Deposit interest divides into three patterns. Some states write a percentage into the statute and it stays put. Some tie the rate to a figure an agency republishes every January. And some require only that the deposit sit in an interest-bearing account, so what the tenant receives is whatever that account earned.
That distinction is why this page does not print a single number for every state: for seven of them, no single number exists. Select a jurisdiction for its rule, a calculator preset to it, and what it works out to.
States That Require Deposit Interest
Each rule below links to its statute. Verified September 11, 2026. Where a rate is reset annually, the year is stated with it.
| Jurisdiction | Rate | Who it covers | Statute |
|---|---|---|---|
| Connecticut | 0.49% for 2026 | All residential security deposits. | Conn. Gen. Stat. § 47a-21 |
| District of Columbia | the statement savings rate at the bank holding the deposit | All residential security deposits. The deposit must be held in an interest-bearing escrow account. | D.C. Code § 42-3502.17; 14 DCMR § 311 |
| Illinois | the passbook savings rate at the largest commercial bank in Illinois | Buildings with 25 or more units, on deposits held more than 6 months. | 765 ILCS 715/1 |
| Iowa | the interest earned after the first five years (interest from the first five years goes to the landlord) | Tenancies running longer than five years. The statute permits, but does not require, an interest-bearing account. | Iowa Code § 562A.12(2) |
| Maryland | the greater of 1.5% a year or the 1-year US Treasury yield | Deposits of $50 or more, held at least 6 months. | Md. Real Prop. § 8-203(e) |
| Massachusetts | 5% a year, or the lesser amount the bank actually paid | Tenancies of one year or longer from the start of the term. | M.G.L. ch. 186, § 15B |
| Minnesota | 1% a year, simple and noncompounded | All residential security deposits, except that any interest amount under $1 is excluded. | Minn. Stat. § 504B.178 |
| New Hampshire | the regular savings rate at the institution holding the deposit | Deposits held for one year or longer. | N.H. Rev. Stat. § 540-A:6 |
| New Jersey | a variable money market rate, reset at least quarterly | Landlords renting 10 or more units must invest the deposit in an insured money market fund or an insured bank account at the variable rate above. Landlords with fewer than 10 units hold the deposit in an account bearing the institution's current savings rate. | N.J.S.A. 46:8-19 |
| New Mexico | the passbook savings rate | Annual rental agreements where the deposit exceeds one month's rent. On agreements shorter than a year the deposit itself may not exceed one month's rent. | N.M. Stat. § 47-8-18 |
| New York | the prevailing rate on similar deposits at local banks | Buildings with six or more family dwelling units. | N.Y. Gen. Oblig. Law § 7-103 |
| North Dakota | whatever the required interest-bearing account earns | Occupancy of nine months or longer. No interest is owed where the period of occupancy was less than nine months. | N.D.C.C. § 47-16-07.1 |
| Ohio | 5% a year | Only the portion of the deposit exceeding $50 or one month's rent, whichever is greater, and only where the tenant stays in possession six months or more. | Ohio Rev. Code § 5321.16 |
| Pennsylvania | whatever the required escrow account earns, less a 1% fee | Deposits over $100, and only after the deposit has been held beyond the second anniversary of the lease. | 68 P.S. § 250.511b |
Cities That Require It Where the State Does Not
A state without a requirement can still have cities with one. If you rent in one of these three, check the city ordinance.
| City | Rate | Ordinance | Official rate |
|---|---|---|---|
| Chicago, Illinois | 0.01% for 2026 | Chicago Muni. Code § 5-12-081 | Current rate |
| San Francisco, California | 4.2% for March 1, 2026 through February 28, 2027 | S.F. Admin. Code § 49.2 | Current rate |
| Los Angeles, California | 3.03% for 2026 | L.A. Mun. Code § 151.06.02 | Current rate |
Jurisdictions With No Statewide Requirement
As of September 11, 2026, we did not find a statewide deposit interest requirement in these jurisdictions. A lease may still promise interest, and a city ordinance may still require it. Each state page links where to check.
