Security Deposit Law by State: The Cap, the Clock, and the Interest

A security deposit is the largest sum of money most renters hand over with the least idea of what rules govern it.

Three of those rules do almost all the work, and all three are set by state statute rather than by your lease: how much a landlord may hold, how long they have to give it back, and whether they owe you interest for the time they held it.

Get those three right and most deposit disputes are settled before anyone starts arguing about whether the carpet was already like that.

A note before you start. This is general information, not legal advice, and it is not a substitute for reading your own state's statute. Every figure here comes from this site's fifty-state rent dataset, in which each value carries the statutory citation it was read from — the research pass was completed on 2 September 2026. A legislature can amend any of it at any time, and the figure that governs a real dispute is the one in force on the day it arises. Local ordinances can be stricter than state law and are not covered here. Where the dataset could not confirm a value against statutory text, it is flagged internally as needing verification rather than presented as settled.

1. Twenty-seven states cap it. Twenty-three do not.

That split is the first surprise. Almost half the country sets no statutory ceiling on a residential security deposit at all.

Among the 27 that do, the caps cluster tightly:

Nevada is the outlier at three months, and its cap covers a surety bond taken in place of a deposit as well as the deposit itself — a detail that matters, because a bond product marketed as an alternative to a deposit is still inside the ceiling.

The twelve one-month states are the tenant-friendliest, and they are geographically scattered rather than regional: Hawaii and Delaware sit alongside Kansas and the Dakotas.

2. The caps that are not what they look like

Five of those numbers change depending on who you are or how long you have lived there. These are the entries most likely to be quoted wrongly, because the exception rarely survives being summarised into a table.

California — one month, or two for a small landlord. The cap is one month's rent, except where the landlord is a natural person, or an LLC whose members are all natural persons, owning no more than two residential properties totalling no more than four units. That landlord may charge two.

Connecticut — two months, or one at 62. The two-month cap applies to a tenant under 62. From 62 it drops to one month's rent.

Pennsylvania — two months, then one. Two months' rent in the first year of a lease. From the second year and on any renewal, the maximum falls to one month, and the excess is returnable.

North Carolina — it depends on the tenancy. Two months' rent for a term longer than month-to-month; one and a half months for a month-to-month tenancy; two weeks' rent for a week-to-week tenancy.

New Hampshire — one month or $100, whichever is greater. The dollar floor matters only at very low rents, but it is the statutory language.

Several states also carve out pets and furnishings. Hawaii permits a further month where the tenant keeps a pet. Nebraska permits a further quarter of a month. Kansas allows one and a half months for a furnished unit and up to half a month more for a pet. Alabama's one-month cap excludes deposits for pets, alterations, and activities that increase liability risk — which is a wide enough set of exclusions to make the headline figure less binding than it appears.

3. The clock is the part that matters most

If you learn one number about your state, learn this one.

The deadline to return the deposit — or to deliver an itemised statement of what was withheld — ranges from 14 days to 60.

*Arizona's fourteen days are business days — Saturdays, Sundays and legal holidays are excluded, which in practice makes it about three calendar weeks.

Why this is the most useful number: in most states, a landlord who blows the deadline forfeits the right to withhold anything. The deposit stops being a fund they can draw on and becomes a debt they owe you in full. Several states add multiple damages on top.

That reverses the usual burden. Ordinarily a tenant disputing a deduction has to argue about the condition of a wall. A tenant whose landlord missed the deadline does not have to argue about the wall at all.

4. The deadlines with a second clock inside them

Some states publish two numbers, and quoting the wrong one is a common error.

Idaho — 21 days where the agreement fixes no period, and 30 days in any event.

Illinois — 30 days to furnish an itemised statement, 45 days to return the deposit in full if no statement is furnished. Illinois's Security Deposit Return Act also reaches only buildings of five or more units, which is a large carve-out.

Montana — 10 days where the landlord makes no deductions at all; 30 days where they do.

South Dakota — 14 days to return the deposit, 45 days to supply a written itemised statement.

Florida — 15 days to return the deposit outright if no claim is made; 30 days to give written notice of a claim.

Kansas — 14 days after the landlord determines the deductions, and in no event more than 30 days after the tenancy ends.

A third group starts the clock somewhere other than move-out. Oklahoma's 45 days run from termination, delivery of possession and written demand by the tenant — so a tenant who never demands may never start the clock. Rhode Island's 20 days run from the later of termination, delivery of possession, or your supplying a forwarding address. Wyoming's 30 days run from the later of termination and 15 days after you supply a new mailing address. Kentucky's 30 days become 60 where you leave no forwarding address.

