Moving to Maryland as a residential contractor: every state's rule
Maryland has reciprocity agreements with 0 states. Everyone else follows its standard out-of-state path: experience credit.
Maryland residential contractor · “Maryland Home Improvement Contractor License (MHIC)”
Statewide license
Maryland's homes tier is the Home Improvement Contractor license issued by the Maryland Home Improvement Commission, and despite its name it is a real competency license rather than a bare registration: the applicant passes a state examination, documents two years of experience, proves financial solvency with a personal financial statement and a full credit report, pays into the Home Improvement Guaranty Fund and carries $500,000 in general liability insurance. The license is held by a person. An individual sits the exam and meets the financial test, and Maryland requires that 'each MHIC licensed business must have an individual who holds an MHIC license and meets the requirements for licensure', so a business is qualified by its licensed individual much as a qualifying party works elsewhere. The license covers the alteration, remodeling, repair or replacement of a residence, condominium units and adjacent work such as decks, driveways, fences, garages and pools, and it covers apartment buildings of three or fewer units. It does not cover building a new home: new home construction is registered separately with the Home Builder Registration Unit of the Office of the Attorney General under the Maryland Home Builder Registration Act, and in Montgomery County and Prince George's County a builder also needs that county's own new home builder or building contractor license. An MHIC licensee does not need the state construction license described at the general level. Maryland eliminated its home improvement subcontractor license in 2016, so a subcontractor may work unlicensed for an MHIC-licensed contractor, but only a licensed contractor may contract with the homeowner.
How local licensing works in Maryland
The MHIC license is statewide, and no Maryland county or city issues its own home improvement license on top of it. Baltimore County, for example, simply checks the state credentials: a private contractor doing a residential alteration or addition must give the Maryland Home Improvement License number on the permit application, and a new dwelling permit requires the contractor's Maryland Home Builders Registration number.
Where local licensing does bite is new home construction, which MHIC does not cover.
Montgomery County. Chapter 31C of the county code requires a Montgomery County Building Contractor's New Home Builder's License before a builder contracts to construct a new home there, and the county is explicit that a state credential is not enough: 'Even if you have a license issued by the State of Maryland, you are still required to have a Montgomery County' license. Applications go to the Office of Consumer Protection and are approved by a five-member Board of Registration for New Home Builders and New Home Sellers that certifies whether the applicant is qualified to comply with county and state building codes and laws; the board meets monthly and review takes roughly 45 to 60 days. The package is an $805 non-refundable application fee, plus $250 for the State Guaranty Fund if the builder is not already registered with the State, three material supplier references, a bank reference letter, $500,000 in liability coverage with workers' compensation, a description of building experience and copies of other licenses. Building without the license carries a $500 civil fine per day, and the work is not covered by the State Home Builder Guaranty Fund. Office of Consumer Protection, 100 Maryland Avenue, Suite 3600, Rockville. The Department of Permitting Services adds that 'a contractor must have a Montgomery County New Home Builder's (BC) license to obtain a permit' for a single-family house or townhouse.
Prince George's County. A Prince George's County Building Contractor's License is required to build any new residential home from the ground up. The application is filed through the county's Momentum portal under Business and Rental Property Licensing and must be reviewed and approved by the Board of Registration for Building Contractors. It asks for a letter from a construction supplier with credit history, a letter from a construction lender or bank with credit history, a signed financial statement no more than one year old, an original certificate of comprehensive business liability insurance made out to the county, proof of enrollment in an approved new home warranty security plan, and a confirmation letter showing current registration under the Maryland Home Builder Registration Act. A homeowner building their own house applies for a homeowner waiver instead. Neither county holds an examination.
