Security Deposit Interest Rates by State: The 2026 Report
15 states (including DC) require landlords to pay interest on tenant security deposits. Rates run from a fraction of a percent to a statutory 5% — this report maps every rule to its statute, verified against primary sources.
Key findings
- 15 of 51 jurisdictions require deposit interest; the other 36 require none at all.
- Massachusetts, Ohio, and Florida set the highest fixed benchmark at 5% — though Ohio applies it only to the amount above one month's rent after 6 months, and Florida only when the landlord elects an interest-bearing account.
- 2 states peg the obligation to the actual bank account rate rather than a fixed figure.
- Several states publish the rate annually (Connecticut, Maryland, DC, North Dakota, Illinois) — a landlord can be compliant one year and out of compliance the next without touching anything.
Statutory / published rates, ranked
Published-annually rates shown at their most recent published value. Not charted (rate depends on a formula or the deposit's actual bank account): Maryland, District of Columbia — see the table below for each rule.
The full table
| State | Rate | Holding period | Statute |
|---|---|---|---|
| Massachusetts | 5% | 12 months | Mass. Gen. Laws ch. 186, § 15B |
| Ohio | 5% | 6 months | Ohio Rev. Code § 5321.16 |
| Minnesota | 1% | None | Minn. Stat. § 504B.178 |
| Connecticut | Published annually (~0.49%) | None | Conn. Gen. Stat. § 47a-21 |
| Illinois | Published annually (~0.01%) | 6 months | 765 ILCS 715; Chicago RLTO § 5-12-080 |
| Maryland | Greater of 1.5% or the 1-yr Treasury yield (set each Jan) | 6 months | Md. Code, Real Property § 8-203 |
| New Jersey | Bank account rate | None | N.J. Stat. § 46:8-19 |
| New York | Bank account rate | None | N.Y. Gen. Oblig. Law § 7-103 |
| Pennsylvania | Bank account rate | 24 months | 68 Pa. Stat. § 250.511b |
| New Mexico | Bank account rate | 12 months | N.M. Stat. § 47-8-18 |
| New Hampshire | Bank account rate | 12 months | N.H. Rev. Stat. § 540-A:6 |
| District of Columbia | DC statement-savings rate (resets Jan 1 & Jul 1) | None | D.C. Mun. Regs. tit. 14, § 311 |
| Florida | 5% | None | Fla. Stat. § 83.49 |
| Iowa | Bank account rate | 60 months | Iowa Code § 562A.12 |
| North Dakota | Published annually (~0.5%) | 9 months | N.D. Cent. Code § 47-16-07.1 |
Methodology & how to cite
Every value is checked against the state statute (or the official published rate) and carries a last-verified date; at least two sources are cross-checked before a value is marked verified. The same data files power our state calculators, so this report can't drift from the live tools.
Journalists and researchers may reproduce this table with attribution and a link to LandlordKit. Download the raw data as CSV, or see the press & data page. General information, not legal advice.
Not legal advice. LandlordKit provides general informational tools, not legal advice. Landlord-tenant laws change and vary by city and county. Verify the cited statute and consult a licensed attorney before acting on any result.