| Jurisdiction | What applies |
|---|---|
| Alabama | No statewide requirement found as of September 11, 2026 |
| Alaska | No statewide requirement found as of September 11, 2026 |
| Arizona | No statewide requirement found as of September 11, 2026 |
| Arkansas | No statewide requirement found as of September 11, 2026 |
| California | City ordinances only — San Francisco, Los Angeles |
| Colorado | No statewide requirement found as of September 11, 2026 |
| Delaware | No statewide requirement found as of September 11, 2026 |
| Florida | No statewide requirement found as of September 11, 2026 |
| Georgia | No statewide requirement found as of September 11, 2026 |
| Hawaii | No statewide requirement found as of September 11, 2026 |
| Idaho | No statewide requirement found as of September 11, 2026 |
| Indiana | No statewide requirement found as of September 11, 2026 |
| Kansas | No statewide requirement found as of September 11, 2026 |
| Kentucky | No statewide requirement found as of September 11, 2026 |
| Louisiana | No statewide requirement found as of September 11, 2026 |
| Maine | No statewide requirement found as of September 11, 2026 |
| Michigan | No statewide requirement found as of September 11, 2026 |
| Mississippi | No statewide requirement found as of September 11, 2026 |
| Missouri | No statewide requirement found as of September 11, 2026 |
| Montana | No statewide requirement found as of September 11, 2026 |
| Nebraska | No statewide requirement found as of September 11, 2026 |
| Nevada | No statewide requirement found as of September 11, 2026 |
| North Carolina | No statewide requirement found as of September 11, 2026 |
| Oklahoma | No statewide requirement found as of September 11, 2026 |
| Oregon | No statewide requirement found as of September 11, 2026 |
| Rhode Island | No statewide requirement found as of September 11, 2026 |
| South Carolina | No statewide requirement found as of September 11, 2026 |
| South Dakota | No statewide requirement found as of September 11, 2026 |
| Tennessee | No statewide requirement found as of September 11, 2026 |
| Texas | No statewide requirement found as of September 11, 2026 |
| Utah | No statewide requirement found as of September 11, 2026 |
| Vermont | No statewide requirement found as of September 11, 2026 |
| Virginia | No statewide requirement found as of September 11, 2026 |
| Washington | No statewide requirement found as of September 11, 2026 |
| West Virginia | No statewide requirement found as of September 11, 2026 |
| Wisconsin | No statewide requirement found as of September 11, 2026 |
| Wyoming | No statewide requirement found as of September 11, 2026 |
Common Questions
Which states require landlords to pay interest on security deposits?
As of September 11, 2026, we found fourteen: Connecticut, the District of Columbia, Illinois, Iowa, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio and Pennsylvania. Several apply only in some cases, such as by building size or how long the deposit is held. The table links each statute and states who it covers. Laws change, so check the current text.
What is the highest security deposit interest rate?
As of September 11, 2026, among states that fix a rate in statute, Massachusetts and Ohio are highest at 5% a year, though the Massachusetts figure is capped at whatever the bank actually paid. Maryland guarantees a floor of 1.5% and pays the 1-year Treasury yield when it runs higher. Minnesota sets a flat 1%. Several city ordinances run higher than any state: San Francisco is at 4.2% for the year beginning March 2026.
Why do some jurisdictions not publish a rate?
Because the rate is not a fixed figure. In DC, New Hampshire, New Jersey, New Mexico, New York, North Dakota and Pennsylvania the tenant is owed what the account holding the deposit actually earns, so the number comes from the landlord's bank rather than from a statute. In Connecticut, Illinois and the three city ordinances a rate is published, but it is recalculated every January, so any figure needs to be read with its year attached.
Does deposit interest apply to commercial leases?
The deposit interest rules we track cover residential tenancies. For a commercial lease, check the deposit section of the lease.