Massachusetts Contractor License Bond

A Massachusetts Contractor License Bond costs as little as $100. The cost of this bond is a small percentage (1% - 10%) of the total bond amount required (typically $1,000 - $20,000).

The bond price you qualify for is based on:

1. The total bond amount you need. Since Massachusetts doesn’t have a statewide licensing requirement for contractors, licensing is done at municipal level. Each city and town sets its own bonding requirements, so the bond amount needed varies. However, generally the higher the bond amount, the higher the price. 
2. Credit score. This is the main factor considered when determining an individual’s bond rate. Most will pay 1% - 10% of the total bond amount. 

Those who qualify for the best bond prices often have good credit combined with:

• Industry experience
• Past bonding history with no claims
• Business assets 

1. Find the Bond Amount You Need

For out-of-state contractors, the bond amount must be equivalent to 6.25% of the project cost. For city and county contractor licenses, the bond amount varies. 

To find your required bond amount: 

• Check the instructions on your contractor application.
• Look on the website of the city or town licensing you. If you can’t find the bond requirements, try contacting them directly.
• Talk to one of our surety experts. A Massachusetts contractor named Michael contacted us regarding the required bond amount for a Braintree Contractor License. We were able to tell him exactly what he needed—a $5,000 License Bond—and we got him bonded the same day.  

2. Apply For Your Contractor Bond

Fill out our online application. This application will run a soft credit check, which won’t affect your credit score. Plus, it only takes a couple of minutes to complete and generates an instant quote. 

Information required includes:

• Bond Name (Contractor License Bond)
• Bond Amount (varies – See Step 1)
• Contact Information

3. Receive a Bond Quote

A quote will be sent directly to your inbox. It usually only takes a few minutes to arrive after you submit your application. Please check your Spam Folder. 

4. Get Your Bond

Log into our website to sign the indemnity agreement and pay your invoice. An electronic copy of your bond will be sent to your email as soon as payment clears. The original copy will be sent via mail.

You need a Massachusetts Contractor License Bond if you are an out-of-state contractor and/or you are working in specific municipalities. This bond is needed to get a Contractor License.

• The Massachusetts Department of Revenue (DOR) requires all out-of-state contractors and sub-contractors to have a Guarantee Bond. This bond must be in an amount of 6.25% of their total project cost. If the cost of the project increases at any time, the bond must be modified, or an additional payment must be sent. 

There are also various Massachusetts cities and counties that require contractors to get licensed. Often, one of the main requirements to get this license is to get bonded. Bond amount (penal sum) requirements vary with location and trade, as seen in the table below. 

*Please note that bond amounts are subject to change. We recommend checking with your licensing authority for the most up-to-date bond requirements.

Getting a Massachusetts Contractor License is done at a city or town level, as no statewide licensing exists. You may need more than one license if working in multiple municipalities or if you are an out-of-state contractor. 

Using an out-of-state contractor as an example, you would need the following to get a contractor license to work in MA. 

• Register your business by mail or through MassTaxConnect. 
• Get a surety bond worth 6.25% of your project total.
• Get a sales tax number.
• Receive a DOR Certificate of Compliance (received after successfully applying).