Every origin state
| State | Mechanism | Note | Verified |
|---|---|---|---|
| Alabama | Experience credit | 2026-09-17 | |
| Alaska | Experience credit | 2026-09-17 | |
| Arizona | Experience credit | 2026-09-17 | |
| Arkansas | Experience credit | 2026-09-17 | |
| California | Experience credit | 2026-09-17 | |
| Colorado | No credit | no state license to transfer | 2026-09-17 |
| Connecticut | Experience credit | 2026-09-17 | |
| Delaware | Experience credit | 2026-09-17 | |
| District of Columbia | Experience credit | 2026-09-17 | |
| Florida | Experience credit | 2026-09-17 | |
| Georgia | Experience credit | 2026-09-17 | |
| Hawaii | Experience credit | 2026-09-17 | |
| Idaho | Experience credit | 2026-09-17 | |
| Illinois | No credit | no state license to transfer | 2026-09-17 |
| Indiana | No credit | no state license to transfer | 2026-09-17 |
| Iowa | Experience credit | 2026-09-17 | |
| Kansas | No credit | no state license to transfer | 2026-09-17 |
| Kentucky | No credit | no state license to transfer | 2026-09-17 |
| Louisiana | Experience credit | 2026-09-17 | |
| Maine | No credit | no state license to transfer | 2026-09-17 |
| Massachusetts | Experience credit | 2026-09-17 | |
| Michigan | Experience credit | 2026-09-17 | |
| Minnesota | Experience credit | 2026-09-17 | |
| Mississippi | Experience credit | 2026-09-17 | |
| Missouri | No credit | no state license to transfer | 2026-09-17 |
| Montana | Experience credit | 2026-09-17 | |
| Nebraska | Experience credit | 2026-09-17 | |
| Nevada | Experience credit | 2026-09-17 | |
| New Hampshire | No credit | no state license to transfer | 2026-09-17 |
| New Jersey | Experience credit | 2026-09-17 | |
| New Mexico | Experience credit | 2026-09-17 | |
| New York | No credit | no state license to transfer | 2026-09-17 |
| North Carolina | Experience credit | 2026-09-17 | |
| North Dakota | Experience credit | 2026-09-17 | |
| Ohio | No credit | no state license to transfer | 2026-09-17 |
| Oklahoma | No credit | no state license to transfer | 2026-09-17 |
| Oregon | Experience credit | 2026-09-17 | |
| Pennsylvania | Experience credit | 2026-09-17 | |
| Rhode Island | Experience credit | 2026-09-17 | |
| South Carolina | Experience credit | 2026-09-17 | |
| South Dakota | No credit | no state license to transfer | 2026-09-17 |
| Tennessee | Experience credit | 2026-09-17 | |
| Texas | No credit | no state license to transfer | 2026-09-17 |
| Utah | Experience credit | 2026-09-17 | |
| Vermont | Experience credit | 2026-09-17 | |
| Virginia | Experience credit | 2026-09-17 | |
| Washington | Experience credit | 2026-09-17 | |
| West Virginia | Experience credit | 2026-09-17 | |
| Wisconsin | Experience credit | 2026-09-17 | |
| Wyoming | No credit | no state license to transfer | 2026-09-17 |
Getting licensed in Maryland from scratch
No license yet, or nothing that transfers? This is how Maryland issues a residential contractor license to a first-time applicant.
Maryland Home Improvement Contractor license by examination
The MHIC contractor license is issued to an individual, and a home improvement business must have at least one MHIC-licensed individual who meets every requirement, much as a qualifying party does elsewhere. That individual applies online to PSI with documentation of at least two years of trade experience and, once PSI approves the application, sits the open-book Maryland Home Improvement Contractor examination: 55 questions on home improvement law, the Door-to-Door Sales Act, labor law, safety and estimating, with 39 correct (70 percent) needed to pass. After passing, the applicant files the license application with the Commission within two years, with a $281.25 application fee, a $22.50 processing fee, the $100 Guaranty Fund assessment, proof of personal financial solvency and a credit report, and a certificate of $500,000 general liability insurance. No pre-license course is required, and the license renews every two years with no continuing education.
The examination allows 150 minutes for 55 scored questions: home improvement law (41), the Door-to-Door Sales Act (4), labor laws (3), safety regulations (4) and estimating (3). The only book allowed is the NASCLA Contractor's Guide to Business, Law and Project Management, Maryland Home Improvement Commission 7th Edition; it may be highlighted, underlined and tabbed with permanent tabs but not written in, and the Door-to-Door Sales Act is provided at the test site. PSI allows up to a week to review an eligibility application. Maryland test centers are in Baltimore (Woodlawn), College Park, Crofton, Hagerstown, Laurel and Salisbury, and PSI centers in other states may also be used. After a failed attempt the wait is 30 days, then 60 days before each later attempt, and the $63 fee is paid each time. The Commission says the application approval process may take two to three weeks, longer if the application is incomplete. The license does not cover building new homes, which requires Home Builder registration with the Office of the Attorney General and, in Montgomery and Prince George's counties, a county builder license. The Commission also licenses salespersons, who sit a separate 35-question examination and sell for a licensed contractor.
