Maryland Handyman License Requirements: The MHIC License, Exam & Costs (2026)

If you are planning to do handyman work in Maryland, the licensing picture is clear and strict: most residential home improvement work requires a state license. Unlike states that leave handyman work unregulated or set a high dollar threshold, Maryland requires nearly everyone who contracts directly with homeowners for repairs and improvements to hold a Maryland Home Improvement Commission license.

This guide pulls every requirement, fee, and detail directly from the official source: the Maryland Home Improvement Commission (MHIC), part of the Maryland Department of Labor’s Division of Occupational and Professional Licensing. No outdated numbers. No guesswork.

Quick Answer: Do You Need a Handyman License in Maryland?

Yes – in Maryland, you need an MHIC (Maryland Home Improvement Commission) license to perform home improvement work on a residence, with no minimum dollar threshold. Maryland is one of the more strictly regulated states for handyman work – it is a zero-threshold state.

The MHIC contractor license lets you contract directly with homeowners for the alteration, remodeling, repair, or replacement of a residence (buildings with three or fewer units, plus individual condominium units). There is no tiered structure based on project value – the same license applies whether you are patching drywall or remodeling a kitchen. To get it, you need experience, a passing exam score, insurance, and proof of financial responsibility. Because Maryland treats unlicensed contracting as a criminal offense, operating without a license is a serious risk.

Who Regulates Handyman Licensing in Maryland?

Handyman and home improvement licensing in Maryland is handled by the Maryland Home Improvement Commission (MHIC), which operates within the Maryland Department of Labor’s Division of Occupational and Professional Licensing. The MHIC issues contractor and salesperson licenses, investigates homeowner complaints, awards damages against licensed contractors, administers the Guaranty Fund, and prosecutes violators of the home improvement law.

Contact the MHIC:

• Website: labor.maryland.gov/license/mhic
• License lookup: MHIC Public Query Tool
• Phone: 410-230-6309
• Address: Maryland Home Improvement Commission, 100 S. Charles Street, Tower I, Baltimore, MD 21201

The governing law is Title 8 of the Business Regulation Article of the Annotated Code of Maryland. Note that separate trades – electrical, plumbing, and HVACR – are licensed by their own boards within the same Division of Occupational and Professional Licensing, not by the MHIC.

The Zero-Threshold Rule: When You Need an MHIC License

Maryland is a zero-threshold state. Unlike states that only require a license above a certain dollar amount, Maryland law sets no minimum project value that exempts a contractor. If you alter, remodel, repair, or replace any part of a residential structure for a homeowner for compensation, you need an MHIC license – whether the job is a $50 gutter patch or a $50,000 kitchen renovation. Maryland polices small jobs strictly, so no residential repair work can legally be taken on without a license.

What Counts as Home Improvement

Under Maryland law, “home improvement” covers the alteration, remodeling, repair, or replacement of a building (or part of a building) used as a residence. This includes:

• Remodeling and renovations (kitchens, bathrooms, basements)
• Repairs to residential structures
• Replacement of building components (windows, doors, roofing, siding)
• Painting, drywall, flooring, and carpentry
• Deck, porch, and fence construction and repair
• Work on individual condominium units

The definition is broad, which is why most handyman services performed for homeowners fall under the MHIC requirement.

What Falls Outside MHIC Licensing

The MHIC license applies to residences with three or fewer units. It does not cover:

• Work on the commonly owned areas of condominiums
• Buildings that contain four or more single-family units
• New home construction (as opposed to improvement of an existing residence)

If your work involves commercial buildings or larger multi-unit structures, different licensing under Title 17 of the Business Regulation Article may apply. When in doubt, confirm with the MHIC before taking a job.

MHIC License Requirements

To qualify for an MHIC contractor license, you must meet four core requirements.

Experience

You must provide proof of at least two years of experience in home improvement work, construction, or a related field. Related education or business-management experience can substitute for one year of that requirement. The MHIC evaluates experience on a case-by-case basis.

