Security Deposit Laws by State: Limits & Deadlines (2026)

Last updated on: Oct 16, 2026

Published on: Feb 28, 2024

Security deposits are a common source of landlord-tenant disputes, and many of those disputes come down to a missed deadline or a deduction the landlord couldn't document. The rules are set state by state, and several states have changed their caps or return deadlines in the past few years.

This guide lists each state's maximum security deposit, return deadline, holding rules, and penalties, plus how to handle a deposit at move-out so you can keep what you're owed and return the rest on time. The information below is checked against each state's statutes as of October 2026. It's general information, not legal advice. Cities and counties can add stricter rules, so confirm the current law for your property with an attorney licensed in your state before you act on it.

The short answer

Maximum deposit: 29 states and Washington, D.C. cap security deposits, most often at one or two months' rent. Nevada allows up to three months. 21 states, including Florida, Texas, Washington, and Illinois, set no cap at all.
Return deadline: most states give landlords 14 to 45 days after the tenant moves out. The shortest are Montana (10 days if nothing is deducted) and Hawaii, Nebraska, New York, and Vermont (14 days). Alabama, Arkansas, and West Virginia allow up to 60.
Itemization: nearly every state requires a written, itemized list of deductions sent within the return deadline. In many states, missing that deadline means the landlord loses the right to keep any of the deposit.
Penalties: wrongfully withholding a deposit commonly costs two to three times the amount withheld, plus the tenant's attorney's fees.

Map of maximum security deposit limits by U.S. state, from one month's rent to no statutory cap.

What is a security deposit?

A security deposit is money a tenant pays at the start of a lease to cover unpaid rent or damage beyond normal wear and tear when the lease ends. It still belongs to the tenant while the landlord holds it, which is why states regulate how much a landlord can collect, where it's kept, and how quickly it has to be returned. Some states also limit nonrefundable fees: California, for example, doesn't allow any part of a security deposit to be called nonrefundable, while Utah and Wyoming allow nonrefundable portions only if they're disclosed in writing.

Recent changes to security deposit laws

If you last checked your state's rules a couple of years ago, these are the changes most likely to affect you:

California: deposits are capped at one month's rent, with a two-month exception for small landlords who own no more than two rental properties with four units total. Since April 1, 2025, landlords must take photos of the unit after the tenant moves out and before and after any repairs or cleaning, and send them with the itemized statement when they deduct for repairs or cleaning.
Georgia: a two-month cap applies to leases signed or renewed on or after July 1, 2024.
Colorado: for tenancies ending on or after January 1, 2026, landlords must provide photos, inspection reports, receipts, or estimates supporting a deduction within 14 days of a tenant's written request.
South Dakota: the return deadline is now 21 days, up from two weeks, under a 2026 law.
Louisiana: as of August 1, 2026, landlords have an additional 15 days after the one-month deadline to send the itemized statement.

Security deposit laws by state

The table below summarizes each state's statute. "Return deadline" is generally counted from the end of the tenancy and the tenant's move-out, and some states also start the clock only once the tenant provides a forwarding address or asks for the deposit. Penalties usually require a court finding, and many apply only to bad-faith or willful withholding.

