Indiana Security Deposit Law
Indiana rules on security deposits for renters and landlords, with the statute or official page behind each answer. Last verified: 2026-10-22.
Short answer: No statutory cap on security deposits. IC 32-31-3
The rules in Indiana
| Security deposit limit | No statutory cap on security deposits. Chapter 3 regulates use and return of deposits but sets no maximum. Local units may not regulate security deposits (IC 32-31-1-20(c)). Source: IC 32-31-3 |
|---|---|
| Deposit return deadline | Within 45 days after termination of the rental agreement and delivery of possession, the landlord must return the deposit minus itemized deductions. The landlord is not liable until the tenant provides a written forwarding mailing address. Source: IC 32-31-3-12, 32-31-3-14 |
| Itemized deductions | Within 45 days after termination of occupancy, landlord must mail an itemized list of damages with the estimated cost of repair for each item, plus a check or money order for the balance. Deposits may be used only for actual damage beyond ordinary wear and tear, unpaid rent (including rent due for early termination), the last rent period if agreed in writing, and unpaid utility/sewer charges owed by the tenant. Failure to provide the itemized notice is an agreement that no damages are due and the full deposit must be returned immediately (IC 32-31-3-15). Source: IC 32-31-3-13, 32-31-3-14 |
| Interest on deposits | No statute requires interest on security deposits. No interest provision appears in the security deposit chapter. Source: IC 32-31-3 |
| Penalty for withholding | Tenant may recover the full deposit due (or the part wrongfully withheld) plus reasonable attorney's fees and court costs. No multiple-damages penalty. Deposit cases may be filed on the small claims docket (IC 32-31-3-11). Source: IC 32-31-3-12(b), 32-31-3-16 |
Free calculators
- Security Deposit Deadline Calculator — See when your landlord must return your deposit, and the penalty your state sets if they don't.
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Related questions
- How long does a landlord have to return a security deposit?
- How much can a landlord charge for a security deposit?
- What can a landlord charge for at move-out (cleaning, painting, carpet)?
Indiana vs. neighboring states
| State | Security deposit limit | Deposit return deadline | Itemized deductions |
|---|---|---|---|
| Indiana | No statutory cap on security deposits. IC 32-31-3 | Within 45 days after termination of the rental agreement and delivery of possession, the landlord must return the deposit minus itemized deductions. The landlord is not liable until the tenant provides a written forwarding mailing address. IC 32-31-3-12, 32-31-3-14 | Within 45 days after termination of occupancy, landlord must mail an itemized list of damages with the estimated cost of repair for each item, plus a check or money order for the balance. Deposits may be used only for actual damage beyond ordinary wear and tear, unpaid rent (including rent due for early termination), the last rent period if agreed in writing, and unpaid utility/sewer charges owed by the tenant. IC 32-31-3-13, 32-31-3-14 |
| Illinois | No statewide legal limit on the amount of a security deposit. Illinois AG fact sheet 'Landlord and Tenant Rights and Laws' (01/24) | If the landlord withholds anything for damage, an itemized statement with estimated or actual repair costs and paid receipts is due within 30 days after the tenant vacates (or possession ends, whichever is later); if no statement is given, the full deposit must be returned within 45 days after the tenant vacates. 765 ILCS 710/1 | Itemized statement of damage with estimated or actual repair/replacement cost for each item, with paid receipts (or copies) attached, delivered within 30 days by personal delivery, postmarked mail, or email to a verified address; if estimates are used, paid receipts must follow within 30 days. If receipts are unavailable through no fault of the landlord, a verified statement explaining why is allowed. 765 ILCS 710/1(a)-(b) |
| Kentucky | No statutory cap (statewide or under URLTA). KRS 383.580 | Non-URLTA areas: no statute. URLTA areas: no fixed refund deadline; if the tenant leaves owing no rent with a refund due, the landlord must send notice of the refund amount to the tenant's last known address and may keep the deposit if the tenant does not respond within 60 days. If the tenant leaves without paying the last month's rent and does not demand the deposit, the landlord may apply it after 30 days. KRS 383.580(6)-(7) | URLTA areas: before taking a deposit, the landlord must give a signed move-in list of existing damage with estimated repair costs; at move-out the landlord must inspect and compile a signed list of damages with estimated costs, which the tenant may inspect and dispute in writing. Deposits must be kept in a separate account at a regulated institution and the tenant told the bank and account number. Non-URLTA areas: no statute. KRS 383.580(1)-(3), (5) |
| Michigan | 1.5 months' rent MCL 554.602 | 30 days after the tenant's occupancy ends: landlord must mail an itemized notice of damages with the balance, or return the full deposit. If the landlord wants to keep any disputed amount it must sue within 45 days after termination of occupancy. MCL 554.609; MCL 554.610; MCL 554.613 | Itemized notice of damages, mailed within 30 days after occupancy ends, listing each claimed damage, the estimated cost of repair for each item, and the amounts and bases for the charges, plus payment of any balance. Must include a bold notice (12-point boldface, at least 4 points larger than body text) that the tenant must respond by mail within 7 days or forfeit the amount claimed. MCL 554.609; MCL 554.612; MCL 554.608 |
| Ohio | No statutory cap Ohio Rev. Code § 5321.16 | Within 30 days after the rental agreement ends and possession is delivered, the landlord must send the itemized written notice of deductions together with the amount due. Ohio Rev. Code § 5321.16(B) | Deductions (unpaid rent and damages from the tenant's noncompliance with § 5321.05 or the rental agreement) must be itemized and identified in a written notice delivered within 30 days. Ohio Rev. Code § 5321.16(B) |
City rules that may add to state law
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Indiana Security Deposit Law FAQ
How much can a landlord charge for a security deposit in Indiana?
No statutory cap on security deposits. (IC 32-31-3)
How long does a landlord have to return a security deposit in Indiana?
Within 45 days after termination of the rental agreement and delivery of possession, the landlord must return the deposit minus itemized deductions. The landlord is not liable until the tenant provides a written forwarding mailing address. (IC 32-31-3-12, 32-31-3-14)
Does a landlord in Indiana have to give an itemized list of deposit deductions?
Within 45 days after termination of occupancy, landlord must mail an itemized list of damages with the estimated cost of repair for each item, plus a check or money order for the balance. Deposits may be used only for actual damage beyond ordinary wear and tear, unpaid rent (including rent due for early termination), the last rent period if agreed in writing, and unpaid utility/sewer charges owed by the tenant. (IC 32-31-3-13, 32-31-3-14)
Does a landlord have to pay interest on a security deposit in Indiana?
No statute requires interest on security deposits. (IC 32-31-3)
What happens if a landlord in Indiana wrongfully keeps a security deposit?
Tenant may recover the full deposit due (or the part wrongfully withheld) plus reasonable attorney's fees and court costs. No multiple-damages penalty. (IC 32-31-3-12(b), 32-31-3-16)
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.