Maryland Contractor License Types
| License Type | Application Fee | Annual Renewal | Bond |
|---|---|---|---|
| Home Improvement Contractor License Required for any individual or business that enters into a contract with a homeowner to perform home improvement work on an existing residence in Maryland. Applicants must pass a PSI-administered exam, demonstrate at least two years of home improvement / construction experience or related education, show financial solvency (or post a surety bond / indemnitor), and maintain at least $500,000 in general liability insurance (effective October 1, 2024 under HB 738 / Chapter 530; MHIC began enforcing June 1, 2024 per Commission notice). Issued for a 2-year term. | $281.25 application + $22.50 processing + $100.00 Guaranty Fund assessment (original, 2-year term, per Aug 1, 2024 fee schedule) | $281.25 renewal application + $175.00 Guaranty Fund assessment every 2 years | Surety bond may be required in lieu of meeting financial-solvency net-worth standard |
| Home Improvement Salesperson License Required for individuals who sell home improvements on behalf of a licensed MHIC contractor. A salesperson may represent no more than two licensed contractors at the same time. Applicants must pass the PSI salesperson exam. | $112.50 application + $22.50 processing (original, 2-year term) | $112.50 every 2 years | None |
| Master Electrician License (State Board of Electricians) Issued by the Maryland State Board of Electricians under Md. BR Title 6. Requires at least 7 years of regular electrical-services experience under a licensed master electrician (or qualified governmental supervisor); up to 3 years may be credited for formal training. Applicants must pass a written exam and carry at least $300,000 general liability + $100,000 property damage insurance (umbrella not acceptable). | $25.00 original license (effective July 1, 2025) | $31.50 renewal | None (insurance required) |
| Journeyperson Electrician License Requires at least 4 years of supervised electrical-services experience, or completion of an approved apprenticeship (576+ classroom hours and 8,000 work hours) plus 4 years under a licensed master. Exam required. | $18.50 original license (effective July 1, 2025) | $18.50 renewal | None |
| Master Plumber / Gas Fitter License (State Board of Plumbing) Issued by the Maryland State Board of Plumbing under Md. BR Title 12. Requires holding a journeyperson plumber/gas fitter license for at least 2 years and completing 3,750 training hours under a licensed master before passing a written exam. Must maintain at least $400,000 insurance per occurrence ($300,000 general liability + $100,000 property damage; umbrella not acceptable). Baltimore County and WSSC jurisdictions (Prince George's / Montgomery) also require local licensure. | $87.50 license (effective July 1, 2025) + $65.00 PSI exam | $87.50 renewal | None (insurance required) |
| Journey Plumber / Gas Fitter License Requires at least 7,500 hours of approved work experience under a licensed master plumber (typically 4 years of licensed apprenticeship); up to 1,500 hours of approved school study may be credited. Exam required. | $43.50 license (effective July 1, 2025) + $65.00 PSI exam | $43.50 renewal | None |
| Master HVACR License (Board of HVACR Contractors) Issued by the Maryland Board of HVACR Contractors under Md. BR Title 9A and COMAR 09.15. Master licenses cover heating, ventilation, air-conditioning, and refrigeration; 'Master Restricted' licenses limit scope to one to four categories. | $94.50 master license (effective July 1, 2025); $31.50 per area for master restricted | $94.50 every 2 years | None (insurance required) |
| Journeyman HVACR License Effective July 1, 2023, requires 6,000 work-experience hours (up from 1,875) and at least 4 years at the apprentice level (up from 3). Restricted journeyman license available for 1-4 specific HVACR categories. | $25.00 license (effective July 1, 2025); $25.00 per area for journey restricted | $25.00 every 2 years | None |
Processing time: Varies by license. MHIC: typically several weeks after exam passage and document review. Electrician / Plumber / HVACR exams are administered by PSI and scheduled on a rolling basis; if you fail, you must wait 30 days before retaking (60 days for subsequent retakes). from application submission to license issuance.
