U.S. Security Deposit Laws - Security Deposit Amount and Interest

Alabama AL

Maximum deposit amount of 1 month's rent. The landlord is allowed to ask for more if the tenant keeps pets, makes alterations to the property or conducts activities that increase liability risks.

Alaska AK

Maximum deposit amount of 2 month's rent if monthly rent is $2,000 or less. If monthly rent is more than $2,000, then there is no limit for the deposit amount. Wherever possible, the deposit should be held in a trust account in a bank, savings and loan association or licensed escrow agent.

Arizona AZ

Maximum deposit amount of 1.5 month's rent, unless the tenant agrees to pay more than this limit.

Arkansas AR

Maximum deposit amount of 2 month's rent.

California CA

Maximum deposit amount of 2 month's rent for an unfurnished property. If the property is furnished, the maximum limit is increased to 3 month's rent according to California security deposit law.

Colorado CO

No limit for the deposit amount.

Connecticut CT

Maximum deposit amount of 2 month's rent if the tenant is less than 62 years old. If tenant is 62 years and older, the maximum amount is reduced to 1 month's rent. The landlord has to pay interest on security deposit to the tenant every year on the lease anniversary date. The interest rate is to be determined by the Connecticut Department of Banking and varies year to year, but Connecticut security deposit law prevents it from dipping below 1.5%.

Delaware DE

Maximum deposit amount of 1 month's rent for a fixed term lease lasting 1 year of more. There is no maximum limit for a month to month lease, but any amount over 1 month of rent must be refunded to the tenant after the first year of lease. In addition to this amount, the landlord is allowed to ask for 1 month's rent as pet deposit.

District of Columbia

Maximum deposit amount of 1 month's rent.

Florida FL

No limit for the deposit amount.

Georgia GA

No limit for the deposit amount.

Hawaii HI

Maximum deposit amount of 1 month's rent. The landlord is allowed to ask for an additional 1 month's rent if the tenant keeps pets.

Idaho ID

No limit for the deposit amount.

Illinois IL

No limit for the deposit amount.

Indiana IN

No limit for the deposit amount.

Iowa IA

Maximum deposit amount of 2 month's rent.

Kansas KS

Maximum deposit amount of 1 month's rent for an unfurnished property. If the property is furnished, the maximum limit is increased to 1.5 month's rent. In addition to this amount, the landlord is allowed to ask for an additional 0.5 month's rent as pet deposit.

Kentucky KY

No limit for the deposit amount. The security deposit has to be held in a separate account apart from all other funds.

Louisiana LA

No limit for the deposit amount. Louisiana deposit security deposit law does not require the landlord to pay any security deposit interest unless he or she agrees to.

Maine ME

Maximum deposit amount of 2 month's rent.

Maryland MD

Maximum deposit amount of 2 month's rent. The security deposit has to held into a separate interest-bearing account of a Maryland bank within 30 days. If the deposit amount is more than $50, then security deposit interest has to be paid to the tenant. This simple interest rate is locked in at 3% per year and accrued every 6 months.

Massachusetts MA

Maximum deposit amount of 1 month's rent. The security deposit has to be held in a separate interest-bearing account of a Massachusetts bank within 30 days. If the lease extends over 1 year, then the landlord has to pay security deposit interest to the tenant every year on the lease anniversary date. This deposit interest rate is pegged to the bank interest rate but capped at a maximum of 5% per year.

Michigan MI

Maximum deposit amount of 1.5 month's rent.

Minnesota MN

No limit for the deposit amount. The landlord has to pay the tenant interest on the security deposit accumulated during the period when the landlord is holding the security deposit.

Mississippi MS

No limit for the deposit amount.

Missouri MO

Maximum deposit amount of 2 month's rent.

Montana MT

No limit for the deposit amount.

Nebraska NE

Maximum deposit amount of 1 month's rent. In addition to this amount, the landlord can ask for 0.25 month's rent as pet deposit.

Nevada NV

Maximum deposit amount of 3 month's rent.

New Hampshire NH

No limit on the deposit amount for landlords with 6 rental units or less. A landlord with more than 6 rental units can only ask for a maximum deposit amount of 1 month's rent. New Hampshire security deposit laws require the landlord to hold the deposit in a special escrow account or post a bond with the local municipality.

New Jersey NJ

Maximum deposit amount of 1.5 month's rent. The landlord has to hold the security deposit in a separate interest-bearing account. The landlord has to pay security deposit interest to the tenant every year on the lease anniversary date. Landlords with 10 or more rental units have to hold the security deposits in an insured money market fund or federally insured bank account. In this case, the interest rate has to be equal to the average returns of the money market accounts.

New Mexico NM

Maximum deposit amount of 1 month's rent for lease lasting less than 1 year. There is no limit on the deposit amount for lease lasting 1 year or more. If the landlord collects more than 1 month's rent as deposit, he or she has to pay the tenant current passbook interest on the entire deposit amount.

New York NY

No limit for the deposit amount. According to New York security deposit law, the security deposit has to be held in a separate account apart from all other funds. The landlord of a building with 6 or more rental units has to hold the security deposits in interest-bearing New York bank accounts. In this case, the landlord is allowed to keep 1% security deposit interest as administrative expenses and the remaining interest has to be paid to the tenant.

North Carolina NC

Maximum deposit amount of 1.5 month's rent for a month to month lease. If the lease lasts more than 2 months, the maximum limit is increased to 2 month's rent. In addition to this amount, the landlord is permitted to ask for a nonrefundable pet deposit of reasonable amount. The landlord has to either keep the security deposit in a trust account of a North Carolina bank or purchase a deposit bond from a North Carolina insurance company.

North Dakota ND

Maximum deposit amount of 1 month's rent. In addition to this amount, the landlord is permitted to ask for up to $1,500 as pet deposit. If the security deposit is held for more than 9 months, then landlord has to pay interest on security deposit to the tenant.

Ohio OH

No limit for the deposit amount. If the landlord asks for more than 1 month's rent as security deposit and holds the deposit money for more than 6 months, then he or she has to pay the tenant interest on any additional amount over 1 month's rent.

Oklahoma OK

No limit for the deposit amount. The landlord is required by Oklahoma security deposit laws to hold the deposit money in an insured Oklahoman escrow account.

Oregon OR

No limit for the deposit amount.

Pennsylvania PA

For the first year of lease, the landlord can ask for up to 2 month's rent as security deposit. Once the second year of lease begins, the landlord is only allowed to retain up to 1 month's rent as deposit so any additional amount over this limit has to be refunded to the tenant.

Rhode Island RI

Maximum deposit amount of 1 month's rent.

South Carolina SC

No limit for the deposit amount.

South Dakota SD

Maximum deposit amount of 1 month's rent. According to South Dakota security deposit laws, the landlord is allowed to ask for more if the tenant keeps pets, makes alterations to the property or conducts activities that increase liability risks.

Tennessee TN

No limit for the deposit amount. According to Tennessee security deposit laws, the landlord has to hold all security deposit funds in an separate account.

Texas TX

No limit for the deposit amount.

Utah UT

No limit for the deposit amount.

Vermont VT

No limit for the deposit amount.

Virginia VA

Maximum deposit amount of 2 month's rent.

Washington WA

No limit for the deposit amount. Washington security deposit laws require the landlord to keep the deposit money in a trust account. The landlord is allowed to keep any security deposit interest accrued.

West Virginia WV

No limit for the deposit amount.

Wisconsin WI

No limit for the deposit amount.

Wyoming WY

No limit for the deposit amount.