New Jersey Security Deposit Law
New Jersey rules on security deposits for renters and landlords, with the statute or official page behind each answer. Last verified: 2026-10-22.
Short answer: 1.5 times one month's rent. Any additional security collected in a year may not exceed 10% of the current deposit. N.J.S.A. 46:8-21.2
The rules in New Jersey
| Security deposit limit | 1.5 times one month's rent. Any additional security collected in a year may not exceed 10% of the current deposit. Money 'deposited or advanced' as security or to be applied to payments under the lease is covered by the Act (N.J.S.A. 46:8-19), so advance rent counts. DCA's Truth in Renting guide also says a pet deposit counts toward the cap (DCA guide, not statute text). The Act does not apply to owner-occupied premises with not more than two rental units unless the tenant gives the landlord 30 days' written notice invoking it (N.J.S.A. 46:8-26). Statute text checked on the NJ Legislature statutes database (updated through P.L.2026, c.50); last amended by P.L.2003, c.188. Source: N.J.S.A. 46:8-21.2 |
|---|---|
| Deposit return deadline | Within 30 days after the lease ends, by personal delivery or registered or certified mail: the deposit plus the tenant's share of interest, minus lawful charges. Within 5 business days if the tenant is displaced by fire, flood, condemnation, or evacuation (and the premises are posted or certified as described in the statute). Within 15 business days when a domestic-violence victim ends the lease under N.J.S.A. 46:8-9.6. For displacement and domestic-violence terminations, the money must be available on demand for 30 days at a location in the same municipality. Last amended by P.L.2010, c.34; no 2024-2026 amendment. Source: N.J.S.A. 46:8-21.1 |
| Itemized deductions | Interest and any deductions must be itemized and sent to the tenant by personal delivery or registered or certified mail within the same 30-day period. No deductions may be made from the deposit of a tenant who is still in possession. The statute allows deductions for 'charges expended in accordance with the terms of a contract, lease, or agreement'. The 'normal wear and tear' wording comes from the DCA guide, not the statute text. Source: N.J.S.A. 46:8-21.1 |
| Interest on deposits | Required. Landlords with 10 or more rental units must invest the deposit in an insured NJ-based money market fund or a variable-rate insured NJ bank/S&L account. Smaller landlords must use an interest-bearing account at an insured NJ bank or S&L. Interest belongs to the tenant and is paid in cash or credited toward rent each year (on the lease renewal/anniversary, or on January 31 after written notice). The landlord must notify the tenant in writing (institution name and address, account type, interest rate, amount) within 30 days of receiving the deposit, within 30 days of moving it, at each annual interest payment, and within 30 days after a transfer of ownership. If the landlord fails to invest the deposit, give notice, or pay interest, the tenant may give written notice and apply the deposit plus 7% annual interest toward rent; after that the landlord may not demand a new deposit. If the only failure is the annual interest payment or annual notice, the tenant must first give written notice and allow 30 days to comply (N.J.S.A. 46:8-19(c)). The investment rules do not apply to seasonal rentals of 125 consecutive days or less (46:8-19(d)). Source: N.J.S.A. 46:8-19 |
| Penalty for withholding | If the tenant wins a suit for the return of the deposit, the court must award double the amount due, plus full court costs. Reasonable attorney's fees are at the court's discretion. Willfully withholding a deposit paid for a tenant on State or federal assistance carries a civil penalty of $500-$2,000 per offense (46:8-21.1). Such tenants need not sue to keep their program eligibility (46:8-21.5). Source: N.J.S.A. 46:8-21.1 |
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)?