The practical lesson from that group is one sentence: give your landlord a forwarding address in writing, and keep proof that you did. In several states it is the act that starts the clock, and it costs nothing.

5. Twelve states owe you interest

Connecticut, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio and Pennsylvania.

Every one attaches conditions, and the conditions are the whole rule:

Ohio — 5% a year on the part of the deposit exceeding $50 or one month's rent, whichever is greater, where the tenant stays six months or more. Computed and paid annually.

Massachusetts — 5% a year, or the lesser rate actually earned by the bank holding it, paid annually.

Minnesota — simple interest at 1% a year, accruing from receipt until return.

Maryland — the greater of the US Treasury yield curve rate or 1.5% a year, on deposits of $50 or more, accruing monthly.

New York — required of buildings with six or more dwelling units, at the prevailing local rate; the landlord may keep 1% a year as an administrative fee.

Illinois — required only of buildings with 25 or more units, on deposits held more than six months.

North Dakota — where occupancy is at least nine months.

Pennsylvania — on deposits over $100 held more than two years, from the beginning of the 25th month; the landlord may keep 1% a year.

New Hampshire — where the deposit is held a year or longer, at the rate paid on regular savings by the institution holding it.

New Mexico — where the deposit on an annual agreement exceeds one month's rent.

New Jersey — the deposit must be held in an interest-bearing account and the interest belongs to you, payable annually in cash or as a rent credit.

Connecticut — accrued interest is yours, payable on the tenancy anniversary or within 30 days of an earlier termination.

Two patterns are worth extracting. The building-size conditions in New York and Illinois mean most small-landlord tenancies in those states are outside the requirement entirely — a tenant in a three-family house in Brooklyn is not owed interest. And the duration conditions in Ohio, Pennsylvania, North Dakota and New Hampshire mean a short tenancy earns nothing regardless.

Two more states are worth naming for what they do NOT do. Iowa's statute gives interest earned during the first five years of a tenancy to the landlord. Florida owes interest only if the landlord elects to hold the deposit in an interest-bearing account — and the election is the landlord's, not yours.

6. "No cap" does not mean "no rules"

Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Minnesota, Mississippi, Montana, Ohio, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah, Vermont, Washington, West Virginia, Wisconsin and Wyoming set no statutory ceiling.

Every single one of them still sets a return deadline. Texas's 30 days, Ohio's 30, Vermont's 14, West Virginia's 60. The absence of a cap says nothing about the presence of the other protections.

Most also restrict what may be deducted. Colorado's statute says outright that no part of the deposit may be retained to cover normal wear and tear. Oklahoma returns the balance expressly "without interest" but still requires an itemisation. The uncapped states are uncapped on one axis only.

And the market usually caps it anyway. A landlord in an uncapped state asking for three months' rent is competing with landlords asking for one. The statutory ceiling is a backstop against the worst case, not a description of the typical one.

Two of the uncapped states have local caps that matter. Seattle limits total move-in charges to one month's rent, which is stricter than anything Washington does statewide. Burlington caps the deposit at one month and requires interest, neither of which Vermont does. A state-level table will never show you either, and both cover a large share of their state's renters.

7. What to do at move-in

The deposit dispute is decided at move-in, not at move-out. Four things, none of which take long.

Document the condition of everything, with dates. Photographs and video, room by room, before you move a single box in. This is the evidence that decides almost every real dispute, and it is worthless if taken after your furniture is in the way.

Complete the checklist if your state requires one. Washington makes a written checklist of pre-existing conditions a condition of collecting a deposit at all — a landlord who takes one without providing the checklist is liable for the full amount. Several other states have similar requirements.

Get the deposit amount in writing, separated from the first month's rent. A single lump sum described as "move-in costs" is harder to reclaim than a line labelled security deposit, and in some states the label affects which rules apply.

Find out where it is being held. Georgia requires the deposit to sit in an escrow account at a regulated institution and requires the landlord to tell you in writing where. New Jersey requires an interest-bearing account. Maryland requires a Maryland branch. These requirements exist because a commingled deposit is a deposit that may not be there when you ask for it.

8. What to do at move-out

Give notice in the form your lease requires, and keep proof. Texas specifically permits a lease to require advance notice of surrender as a condition of the refund, provided the requirement is underlined or in conspicuous bold — a clause that is easy to miss and expensive to miss.

Supply a forwarding address in writing. Section 4 explains why: in Oklahoma, Rhode Island, Wyoming and Kentucky it affects when the clock starts or how long it runs.