The PSI Exam

All contractor applicants must pass the MHIC licensing exam before submitting a license application. The exam is administered by PSI Exams and requires a score of at least 70 percent to pass. Importantly, the exam tests your understanding of Maryland home improvement law and business management – not hands-on trade skills. If you fail, you must wait 30 days to reapply and pay the exam fee again. Many community colleges offer optional prep courses, but no course is required.

Financial Solvency or Surety Bond

Applicants must demonstrate financial solvency based on total assets, liabilities, a full credit report, and net worth. The MHIC evaluates personal assets, not just business assets. If you cannot meet the financial solvency guidelines, you may instead obtain a $30,000 surety bond along with financial statements.

Insurance

You must carry and maintain $500,000 general liability insurance at all times. Proof of current coverage must be filed with your application for both an original license and each renewal, and you must notify the Commission at least 10 days before any cancellation of coverage.

The Maryland Guaranty Fund

One feature that sets Maryland apart is its Home Improvement Guaranty Fund, which protects homeowners who suffer losses due to the acts or omissions of a licensed contractor. This is a genuine selling point for licensed contractors, since it gives homeowners confidence to hire.

Key facts about the Guaranty Fund:

• It applies only to work done by licensed contractors – another reason homeowners prefer to hire licensed pros
• A homeowner may recover up to $30,000, capped at the amount paid to the contractor
• If total claims against one contractor exceed $250,000, awards are pro-rated among claimants
• The Fund is financed by contractor assessments: $100 when applying for a new license, and $175 every two years at renewal

For contractors, the assessment is a modest cost; for homeowners, the Fund is a strong reason to choose a licensed contractor over an unlicensed one.

Maryland Handyman License Requirements at a Glance

Requirement	Detail
License required	Yes – MHIC license for home improvement work
Issuing body	Maryland Home Improvement Commission (MHIC)
Dollar threshold	$0 – zero-threshold state, license required for all jobs
Experience	2 years (education can substitute for 1 year)
Exam	PSI exam, 70% passing score
General liability insurance	$500,000 minimum
Financial responsibility	Financial solvency or $30,000 surety bond
Guaranty Fund assessment	$100 original / $175 renewal (every 2 years)
Continuing education	None required
License term	2 years
Reciprocity	None

How to Get Your MHIC License in Maryland: Step by Step

Here is the practical path to earning your MHIC contractor license.

Step 1 – Register Your Business

Register your business name with the Maryland Department of Assessments and Taxation. If you are incorporating, obtain your articles of incorporation and a Certificate of Good Standing. If using a trade name, check name availability with the Commission first, then register it.

Step 2 – Meet the Experience Requirement

Document at least two years of home improvement or construction experience (or one year plus qualifying related education). Gather the records you will use to demonstrate this to the Commission.

Step 3 – Pass the PSI Exam

Register for the MHIC contractor exam through PSI Exams (1-800-367-1565). Study the Candidate Information Bulletin, take the exam, and earn a score of at least 70 percent. You must pass before you can submit your license application.

Step 4 – Prepare Insurance and Financial Documents

Obtain a $500,000 general liability insurance policy and a certificate of insurance. Prepare your financial solvency documentation (assets, liabilities, credit report, net worth) – or arrange a $30,000 surety bond if you cannot meet the solvency guidelines.

Step 5 – Submit Your Application

After passing the exam, you will receive the license application package. Submit it with your insurance certificate, financial documentation, trade name registration (if applicable), the application fee, and the Guaranty Fund assessment. Once approved, your paper license typically arrives by mail within about 10 days.

Maryland Handyman License Cost

Based on the current MHIC fee schedule (effective August 1, 2024):

Cost Item	Amount
Contractor application fee	$281.25
Guaranty Fund assessment (original)	$100
Processing fee	$22.50
Each additional company location	$281.25
PSI exam fee	Set by PSI (paid at registration)
$500,000 general liability insurance	Premium – varies
$30,000 surety bond (if used instead of solvency)	Premium – varies

The core cost to become licensed is the $281.25 application fee plus the $100 Guaranty Fund assessment and a $22.50 processing fee, in addition to your exam fee and insurance premium. Fees are set by law and regulation and can change with public notice, so confirm the current schedule on the MHIC forms and fees page before applying.