Maryland (MD) regulates residential home improvement contracting through the Maryland Home Improvement Commission (MHIC), part of the Maryland Department of Labor's Division of Occupational and Professional Licensing. MHIC derives its authority from the Maryland Business Regulation Article, Title 8, and licenses two categories: Home Improvement Contractor and Home Improvement Salesperson (the separate Subcontractor license was eliminated effective July 1, 2016). There is no dollar threshold — any work meeting the statutory definition of 'home improvement' on an existing residence requires an MHIC license. Specialty trades are licensed by separate state boards: the Maryland State Board of Electricians (Md. BR Title 6), the Maryland State Board of Plumbing (Md. BR Title 12), and the Maryland Board of Heating, Ventilation, Air-Conditioning, and Refrigeration (HVACR) Contractors (Md. BR Title 9A). Effective October 1, 2024 (MHIC began enforcing June 1, 2024 per Commission notice), MHIC contractors must carry at least $500,000 in general liability insurance under HB 738 / Chapter 530 of 2024 — a tenfold increase from the previous $50,000 minimum.
Step 1: Ask the Contractor for Their MHIC License Number
Any Maryland home improvement contractor who contracts directly with a homeowner must hold an MHIC license. Ask for the MHIC number before signing anything. Unlicensed home improvement contracting is a misdemeanor under Md. Business Regulation §8-601.
Step 2: Look Up the License on Maryland's Public Licensing Query
The Maryland Department of Labor's Licensing Queries portal (labor.maryland.gov/pq) lets you search MHIC contractors, salespersons, electricians, plumbers, and HVACR licensees by name, license number, or location. The lookup shows license status, expiration date, and disciplinary history.
Search Maryland License Lookup →
Step 3: Verify Insurance Coverage
Effective October 1, 2024 under HB 738 / Chapter 530 (MHIC began enforcing June 1, 2024 per Commission notice), every MHIC contractor must carry at least $500,000 in general liability insurance (up from $50,000). Ask for a current certificate of insurance and confirm the policy is active.
- MHIC contractor: $500,000 general liability minimum (effective October 1, 2024; MHIC enforcing since June 1, 2024)
- Electrician: $300,000 GL + $100,000 property damage ($400,000 per occurrence total)
- Plumber: $300,000 GL + $100,000 property damage ($400,000 per occurrence total)
- Umbrella coverage is NOT acceptable for electricians or plumbers
Step 4: Check Complaint and Disciplinary History
MHIC investigates consumer complaints, awards monetary damages, and can suspend or revoke a license. Call MHIC at 410-230-6231 or 1-888-218-5925 to ask about pending investigations not yet reflected in the online lookup.
Step 5: Confirm Local Licensing if Applicable
Baltimore County and the areas served by the Washington Suburban Sanitary Commission (WSSC) in Prince George's and Montgomery Counties maintain separate local plumbing licensing systems in addition to state licensure. Confirm any required local license for plumbing work in those jurisdictions.
Maryland Contractor Insurance Requirements
| Insurance Type | Requirement |
|---|---|
| General Liability (MHIC contractors) | At least $500,000 effective October 1, 2024 under HB 738 / Chapter 530 of 2024, raised from $50,000 (MHIC began enforcing June 1, 2024 per Commission notice). Policy must be on file with MHIC at all times; contractors must notify the Commission at least 10 days before any cancellation. |
| Electrician Insurance | At least $300,000 general liability and $100,000 property damage (umbrella not acceptable). Certificate holder must be the Maryland State Board of Electricians. |
| Plumber Insurance | At least $400,000 per occurrence ($300,000 GL + $100,000 property damage; umbrella not acceptable). Certificate holder must be the Maryland State Board of Plumbing. |
Maryland Contractor Bond Requirements
Maryland does not impose a flat license-bond requirement on MHIC contractors. Instead, applicants must demonstrate financial solvency based on assets, liabilities, credit report, and net worth. Applicants whose net worth falls below MHIC's financial-solvency guideline may satisfy the requirement by purchasing a surety bond or obtaining an indemnitor. Consumer financial protection is handled primarily through the Home Improvement Guaranty Fund rather than a per-contractor bond.
Maryland Consumer Protections for Home Improvement
Maryland law provides several important protections for homeowners hiring contractors:
- The Home Improvement Guaranty Fund (Md. BR §8-405) reimburses homeowners for actual monetary losses from a licensed contractor's poor workmanship or failure to perform — up to $30,000 per claimant and $250,000 aggregate per contractor.
- MHIC has authority to investigate complaints, award damages against licensed contractors, suspend or revoke licenses, and refer violators for criminal prosecution.
- MHIC jurisdiction attaches to home improvement work regardless of dollar amount — there is no minimum project value for licensing to apply.
