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Indiana security deposit law
The state rules a landlord in Indiana has to follow for a residential security deposit, from Ind. Code §§ 32-31-3-12, -14, -15, -16.
- Maximum deposit
- No statutory limit
- Deadline to return it
- 45 days after the rental agreement ends and the tenant delivers possession.
- Itemized deductions
- An itemized list of damages with the estimated repair cost for each item and the lease terms relied on, mailed with a check for the balance.
- Interest on the deposit
- Not required by state law
- Penalty for wrongful withholding
- Landlord who fails to itemize owes the withheld part of the deposit plus attorney fees and court costs (tenant may recover the whole deposit under § 32-31-3-12(b)).
Before you keep any part of a deposit
- Compare the unit with the move-in inspection and photos. Normal wear and tear is generally not chargeable.
- Keep receipts or written estimates for every deduction.
- Send the return or the itemized list within the deadline above, to the tenant's forwarding address, and keep proof of mailing.
Working out the last month's rent? The prorated rent calculator does the partial-month math.
Source
Verification status: verified summary. Research date: November 5, 2026. Statute: Ind. Code §§ 32-31-3-12, -14, -15, -16. Source: iga.in.gov.
General information, not legal advice. Cities and counties can add stricter rules, and laws change. Check the current statute or a local attorney before you act.
Other states: Illinois · Iowa · all states
Last updated November 5, 2026.