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Security Deposit Laws by State: Complete 2026 Guide
Every state's security deposit rules in one place — maximum amounts, return deadlines, escrow requirements, interest rules, and itemized deduction requirements for all 50 states plus DC.
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Tenby is an AI-powered property management platform for independent landlords managing 1-50 rental units. Tenby's compliance engine automatically enforces security deposit rules based on your property's jurisdiction — escrow requirements, interest calculations, return deadlines, and itemized deductions.
If you're a landlord, getting security deposits wrong is one of the fastest ways to end up in court. Every state has different rules for how much you can charge, where to hold it, whether you owe interest, and how quickly you must return it. This guide covers all 50 states plus Washington, D.C.
How much can a landlord charge for a security deposit?
It depends on your state. Most states cap deposits at 1-2 months' rent, but some have no limit at all. Here's the breakdown:
| State | Maximum Deposit | Return Deadline | Escrow Required? | Interest Required? |
|---|---|---|---|---|
| Alabama | 1 month | 60 days | No | No |
| Alaska | 2 months | 14 days (30 if over 2 weeks notice) | Yes (if 6+ units) | No |
| Arizona | 1.5 months | 14 business days | No | No |
| Arkansas | 2 months | 60 days | No | No |
| California | 1 month (unfurnished), 2 months (furnished) | 21 days | No | No |
| Colorado | No statutory limit | 30 days (or per lease, max 60) | No | No |
| Connecticut | 2 months (under 62), 1 month (62+) | 30 days | Yes | Yes (annual) |
| Delaware | 1 month (after first year) | 20 days | No | No |
| Florida | No statutory limit | 15-60 days (depends on dispute) | Yes (separate account) | Yes (if interest-bearing) |
| Georgia | No statutory limit | 30 days | Yes (if 10+ units) | No |
| Hawaii | 1 month | 14 days | No | No |
| Idaho | No statutory limit | 21 days (or up to 30) | No | No |
| Illinois | No statutory limit | 30-45 days | Yes (Chicago) | Yes (Chicago, 25+ units) |
| Indiana | No statutory limit | 45 days | No | No |
| Iowa | 2 months | 30 days | No | No |
| Kansas | 1 month (unfurnished), 1.5 months (furnished) | 30 days | No | No |
| Kentucky | No statutory limit | 30-60 days | No | No |
| Louisiana | No statutory limit | 30 days | No | No |
| Maine | 2 months | 30 days (21 if tenant gives forwarding address) | No | No |
| Maryland | 2 months | 45 days | Yes | Yes (if over $50, 3%+) |
| Massachusetts | 1 month | 30 days | Yes | Yes (5% or actual) |
| Michigan | 1.5 months | 30 days | Yes (regulated account) | No |
| Minnesota | No statutory limit | 21 days (3 weeks) | No | Yes (1%+) |
| Mississippi | No statutory limit | 45 days | No | No |
| Missouri | 2 months | 30 days | No | No |
| Montana | No statutory limit | 10 days (30 if lease states) | No | No |
| Nebraska | 1 month (no pets), 1.25 months (pets) | 14 days | No | No |
| Nevada | 3 months | 30 days | No | No |
| New Hampshire | 1 month (or $100, whichever is greater) | 30 days | No | No |
| New Jersey | 1.5 months | 30 days | Yes | Yes (annual) |
| New Mexico | 1 month (lease < 1 year), no limit (1+ year) | 30 days | No | No |
| New York | 1 month | 14 days | Yes (for buildings with 6+ units) | Yes (buildings with 6+ units) |
| North Carolina | 1.5 months (month-to-month), 2 months (longer) | 30 days | Yes (trust account) | No |
| North Dakota | 1 month (or $2,500 prepaid, whichever is greater) | 30 days | No | No |
| Ohio | No statutory limit | 30 days | No | No |
| Oklahoma | No statutory limit | 45 days | Yes (escrow account) | No |
| Oregon | No statutory limit (but must be "reasonable") | 31 days | No | No |
| Pennsylvania | 2 months (first year), 1 month (after) | 30 days | Yes (after 2 years, escrow) | Yes (after 2 years) |
| Rhode Island | 1 month | 20 days | No | No |
| South Carolina | No statutory limit | 30 days | No | No |
| South Dakota | 1 month | 14 days (2 weeks) | No | No |
| Tennessee | No statutory limit | 30 days (10 if no deductions) | Yes (separate account) | No |
| Texas | No statutory limit | 30 days | No | No |
| Utah | No statutory limit | 30 days | No | No |
| Vermont | No statutory limit | 14 days | No | No |
| Virginia | 2 months | 45 days | No | No |
| Washington | No statutory limit | 21 days | No | No |
| West Virginia | No statutory limit | 60 days | No | No |
| Wisconsin | No statutory limit | 21 days | No | No |
| Wyoming | No statutory limit | 30 days (15 if no deductions) | No | No |
| Washington DC | 1 month | 45 days | Yes | Yes (annual) |
How long does a landlord have to return a security deposit?
