New Jersey · Security deposits · Updated Oct 2026

New Jersey security deposit law

How much a landlord in New Jersey 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 New Jersey, the deposit limit is: One and a half months' rent, including any pet deposit and any prepaid 'last month's rent.' At move-in the landlord may collect no more than 2.5 months' rent in total (deposit plus first month). The landlord must return it as follows: Within 30 days after the tenancy ends, the landlord must return the deposit plus interest, minus allowed deductions, by personal delivery or registered or certified mail.

deposit limit: 1.5 months' rent (with exceptions)
to return a deposit: 30 days
deposit penalty: Up to 2× (willful)

Security deposit in New Jersey

Limit: One and a half months' rent, including any pet deposit and any prepaid 'last month's rent.' At move-in the landlord may collect no more than 2.5 months' rent in total (deposit plus first month). Yearly increases in the deposit may not exceed 10% of the current deposit. Owner-occupied buildings with two or fewer rental units are exempt unless the tenant asks in writing to be covered (coverage starts 30 days after the request).
Deadline to return it: Within 30 days after the tenancy ends, the landlord must return the deposit plus interest, minus allowed deductions, by personal delivery or registered or certified mail. If you broke the lease without legal cause, the 30 days start when the unit is re-rented or the lease would have expired, whichever comes first. If you are displaced by fire, flood, condemnation or evacuation, the deposit must be available within 5 business days.
Itemized list: Yes. An itemized list of interest, earnings and deductions must be sent with the deposit within 30 days, by personal delivery or registered or certified mail. Receipts are not required by the statute.
What may be deducted: Damage beyond ordinary wear and tear and any other money owed to the landlord under the lease (such as unpaid rent). No deductions while you still live in the unit.
Interest: Yes. The deposit must earn interest, and the interest belongs to you. It is paid in cash or credited to rent each year on the lease anniversary or renewal, or on January 31 if you were told in writing. The landlord may not take administrative fees from the interest.
Separate account: Yes. The deposit stays your property, held in trust. It must be placed in an insured interest-bearing account at a bank or savings institution located in New Jersey (landlords with 10 or more units may also use a New Jersey money market fund). Within 30 days of receiving the deposit, and with each annual interest payment, the landlord must tell you in writing the bank name and address, account type, interest rate and amount. If the landlord fails to do this, you may give written notice and have the deposit plus 7% interest per year applied to your rent (after giving 30 days to fix annual-notice failures); the landlord then cannot ask for a new deposit while you live there.
If the landlord keeps it wrongly: If the landlord does not return the deposit within 30 days or wrongly keeps part of it, the court must award you double the amount owed, plus full court costs and, in the judge's discretion, reasonable attorney's fees. Willfully withholding a deposit paid by a government assistance program can also bring a civil penalty of $500 to $2,000 per offense.
Law: N.J.S.A. 46:8-19, 46:8-21.1, 46:8-21.2, 46:8-26

Get your deposit back, step by step

Before you move out, clean, take dated photos and video of every room, and return all keys.
Give your landlord your new address in writing. In New Jersey: the rule above says where the landlord sends the deposit.
Wait for the deadline: Within 30 days after the tenancy ends, the landlord must return the deposit plus interest, minus allowed deductions, by personal delivery or registered or certified mail.
If the money or an itemized list doesn't come, or the deductions are wrong, send a demand letter (below). Keep proof of mailing.
If that doesn't work, sue in small claims court. Limit: $5,000 in Small Claims (Special Civil Part). A tenant's security deposit claim can be filed there if the amount, including the double-damages penalty, is $5,000 or less (N.J.S.A. 46:8-21.4); bigger deposit claims, up to $20,000, go to the regular Special Civil Part. Small claims court in New Jersey on Small Claims Map

Deposit return calculator for New Jersey

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.

Security deposit demand letter for New Jersey

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.

Small claims court in New Jersey

Deposit disputes usually go to small claims court, where you don't need a lawyer. Limit: $5,000 in Small Claims (Special Civil Part). A tenant's security deposit claim can be filed there if the amount, including the double-damages penalty, is $5,000 or less (N.J.S.A. 46:8-21.4); bigger deposit claims, up to $20,000, go to the regular Special Civil Part.

How to file in New Jersey

Questions about security deposits in New Jersey

How much can a landlord charge for a security deposit in New Jersey?

One and a half months' rent, including any pet deposit and any prepaid 'last month's rent.' At move-in the landlord may collect no more than 2.5 months' rent in total (deposit plus first month). Yearly increases in the deposit may not exceed 10% of the current deposit. Owner-occupied buildings with two or fewer rental units are exempt unless the tenant asks in writing to be covered (coverage starts 30 days after the request).

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

Within 30 days after the tenancy ends, the landlord must return the deposit plus interest, minus allowed deductions, by personal delivery or registered or certified mail. If you broke the lease without legal cause, the 30 days start when the unit is re-rented or the lease would have expired, whichever comes first. If you are displaced by fire, flood, condemnation or evacuation, the deposit must be available within 5 business days.

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

If the landlord does not return the deposit within 30 days or wrongly keeps part of it, the court must award you double the amount owed, plus full court costs and, in the judge's discretion, reasonable attorney's fees. Willfully withholding a deposit paid by a government assistance program can also bring a civil penalty of $500 to $2,000 per offense.

What can a landlord deduct from a security deposit in New Jersey?

Damage beyond ordinary wear and tear and any other money owed to the landlord under the lease (such as unpaid rent). No deductions while you still live in the unit.

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

Yes. The deposit must earn interest, and the interest belongs to you. It is paid in cash or credited to rent each year on the lease anniversary or renewal, or on January 31 if you were told in writing. The landlord may not take administrative fees from the interest.

What is the small claims limit in New Jersey?

$5,000 in Small Claims (Special Civil Part). A tenant's security deposit claim can be filed there if the amount, including the double-damages penalty, is $5,000 or less (N.J.S.A. 46:8-21.4); bigger deposit claims, up to $20,000, go to the regular Special Civil Part.

More for New Jersey renters

Security deposit in nearby states

Sources

Last checked: Oct 2026.