- Effective October 1, 2024 under HB 738 / Chapter 530 of 2024 (MHIC began enforcing June 1, 2024 per Commission notice), MHIC contractors must carry at least $500,000 in general liability insurance.
- Only licensed MHIC contractors may contract directly with homeowners; unlicensed subcontractors may only work on projects held by a licensed MHIC contractor.
- Guaranty Fund claims must be brought within 3 years after the loss is discovered or reasonably should have been discovered.
What Happens if You Hire an Unlicensed Contractor?
Hiring an unlicensed contractor in Maryland puts you at risk:
- Unlicensed home improvement contracting is a misdemeanor under Md. BR §8-601 — up to $1,000 fine and/or 6 months' jail on first conviction, up to $5,000 and/or 2 years on subsequent convictions
- Maryland courts generally treat contracts with unlicensed home improvement contractors as unenforceable — the contractor cannot sue to collect payment
- An unlicensed home improvement contractor typically cannot establish a mechanic's lien on your property
- Homeowners who hire unlicensed contractors have no access to the MHIC Home Improvement Guaranty Fund (the $30,000 per-claimant recovery is only available against licensed contractors)
- Your homeowner's insurance may deny claims for damage caused by unlicensed work
- MHIC can pursue civil penalties up to $5,000 per violation in addition to criminal referral
How to Report an Unlicensed Contractor in Maryland
Report unlicensed home improvement contracting to the Maryland Home Improvement Commission. Operating as a home improvement contractor without an MHIC license is a misdemeanor under Md. Business Regulation §8-601. MHIC investigates unlicensed activity and refers cases for prosecution.
- Online: labor.maryland.gov/license/mhic/
- Phone: 410-230-6231 or 1-888-218-5925
- Mail: MHIC, 100 S. Charles Street, Tower I, Baltimore, MD 21201
How to File a Complaint Against a Registered Contractor in Maryland
The Maryland Home Improvement Commission investigates complaints against licensed and unlicensed home improvement contractors, can award damages, and can revoke or suspend licenses. Homeowners can separately file a Guaranty Fund claim to recover actual monetary losses from a licensed contractor (subject to the $30,000 per-claimant cap).
You can file a complaint by:
- Online: labor.maryland.gov/license/mhic/
- Phone: 410-230-6231 (Baltimore) or 1-888-218-5925 (toll-free)
- Mail: MHIC, 100 S. Charles Street, Tower I, Baltimore, MD 21201
Guaranty Fund awards exclude attorney fees, consequential damages, court costs, interest, personal injury damages, and punitive damages. Default judgments cannot be used as the basis for a claim.
Maryland Contractor Bond Schedule
Maryland's consumer-protection mechanism for home improvement is the Home Improvement Guaranty Fund under Md. Business Regulation §8-405, funded by per-license assessments rather than individual surety bonds. A bond is only required if the applicant cannot meet MHIC's financial-solvency standard on their own.
| License Type | Bond Amount | Notes |
|---|---|---|
| Guaranty Fund Assessment (original MHIC contractor license) | $100.00 | One-time assessment at initial licensure; fees effective August 1, 2024. |
| Guaranty Fund Assessment (MHIC renewal) | $175.00 every 2 years | Paid at each biennial renewal to maintain the Fund. |
| Alternative Surety Bond (financial-solvency alternative) | Amount set by MHIC based on applicant's finances | Only required when the applicant cannot meet MHIC's financial-solvency net-worth standard from their own balance sheet. |
What Makes Maryland Contractor Licensing Unique
$500,000 Insurance Requirement (Effective October 1, 2024)
Under HB 738 / Chapter 530 of 2024 (effective October 1, 2024; MHIC began enforcing June 1, 2024 per Commission notice), Maryland raised the minimum general liability insurance for MHIC home improvement contractors from $50,000 to $500,000 — a tenfold increase. The policy must remain in force at all times, and MHIC requires at least 10 days' notice before any cancellation.
No Dollar Threshold — All Home Improvement Work Requires an MHIC License
Unlike California ($1,000) or many other states, Maryland does not impose a dollar threshold on when an MHIC license is required. Any work meeting the statutory definition of 'home improvement' on an existing residence triggers the licensing requirement, regardless of contract size.
Home Improvement Guaranty Fund — $30,000 per Claimant, $250,000 per Contractor
Md. Business Regulation §8-405 caps Guaranty Fund payouts at $30,000 per homeowner-claimant and $250,000 aggregate per contractor. If total claims against one contractor exceed $250,000, each claimant's award is pro-rated unless the contractor reimburses the Fund.