Photograph everything again, on the last day, after the place is empty. The move-out set is what pairs with the move-in set, and a pair is worth far more than either alone.

Then diarise the deadline. Your state's number, from section 3, counted from the day you handed back possession. The day after it expires, your position is materially stronger than it was the day before — and it is the sort of deadline that passes unnoticed because nobody is watching it except you.

9. If the deadline passes

Write, do not phone. A dated written demand referencing your state's statute and the date possession was delivered creates the record that every subsequent step depends on.

Say what you want and by when. A specific sum and a specific date is a demand; a complaint is not.

Know what the statute adds. Many states provide multiple damages for a wrongful withholding — commonly double, and in several states treble — plus costs and sometimes attorney's fees. Those multipliers exist precisely because the individual sums are too small to litigate otherwise.

Small claims court is designed for this. The amounts are within its limits almost by definition, you generally do not need a lawyer, and a deposit case with dated photographs and a missed statutory deadline is about as straightforward as civil disputes get.

And keep it proportionate. If the landlord returned most of it and you are arguing over a cleaning charge, the multiplier provisions may not apply and the time may not be worth it. The strong cases are the ones where the deadline was missed entirely or the deduction was for something the statute does not permit.

10. What this article deliberately does not tell you

Whether your city has its own rules. Local ordinances can be stricter in both directions and this dataset is state-level. Seattle and Burlington are named above as examples, not as an exhaustive list.

What your landlord may deduct. That is a separate question with its own statutory language in every state, and it deserves its own treatment rather than a paragraph here.

Whether the statute applies to you at all. Several do not apply universally. Illinois's return act reaches only buildings of five or more units. Arkansas exempts landlords owning fewer than six units. Kentucky's Uniform Residential Landlord and Tenant Act applies only in the cities and counties that have adopted it. A statute you assume covers you and does not is the worst way to discover an exception — check that threshold before relying on anything above.

Anything about commercial tenancies. Every figure here is residential.

Frequently asked questions

How much can my landlord ask for? It depends on the state. Twenty-seven cap it — most commonly at one or two months' rent, with Nevada the highest at three. Twenty-three set no statutory cap at all, in which case the limit is what the market will bear.

How long do they have to return it? Between 14 and 60 days depending on the state. Fourteen in New York, Arizona, Hawaii, Nebraska and Vermont; thirty in the largest group; sixty in Alabama, Arkansas and West Virginia. Arizona's fourteen are business days.

What happens if they miss the deadline? In most states, the landlord forfeits the right to withhold any of it, and many states add double or treble damages plus costs. It is the strongest position a tenant can be in, and it requires no argument about the condition of the property.

Do I get interest on my deposit? In twelve states — Connecticut, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio and Pennsylvania — subject to conditions on building size, deposit size or how long you stayed. Everywhere else, generally not.

My state has no cap. Does that mean no protection? No. Every uncapped state still sets a return deadline, and most still restrict what can be deducted — Colorado's statute expressly bars withholding for normal wear and tear. The cap is one protection among several.

Does a pet deposit count toward the cap? It depends. Hawaii allows a further month for a pet, Nebraska a further quarter of a month, Kansas up to half a month. Alabama's cap excludes pet deposits altogether. Several other states are silent, which is its own answer.

Can my lease override the statute? Generally not in the tenant's disfavour. These are statutory minimums and most states bar waiver by contract. A lease can be more generous than the statute; it cannot be less.

Does the clock start when I move out or when I give an address? Both, depending on the state. In Oklahoma, Rhode Island, Wyoming and Kentucky the forwarding address affects when the clock starts or how long it runs. Supply one in writing and keep proof — it is free and it can be decisive.

What if I am in a small building? Check whether the statute reaches you. Illinois's return act applies only to buildings of five or more units, its interest act to 25 or more; New York's interest requirement applies to six or more; Arkansas exempts landlords with fewer than six units.

Should I take a surety bond instead of a deposit? Read the terms carefully — a bond premium is generally not refundable, so you are paying a fee rather than lodging a refundable sum. Nevada's statutory cap covers a bond as well as a deposit, which tells you the legislature considered them equivalent for ceiling purposes.

What to do next

Find your own state's three numbers — cap, deadline, interest — and put the deadline in your calendar on the day you hand back the keys. That single diary entry is worth more than everything else on this page.

• Rent affordability calculator — what you can carry against take-home pay, deposit included
• Roommate rent split calculator — who owes what when the deposit and the rent are shared
• Move-In Cost Planner — the cash a move actually takes, split into what comes back and what never does
• Rent vs. buy calculator — if the deposit arithmetic has you reconsidering the whole question