Maryland Contractor Deposit Limit (2026): One Third
The most a Maryland home improvement contractor can take at signing, quoted from Business Regulation 8-617 and worked from $5,000 to $60,000.
Not legal advice. General information from each state's statutes, checked Oct 20, 2026. Local rules and the facts of your contract can change the answer; for a specific contract, ask a lawyer licensed in your state.
Set the deposit
Every payment tied to a stage
The deposit and payment schedule in the Clamp app: a $1,000 deposit due when the customer signs, then every other payment tied to a stage of the job. $1,000 on this $17,699 bathroom is under every state's cap. Sample data.
What the law says
“A person may not receive a deposit of more than one-third of the home improvement contract price before or at the time of execution of the home improvement contract.”
The maximum deposit, worked
| Contract price | How it works out | Maximum deposit |
|---|---|---|
| $5,000 | $5,000 divided by 3, rounded down to the cent | $1,666.66 |
| $8,000 | $8,000 divided by 3, rounded down to the cent | $2,666.66 |
| $10,000 | $10,000 divided by 3, rounded down to the cent | $3,333.33 |
| $25,000 | $25,000 divided by 3, rounded down to the cent | $8,333.33 |
| $60,000 | $60,000 divided by 3, rounded down to the cent | $20,000 |
Who it covers and the penalty
Covers
"A person," licensed or not, on any home improvement contract. No dollar threshold appears in the section.
Before signing
A person may not demand or receive any payment for a home improvement before the home improvement contract is signed.
The penalty
A misdemeanor, with a fine of up to $1,000, up to 6 months in prison, or both, unless a greater penalty applies (Bus. Reg. 8-623).
Also in the law
- HB1499 (2026) would have raised the cap from one third to one half, effective October 1, 2026. Its hearing was canceled on March 11, 2026 and nothing followed.
Maryland deposit questions
Did Maryland raise the deposit cap to 50% in 2026?
No. HB1499 proposed it, but its hearing was canceled in March 2026. The cap is still one third.
Does the one-third rule apply to small jobs?
Yes. The section states no minimum contract price.
Compare other states
How we checked
We read each state's statute or licensing rule on the official legislature or agency site and quote it as written. Where the official site would not load, the row says so and names the copy we read. A state stays "still being checked" until we have read the full rule; we never mark it "no cap" before then. Last checked .
This guide explains what the statutes say. It is not legal advice; for a specific contract, ask a lawyer licensed in your state.