Security deposit law in Indiana

The rule in Indiana

Indiana sets no statutory cap on the size of a residential security deposit: the source checked (Indiana General Assembly, 2025 Indiana Code, IC 32-31-3-12) states no maximum, so the amount is whatever the lease says.

The return deadline is 45 days, counted after the rental agreement ends and possession is delivered. The text reads: “delivered to the tenant not more than forty-five (45) days after termination of the rental agreement and delivery of possession.”

Of the 44 jurisdictions verified here, 36 give landlords less time and 3 give more; the median is 30 days. Illinois, Maryland, Oklahoma and Virginia also allow 45 days.

Without a cap there is no dollar ceiling to compute. For comparison, 27 of the 44 verified jurisdictions do cap deposits, from one month's rent in states such as Alabama up to three months' rent in Nevada.

Worked date: if the clock starts on November 30, 2026, the deadline falls on January 14, 2027.

In neighbouring states with verified rules: Illinois allows 45 days and sets no cap, Michigan allows 30 days and caps deposits at one and a half months' rent and Ohio allows 30 days and sets no cap.

The landlord is not liable until the tenant gives the landlord a mailing address in writing.

IC 32-31-3 sets no maximum amount.

If a deposit is not returned, the small claims limit in Indiana is $10,000 (small claims rules).

Source: Indiana General Assembly, 2025 Indiana Code, IC 32-31-3-12 · last checked October 21, 2026.

If the deposit does not come back

The statute above sets the deadline; what happens after it passes is covered in general terms in the guide on a deposit that is not returned, and the way each state starts and counts the clock is compared in how deposit deadlines are counted.