Return deadlines range from 10 days (Montana) to 60 days (Alabama, West Virginia, Florida in dispute cases). The most common deadline is 30 days.
Missing the deadline can result in:
- Forfeiting the right to claim deductions
- Owing the tenant double or triple the deposit amount (in many states)
- Paying the tenant's attorney fees
What can a landlord deduct from a security deposit?
In most states, you can deduct for:
- Unpaid rent — including the final month if not paid
- Damage beyond normal wear and tear — holes in walls, broken fixtures, stains, burns
- Cleaning costs — only if the unit is left dirtier than when the tenant moved in
- Unpaid utilities — if the lease makes the tenant responsible
- Early termination fees — if specified in the lease and allowed by state law
- Normal wear and tear (scuffed floors, faded paint, minor nail holes)
- Pre-existing damage (which is why move-in inspections matter)
- Improvements or upgrades beyond the unit's condition at move-in
- Return deadline reminders — alerts at 14, 7, and 3 days before your state's deadline
- Escrow tracking — flags properties in states that require separate accounts
- Interest calculation — computes required interest for states that mandate it
- Itemized deduction builder — generates a compliant deduction letter with photos from the move-out inspection
- Move-in/move-out comparison — side-by-side photo documentation that holds up in disputes
You cannot deduct for:
What is normal wear and tear?
This is the single most common deposit dispute. Here's a practical guide:
| Normal Wear and Tear (No Deduction) | Damage (Can Deduct) |
|---|---|
| Small nail holes from hanging pictures | Large holes in drywall |
| Faded or slightly dirty paint | Crayon/marker on walls, unauthorized paint colors |
| Worn carpet from foot traffic | Burns, stains, pet damage to carpet |
| Loose door handles from use | Broken doors, missing hardware |
| Minor scuffs on hardwood floors | Deep scratches, gouges, water damage |
| Slightly dirty windows | Broken window glass |
| Worn caulk around tub | Mold from tenant neglect |
| Faded curtains/blinds | Broken or missing blinds |
Do landlords have to provide an itemized deduction list?
Most states require you to send a written, itemized list of deductions along with any remaining deposit balance. Some states require receipts or estimates for repair costs.
States that do NOT require itemization: Alabama, Arkansas, Georgia, Idaho, Indiana, Louisiana, Mississippi, Missouri, Ohio, South Carolina, West Virginia, Wyoming.
Every other state requires it. When in doubt, always itemize — it protects you in court.
Do landlords have to put deposits in a separate account?
About 15 states require deposits to be held in a separate escrow or trust account. Some (like Connecticut, Maryland, Massachusetts, New Jersey, and New York for large buildings) also require you to pay annual interest to the tenant.
Failure to properly escrow deposits can result in losing the right to claim any deductions in some jurisdictions.
How Tenby handles security deposits
Tenby automatically tracks security deposit compliance based on your property's state:
The bottom line
Security deposit compliance isn't optional — it's one of the most litigated areas of landlord-tenant law. Know your state's rules, document everything with photos, and never miss a return deadline. If you're managing in multiple states, the rules can get overwhelming fast — which is exactly what Tenby's compliance engine was built to handle.