MHIC License Renewal

MHIC licenses are valid for two years from the date of issuance. To renew:

• Submit the renewal form and pay the $281.25 renewal fee
• Pay the $175 Guaranty Fund assessment (every two years at renewal)
• Maintain continuous $500,000 general liability insurance

Maryland does not require continuing education for MHIC license renewal, which keeps the renewal process straightforward. If you let your license lapse, you may apply for inactive status and later reactivate it by paying the applicable reactivation and application fees. Keeping your insurance current is the key to a smooth renewal, since lapsed coverage can hold up the process.

Salespersons and Subcontractors in Maryland

Salespersons: A home improvement salesperson – someone who sells home improvements on behalf of a licensed contractor – needs their own MHIC salesperson license. This requires passing the salesperson exam through PSI and providing written employment verification signed by a licensed contractor. There is no experience requirement for a salesperson license, and a salesperson may represent up to two licensed contractors.

Subcontractors: Maryland eliminated the separate subcontractor license category on July 1, 2016 (under Senate Bill 285). As a result, home improvement subcontractors may work without a license when performing home improvements for an MHIC-licensed contractor. However, only MHIC-licensed contractors may enter into contracts directly with homeowners – so if you want to deal directly with homeowners, you need the full contractor license.

Does Maryland Have Contractor License Reciprocity?

No – the Maryland Home Improvement Commission does not offer reciprocity with any other state. Even if you hold a contractor license in another state (including one that also uses PSI exams, like Virginia), you must still take and pass the Maryland MHIC exam.

The reason is straightforward: the MHIC exam tests knowledge of Maryland-specific home improvement laws and regulations, so every licensee must demonstrate that knowledge regardless of where else they are licensed. Out-of-state contractors who want to work in Maryland must obtain an MHIC license and also register with the Maryland Department of Assessments and Taxation – a Maryland office is not required, but the license is.

Specialty Trade Licenses in Maryland

An MHIC license covers general home improvement work, but it does not cover regulated trades. The following require their own state license through the appropriate board within the Division of Occupational and Professional Licensing:

Trade	Regulator
Electrical	Maryland Board of Master Electricians
Plumbing	Maryland Board of Plumbing
HVACR	Maryland Board of Heating, Ventilation, Air-Conditioning and Refrigeration Contractors

If your handyman work involves any of these trades and you are not personally licensed in that trade, your business must engage someone who holds the appropriate credential. These trade licenses have their own experience, exam, and insurance requirements separate from the MHIC.

Penalties for Unlicensed Contracting in Maryland

Maryland takes enforcement seriously. Under the Business Regulation Article, Section 8-601, it is illegal to act or offer to act as a home improvement contractor without an MHIC license, or to sell or offer to sell a home improvement without the proper contractor or salesperson license.

Consequences of unlicensed contracting include:

• Criminal charges – Under Business Regulation Article Section 8-601, unlicensed home improvement contracting is a criminal misdemeanor. A first conviction carries a fine of up to $1,000 and/or up to 6 months in jail; a subsequent conviction can bring a fine of up to $5,000 and/or up to 2 years in jail
• Fines and penalties – Violators can face significant financial penalties
• No Guaranty Fund protection for the homeowner – Because the Fund only covers licensed contractors, an unlicensed contractor’s customers have no recourse through it, which also exposes the contractor to greater civil liability
• Difficulty enforcing contracts – Unlicensed contractors can struggle to collect payment or enforce their agreements

You can verify any contractor’s license for free using the MHIC Public Query Tool, or by calling the Commission. Homeowners are widely encouraged to check that a contractor is licensed and in good standing before hiring, so operating without a license also cuts you off from a large share of the market.

How Much Does a Handyman Make in Maryland?

Maryland’s high household incomes, dense suburban corridors around Baltimore and the Washington, D.C. suburbs, and aging housing stock create strong, steady demand for skilled handymen. According to the U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), general maintenance and repair workers (SOC 49-9071) in Maryland earn a median wage of $24.76/hour ($51,490/year), with a mean (average) of $26.22/hour ($54,540/year). That median runs about 6% above the national median of $48,620 for the same occupation, reflecting Maryland’s higher cost of living and strong demand in the Baltimore-Washington region. Total employment in this category statewide is approximately 23,730 workers.

