§ 01
How it works
The Maryland licensing system in plain English
Maryland's MHIC system applies broadly to home improvement contracting, not just large remodeling firms. Because the threshold is so low, many repair, remodeling, replacement, and improvement jobs fall within MHIC rules. That makes Maryland simpler than many states: if someone is improving an existing home for compensation, homeowners should strongly expect an MHIC credential to be relevant. Separate trade licensing can still matter for electrical, plumbing, and HVAC scopes.
§ 02
Thresholds
When a Maryland license is required
Maryland generally requires an MHIC license for home improvement work over $100, which means most paid residential improvement projects are covered.
§ 03
What to verify
Before you sign anything
Use the official MHIC resources to verify the contractor's license by name or license number. Confirm the credential is active and compare the legal business name, address, and license details to the contract exactly. If the contractor says the job falls outside MHIC, ask for a clear explanation because Maryland's threshold is extremely low. For work involving licensed trades, check those trade credentials separately instead of assuming MHIC alone covers them.
§ 04
Homeowner tips
Practical guidance for Maryland
- 01 Because Maryland's threshold is only $100, be skeptical when a paid home improvement contractor says no license is needed.
- 02 Ask for the MHIC number on the estimate and compare it to the business taking your deposit.
- 03 For handyman-style companies, verify whether the actual scope grew into covered home improvement work once materials and labor were combined.
- 04 On condo projects, confirm whether the work is still within MHIC's home-improvement framework and which trade licenses apply.
- 05 If the company is advertising in DC and Maryland, make sure you are checking the Maryland credential specifically.
§ 05
Frequently asked
Maryland-specific licensing questions
01 What is contractor licensing in Maryland and how does it work? ▸
Maryland requires home improvement contractors to hold a license from the Maryland Home Improvement Commission (MHIC) under the Maryland Home Improvement Law (MD Code, Business Reg. §8-301 et seq.). The MHIC license is tied to insurance and bond requirements rather than a trade examination. New residential construction may also require builder registration with the Maryland Real Estate Commission under MD Code, Real Property §10-601.
02 What work requires a licensed contractor in Maryland? ▸
Under MD Code, Business Reg. §8-301, all contractors performing home improvement work on residential property — any repair, replacement, remodeling, alteration, or addition — must hold a valid MHIC license. There is no dollar threshold; even minor work for compensation requires licensure. Specialty trades — electrical, plumbing, HVAC — are separately licensed through other Maryland Department of Labor boards.
03 How do I verify a contractor's license in Maryland? ▸
Verify MHIC license status at dllr.state.md.us/license/mhic/. Enter the contractor's name or license number and confirm the license is Active and in good standing. Check for any complaints or disciplinary actions on record. For specialty trade contractors, verify separately through the relevant Maryland licensing board at dllr.state.md.us/license.
04 What happens if a contractor is unlicensed in Maryland? ▸
Under MD Code, Business Reg. §8-601, performing home improvement work without an MHIC license is a misdemeanor. An unlicensed contractor cannot collect payment or enforce a home improvement contract in Maryland courts. Homeowners who hire unlicensed contractors lose access to the Maryland Home Improvement Guaranty Fund, which compensates homeowners up to $20,000 for losses caused by licensed MHIC contractors.
05 What insurance and bond does a licensed contractor need in Maryland? ▸
MHIC-licensed contractors must carry general liability insurance of at least $50,000 for property damage and $100,000 for bodily injury (or $200,000 combined single limit). Contractors must also contribute to the Maryland Home Improvement Guaranty Fund as a condition of licensure. Workers' compensation is required under MD Code, Labor and Employment §9-401 for any contractor with employees.
06 Does Maryland require workers' compensation for contractors? ▸
Yes. Maryland requires workers' compensation for contractors with one or more employees under MD Code, Labor and Employment §9-401. If an employee of an uninsured contractor is injured on your property, you may be liable as the responsible party. Always require a certificate of workers' compensation insurance from any contractor before work begins and verify it directly with the insurer.
07 Can I do my own home improvement work without a licensed contractor in Maryland? ▸
Yes. The MHIC license requirement applies only to contractors performing work for compensation, not to homeowners doing their own work under MD Code, Business Reg. §8-303. Homeowners may perform most improvements on their primary residence without a license. However, specialty trade work — electrical, plumbing, and gas — must be performed by a Maryland-licensed tradesperson regardless of who owns the property.
08 How do I file a complaint against a contractor in Maryland? ▸
File a complaint with the Maryland Home Improvement Commission at dllr.state.md.us/license/mhic/. The MHIC investigates violations of the Home Improvement Law and administers the Guaranty Fund for eligible claims up to $20,000. For broader consumer fraud, contact the Maryland Attorney General's Consumer Protection Division at marylandattorneygeneral.gov. Disputes can be filed in Maryland District Court (small claims up to $5,000).
state Maryland agency Maryland Home Improvement Commission / Maryland Department of Labor tier 2
Maryland Home Improvement Commission / Maryland Department of Labor is the official source for contractor licensing information in Maryland. Always verify a contractor's license before hiring. Jaspector is not affiliated with Maryland Home Improvement Commission / Maryland Department of Labor; this page is informational guidance only.