Maximum deposit: No statutory limit. Return deadline: 45 days. Everything landlords and tenants need to know about Indiana security deposit law.
Last updated: April 2026 · Data: IRS, BLS, state sources
| Rule | Indiana Law |
|---|---|
| Maximum Deposit | No statutory limit |
| Return Deadline | 45 days |
| Interest Required | Not required |
| Penalty for Violations | No specific statutory penalty beyond civil action |
| Normal Wear and Tear | Cannot be deducted |
Under Indiana 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.
Itemized statement required if deductions made
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, Indiana landlords have 45 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: no specific statutory penalty beyond civil action. 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 Indiana 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.
If your landlord fails to return your deposit or provide an itemized statement within 45 days, you may be entitled to: no specific statutory penalty beyond civil action.
Steps to take if your landlord violates Indiana security deposit law:
Calculate your security deposit maximum, estimate any interest owed, and determine the exact return deadline based on your Indiana move-out date.
Open Indiana Security Deposit CalculatorUnder Indiana law, there is no statutory maximum for security deposits. Landlords may charge any amount, though most charge one to two months of rent.
Indiana landlords have 45 days after move-out to return the deposit or provide an itemized statement of deductions. If the landlord misses this deadline: no specific statutory penalty beyond civil action.
Normal wear and tear in Indiana 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.