Maryland Contractor Licensing

The short version

• MHIC license required for home improvement contractors and their salespersons in MD. Administered by the Maryland Home Improvement Commission under the MD Dept. of Labor, Division of Occupational and Professional Licensing.
• Examination required for the contractor license — this is actual licensure, not just registration.
• Guaranty Fund participation is mandatory. Licensed contractors pay into a fund that reimburses consumers harmed by contractor misconduct — distinctive to MD.
• State trade licensing for electrical, plumbing, and HVACR is separate, administered through state boards under the same department.
• Baltimore City and Baltimore County add municipal licensing and permit requirements on top of state licensure.
• Public works adds MD Prevailing Wage Portal obligations including pre-bid contractor registration (see our Maryland Prevailing Wage Navigator).

Where to go — primary sources

• Maryland Home Improvement Commission (MHIC) — the authoritative landing page for MHIC licensing, applications, exams, Guaranty Fund claims, and license verification.
• Division of Occupational and Professional Licensing — the umbrella hub including MHIC and the trade boards.

MHIC license — who needs it

MHIC licensing applies to home improvement contractors performing work on residential property in Maryland. The MHIC licenses both:

• Contractor licenses — for the individual or entity performing the work. Requires the MHIC contractor exam.
• Salesperson licenses — separate license category for individuals selling home improvement work to consumers.

The MHIC landing page includes the current contractor exam application and original license application. Licensing workshops are offered free by the Commission to walk new applicants through the process.

The Guaranty Fund — MD's distinctive consumer-recovery mechanism

Maryland is unusual among Mid-Atlantic states in running a Guaranty Fund. Licensed MHIC contractors pay into the Fund, which reimburses consumers who suffer actual losses from MHIC-licensed contractor misconduct (up to statutory caps). From the contractor's side, this means:

• Part of licensure cost is Fund contribution.
• Consumer claims against the Fund go through a Commission-managed claims process, and the Commission may seek reimbursement from the responsible contractor.
• Maintaining good standing is material — the Fund claim process is a disciplinary exposure channel in addition to direct Commission enforcement.

The Commission holds free workshops on filing claims and the Guaranty Fund process (linked from the MHIC landing page). For contractors, attending one at some point is worth the time.

State trade licensing — electrical, plumbing, HVACR

MD licenses trades at the state level through boards under the Division of Occupational and Professional Licensing:

• Electrical — State Board of Master Electricians. Journeyperson and master electrician tiers.
• Plumbing — State Board of Plumbing. Master, journey, and apprentice tiers.
• HVACR — State Board of Heating, Ventilation, Air-Conditioning, and Refrigeration Contractors. Master HVACR, journeyperson, limited, and apprentice tiers.

These state trade licenses are distinct from MHIC. A contractor performing electrical work on a residential home improvement project in MD needs both: the electrical trade license AND MHIC licensure (unless operating under specific exemption).

Municipal licensing: Baltimore and beyond

Baltimore City and Baltimore County add permit and licensing requirements on top of state MHIC / trade licensure. Other MD municipalities (Annapolis, Bel Air, Frederick, Rockville, Silver Spring) vary. Verify the specific local jurisdiction's requirements before work begins.

How Maryland differs from neighboring states

• Actual licensure, not just registration. PA uses HIC (registration with AG). NJ uses HICB (registration with Consumer Affairs). DE has no state-level home improvement registration. MD actually licenses MHIC contractors with an exam requirement — a meaningfully higher bar.
• Guaranty Fund. Unique to MD among the five covered states. Both a consumer benefit and a contractor compliance exposure.
• Separate salesperson category. MD requires home improvement salespersons to be licensed independently, which PA/NJ/DE do not.
• Exam. The MHIC contractor exam is a real exam. Plan study time for applicants new to MD.

The practical workflow

1. Determine if your work is home improvement on residential property. If yes, pursue MHIC contractor licensure (and salesperson licensure for anyone selling the work).
2. Apply for the MHIC contractor exam. Study; pass it.
3. Submit the original license application with required documentation (insurance, surety bond where applicable, Guaranty Fund contribution).
4. If your work is electrical, plumbing, or HVACR, also obtain the applicable state trade license through the relevant board.
5. Check the municipality where work will be performed (Baltimore City / County especially) for local requirements.
6. If the project is public works, complete the separate MD Prevailing Wage Portal registration and certified payroll workflow.
7. Verify subcontractors through MHIC's License Search before engaging.

When to get direct help

MHIC questions: the Commission holds free licensing workshops and publishes contact information on its landing page. The Guaranty Fund claims workshop is specifically useful for contractors. Trade licensing questions: contact the relevant board directly. Municipal questions: contact the municipality.

Why we built this

Maryland catches out-of-state contractors in two specific ways: they plan for registration like PA/NJ and discover MD requires an actual exam, or they overlook the salesperson license and put an unlicensed employee in front of a customer. This page surfaces the real structure — MHIC licensure with exam, Guaranty Fund participation, state trade licensing, Baltimore municipal layer — so contractors can plan for the timeline and requirements properly.

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