State	Maximum deposit	Return deadline	Holding and interest rules	Penalty for wrongful withholding
Alabama	1 month's rent (more allowed for pets, alterations, or added liability risk)	60 days	No account requirement	2x the original deposit if the refund or accounting is late
Alaska	2 months' rent; no cap if rent is over $2,000/month	14 days (30 days in some cases, such as deductions for damage)	Trust account where practicable	Up to 2x the amount withheld, for willful violations
Arizona	1.5 months' rent	14 business days after move-out and the tenant's request	No account requirement	2x the amount wrongfully withheld
Arkansas	2 months' rent	60 days	No account requirement	2x the amount wrongfully withheld, plus costs and fees
California	1 month's rent (2 months for some small landlords who own no more than 2 properties with 4 units total)	21 days	No account requirement	Up to 2x the deposit for bad faith, plus actual damages
Colorado	2 months' rent	30 days (up to 60 if the lease says so)	No account requirement	3x the amount wrongfully withheld, plus fees
Connecticut	2 months' rent; 1 month for tenants 62 or older	21 days, or 15 days after receiving a forwarding address, whichever is later	Escrow account in a Connecticut institution; interest paid to the tenant	2x the deposit
Delaware	1 month's rent for leases of 1 year or more (furnished units excluded)	20 days	Escrow account at a federally insured bank with a Delaware office	2x the amount wrongfully withheld
District of Columbia	1 month's rent	45 days to refund or give notice of withholding; balance within 30 days of that notice	Interest-bearing escrow account in D.C.; interest paid to the tenant	The amount withheld; 3x for bad faith
Florida	No cap	15 days if nothing is deducted; written notice of any claim within 30 days	Separate Florida account or a surety bond, with written disclosure	Landlord loses the right to claim against the deposit, plus fees
Georgia	2 months' rent (leases signed or renewed since July 1, 2024)	30 days	Escrow account at a regulated bank, or a bond; tenant told where	Forfeiture; up to 3x the amount withheld if willful
Hawaii	1 month's rent, plus an optional pet deposit of up to 1 more month	14 days	No separate account required	Forfeiture; up to 3x for willful retention
Idaho	No cap	21 days (up to 30 if the lease says so)	Separate account only when a third-party manager holds it	Up to 3x actual damages in a court action after notice
Illinois	No cap	30 days to send an itemized statement; 45 days to return the deposit if no statement is sent	No account requirement; interest owed by landlords with 25+ units	2x the deposit, plus costs and fees
Indiana	No cap	45 days	No account requirement	The amount withheld plus attorney's fees
Iowa	2 months' rent	30 days after move-out and receipt of a forwarding address	Federally insured bank or credit union; not commingled	Forfeiture; up to 2x the monthly rent for bad faith
Kansas	1 month's rent unfurnished, 1.5 months furnished, plus up to 1/2 month for pets	14 days after deductions are set, 30 days at most	No account requirement	The amount due plus 1.5x the amount wrongfully withheld
Kentucky	No cap	No fixed deadline; signed move-in and move-out damage lists required	Separate account at a regulated bank; tenant told where	Forfeiture of the right to withhold
Louisiana	No cap	1 month; itemized statement within 1 month, or 15 days after that (as of Aug. 1, 2026)	No account requirement	The amount withheld plus the greater of $300 or 2x, for willful failure
Maine	2 months' rent	Up to 30 days under a written lease; 21 days for a tenancy at will	Separate account beyond the reach of the landlord's creditors	Forfeiture; 2x the amount withheld for wrongful retention
Maryland	1 month's rent (2 months in a narrow utility-assistance case)	45 days	Escrow in an insured Maryland institution; interest paid to the tenant	Up to 3x the amount withheld, plus fees
Massachusetts	1 month's rent	30 days	Separate interest-bearing Massachusetts account; interest paid to the tenant	Up to 3x the amount withheld, plus fees
Michigan	1.5 months' rent	30 days	Regulated financial institution, or a bond	2x the amount retained
Minnesota	No cap	3 weeks after move-out and receipt of a forwarding address	No separate account; 1% simple interest owed	2x the amount withheld, plus interest
