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Security Deposit Interest Calculator by State

Seventeen states and DC require landlords to pay tenants interest on a held security deposit. Pick your state to see the statute and rate, then calculate what's owed.

State

Ariz. Rev. Stat. § 33-1431(B): 5% annual interest, no minimum holding period specified.

Deposit amount

Move-in dateAs of / move-out date

Interest rate — default 5%, override if needed

%/yr

Days held: 0
Rate applied: 5%
Interest owed: $0.00

Total refundable at move-out (deposit + interest): $0.00

How this is calculated

Interest is simple (non-compounding): the deposit amount times the annual rate times the fraction of a year it was held. States with a fixed statutory rate get a default you can override; states with a rate tied to a bank or Treasury figure require you to enter the current published number.

1.Days held
as-of date − move-in date
2.Interest-bearing amount
deposit − monthly rent (Ohio only)
Every state except Ohio calculates interest on the full deposit. Ohio only pays interest on the amount over one month's rent.
3.Interest owed
interest-bearing amount × (rate / 100) × (days held / 365)

This is not legal advice. Rates for 'variable' states change on their own schedule (annually, semi-annually, or per lease) — verify the current published figure against the cited statute before relying on this for a real payout or dispute.

Which states require security deposit interest

Most US states let a landlord hold a tenant's security deposit interest-free for the life of the tenancy. Seventeen states, plus Washington DC, are the exception — they require the landlord to pay the tenant interest on the deposit, usually credited annually or paid in full at move-out. The rules differ significantly in both rate and mechanics: some states set a flat percentage in the statute, while others tie the rate to whatever the bank account actually earned or to a published financial benchmark that changes over time.

State	Rate type	Statute
Arizona	5% fixed	Ariz. Rev. Stat. § 33-1431(B)
Connecticut	Variable — enter current rate	Conn. Gen. Stat. § 47a-21i
Florida	5% fixed	Fla. Stat. § 83.49
Illinois	Variable — enter current rate	765 ILCS 715/1
Iowa	Variable — enter current rate	Iowa Code § 562A.12
Maine	Variable — enter current rate	Me. Rev. Stat. tit. 10, § 9098
Maryland	Variable — enter current rate	Md. Code, Real Prop. § 8-203
Massachusetts	5% fixed	Mass. Gen. Laws ch. 186, § 15B
Minnesota	1% fixed	Minn. Stat. § 504B.178
New Hampshire	Variable — enter current rate	N.H. Rev. Stat. § 540-A:6
New Jersey	Variable — enter current rate	N.J. Stat. § 46:8-19
New Mexico	Variable — enter current rate	N.M. Stat. § 47-8-18
New York	Variable — enter current rate	N.Y. Gen. Oblig. Law § 7-103
North Dakota	Variable — enter current rate	N.D. Cent. Code § 47-16-07.1
Ohio	5% fixed	Ohio Rev. Code § 5321.16
Pennsylvania	Variable — enter current rate	68 Pa. Stat. § 250.511
Washington, DC	Variable — enter current rate	D.C. Mun. Regs. tit. 14, r. 311

Fixed-rate vs. variable-rate states

Arizona, Florida, Massachusetts, Minnesota, and Ohio set a specific percentage directly in the statute, so this calculator prefills a default rate for those five — still editable, in case your state updates the figure. The remaining twelve jurisdictions tie the rate to something external: the actual interest the depository account earned (Connecticut, Iowa, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania), a Treasury yield or bank-board rate that resets annually (Maryland, New Mexico), or a rate republished on a fixed schedule (Illinois annually, DC every six months, Maine tied to a CD rate). For those, you'll need to look up the current published number — most state real estate commissions or attorney general consumer-protection pages post it.

What this calculator does not cover

This tool applies state statutes only — several cities layer on their own security deposit ordinances with different rates and rules, most notably Chicago's municipal code, which is stricter than Illinois state law and applies on top of it. If you manage property inside a city with its own landlord-tenant ordinance, check that ordinance in addition to your state's rule. This also calculates interest only — not the deposit deductions for damage or unpaid rent, which is a separate move-out calculation.

Once you know what's owed, document it properly at move-out with a signed accounting — the Complete Property Management Bundle includes a security deposit itemization form, move-in/move-out inspection checklist, and 32 other landlord documents.

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Related resources

Security deposit interest FAQs

Which states require landlords to pay interest on security deposits?

Seventeen jurisdictions currently require it: Arizona, Connecticut, Florida, Illinois, Iowa, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Pennsylvania, and Washington DC. A few cities layer on their own ordinance — Chicago is the most notable — separate from state law. Every other state has no statewide requirement, though nothing stops a landlord from paying interest voluntarily.

Do all of these states use a fixed interest rate?

No. Arizona, Florida, Massachusetts, Minnesota, and Ohio use a fixed statutory percentage. The rest tie the rate to something that changes — the actual interest the bank account earned, a Treasury yield, or a rate republished annually by a state agency — so there is no single number to hardcode; you need the current published rate for those states.

What happens if a landlord doesn't pay the required interest?

Penalties vary by state, but many statutes allow the tenant to recover the interest owed plus statutory damages (sometimes double or triple the amount) and, in some states, attorney's fees if the landlord willfully withheld it. This calculator gives you the interest amount; check your state's statute (cited for each state above) for the specific penalty provision.

Does this calculator account for city ordinances like Chicago's?

No — this calculator applies state-level statutes only. Chicago, and any other municipality with its own security deposit interest ordinance, sets its own rate separate from Illinois state law. If you manage property inside a city with its own ordinance, check that ordinance directly.

Is security deposit interest the same as security deposit deductions?

No. Interest is what you owe the tenant for holding their money — a completely separate calculation from any deductions you make for damage or unpaid rent when the tenant moves out. Interest is calculated on the deposit amount before any deductions are applied.