To get licensed as a home improvement contractor in Maryland, you complete an MHIC contractor license application by passing a two-part PSI exam, assembling proof of insurance, a credit report, business registration, and any criminal history records, and mailing the package with $403.75 in fees to the Maryland Home Improvement Commission in Baltimore. The Commission does not offer an online portal, so everything moves on paper, and a complete file typically clears review in two to three weeks.
Confirm You Need the License
Maryland defines home improvement broadly: remodeling, repair, replacement, alteration, and modernization of a residential building or adjacent land, including driveways, decks, fences, swimming pools, landscaping, pier construction, storm windows, and shore erosion projects.1Maryland General Assembly. Maryland Code Business Regulation 8-101 If you perform any of that work for a homeowner, whether as a sole proprietor or through a company, you need the license.
A few categories fall outside the definition and do not require MHIC licensing: new home construction, work on apartment buildings with four or more units, work on commonly owned areas of condominiums, and selling materials without installing them.1Maryland General Assembly. Maryland Code Business Regulation 8-101
Meet the Two-Year Experience Requirement
Before you sit for the exam or submit an application, you need at least two years of trade experience. Under COMAR 09.08.01.23, several kinds of work count:2Legal Information Institute. Maryland Code of Regulations 09.08.01.23 – Experience or Education Requirement
- Paid employment in home improvement or construction, residential or commercial.
- Participation in a registered apprenticeship in a building trade.
- Community or charitable building programs such as Habitat for Humanity.
- Repairs or improvements on your own home or a family member’s home that required a building permit.
- Two years as a licensed MHIC salesperson, if the Commission finds you gained substantial business knowledge.
Management or ownership experience in a non-construction business can substitute for up to one year of the requirement, and vocational school training in a building trade or a work-study program can substitute for part of the trade experience.2Legal Information Institute. Maryland Code of Regulations 09.08.01.23 – Experience or Education Requirement
Register For and Pass the PSI Exam
PSI administers both the contractor and salesperson exams. Register through PSI’s online Test Taker Portal or by calling 1-800-367-1565.3Maryland Department of Labor. Licensing FAQs for Applicants – Home Improvement Commission Contractor applicants upload documentation of trade experience and any educational qualifications during registration.4PSI. Guide for the Maryland Home Improvement Exam
The test comes in two parts. The first covers Maryland Home Improvement Law: consumer protection rules, contract requirements, and licensing regulations. The second covers trade knowledge, meaning the practical and technical side of residential construction. After PSI approves your registration and you pay the exam fee, you pick a date and location through the portal.
Take the exam before you assemble the application package. Results have a limited validity window, so don’t let months pass between testing and applying. PSI transmits scores directly to the Commission; confirm your results have been forwarded before you mail anything.
Assemble the Application Documents
The application form is a downloadable Word document on the Maryland Department of Labor website.5Maryland OneStop. Home Improvement License You’ll enter your legal name, home address, Social Security number, business address, contact information, and federal EIN if you have one. Along with the form, your envelope needs to contain:
Certificate of Liability Insurance
Since June 1, 2024, Maryland requires contractors to carry at least $500,000 in general liability coverage, and your certificate must reflect that amount. The old $50,000 minimum no longer applies.6New York Codes, Rules and Regulations. Maryland Code Business Regulation 8-302.1 – Liability Insurance Required Certificates showing the outdated figure are one of the two most common reasons applications stall.
Credit Report
You must show financial solvency, meaning assets exceed liabilities. Provide an original credit report from Equifax, Experian, or TransUnion, dated within 90 days of submission.7Maryland Department of Labor. Requirements for Getting a Home Improvement Contractor’s License A printout from a free monitoring service will not qualify. An expired report is the other common cause of delay.
Surety Bond If Your Net Worth Is Negative
If your credit report shows liabilities exceeding assets, you can still qualify by posting a two-year $20,000 surety bond. The bond must list both your personal name and your business name and be signed by the applicant.7Maryland Department of Labor. Requirements for Getting a Home Improvement Contractor’s License
Business Entity Registration
If you operate as a corporation, LLC, or under a trade name, include proof of registration with the Maryland State Department of Assessments and Taxation. Sole proprietors using their legal name do not need SDAT registration.8Maryland Department of Labor. Maryland Home Improvement Commission
Criminal History Records
Disclose your criminal history on the form and attach copies of conviction records from Maryland and every other jurisdiction where you have a record. The Commission reviews all felonies, all drug offenses committed after January 1, 1991, and misdemeanors related to home improvement transactions.7Maryland Department of Labor. Requirements for Getting a Home Improvement Contractor’s License A conviction does not automatically disqualify you, but concealing one almost certainly will.
Fees
The original two-year contractor license costs $403.75, broken down as follows:9Maryland Department of Labor. Forms and Fees – Home Improvement Commission
- Application fee: $281.25
- Guaranty Fund assessment: $100.00
- Processing fee: $22.50
Each additional business location adds another $281.25.9Maryland Department of Labor. Forms and Fees – Home Improvement Commission Pay by check or money order made out to the MHIC. Do not send cash.
Where to Mail the Application
Send the completed form, all supporting documents, and payment to:
Maryland Department of Labor
Maryland Home Improvement Commission
100 S. Charles Street, Tower I
Baltimore, MD 21201
The MHIC has no online application portal. Print the form, complete it, and mail it with original documents.5Maryland OneStop. Home Improvement License Certified mail or delivery confirmation gives you proof the package arrived.
What Happens After You Submit
Processing typically takes two to three weeks once the Commission has a complete file. The first week is largely check clearance. Staff then review your insurance certificate, SDAT registration, credit report, exam results, and criminal history disclosures. A supervisor approves the file, and the license is entered into the state database.
If anything is missing, staff will contact you, but each round-trip adds weeks. The Commission will not begin substantive review until every required piece is in hand. Once approved, you receive an official license certificate by mail; your license number must appear on every contract, advertisement, and business card.
Obligations That Kick In Once You Are Licensed
Every home improvement contract in Maryland must be in writing, legible, and signed by both parties. It must include your name, address, phone number, and MHIC license number; the license number of any salesperson involved; approximate start and completion dates; a description of the work and materials; the total price and payment schedule; and a notice with the Commission’s phone number and website so the homeowner can verify your license. If the contract is secured by a lien on the homeowner’s property, a bold-type notice on the first page must explain that the contract creates a mortgage or lien and that the homeowner has three business days to rescind. The homeowner initials that notice separately.10Maryland General Assembly. Maryland Business Regulation Code 8-501
If you do renovation, repair, or painting work on homes built before 1978, federal law requires your firm to hold an EPA Renovation, Repair, and Painting certification. At least one certified renovator must be assigned to each job, lead-safe work practices apply, and you distribute the EPA lead hazard pamphlet to the homeowner before work begins.11US EPA. Renovation, Repair and Painting Program: Firm Certification The EPA certification lasts five years and is separate from your MHIC license; you need both.
Your $500,000 liability policy must remain active for the entire duration of your license, not just at application. The Commission can suspend or revoke a license for a lapse in coverage. If you switch carriers, send the updated certificate to the MHIC right away so your file stays current.