Minnesota Security Deposit Law
A 2026 guide for Minnesota landlords: how much you can hold, the 21-day deadline to return it, whether interest is required, and the penalties for getting it wrong — plus a free calculator set to Minnesota's rules.
Deposit cap
No statutory cap
Refund deadline
21 days
3 weeks (21 days) after move-out and delivery of a forwarding address.
Interest required?
Yes
Simple annual interest (rate set yearly by the state) is required.
Separate account?
Not required
Penalty for noncompliance
Bad-faith retention can result in up to $500 in punitive damages plus the deposit.
Statute: Minn. Stat. § 504B.178
Minnesota security deposit refund calculator
Pre-set to Minnesota's 21-day deadline and interest rule. Enter the deposit and any deductions to see the refund and the exact due date.
Minnesota generally requires interest on held deposits. This estimate uses a 5% simple annual rate — confirm the exact current rate for your state before finalizing.
Itemized deductions
Result
$1,500.00
Amount owed back to the tenant
- Deposit held
- $1,500.00
- Estimated interest
- $0.00
- Total deductions
- −$0.00
Legal deadline in Minnesota
Return the deposit (or an itemized statement of deductions) within 21 days of move-out.
3 weeks (21 days) after move-out and delivery of a forwarding address.
How to return a security deposit in Minnesota
- 1
Inspect and document the unit
As soon as the tenant moves out, photograph every room and compare it against the move-in condition. In Minnesota, deductions generally must reflect actual damage beyond normal wear and tear.
- 2
Itemize every deduction in writing
List each deduction with a dollar amount. Minnesota — like nearly every state — can bar a landlord from keeping any of the deposit if deductions aren't itemized in a written statement.
- 3
Add any interest owed
Minnesota requires interest on held deposits. Simple annual interest (rate set yearly by the state) is required. Include the interest in the amount returned.
- 4
Return the balance within 21 days
Send the remaining balance and the itemized statement to the tenant's forwarding address within 21 days of move-out. 3 weeks (21 days) after move-out and delivery of a forwarding address. Missing this deadline is the single most common way landlords lose a deposit dispute.
Minnesota security deposit FAQ
How much can a landlord charge for a security deposit in Minnesota?
No statutory cap.
How long does a landlord have to return a security deposit in Minnesota?
A landlord generally has 21 days after the tenant moves out to return the deposit or send an itemized statement of deductions. 3 weeks (21 days) after move-out and delivery of a forwarding address.
Is interest required on security deposits in Minnesota?
Simple annual interest (rate set yearly by the state) is required.
Does Minnesota require the deposit to be held in a separate account?
Minnesota does not impose a statewide separate-account requirement, though keeping deposits separate is still good practice.
What happens if a landlord wrongfully withholds a deposit in Minnesota?
Bad-faith retention can result in up to $500 in punitive damages plus the deposit.
Related free tools
Deposit laws in other states
This page summarizes general state-level rules as of 2026 and does not cover city or county ordinances, which can be stricter. Verify against the statute cited above (Minn. Stat. § 504B.178) or with a local attorney before relying on it.