Subcontractor License Category Eliminated (2016)
Effective July 1, 2016, Maryland eliminated the separate MHIC subcontractor license. Subcontractors may now work without an MHIC license, but only on projects being delivered by a licensed MHIC contractor — and only licensed contractors may contract directly with homeowners.
HVACR Journeyman Hours Increased Sharply (July 1, 2023)
The Maryland Board of HVACR Contractors raised the journeyman license experience requirement from 1,875 hours to 6,000 hours, and the minimum apprenticeship from 3 years to 4 years — a substantial elevation of the training bar for HVACR work.
HVACR Equipment Sales Restricted to Licensees (October 1, 2025)
Under Chapter 386 of 2025 (HB 1162), sellers with $100,000+ annual HVACR-equipment revenue may not knowingly sell to individuals without the required Maryland HVACR license. Sellers must collect purchaser information and submit annual reports to the Board.
Maryland Contractor License Fees
Frequently Asked Questions: Maryland Contractor Licensing
How do I check if a Maryland contractor is licensed?
Use the Maryland Department of Labor's public Licensing Queries portal at labor.maryland.gov/pq. You can search MHIC home improvement contractors and salespersons, electricians, plumbers, and HVACR licensees by name, license number, or location. The lookup shows license status, expiration date, and disciplinary history. You can also call MHIC directly at 410-230-6231 or 1-888-218-5925.
Does Maryland require a general contractor license?
Maryland does not have a statewide general contractor license for new-home construction. Residential home improvement work (alterations, remodeling, repairs, replacements) on existing homes requires a Maryland Home Improvement Commission (MHIC) license. New-home construction is not regulated under MHIC. Specialty trades — electrical, plumbing, and HVACR — are licensed by separate state boards regardless of whether the project is new construction or remodeling.
Is there a dollar threshold for needing an MHIC license?
No. Maryland does not impose a minimum project value for MHIC licensing. Any work meeting the statutory definition of 'home improvement' on an existing residence requires an MHIC license — regardless of whether the job is $100 or $100,000.
How much general liability insurance must a Maryland home improvement contractor carry?
At least $500,000, effective October 1, 2024 under HB 738 / Chapter 530 of 2024 (MHIC began enforcing June 1, 2024 per Commission notice). This is a tenfold increase from the previous $50,000 minimum. The policy must remain in force at all times, and MHIC must be notified at least 10 days before any cancellation.
What is the Maryland Home Improvement Guaranty Fund?
The Guaranty Fund (Md. Business Regulation §8-405) is funded by MHIC licensee assessments and compensates homeowners for actual monetary losses caused by a licensed contractor's poor workmanship or failure to perform. Awards are capped at $30,000 per claimant and $250,000 aggregate per contractor. The Fund does not cover unlicensed contractors, attorney fees, consequential damages, interest, personal-injury damages, or punitive damages. Claims must be filed within 3 years of discovering the loss.
What happens if I hire an unlicensed home improvement contractor in Maryland?
Under Md. Business Regulation §8-601, unlicensed home improvement contracting is a misdemeanor. On a first conviction, the contractor faces a fine up to $1,000 and/or up to 6 months' imprisonment; on a second or subsequent conviction, up to $5,000 and/or 2 years. Homeowners who hire unlicensed contractors lose access to the Guaranty Fund, and Maryland courts generally treat unlicensed home improvement contracts as unenforceable — the contractor cannot sue to collect and may be unable to assert a mechanic's lien.
How much does an MHIC contractor license cost in Maryland?
Under the fee schedule effective August 1, 2024: an original MHIC contractor license costs $281.25 (application) + $22.50 (processing) + $100.00 (Guaranty Fund assessment) = $403.75 for a 2-year term. Renewal is $281.25 + $175.00 Guaranty Fund = $456.25 every 2 years. MHIC salesperson licenses are $135.00 original and $112.50 at renewal.
Does Maryland require a separate license for electricians, plumbers, and HVAC contractors?
Yes. Each trade is licensed by its own state board: the Maryland State Board of Electricians (Md. BR Title 6), the State Board of Plumbing (Title 12), and the Board of HVACR Contractors (Title 9A). Each issues master, journey/journeyman, and apprentice tiers, each with its own exam, experience, and insurance requirements. Baltimore County and the WSSC service area (Prince George's and Montgomery Counties) also administer separate local plumbing licensing.