New Jersey vs. neighboring states
| State | Security deposit limit | Deposit return deadline | Itemized deductions |
|---|---|---|---|
| New Jersey | 1.5 times one month's rent. Any additional security collected in a year may not exceed 10% of the current deposit. N.J.S.A. 46:8-21.2 | Within 30 days after the lease ends, by personal delivery or registered or certified mail: the deposit plus the tenant's share of interest, minus lawful charges. Within 5 business days if the tenant is displaced by fire, flood, condemnation, or evacuation (and the premises are posted or certified as described in the statute). Within 15 business days when a domestic-violence victim ends the lease under N.J.S.A. 46:8-9.6. N.J.S.A. 46:8-21.1 | Interest and any deductions must be itemized and sent to the tenant by personal delivery or registered or certified mail within the same 30-day period. No deductions may be made from the deposit of a tenant who is still in possession. N.J.S.A. 46:8-21.1 |
| Delaware | 1 month's rent for leases of 1 year or more, and for month-to-month tenancies once they have lasted 1 year (excess must be credited back). No cap for furnished units or for the first year of a month-to-month tenancy. A separate pet deposit of up to 1 month's rent is allowed (none for a support animal). 25 Del. C. § 5514(a), (i) | 20 days after the lease expires or terminates. 25 Del. C. § 5514(e)-(f) | Within 20 days, an itemized list of damages with the estimated repair cost for each, plus payment of the balance. Failure to send the list is an acknowledgment that nothing is owed for damages. Tenant who accepts the payment agrees to the deductions unless the tenant objects in writing within 10 days of receiving it. 25 Del. C. § 5514(f) |
| New York | One month's rent N.Y. Gen. Oblig. Law § 7-108(1-a)(a) | 14 days after the tenant vacates N.Y. Gen. Oblig. Law § 7-108(1-a)(e) | Itemized statement showing the basis for any amount retained, within 14 days of move-out. Deductions limited to reasonable, itemized costs for unpaid rent, damage beyond normal wear and tear, unpaid utilities, and moving/storage of tenant belongings. Tenant may request a pre-move-out inspection, after which the landlord must give an itemized list of proposed repairs/cleaning. N.Y. Gen. Oblig. Law § 7-108(1-a)(b), (d), (e) |
| Pennsylvania | First year of the lease: no more than 2 months' rent. Second and later years (or any renewal): no more than 1 month's rent. After 5+ years of tenancy, a rent increase cannot require a higher deposit. Landlord and Tenant Act § 511.1 (68 P.S. § 250.511a) | 30 days after the lease ends or the tenant surrenders the premises (whichever comes first). Act § 512(a) (68 P.S. § 250.512(a)) | Written list of damages for which the tenant is claimed liable, delivered within 30 days together with payment of the balance. If no list within 30 days, the landlord forfeits the right to withhold any part of the deposit or to sue for damages to the premises. Act § 512(a)-(b) (68 P.S. § 250.512) |
City rules that may add to state law
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New Jersey Security Deposit Law FAQ
How much can a landlord charge for a security deposit in New Jersey?
1.5 times one month's rent. Any additional security collected in a year may not exceed 10% of the current deposit. (N.J.S.A. 46:8-21.2)
How long does a landlord have to return a security deposit in New Jersey?
Within 30 days after the lease ends, by personal delivery or registered or certified mail: the deposit plus the tenant's share of interest, minus lawful charges. Within 5 business days if the tenant is displaced by fire, flood, condemnation, or evacuation (and the premises are posted or certified as described in the statute). Within 15 business days when a domestic-violence victim ends the lease under N.J.S.A. 46:8-9.6. (N.J.S.A. 46:8-21.1)
Does a landlord in New Jersey have to give an itemized list of deposit deductions?
Interest and any deductions must be itemized and sent to the tenant by personal delivery or registered or certified mail within the same 30-day period. No deductions may be made from the deposit of a tenant who is still in possession. (N.J.S.A. 46:8-21.1)
Does a landlord have to pay interest on a security deposit in New Jersey?
Required. Landlords with 10 or more rental units must invest the deposit in an insured NJ-based money market fund or a variable-rate insured NJ bank/S&L account. Smaller landlords must use an interest-bearing account at an insured NJ bank or S&L. Interest belongs to the tenant and is paid in cash or credited toward rent each year (on the lease renewal/anniversary, or on January 31 after written notice). The landlord must notify the tenant in writing (institution name and address, account type, interest rate, amount) within 30 days of receiving the deposit, within 30 days of moving it, at each annual interest payment, and within 30 days after a transfer of ownership. (N.J.S.A. 46:8-19)
What happens if a landlord in New Jersey wrongfully keeps a security deposit?
If the tenant wins a suit for the return of the deposit, the court must award double the amount due, plus full court costs. Reasonable attorney's fees are at the court's discretion. (N.J.S.A. 46:8-21.1)
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.