are for research and planning purposes only. Always verify specific coverage mandates with your local licensing board or a licensed broker.
Frequently Asked Questions
What is the Maryland contractor license threshold?
$500 per contract for residential home improvement work. Any residential remodeling, repair, or renovation contract of $500 or more requires an MHIC license.
What is the current MHIC application fee?
$281.25, effective August 1, 2024. The prior fee was $250. Verify at mhic.maryland.gov before submitting payment.
Does Maryland require a surety bond?
No. Maryland uses a Guaranty Fund instead — $100 at initial application, $175 at biennial renewal. Maximum consumer payout is $30,000 per claim.