MHIC vs. county licenses: who needs what

The short version

Maryland splits contractor licensing between the state and your county. Most residential remodelers need the state MHIC license. Trade work needs a state master license. Some counties add their own licenses or registrations on top.

What the MHIC covers

According to the Commission, home improvement means altering, remodeling, repairing or replacing all or part of a building used as a residence, including individual condo units. It does not cover commonly owned areas of condos or buildings with four or more single-family units. (MHIC)

• Since June 1, 2024, MHIC contractors must carry at least $500,000 in general liability insurance (Bus. Reg. §8-302.1).
• MHIC application and license fees went up Aug 1, 2024. See the official fee schedule (COMAR 09.08.07.02). The Guaranty Fund assessment is $100 for an original license and $175 every two years at renewal.
• Homeowners can recover up to $30,000 from the Guaranty Fund for work by licensed contractors.
• PSI Exams administers the contractor exam. Check any license here.
• Rooftop solar contracts (since June 1, 2024) must include a wildlife barrier unless the customer waives it in writing.

Commercial work

Commercial general contracting has no MHIC equivalent at the state level. What you need depends on the county and on the trades involved. Electrical, plumbing and HVACR work needs the right license. Some counties (for example Anne Arundel and Montgomery) issue their own licenses, and Baltimore City requires a city-licensed contractor for demolition.

County examples

This page is general information, not legal advice. Confirm your exact situation with MHIC and your county.