Security Deposit Limits by State: The Complete Guide
Most states cap how much you can collect as a security deposit — usually 1-2 months' rent. Charging more can trigger penalties or forfeit the right to retain. Here's the state-by-state table.
Last updated July 6, 2026
Key takeaway
Most states cap residential security deposits at 1-2 months' rent. Over-collecting can void your right to retain or trigger statutory penalties — verify the cap for your state and lease type.
Why deposit limits exist
States cap security deposits to prevent tenants from being locked out of housing by excessive upfront costs. The cap also affects landlords: in some states, over-collecting can void your right to retain any portion of the deposit, even for legitimate damage.
Caps usually vary by lease term and property type. Month-to-month tenancies often have a lower cap than year-long leases; some states exempt single-family homes or commercial property entirely.
Common cap patterns
Most states fall into one of these patterns:
- No statutory cap (e.g. several states including Texas, Illinois) — the deposit is whatever the market will bear
- 1 month's rent (some states for month-to-month)
- 1.5 months' rent (common for month-to-month in many states)
- 2 months' rent (common for leases of 6+ months)
- Higher caps for furnished units or specific lease types
Examples by state
The exact rules vary widely. North Carolina caps at 2 weeks' rent (week-to-week), 1.5 months (month-to-month), and 2 months (longer term). Massachusetts caps at 1 month's rent plus separately-collected first/last/month-in-advance. California caps at 2 months for unfurnished and 3 months for furnished (with an additional 6 months for special needs tenants with pets, by agreement).
Local ordinances can impose stricter caps: NYC, San Francisco, Los Angeles, and many college towns add their own limits on top of state law. Always verify the local cap before collecting.
What over-collecting costs you
Beyond refunding the excess, some states impose penalties: Massachusetts levies treble damages plus attorney fees for over-collecting; California may forfeit your right to retain; other states award statutory damages. The risk is rarely worth the extra upfront cash.
Frequently asked questions
Can I collect a separate 'pet deposit' on top of the cap?
In some states, yes — pet deposits are treated separately and may even be non-refundable where allowed. Other states count them toward the total deposit cap. Verify your state's specific treatment before relying on this.
Do caps apply to commercial property?
Usually not — security-deposit caps in most states apply only to residential property. Commercial leases are generally governed by contract and can involve much larger deposits.
Related guides
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MoveOutGuard is a document preparation and evidence organization tool. It is not a law firm and does not provide legal advice. Drafts, checklists, and deadline estimates require your review and are not a guarantee of compliance or outcomes. For legal questions, consult a licensed attorney.