How to Become a Home Improvement Contractor in New Jersey
This guide is for informational purposes only. SuretyBonds.com does not regulate or manage home improvement contractor licenses in New Jersey. Contact the New Jersey Division of Consumer Affairs for the latest official requirements.
In New Jersey, all home improvement contractors must register with the Division of Consumer Affairs to operate.
The Division has specific requirements to apply for a home improvement contractor business (HICB) license. Continue reading for step-by-step application instructions, renewal information and a total cost breakdown.
Who Needs a Home Improvement Contractor License?
In New Jersey, home improvement refers to any renovation or remodeling work aimed at improving the look and value of homes. However, it doesn't include significant structural changes or new construction.
Anyone completing improvement projects on residential properties must apply for a license. This also includes subcontractors and out-of-state contractors working on New Jersey properties.
However, you are exempt if you are working on a property owned by a non-profit organization. See N.J.S.A. 56:8-140 for a full list of exemptions.
How Do I Get a Home Improvement Contractor Business License in New Jersey?
To get a home improvement contractor license in New Jersey, follow these four steps:
Step 1: Register your business
First, establish your business’s legal structure. You must submit specific documents with your application, depending on your business type. You’ll also need a Federal Employer Identification Number (FEIN).
Step 2: Purchase a surety bond
Next, you’ll need to purchase a surety bond. Your amount will depend on the value of your contracts:
- A $10,000 bond is required for single contracts under $10,000 or annual totals below $150,000.
- A $25,000 bond is required for $10,000–$25,000 single contracts or annual totals of $150,000–$750,000.
- A $50,000 bond is required for single contracts valued over $120,000 or annual contract totals exceeding $750,000.
Purchase your NJ home improvement contractor compliance bond instantly online today. Premiums cost $100–$500, depending on your bond amount.
Note: You can also submit a letter of credit or another form of financial security approved by the Division.
Step 3: Purchase insurance
You’ll also need to purchase a general liability insurance policy covering at least $500,000 per occurrence for home improvement work.
You must also purchase workman’s compensation insurance or provide proof of exemption. Make the name and addresses match those listed on your license application.
Step 4: Apply and pay fees
Complete the home improvement license application. Mail all forms and payment for the $110 fee to the address below:
State of New Jersey
Division of Consumer Affairs
Regulated Business Section - Home Improvement Contractor Business Unit
124 Halsey Street, 7th Floor
P.O. Box
46016 Newark, NJ 07101
If approved, the Division will process and mail your official registration.
What Additional Registration Requirements Do Home Elevation Contractors Need?
Home elevators specialize in structural lifting and foundation work. This is typically done to protect residential properties from flooding or repair cracking foundations.
While the application process is similar, you also need at least five years of experience in home elevation. You must provide three references proving direct project work and elevation equipment training.
Do New Jersey HICBs/HECBs Have to Pass an Exam?
Under the 2024 Home Improvement and Home Elevation Contractor Licensing Act, the State Board of Home Improvement and Home Elevation Contractors set the foundation to add training and education requirements.
As of 2025, the Board is still working on the implementation plan for a state-wide training program and exam for HICBs and HECBS. We will continue to monitor updates and provide the latest license information here. At this time, there are no exam requirements to register with the state.
How to Renew Your Home Improvement Contractor License
Home improvement contractor licenses must be renewed by March 31 annually. The Division will send you reminder emails once the renewal period opens on January 1.
You must renew your license online in the MyLicense portal and pay the $90 fee.
How Much Does It Cost to Get a New Jersey HICB License?
The total cost to get a home improvement contractor business license includes the following fees:
- Application fee: $110
- Surety bond premium: $100–$500*
- General liability and worker’s comp insurance: Policy prices vary
*SuretyBonds.com home improvement compliance bond premiums vary based on your bond amount. Select a multi-year term at checkout to save 25% per year.
What Additional Permits Do I Need?
After receiving your license, you may still need additional permits or licenses for specific jobs.
Under the New Jersey Uniform Construction Code, separate licenses are required for plumbing, electrical and HVAC work. For major construction projects, you’ll need a permit from your local municipality.
Can I Offer Financing Options for Home Improvement Projects?
Yes, you can offer financing only for a 90-day term or less.
If you plan to offer financing options with payment terms exceeding 90 days, you must also submit a home repair contractor licensing application to the NJ Department of Banking and Insurance.
All credit card payment plans are exempt.
Do I Need a License to Be a Handyman in New Jersey?
Yes, all residential handyman work requires a home improvement contractor license. This applies to both full-time and part-time home improvement/handyman professionals as well as subcontractors of a licensed HICB.
You may also need a specialty license depending on the type of work you perform, such as plumbing or electrical.
More Resources
- NJ Contractor License Bond Guide
- A Guide to New Jersey’s Updated Home Improvement Contractor Laws
- Division of Consumer Affairs: Home Improvement Contractor License Information
- Home Improvement and Home Elevation Contractor Licensing Act
- Division of Consumer Affairs: Home Improvement Contractor FAQs
- MyLicense Portal Account Guide
Last Updated: May 16, 2025
Have Questions?
Call 1 (800) 308-4358 to talk with a Surety Expert today.
