Non-Refundable Security Deposit in a Lease: Is It Legal? (State-by-State)

A security deposit exists to cover unpaid rent and damage beyond normal wear and tear. A clause that lets the landlord keep all or part of it no matter what happens is one of the most common red flags in residential leases. Many states treat deposits as the tenant's money held in trust, with a cap on the amount and a deadline to return it with an itemized list of deductions.

What it looks like in a lease

“$300 of the security deposit is non-refundable and will be retained as a cleaning fee.”
“The deposit shall be forfeited in full if Tenant terminates for any reason before the end of the term.”
“Tenant agrees that carpet replacement will be deducted from the deposit at move-out.”

Why it's a red flag

Calling part of a deposit “non-refundable” often conflicts with state rules that only allow deductions for actual unpaid rent or damage beyond normal wear.
Automatic deductions (cleaning, carpet, painting) charge you whether or not the unit needs it.
A deposit above your state's cap may be unlawful from day one — check the table below.

What to ask your landlord

Can the non-refundable portion be relabeled as a separate, clearly described fee — or removed?
Will deductions be limited to actual damage beyond normal wear and tear, with an itemized list?
Can we do a written move-in condition checklist with photos, signed by both of us?

Calculate your deposit return deadline

State-by-state rules

Each row links to the statute. Data as of 2026-10-18.

Arizona
Maximum deposit
1.5 months' rent (all security, however named, including prepaid rent; a tenant may voluntarily prepay more rent). The purpose of any nonrefundable fee must be stated in writing; any fee not designated nonrefundable is refundable.
Return deadline
14 days
Source: A.R.S. § 33-1321
California
Maximum deposit
1 month's rent for most landlords (since July 1, 2024, AB 12); 2 months for small landlords (a natural person, or an LLC whose members are all natural persons, owning at most 2 residential rental properties with at most 4 units total). The small-landlord exception does not apply to service-member tenants. Deposits can never be 'non-refundable'.
Return deadline
21 days
Source: Cal. Civ. Code § 1950.5
Colorado
Maximum deposit
2 months' rent (since Aug 7, 2023).
Return deadline
30 days
Source: C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026)
Florida
Maximum deposit
No statutory cap.
Return deadline
15 days
Source: Fla. Stat. § 83.49
Georgia
Maximum deposit
2 months' rent (leases entered/renewed on or after July 1, 2024).
Return deadline
30 days
Source: O.C.G.A. §§ 44-7-30.1, 44-7-34
Illinois
Maximum deposit
No statewide cap.
Return deadline
45 days
Source: 765 ILCS 710/1; 765 ILCS 715
Kentucky
Maximum deposit
No statewide cap. Under the URLTA (where adopted): deposit must be kept in a separate account used only for deposits, and the landlord must give signed move-in and move-out damage lists, or they cannot keep any of the deposit.
Return deadline
Not verified yet
Source: KRS 383.580
Louisiana
Maximum deposit
No statutory cap. The landlord may keep only what is reasonably necessary to remedy the tenant's default or unreasonable wear to the premises (R.S. 9:3251(A)).
Return deadline
30 days
Source: La. R.S. 9:3251, 9:3252, 9:3254
Maryland
Maximum deposit
1 month's rent per unit (since Oct 1, 2024); up to 2 months only if the tenant qualified for utility assistance through the Department of Human Services, the lease requires paying utilities directly to the landlord, and both agree in writing. Overcharge: tenant may recover up to 3x the excess plus attorney fees.
Return deadline
45 days
Source: Md. Code, Real Prop. § 8-203(b), (e), (g)
Minnesota
Maximum deposit
No statutory cap on the amount.
Return deadline
21 days
Source: Minn. Stat. § 504B.178, subds. 2-3
Missouri
Maximum deposit
Two months' rent. Must be held in a federally insured bank, credit union or depository institution; interest earned belongs to the landlord. Pet deposits are not counted as 'security deposit'.
Return deadline
30 days
Source: RSMo § 535.300
Nevada
Maximum deposit
3 months' periodic rent total (deposit, surety bond and last month's rent combined).
Return deadline
30 days
Source: NRS 118A.242
New York
Maximum deposit
1 month's rent.
Return deadline
14 days
Source: N.Y. Gen. Oblig. Law §§ 7-103, 7-108
North Carolina
Maximum deposit
2 weeks' rent (week-to-week), 1.5 months (month-to-month), 2 months (longer terms).
Return deadline
30 days
Source: N.C.G.S. §§ 42-51, 42-52
Ohio
Maximum deposit
No statutory cap.
Return deadline
30 days
Source: Ohio Rev. Code § 5321.16
Oregon
Maximum deposit
No statutory cap in ORS 90.300; a landlord cannot raise the deposit in the first year of tenancy.
Return deadline
31 days
Source: ORS 90.300(12)-(13)
Pennsylvania
Maximum deposit
2 months' rent in the first year; 1 month's rent from the second year on.
Return deadline
30 days
Source: 68 P.S. §§ 250.511a, 250.511b, 250.512
South Carolina
Maximum deposit
No cap on the amount in the Residential Landlord and Tenant Act.
Return deadline
30 days
Source: S.C. Code Ann. § 27-40-410
Tennessee
Maximum deposit
Not verified yet
Return deadline
Not verified yet
Source: Tenn. Code Ann. § 66-28-301
Texas
Maximum deposit
No statutory cap.
Return deadline
30 days
Source: Tex. Prop. Code §§ 92.103, 92.104, 92.107
Utah
Maximum deposit
No statutory cap. Any non-refundable portion of a deposit must be stated in writing to the renter when the deposit is taken (57-17-2).
Return deadline
30 days
Source: Utah Code §§ 57-17-2, 57-17-3, 57-17-5
Virginia
Maximum deposit
2 months' periodic rent (security deposit however named). Security deposit plus damage-insurance and renter's-insurance premiums paid before the tenancy starts may not exceed 2 months' rent in total.
Return deadline
45 days
Source: Va. Code §§ 55.1-1226(A), 55.1-1208(A)(7)
Washington
Maximum deposit
No statewide cap found. A deposit may be collected only with a written lease and a signed, dated move-in checklist describing the unit's condition; without the checklist the landlord is liable for the whole deposit. Deposits go in a Washington trust account and the tenant gets a receipt. On written request, the tenant may pay deposits, nonrefundable fees and last month's rent in installments (2 or 3 months) unless they total no more than 25% of the first month's rent. A fee is refundable unless the written lease clearly calls it nonrefundable.
Return deadline
30 days
Source: RCW 59.18.260, 59.18.270, 59.18.280, 59.18.285, 59.18.610

