Security Deposit Interest Rules by State (2026)

Quick answer

A minority of US states require landlords to pay interest on security deposits — each with its own rate (fixed percentages like Ohio's 5% on the excess over one month's rent, benchmark-linked formulas like Maryland's Treasury-yield rule), eligibility conditions and payment timing. Several states leave it to cities: Chicago's rent ordinance, San Francisco's rent board and Seattle's rules all mandate interest locally. State statute (official text) · 2026-10-28

Start with the calculator or pick your state below — every state page carries the current rate, who the law applies to, when interest must be paid, and the statute behind it with a Last Verified date.

The three kinds of states

1. Interest required statewide. The statute fixes a rate or a formula and makes the landlord pay it. Examples: Ohio (5% on the deposit excess), Minnesota (1% simple), Illinois (largest-bank passbook rate for buildings with 25+ units).
2. Local rules only. No statewide requirement, but cities step in — often the biggest rental markets. Chicago is the classic case: buildings with 25+ units pay interest at a city-published rate.
3. No requirement. Most states never mandate interest. The lease decides: if it promises interest, that promise is a contract. State law still governs how and when the deposit itself comes back.

What every state page covers

• Current rate — the number, or the formula and where the current value publishes;
• Who it applies to — unit-count thresholds, deposit-size thresholds, minimum tenancy length;
• How and when interest is paid — credited annually against rent, or returned with the deposit;
• The statute — exact citation, link to the official state text, cross-checked against an independent second source;
• A calculator preloaded with that state's rules.

How we keep this current

Every state page carries a Last Verified date — the day we last confirmed its figures against the official source. State legislatures amend deposit statutes regularly (interest rates pegged to benchmarks move every year), so when a law changes, the page's rate, rules and date all move together. Where a figure could not be confirmed against at least two independent sources — for example, a benchmark rate whose new annual announcement we have not yet located — the page says "(to be verified)" and links where the official number publishes, rather than presenting a stale or guessed value. Found something outdated? The contact page takes corrections, and every report is checked against the statute before any number changes.

FAQ

Which states require security deposit interest?

As of our October 2026 verification, these jurisdictions require interest at the state level — several with eligibility conditions (unit counts, deposit thresholds or minimum tenancy length): Connecticut, Massachusetts, New Jersey, New York, Pennsylvania, New Hampshire, Maryland, Ohio, Minnesota, Illinois and DC, while Florida ties interest to how the deposit is held. Each state page has the exact rate and statute. Cities add more: Chicago's rent ordinance, San Francisco's rent board and Seattle's rules mandate interest locally.

My state has no requirement. Can I still get interest?

If your lease promises it, yes — a lease can always give more than the law requires. Otherwise, your claim is to the deposit itself returned on time under your state's deadline.

Is this legal advice?

No — every page on this site is information with citations, not advice. See the disclaimer.

Estimates and summaries only — always confirm against the linked official statute.