At a Glance: Maryland Contractor License
| Item | Details |
|---|---|
| Licensing Board | Maryland Home Improvement Commission (MHIC) |
| License Types |
|
| License Threshold | All home improvement work over $500 |
| Application Fee | $250–$700 |
| Exam Required | ✅ Yes |
| Exam Provider | PSI Exams |
| Exam Cost | $85–$120 |
| Experience Required | 2 years in home improvement trade |
| Insurance Required | General Liability ($50,000 minimum); Surety Bond required |
| License Renewal | Biennial; $250–$500 |
Step-by-Step: How to Get Your Maryland Contractor License
- Document 2 years experience in home improvement
- Pass MHIC exam via PSI
- Obtain liability insurance ($50,000 minimum)
- Post surety bond ($20,000)
- Apply through DLLR portal
- License issued in 6–8 weeks
Exam Requirements
Provider: PSI Exams
Cost: $85–$120
Topics covered: Maryland Home Improvement Law, Business practices
Most state contractor exams test two main areas: Business & Law (contracts, lien law, workers' comp, licensing regulations) and Trade Knowledge (construction practices, building codes, safety). Prepare for both sections — even experienced contractors struggle with the Business & Law portion without dedicated study.
Study Resources
- PSI Candidate Handbook (available on PSI website — free, covers exactly what's on the exam)
- ICC Study Guides for code-based exams
- Contractor's Business & Law Study Guide by Craftsman Book Company
- Online prep courses from Contractor Exam Prep and similar providers
Insurance & Bonding Requirements
General Liability ($50,000 minimum); Surety Bond required
Beyond what Maryland requires, consider these coverage types for complete protection:
- General Liability: Protects against third-party bodily injury and property damage claims
- Workers' Compensation: Required if you have employees; protects against job-site injury claims
- Commercial Auto: Your personal auto policy won't cover your work truck
- Inland Marine (Tools & Equipment): Covers tool theft from job site or vehicle
Reciprocity
Maryland has the following reciprocity agreements with other states:
- Virginia (limited)
Important: Reciprocity agreements change over time. Always contact the Maryland licensing board directly to confirm current reciprocity status before assuming your out-of-state license qualifies for expedited licensure.
Important Notes for Maryland
Maryland's MHIC license is required for all residential home improvement work over $500. Commercial contracting falls under local jurisdiction.
Official Resources
- Maryland Home Improvement Commission (MHIC) — Official Website
- PSI Exams — Schedule Your Contractor Exam
- Contractor Insurance Guide
- Contractor Bonding Guide
- How to Start a Construction Business
Always verify requirements directly with the Maryland Home Improvement Commission (MHIC). Requirements, fees, and exam procedures change frequently — this guide is updated periodically but may not reflect the most recent changes.