Indiana · Security deposits · Updated Oct 2026

Indiana security deposit law

How much a landlord in Indiana can charge, the deadline to return a deposit, what may be deducted, the penalty for keeping it wrongly and how to get yours back.

Short answer

In Indiana, the deposit limit is: No statewide limit. The landlord must return it as follows: The statute says the landlord must return the deposit, minus allowed deductions listed in a written itemized notice, no more than 45 days after the lease ends and you give back possession (IC 32-31-3-12, -14).

deposit limit
No statewide limit
to return a deposit
45 days
deposit penalty
See below

Security deposit in Indiana

Limit
No statewide limit.
Deadline to return it
The statute says the landlord must return the deposit, minus allowed deductions listed in a written itemized notice, no more than 45 days after the lease ends and you give back possession (IC 32-31-3-12, -14). But the landlord is not liable for missing that deadline until you give it a mailing address in writing, and the Indiana courts' Small Claims Manual describes the deadline as 45 days after the landlord receives your forwarding address. To be safe, give your forwarding address in writing on or before the day you move out, so the 45 days clearly start then. The refund comes as a check or money order with the itemized list. You cannot use the deposit as your last month's rent unless a written agreement says so.
Itemized list
Yes. The landlord must mail an itemized list of damages with the estimated cost of repair for each item. Receipts are not required. If the landlord does not send the list in time, the law treats it as agreeing that no damages are owed, and it must return the full deposit.
What may be deducted
Only: actual damage to the unit beyond ordinary wear and tear; unpaid rent, including rent owed because you ended the lease early; the last month's rent if a written agreement says the deposit will be used for it; and unpaid utility or sewer charges you were supposed to pay under the lease.
Interest
No. The statute does not require interest.
If the landlord keeps it wrongly
If the landlord does not follow the rules, you can recover the deposit withheld plus reasonable attorney's fees and court costs. There is no double or triple penalty.
Law
IC 32-31-3-12 to 32-31-3-16

Get your deposit back, step by step

  1. Before you move out, clean, take dated photos and video of every room, and return all keys.
  2. Give your landlord your new address in writing. In Indiana: But the landlord is not liable for missing that deadline until you give it a mailing address in writing, and the Indiana courts' Small Claims Manual describes the deadline as 45 days after the landlord receives your forwarding address.
  3. Wait for the deadline: The statute says the landlord must return the deposit, minus allowed deductions listed in a written itemized notice, no more than 45 days after the lease ends and you give back possession (IC 32-31-3-12, -14).
  4. If the money or an itemized list doesn't come, or the deductions are wrong, send a demand letter (below). Keep proof of mailing.
  5. If that doesn't work, sue in small claims court. Limit: $10,000, not counting interest and attorney fees (same in Marion County township courts). Small claims court in Indiana on Small Claims Map

Deposit return calculator for Indiana

Find your state's deadline for returning a security deposit, whether your landlord is late and what you may be owed. Nothing you type here is sent anywhere.

Enter your deposit and move-out dateThe result appears as you type.

An estimate from the dates you enter and the rule in our data, not legal advice. We skip weekends only where the rule counts business days, and we don't skip holidays.

Security deposit demand letter for Indiana

A short, firm and polite letter asking your landlord to return your deposit by a date. It cites your state's deposit law. Many landlords pay at this step, and the letter is proof that you asked. Fill this in, download the letter as PDF or Word (or copy it), sign it, keep a copy and send it in a way you can prove, such as certified mail with a return receipt.

Your letter is made in your browser. Nothing you type is sent to us or anyone else.

The name on your lease or rent receipts.

We suggest 14 days.

One or two sentences. This text goes into the letter as written.

Small claims court in Indiana

Deposit disputes usually go to small claims court, where you don't need a lawyer. Limit: $10,000, not counting interest and attorney fees (same in Marion County township courts).

How to file in Indiana

Questions about security deposits in Indiana

How much can a landlord charge for a security deposit in Indiana?

No statewide limit.

How long does a landlord have to return a security deposit in Indiana?

The statute says the landlord must return the deposit, minus allowed deductions listed in a written itemized notice, no more than 45 days after the lease ends and you give back possession (IC 32-31-3-12, -14). But the landlord is not liable for missing that deadline until you give it a mailing address in writing, and the Indiana courts' Small Claims Manual describes the deadline as 45 days after the landlord receives your forwarding address. To be safe, give your forwarding address in writing on or before the day you move out, so the 45 days clearly start then. The refund comes as a check or money order with the itemized list. You cannot use the deposit as your last month's rent unless a written agreement says so.

What can I do if my landlord won't return my deposit in Indiana?

If the landlord does not follow the rules, you can recover the deposit withheld plus reasonable attorney's fees and court costs. There is no double or triple penalty.

What can a landlord deduct from a security deposit in Indiana?

Only: actual damage to the unit beyond ordinary wear and tear; unpaid rent, including rent owed because you ended the lease early; the last month's rent if a written agreement says the deposit will be used for it; and unpaid utility or sewer charges you were supposed to pay under the lease.

Does a landlord have to pay interest on a security deposit in Indiana?

No. The statute does not require interest.

What is the small claims limit in Indiana?

$10,000, not counting interest and attorney fees (same in Marion County township courts).

More for Indiana renters

Security deposit in nearby states

Sources

Last checked: Oct 2026.