Quick answer: Indiana sets no maximum on a security deposit. The deposit chapter instead defines what a deposit is, allows only four uses, bars charges for ordinary wear and tear and requires an itemized list and refund within 45 days. Cities and counties may not regulate deposits.
This Indiana security deposit limit calculator applies IC 32-31-3. Enter the rent and the total taken as security: it confirms there is no statutory cap, shows the deposit as months of rent and lists what the chapter controls. It does not check a lease or a federal housing program.
Indiana security deposit rules at a glance
| Rule | What Indiana says |
|---|---|
| Maximum amount | None: the chapter sets no cap (IC 32-31-3) |
| What counts | Money held to secure the tenant’s obligations, including prepaid rent beyond the first full period (32-31-3-9) |
| Allowed uses | Four: actual damage, rent owed, a written last-month agreement and unpaid utilities (32-31-3-13) |
| Wear and tear | May not be charged (32-31-3-13(1)) |
| Refund | Itemized list and the difference mailed within 45 days (32-31-3-14) |
| Local rules | Cities and counties may not regulate deposits or fees (32-31-1-20) |
| Waiver | Void (32-31-3-17) |
| Interest | Not required |
How does the Indiana deposit law work?
- No cap, but strict use rules. See the maximum security deposit in Indiana.
- Pet deposits and fees. See Indiana pet deposits and fees.
- First and last month and other up-front charges. See up-front charges when renting in Indiana.
What does this deposit calculator check?
Because there is no cap, the calculator shows the total as months of rent for context rather than as a violation, and notes that prepaid rent beyond the first month counts as a deposit. It also reminds you that cities and counties may not set a lower or higher limit, so the answer is the same in Indianapolis, Fort Wayne and a small town, and that the 45-day list and refund rules are the same everywhere in the state, whatever the lease says, because a waiver of the chapter is void. Because a deposit is money returnable on condition of the unit’s condition, add every payment the landlord holds, including prepaid rent, before you compare it with the rent, and ask for the total in writing. It does not tell you whether a payment is a deposit or rent when the lease uses another word; the chapter treats money returnable on condition of returning the unit in the required condition as a deposit. When the deposit must come back is a separate question: see the Indiana security deposit return deadline calculator.
Examples of the Indiana deposit rules
| Monthly rent | Total security | As months | Result |
|---|---|---|---|
| $1,200 | $1,200 | One month | No statutory cap |
| $1,200 | $3,600 | Three months | No statutory cap |
| $1,200 | $1,200 plus $1,200 prepaid | Two months | Prepaid rent is a deposit |
| $1,200 | Any amount | Any city | A city may not set a cap |
These examples show the arithmetic. They are not statements about a particular lease or landlord.
Related Indiana landlord-tenant calculators
These four calculators cover the same tenancy from different angles. From here you can go to the Indiana security deposit return deadline calculator for the date the landlord must refund or itemize the deposit, the Indiana eviction notice calculator for the notice period before a lease can end and the Indiana eviction timeline calculator for the earliest legal dates once an eviction case starts. Each one cites its own Indiana statutes and shows only what the law says.
Frequently asked questions
What is the maximum security deposit in Indiana?
There is none. The deposit chapter sets no cap.
Can a city set a deposit limit?
No. Cities, towns and counties may not regulate security deposits.
What counts as a security deposit?
Money held to secure the tenant’s obligations, including prepaid rent beyond the first full rental period.
What can a landlord use a deposit for?
Actual damage beyond ordinary wear and tear, rent owed, a written last-month agreement and unpaid utility or sewer charges.
Does an Indiana landlord pay interest on a deposit?
The chapter does not require it.
When must the deposit be refunded?
An itemized list and refund must be mailed within 45 days after the rental agreement ends and possession is delivered.