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Deposits

Security deposit law in Indiana

Indiana's cap, return deadline, itemization rule, and wrongful-withholding penalty, with the controlling statute linked.

4 min read

Short answer

Indiana sets no statutory limit on the security deposit a landlord may collect, and the deposit must be returned within 45 days. Wrongful withholding exposure is forfeit deductions plus attorney fees. The controlling text is Ind. Code § 32-31-3, verified July 2026; confirm the current statute before acting, since legislatures amend deposit law and cities layer stricter rules on top.

No statutory limit. The return rule is 45 days. The controlling text is Ind. Code § 32-31-3.

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Indiana's return deadline

45 days.

You have 45 days after the tenancy ends and the tenant supplies a mailing address to return the deposit or deliver an itemized list of damages. The tenant's forwarding address is what starts the clock, so note the date you receive it.

The itemized statement rule

An itemized written list of damages and the amount charged for each is required, and failing to provide it within 45 days forfeits the right to deduct and can make you liable for the tenant's attorney fees.

Account and interest rules

Indiana sets no separate-account or interest requirement. A dedicated deposit account remains sound practice.

Exposure for wrongful withholding

Forfeit deductions plus attorney fees.

A landlord who fails to send the itemized list on time loses the right to keep any of the deposit and is liable for the amount due plus the tenant's attorney fees. The list is the entire defense; without it, good deductions become uncollectible.

Indiana has no statutory deposit maximum

No statutory limit.

Compare Indiana with neighboring states

  • Illinois: no statutory limit; return rule: 30 or 45 days.
  • Michigan: one and a half months' rent; return rule: 30 days.
  • Ohio: no statutory limit; return rule: 30 days.
  • Kentucky: no statutory limit; return rule: 30 to 60 days.

Verified against Ind. Code § 32-31-3 and official state sources in July 2026. Before withholding money, check the current statute text or ask a local landlord-tenant attorney. General information, not legal advice.

Questions landlords actually ask

Does Indiana cap residential security deposits?
No statutory limit
What is the security deposit return deadline in Indiana?
45 days. You have 45 days after the tenancy ends and the tenant supplies a mailing address to return the deposit or deliver an itemized list of damages. The tenant's forwarding address is what starts the clock, so note the date you receive it.
What itemization does Indiana require?
An itemized written list of damages and the amount charged for each is required, and failing to provide it within 45 days forfeits the right to deduct and can make you liable for the tenant's attorney fees.
What is the wrongful-withholding exposure in Indiana?
Forfeit deductions plus attorney fees. A landlord who fails to send the itemized list on time loses the right to keep any of the deposit and is liable for the amount due plus the tenant's attorney fees. The list is the entire defense; without it, good deductions become uncollectible.