- Trade exam
- Required
- Law / code exam
- Required
- Exam given by
- PSI
- Exam format
- Open book
- Passing score
- 70%
- Typical processing
- About 21 days
- Renewal
- Every 2 years
- Continuing education
- None required
Who can apply
- You must document at least 2 years of qualifying work experience.Trade experience includes a registered apprenticeship program; employment performing home improvements; employment in commercial or residential construction, repairs or renovations; a community service or charitable building or renovation program; and repairs or improvements that required a building permit on your own home or a family member's home. The experience must be verifiable, and PSI reviews the documentation before approving you to test. Experience gained in another state counts.
- An applicant convicted of a felony, or of a misdemeanor relating to a home improvement transaction, must give the Commission a true-test copy of the conviction record from the clerk of the court where the conviction occurred.The Commission weighs the nature of the crime, its relationship to the licensed work, the time since the conviction and the applicant's conduct before and after it.
Other ways to qualify
Each of these replaces the requirements above. You only need one.
Business management experience plus one year of trade experience
Experience as a supervisor, manager or owner of a business may replace one of the two years of trade experience, after review by the Commission. The same examination and application requirements apply.
- You must document at least 1 year of qualifying work experience.
- Experience as a supervisor, manager or owner of a business, accepted by the Commission in place of one year of trade experience
Vocational training or a work-study program in a building trade
State law lets comparable educational training stand in for the two years of trade experience. The Commission's rule accepts vocational school training in a building trade or participation in a building trade work-study program, and it sets no fixed length, so the Commission judges each case. The same examination and application requirements apply.
- Vocational school training in a building trade, or participation in a building trade work-study program, accepted by the Commission in place of the trade experience
Two years as a licensed home improvement salesperson
Two years as a licensed Maryland home improvement salesperson may be credited as trade experience if the Commission finds the applicant has gained substantial knowledge of how a home improvement business operates.
- At least two years as a licensed Maryland home improvement salesperson, with substantial knowledge of the operation of a home improvement business in the Commission's judgment
Military experience, training or education
Under the Veterans Full Employment Act of 2013, a current or former member of the U.S. Armed Forces, a reserve unit or the National Guard receives credit for all relevant experience, training or education gained in service, and two years of it makes the applicant eligible to sit the contractor examination. The Commission expedites license applications from veterans.
- You must document at least 2 years of qualifying work experience.
Steps to get licensed
- 1Law / code exam. Pass a law, rules, or code exam. Maryland Home Improvement Contractor examination (PSI): 55 questions, 150 minutes, open book, 39 correct (70 percent) to pass. PSI must approve your eligibility first; apply online at test-takers.psiexams.com/mdhi or call PSI on (855) 898-0715. A passing score is valid for two years..
- 2Trade exam. Pass the destination's trade exam. The same examination is Maryland's competency test. Business Regulation §8-302(f) requires it to test both knowledge of home improvement law and competency to engage in the occupation, so there is no separate trade exam..
- 3Exam fee. Pay the exam fee ($63). PSI examination fee, paid for each attempt; non-refundable and valid for one year from payment.
- 4Application fee. Pay the application fee ($281.25). Original contractor license application fee for the two-year license, plus $281.25 for each additional company location.
- 5Application fee. Pay the application fee ($22.50). Processing fee charged with an original contractor license application.
- 6Other. Home Improvement Guaranty Fund assessment, paid before the Commission issues the license ($100).
- 7Financial responsibility. Show financial responsibility. Proof of personal financial solvency: the MHIC Personal Financial Statement, three months of recent personal bank statements, a full individual credit report, a copy of the current real property assessment notice if real estate is listed, and a co-owner signature page for jointly owned assets. Business assets are not counted, and the Commission publishes no dollar threshold; call the licensing team on 410-230-6231..
- 8Surety bond. Post a surety bond ($30,000) (if applicable). Surety bond or an indemnitor, only if the applicant does not meet the financial solvency guidelines. The Commission publishes $30,000 and $100,000 bond templates, and its checklist tells an applicant who is short of solvency by $30,000 to sign the $30,000 bond..
- 9Insurance. Carry the required insurance ($500,000). General liability insurance of at least $500,000 under Business Regulation §8-302.1, with MHIC, 100 S Charles St., Tower 1, Baltimore, MD 21201 as certificate holder. It must stay in force while licensed..