Did Maryland really eliminate the MHIC subcontractor license?
Yes. Effective July 1, 2016, Maryland eliminated the separate MHIC subcontractor license. Subcontractors may now perform home improvement work without an MHIC license — but only when working on projects delivered by a licensed MHIC contractor. Contracting directly with a homeowner still requires a full MHIC contractor license.
How do I file a complaint against a Maryland home improvement contractor?
File a complaint with MHIC online at labor.maryland.gov/license/mhic/, by phone at 410-230-6231 or 1-888-218-5925, or by mail to MHIC, 100 S. Charles Street, Tower I, Baltimore, MD 21201. If the contractor is MHIC-licensed, you may also file a Guaranty Fund claim to recover actual monetary losses (subject to the $30,000 per-claimant cap). Gather your contract, receipts, photos, and correspondence before filing.
Sources
Facts on this page were verified against the following primary sources on April 20, 2026. Licensing laws, fees, and bond amounts change — always confirm with the official board before acting.
- Maryland Home Improvement Commission (MHIC) — home — Primary regulator for Maryland home improvement contractors and salespersons. (retrieved 2026-04-20)
- MHIC — Licensing Requirements — Exam, 2-year experience, financial solvency, insurance, and trade-name requirements. Note: this page may still reference the old $50,000 GL figure pending MHIC update — the statutory minimum is $500,000 under HB 738 / Chapter 530 of 2024. (retrieved 2026-04-20)
- HB 738 (Chapter 530, 2024) — $500,000 HIC general liability insurance requirement — Amends Md. Business Regulation §8-302.1 to raise the MHIC contractor general liability insurance minimum from $50,000 to $500,000. Approved May 9, 2024; effective October 1, 2024. (retrieved 2026-04-20)
- Maryland State Board of Plumbing — Insurance Requirements — Primary source confirming $300,000 GL + $100,000 property damage ($400,000 per occurrence minimum); umbrella policies not acceptable; Maryland State Board of Plumbing must be named as certificate holder. (retrieved 2026-04-20)
- MHIC — Fees (effective August 1, 2024) — Authoritative fee schedule for MHIC contractor and salesperson licenses and Guaranty Fund assessments. (retrieved 2026-04-20)
- Md. Business Regulation §8-405 — Home Improvement Guaranty Fund claim limits — Statute establishing the $30,000 per-claimant and $250,000 aggregate-per-contractor caps. (retrieved 2026-04-20)
- Md. Business Regulation §8-601 — Unlicensed contracting penalties — Misdemeanor penalties: up to $1,000 / 6 months (1st); up to $5,000 / 2 years (subsequent). (retrieved 2026-04-20)
- Md. Business Regulation §8-101 — Definitions ('home improvement') — Defines scope and carve-outs for MHIC jurisdiction (no dollar threshold). (retrieved 2026-04-20)
- Maryland Public Licensing Query (unified lookup) — Official license lookup for MHIC, electricians, plumbers, HVACR, and other occupational licensees. (retrieved 2026-04-20)
- Maryland State Board of Electricians — home — Master, journeyperson, and apprentice electrician licensing under Md. BR Title 6. (retrieved 2026-04-20)
- Maryland State Board of Electricians — Fees (effective July 1, 2025) — Current license and renewal fees: $25.00 master, $18.50 journeyperson, $12.00 apprentice. (retrieved 2026-04-20)
- Maryland State Board of Plumbing — home — State-level plumbing licensing under Md. BR Title 12 (Baltimore County and WSSC also require local licenses). (retrieved 2026-04-20)
- Maryland State Board of Plumbing — Fees (effective July 1, 2025) — Current plumbing license and examination fees. (retrieved 2026-04-20)
- Maryland Board of HVACR Contractors — home — HVACR licensing under Md. BR Title 9A and COMAR 09.15. (retrieved 2026-04-20)
- Maryland Board of HVACR Contractors — Fees (effective July 1, 2025) — Master, master restricted, journeyman, apprentice, and inspector fees. (retrieved 2026-04-20)
- Chapter 386 of 2025 (HB 1162) — HVACR equipment sales restrictions — Effective October 1, 2025: sellers with $100K+ HVACR equipment revenue may not sell to unlicensed buyers; reporting duties to the HVACR Board. (retrieved 2026-04-20)
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