Maximum deposit: No statutory limit (Chicago: 1.5 months). Return deadline: 30 days. Everything landlords and tenants need to know about Illinois security deposit law.
Last updated: April 2026 · Data: IRS, BLS, state sources
| Rule | Illinois Law |
|---|---|
| Maximum Deposit | No statutory limit (Chicago: 1.5 months) |
| Return Deadline | 30 days |
| Interest Required | Required for buildings with 25+ units at 5% or bank rate |
| Penalty for Violations | Twice the wrongfully withheld deposit |
| Normal Wear and Tear | Cannot be deducted |
Under Illinois law, there is no statutory limit on how much a landlord may charge as a security deposit. In practice, most landlords charge one to two months of rent. Even without a cap, market norms typically keep deposits at reasonable levels.
Interest must be paid annually for large buildings
Regardless of the deposit amount, landlords must follow the correct procedures for holding, itemizing, and returning the deposit. Failure to follow these procedures can result in the landlord forfeiting the right to make deductions and owing penalties to the tenant.
After a tenant moves out, Illinois landlords have 30 days to either return the full security deposit or provide an itemized list of deductions along with any remaining balance. The clock typically starts on the date of move-out or the date the tenant provides a forwarding address, whichever is later.
If the landlord misses this deadline, the consequences can be severe: twice the wrongfully withheld deposit. Tenants should document their move-out with photos, return keys promptly, and provide a written forwarding address to establish the start of the deadline clearly.
Landlords in Illinois may deduct from the security deposit for:
Landlords cannot deduct for:
Document the unit's condition at move-in with a written checklist and photos signed by both parties. This documentation is critical in any deposit dispute.
Required for buildings with 25+ units at 5% or bank rate. Illinois requires landlords to pay interest on security deposits under certain conditions. Make sure to track interest accrued and include it with the deposit return within the required timeframe.
If your landlord fails to return your deposit or provide an itemized statement within 30 days, you may be entitled to: twice the wrongfully withheld deposit.
Steps to take if your landlord violates Illinois security deposit law:
Calculate your security deposit maximum, estimate any interest owed, and determine the exact return deadline based on your Illinois move-out date.
Open Illinois Security Deposit CalculatorUnder Illinois law, there is no statutory maximum for security deposits. Landlords may charge any amount, though most charge one to two months of rent.
Illinois landlords have 30 days after move-out to return the deposit or provide an itemized statement of deductions. If the landlord misses this deadline: twice the wrongfully withheld deposit.
Normal wear and tear in Illinois refers to the expected deterioration from ordinary residential use: minor scuffs on walls, small nail holes from hanging pictures, faded paint, and worn carpet from foot traffic. Landlords cannot deduct for these. They can deduct for actual damage such as large holes in walls, broken fixtures, deep carpet stains, or damage caused by pets, negligence, or misuse.