- 10Business license. Obtain a business license. If trading under a business or trade name: clear the name with the Commission, register it with the Maryland Department of Assessments and Taxation, and file the trade name certificate; a corporation also files its articles of incorporation and a Certificate of Good Standing..
- 11Other. A personal photograph with the application: a clear photo or a copy of a driver's license or state ID is accepted..
Published fees on this path total $366.75, excluding exam-vendor fees, bonds, and insurance.
Keeping it active
Every 2 years with no continuing education required and a $281.25 renewal fee.
The Commission states that there is no continuing education requirement to renew an MHIC license.
Each renewal also carries the $175 Guaranty Fund assessment, plus $281.25 for each additional company location. Proof of $500,000 general liability insurance and a new credit report (or the credit report fee) are required at every renewal. Renewal notices go out about 60 days before the license expires, and licenses can be renewed online.
Exam preparation
Most boards contract PSI, Prov, or ICC for exams. Check which code edition the exam is written to before buying a prep course.
- Law / code exam
- Trade exam
- Exam fee · $63
Surety bond
A license or contractor bond is bought from a surety, not the state. Price is a small percentage of the bond amount and depends on your credit.
- Surety bond · $30,000 · if applicable
Liability insurance
Some states require proof of general liability or workers' compensation coverage at licensing time.
- Insurance · $500,000
Business registration
If you plan to contract in your own name, budget for a business license or entity registration on top of the trade license.
- Business license
Sources for this section
- Md. Code, Business Regulation §8-302 - Examination required · Md. Code Ann., Bus. Reg. §8-302 · Maryland General Assembly · Statute · verified September 23, 2026
- Md. Code, Business Regulation §8-302.1 - General liability insurance · Md. Code Ann., Bus. Reg. §8-302.1 · Maryland General Assembly · Statute · verified September 23, 2026
- Md. Code, Business Regulation §8-302.2 - Experience or education requirement · Maryland General Assembly · Statute · verified September 23, 2026
- Md. Code, Business Regulation §8-303 - Applications for licenses · Md. Code Ann., Bus. Reg. §8-303 · Maryland General Assembly · Statute · verified September 23, 2026
- Md. Code, Business Regulation §8-308 - Expiration and renewal of license · Md. Code Ann., Bus. Reg. §8-308 · Maryland General Assembly · Statute · verified September 23, 2026
- Md. Code, Business Regulation §8-404 - Guaranty Fund assessment · Md. Code Ann., Bus. Reg. §8-404 · Maryland General Assembly · Statute · verified September 23, 2026
- COMAR 09.08.01.23 - Experience or Education Requirement (home improvement contractor) · Maryland Division of State Documents (Code of Maryland Regulations) · Admin Rule · verified September 23, 2026
- MHIC - Apply for an Original License (supporting documents) · Maryland Department of Labor, Maryland Home Improvement Commission · Agency Page · verified September 23, 2026
- MHIC - Original Contractor Requirements/Checklist · Maryland Department of Labor, Maryland Home Improvement Commission · Agency Page · verified September 23, 2026
- MHIC - Education · Maryland Department of Labor, Division of Occupational and Professional Licensing · Agency Page · verified September 23, 2026
- MHIC - Taking the Exam (PSI Examination Services) · Maryland Department of Labor, Maryland Home Improvement Commission · Agency Page · verified September 23, 2026
- MHIC - Forms and Fees · Maryland Department of Labor, Maryland Home Improvement Commission · Agency Page · verified September 23, 2026
- MHIC - License Categories and Requirements · Maryland Department of Labor, Maryland Home Improvement Commission · Agency Page · verified September 23, 2026
- MHIC - Licensing FAQs for Applicants · Maryland Department of Labor, Maryland Home Improvement Commission · Faq · verified September 23, 2026
- MHIC - Renew a License · Maryland Department of Labor, Division of Occupational and Professional Licensing · Agency Page · verified September 23, 2026
- MHIC - Veterans Full Employment Act of 2013 (expedited and temporary licensing) · Maryland Department of Labor, Maryland Home Improvement Commission · Agency Page · verified September 23, 2026
- PSI Candidate Information Bulletin - Maryland Home Improvement Commission, Home Improvement Contractor and Salesperson · PSI Services LLC for the Maryland Home Improvement Commission, Maryland Department of Labor · Form · verified September 23, 2026