Mississippi	No cap	45 days after move-out and the tenant's request	No account requirement	Up to $200 plus actual damages, for bad faith
Missouri	2 months' rent (pet deposits not included)	30 days	Federally insured institution; interest belongs to the landlord	2x the amount wrongfully withheld
Montana	No cap	10 days if nothing is deducted; 30 days if it is	No account requirement	Forfeiture of deductions; liable for the amount withheld
Nebraska	1 month's rent, plus a pet deposit of up to 1/4 month	14 days	No account requirement	Costs and fees; willful failure adds the lesser of 1 month's rent or 2x the deposit
Nevada	3 months' rent, including last month's rent and any surety bond	30 days	No account requirement	The full deposit plus up to the deposit amount again
New Hampshire	1 month's rent or $100, whichever is greater	30 days	Held in trust and not commingled; interest owed on deposits held 1 year or more	2x the deposit plus interest, less lawful charges
New Jersey	1.5 months' rent	30 days	Held in trust and invested or interest-bearing; interest belongs to the tenant	2x the amount owed, plus costs
New Mexico	1 month's rent for leases under 1 year; annual leases may require a "reasonable" deposit (interest owed above 1 month)	30 days	No account requirement	Forfeiture and fees; $250 civil penalty for bad faith
New York	1 month's rent	14 days after move-out	Held in trust, not commingled; interest-bearing in buildings with 6+ units	Forfeiture; actual damages, up to 2x the deposit if willful
North Carolina	2 weeks' rent (week-to-week), 1.5 months (month-to-month), 2 months (longer terms)	30 days (interim accounting if needed, final within 60)	Trust account at an insured institution, or a bond	Willful failure voids the right to keep any of it; damages and fees
North Dakota	1 month's rent (2 in limited cases), plus a pet deposit	30 days	Federally insured interest-bearing account; interest paid to the tenant	Up to 3x for money withheld without reasonable justification
Ohio	No cap	30 days	No account requirement; 5% interest on the amount over $50 or 1 month's rent, for tenancies of 6+ months	The money due plus an equal amount, plus fees
Oklahoma	No cap	45 days after move-out and the tenant's written request	Escrow account at a federally insured institution in Oklahoma	Tenant recovers the deposit; misappropriation can be a crime
Oregon	No cap (limits on adding a deposit in the first year)	31 days	No account requirement	2x the amount withheld without an accounting or in bad faith
Pennsylvania	2 months' rent in year one; 1 month from year two	30 days	Escrow account for deposits over $100; interest paid to the tenant after year two	Forfeiture; 2x the amount wrongfully withheld
Rhode Island	1 month's rent (separate furniture deposit allowed for high-value furnishings)	20 days	No account requirement	The amount due plus 2x the amount wrongfully withheld, plus fees
South Carolina	No cap	30 days	No account requirement	3x the amount wrongfully withheld, plus fees
South Dakota	1 month's rent (more by agreement for special conditions)	21 days	No account requirement	Forfeiture; up to $200 punitive damages for bad faith
Tennessee	No cap	No statutory deadline	Separate account at a regulated bank; tenant told where	Forfeiture if the deposit wasn't held and documented as required
Texas	No cap	30 days after move-out (forwarding address required)	No account requirement	$100 plus 3x the amount withheld and fees, for bad faith
Utah	No cap	30 days	No account requirement	The full deposit plus a $100 civil penalty
Vermont	No cap	14 days	No account requirement	Forfeiture; 2x the amount withheld if willful
Virginia	2 months' rent	45 days	No account requirement	Return of the deposit plus actual damages and fees, if willful
Washington	No cap	30 days	Trust account at a financial institution	The full deposit; a court may award up to 2x
West Virginia	No cap	60 days, or 45 days after a new tenant moves in, whichever is sooner	No account requirement	The unreturned deposit plus 1.5x the amount withheld, if willful
Wisconsin	No cap	21 days	No account requirement	2x the tenant's loss, plus fees
Wyoming	No cap	30 days, or 15 days after receiving a new address, whichever is later (30 more days if there's damage)	No account requirement	The full deposit plus court costs, if the withholding was unreasonable

