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: $400-1,4005-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: $200-7003-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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HUD/IRS Citations
Useful life depreciation built in
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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
- Indiana Attorney General Consumer Protection(Government)
- Indiana Legal Services(Legal Aid)
Compare Other States
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Based on Indiana Code § 32-31-3 · HUD Handbook 4350.1 · IRS Publication 527