State	Maximum deposit	Return deadline	Source
Arizona	1.5 months' rent (all security, however named, including prepaid rent; a tenant may voluntarily prepay more rent). The purpose of any nonrefundable fee must be stated in writing; any fee not designated nonrefundable is refundable.	14 days	A.R.S. § 33-1321
California	1 month's rent for most landlords (since July 1, 2024, AB 12); 2 months for small landlords (a natural person, or an LLC whose members are all natural persons, owning at most 2 residential rental properties with at most 4 units total). The small-landlord exception does not apply to service-member tenants. Deposits can never be 'non-refundable'.	21 days	Cal. Civ. Code § 1950.5
Colorado	2 months' rent (since Aug 7, 2023).	30 days	C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026)
Florida	No statutory cap.	15 days	Fla. Stat. § 83.49
Georgia	2 months' rent (leases entered/renewed on or after July 1, 2024).	30 days	O.C.G.A. §§ 44-7-30.1, 44-7-34
Illinois	No statewide cap.	45 days	765 ILCS 710/1; 765 ILCS 715
Kentucky	No statewide cap. Under the URLTA (where adopted): deposit must be kept in a separate account used only for deposits, and the landlord must give signed move-in and move-out damage lists, or they cannot keep any of the deposit.	Not verified yet	KRS 383.580
Louisiana	No statutory cap. The landlord may keep only what is reasonably necessary to remedy the tenant's default or unreasonable wear to the premises (R.S. 9:3251(A)).	30 days	La. R.S. 9:3251, 9:3252, 9:3254
Maryland	1 month's rent per unit (since Oct 1, 2024); up to 2 months only if the tenant qualified for utility assistance through the Department of Human Services, the lease requires paying utilities directly to the landlord, and both agree in writing. Overcharge: tenant may recover up to 3x the excess plus attorney fees.	45 days	Md. Code, Real Prop. § 8-203(b), (e), (g)
Minnesota	No statutory cap on the amount.	21 days	Minn. Stat. § 504B.178, subds. 2-3
Missouri	Two months' rent. Must be held in a federally insured bank, credit union or depository institution; interest earned belongs to the landlord. Pet deposits are not counted as 'security deposit'.	30 days	RSMo § 535.300
Nevada	3 months' periodic rent total (deposit, surety bond and last month's rent combined).	30 days	NRS 118A.242
New York	1 month's rent.	14 days	N.Y. Gen. Oblig. Law §§ 7-103, 7-108
North Carolina	2 weeks' rent (week-to-week), 1.5 months (month-to-month), 2 months (longer terms).	30 days	N.C.G.S. §§ 42-51, 42-52
Ohio	No statutory cap.	30 days	Ohio Rev. Code § 5321.16
Oregon	No statutory cap in ORS 90.300; a landlord cannot raise the deposit in the first year of tenancy.	31 days	ORS 90.300(12)-(13)
Pennsylvania	2 months' rent in the first year; 1 month's rent from the second year on.	30 days	68 P.S. §§ 250.511a, 250.511b, 250.512
South Carolina	No cap on the amount in the Residential Landlord and Tenant Act.	30 days	S.C. Code Ann. § 27-40-410
Tennessee	Not verified yet	Not verified yet	Tenn. Code Ann. § 66-28-301
Texas	No statutory cap.	30 days	Tex. Prop. Code §§ 92.103, 92.104, 92.107
Utah	No statutory cap. Any non-refundable portion of a deposit must be stated in writing to the renter when the deposit is taken (57-17-2).	30 days	Utah Code §§ 57-17-2, 57-17-3, 57-17-5
Virginia	2 months' periodic rent (security deposit however named). Security deposit plus damage-insurance and renter's-insurance premiums paid before the tenancy starts may not exceed 2 months' rent in total.	45 days	Va. Code §§ 55.1-1226(A), 55.1-1208(A)(7)
Washington	No statewide cap found. A deposit may be collected only with a written lease and a signed, dated move-in checklist describing the unit's condition; without the checklist the landlord is liable for the whole deposit. Deposits go in a Washington trust account and the tenant gets a receipt. On written request, the tenant may pay deposits, nonrefundable fees and last month's rent in installments (2 or 3 months) unless they total no more than 25% of the first month's rent. A fee is refundable unless the written lease clearly calls it nonrefundable.	30 days	RCW 59.18.260, 59.18.270, 59.18.280, 59.18.285, 59.18.610

Cities and counties can add stricter rules (e.g. Chicago, New York City). Other states: coming soon.

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General information only, not legal advice. Laws change — verify with the linked source or a licensed attorney.