Summarized from each state's statutes as of October 2026. Local ordinances may add requirements. Confirm current law with an attorney licensed in your state.

How to handle a security deposit at move-out

Most deposit disputes turn on documentation. Owners who document the unit at move-in and send an itemized statement on time are in a much stronger position if a tenant challenges a deduction. A process that works in every state:

Document the home at move-in. Walk the property with the tenant, note existing wear, and take date-stamped photos of every room. Several states, including Kansas, Kentucky, Georgia, and Massachusetts, require a written move-in condition record.
Get a forwarding address before the tenant leaves. In states like Iowa, Minnesota, Texas, and Connecticut, the return clock depends on it.
Inspect promptly after move-out and photograph the same areas you documented at move-in.
Separate damage from normal wear and tear. Faded paint, minor scuffs, and carpet worn from normal use generally can't be deducted. Holes, stains, and broken fixtures generally can. Our guide to the definition of normal wear and tear has examples of each.
Itemize each deduction with its cost and keep the receipts, invoices, or estimates that support it. California, Colorado, and Washington spell out what documentation landlords must provide.
Send the statement and any refund before your state's deadline, using the delivery method your statute specifies. Keep proof of when it was sent.

Six-step security deposit move-out checklist for landlords.

The same rules apply when a tenancy ends because you've chosen not to renew. Our guide to notice of non-renewal of lease requirements by state covers the notice side of that process.

What landlords can deduct from a security deposit

State laws differ in the details, but deductions generally fall into a few categories:

Unpaid rent and, where the lease allows, unpaid late fees
Damage beyond normal wear and tear, caused by the tenant, their guests, or their pets
Cleaning needed to return the home to its move-in condition (some states limit this)
Unpaid utilities the tenant was responsible for under the lease
Costs to remove items the tenant left behind, in some states

Pet deposits follow their own rules in some states. Hawaii allows up to one additional month for pets, Kansas allows up to half a month, and Nebraska up to a quarter month. Landlords generally can't charge a pet deposit or pet fee for a service animal, and the rules for emotional support animals vary; our guide to ESAs vs. service animals covers what landlords can and can't charge.

Where to keep a tenant's deposit

About 20 states and D.C. require a separate account, escrow account, or trust account, and a handful (including Connecticut, Maryland, Massachusetts, New Jersey, and North Dakota) require you to pay the tenant interest on it. Even where your state has no account rule, keeping deposits in a dedicated account makes it easier to return them on time and to show a court the money was never treated as yours.

How Nomad handles this: Leases created through Nomad's Screening & Leasing are state-specific and vetted by counsel, and the tenant pays the security deposit through the platform. You stay responsible for the move-out inspection, deductions, and returning the deposit within your state's deadline.

If you're a renter looking for the tenant side of this, see our tips on how to protect your security deposit.

Frequently asked questions

What is the maximum security deposit a landlord can charge?

It depends on the state. The most common caps are one month's rent (including California, Maryland, Massachusetts, and New York) and two months' rent (including Colorado, Georgia, and Virginia). Nevada allows up to three months. 21 states, including Florida, Texas, and Washington, set no statutory limit.

How long does a landlord have to return a security deposit?

Most states require the deposit, minus any itemized deductions, to be returned within 14 to 45 days after the tenant moves out. Hawaii, Nebraska, New York, and Vermont allow 14 days; California allows 21; many states allow 30; Alabama, Arkansas, and West Virginia allow up to 60. Kentucky and Tennessee set no fixed number of days.

What happens if a landlord misses the deadline?

In many states, the landlord loses the right to keep any part of the deposit, even for legitimate damage. Depending on the state and whether the withholding was in bad faith, the landlord can also owe the tenant two or three times the amount withheld, plus court costs and attorney's fees.

Can a landlord keep a security deposit for normal wear and tear?

No. Every state with a deposit statute limits deductions to unpaid rent and damage beyond normal wear and tear, plus certain other charges the law or lease allows. Wear from ordinary use, such as minor scuffs or faded paint, can't be deducted.

Do landlords have to pay interest on security deposits?

Only in some states. Connecticut, Maryland, Massachusetts, Minnesota, New Jersey, North Dakota, and the District of Columbia require interest, and Illinois, New Hampshire, New Mexico, New York, Ohio, and Pennsylvania require it in certain situations. Most states don't require interest.

Does a landlord have to itemize security deposit deductions?

Yes, in nearly every state. The itemized list usually has to be sent with any refund within the return deadline, and several states require receipts, invoices, or photos to support each charge.

Can cities set different security deposit rules?

Yes. Some cities and counties add their own limits, interest requirements, or return rules on top of state law. Check local ordinances for your property's address as well as the state statute.

This article is for general information only and isn't legal advice. State and local laws change. The table reflects state statutes as of October 2026. Confirm the current rules for your property with an attorney licensed in your state.