State Law Guide · Updated January 2026

Indiana Security Deposit Laws

Under Indiana Code § 32-31-3, Indiana landlords must return security deposits within 45 days of a tenant moving out. Landlords who wrongfully withhold deposits face penalties of up to Actual damages plus attorney fees.

Quick Answer

In Indiana, landlords have 45 days to return your security deposit after you move out and provide a forwarding address. The maximum deposit is No statutory limit. If your landlord wrongfully withholds your deposit, you can sue in Small Claims Court (up to $8,000) and may recover Actual damages plus attorney fees under Indiana Code § 32-31-3. Landlords must provide an itemized statement of deductions.

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What Indiana Law Requires

Return Deadline

Landlords have exactly 45 days to return your deposit after you move out. If they make deductions, they must provide an itemized statement explaining each charge with documentation.

Penalties for Violations

Landlords who wrongfully withhold deposits face Actual damages plus attorney fees. You can file in small claims court for amounts up to $8,000without needing an attorney.

Interest Requirements

No interest requirement

Common Deductions Landlords Make

Federal guidelines from HUD and the IRS establish "useful life" standards that limit what landlords can charge. Many common deductions are partially or fully invalid under these guidelines.

Carpet Replacement

Typical: $400-1,400

5-year useful life per HUD MAP Guide Appendix 5C. Charges may be reduced or invalid based on how long you lived there.

Interior Paint

Typical: $200-700

3-year useful life per HUD Handbook 4350.1. Charges may be reduced or invalid based on how long you lived there.

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Our tool analyzes your landlord's deductions against Indiana Code § 32-31-3 and federal HUD guidelines, then generates a formal demand letter you can send immediately.

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HUD/IRS Citations

Useful life depreciation built in

$19 · Avg Indiana deposit: $1,050 · Potential 55x return

Frequently Asked Questions

How long does an Indiana landlord have to return my deposit?

Indiana landlords have 45 days—one of the longest deadlines in the U.S. They must provide an itemized statement of deductions.

Is there a security deposit limit in Indiana?

No. Indiana has no statutory limit. Most landlords charge 1-2 months' rent.

What if my Indiana landlord wrongfully withholds my deposit?

You can sue for actual damages plus attorney fees. Indiana Small Claims Court handles disputes up to $8,000.

Official Resources

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Based on Indiana Code § 32-31-3 · HUD Handbook 4350.1 · IRS Publication 527

Disclaimer: This page provides general information about Indiana security deposit laws and is intended for educational purposes only. It is not legal advice. Laws may change, and individual circumstances vary. Consult a licensed attorney for advice specific to your situation.

Last updated: January 2026. Sources: Indiana Code § 32-31-3, HUD Handbook 4350.1, IRS Publication 527.