Note: BLS OEWS data covers employed workers and does not include self-employed handymen, who typically earn more through higher hourly billing rates.

Maryland Handyman Salary by Experience Level

Experience Level	Hourly Rate	Annual Wage
Entry-level (10th percentile)	$17.74/hr	$36,890
Lower-mid (25th percentile)	$21.16/hr	$44,020
Median (50th percentile)	$24.76/hr	$51,490
Upper-mid (75th percentile)	$30.02/hr	$62,450
Top earners (90th percentile)	$36.41/hr	$75,740

Is Getting Licensed Worth It in Maryland?

In Maryland, licensing is not optional for a real handyman business – it is legally required, and unlicensed work is a crime. But beyond compliance, the MHIC license is a genuine business asset. Licensed contractors can contract directly with homeowners, appear in the MHIC’s public search that homeowners are urged to check, and offer the reassurance of Guaranty Fund protection. In a wealthy, competitive market like the Baltimore-Washington corridor, the license is what separates a professional operation from the unlicensed operators homeowners are warned to avoid.

Tips for Growing Your Handyman Business in Maryland

Get licensed before you take any homeowner work. Because unlicensed contracting is a criminal offense in Maryland, the MHIC license is your first priority – not an afterthought. Budget the time to meet the experience requirement and pass the PSI exam.

Study Maryland law for the exam. The PSI exam is about regulations and business practices, not trade skills. Use a Candidate Information Bulletin and consider a community-college prep course to pass on the first try.

Highlight your license and Guaranty Fund coverage. Maryland homeowners are actively encouraged to hire only licensed contractors and to check the MHIC database. Feature your MHIC license number prominently in your marketing – it is a trust signal competitors without a license cannot match.

Keep your insurance continuous. Your $500,000 liability coverage must stay in force at all times, and a lapse can jeopardize your license. Set up autopay and calendar your renewal well ahead of the two-year mark.

Consider a trade license to expand. If you want to offer electrical, plumbing, or HVACR services, those require separate state licenses – but they open up higher-value work. Plan the path if you intend to grow into the trades.

Build your online presence. Most Maryland homeowners search online and check the MHIC registry before hiring. A Google Business Profile with strong reviews plus a verified, active MHIC license is the single highest-return marketing investment for a local handyman business. Make it easy for clients to book you with online booking.

Use the right tools to run the business. As your handyman business grows, manual scheduling and invoicing become a bottleneck. Field service management software handles scheduling, customer communication, invoicing, and payment collection – so you spend your time on the work, not the paperwork.

Maryland vs. Neighboring States: How Does Licensing Compare?

State	License Required?	Threshold	Exam + CE
Maryland	Yes – MHIC home improvement license	No high threshold (~$500)	PSI exam – no CE
Virginia	Yes – contractor license (Class A/B/C)	Over $1,000 (Class C)	Exam required
Pennsylvania	Registration (Home Improvement Contractor)	Over $5,000	No exam – registration only
Delaware	Business license + DOL registration	All contracting	No exam
West Virginia	Yes – contractor license	Over $2,500	Exam required
Washington, D.C.	Home improvement contractor license	Home improvement work	Bond required

Maryland is among the stricter states in the region: it requires a license with an exam for nearly all home improvement work, with no meaningful dollar threshold, and treats unlicensed work as a crime. That is more demanding than Pennsylvania’s registration-only system, but comparable to Virginia’s license-and-exam approach. The upside for licensed Maryland contractors is the Guaranty Fund and a market where homeowners actively seek out licensed pros

Ready to Build Your Maryland Handyman Business?

Maryland asks more of handymen than many states – a license, an exam, insurance, and proof of financial responsibility – but that structure works in your favor once you are licensed. The MHIC license lets you contract directly with homeowners, the Guaranty Fund gives clients confidence, and a market full of homeowners who check for licenses rewards the pros who have one. Get licensed, stay insured, and you can build a strong, legitimate handyman business across the state.

We have built tools specifically for handymen – scheduling, invoicing, customer management, and payment collection all in one place so you can spend more time on jobs and less time on paperwork.

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