Landlord Tools

New Jersey Security Deposit Law

A 2026 guide for New Jersey landlords: how much you can hold, the 30-day deadline to return it, whether interest is required, and the penalties for getting it wrong — plus a free calculator set to New Jersey's rules.

Deposit cap

1.5 months' rent

Refund deadline

30 days

Interest required?

Yes

Annual interest at the rate paid on a standard savings account is required.

Separate account?

Yes

Penalty for noncompliance

Failure to comply can result in double the deposit amount as damages.

Statute: N.J. Stat. § 46:8-19

New Jersey security deposit refund calculator

Pre-set to New Jersey's 30-day deadline and interest rule. Enter the deposit and any deductions to see the refund and the exact due date.

New Jersey 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 New Jersey

Return the deposit (or an itemized statement of deductions) within 30 days of move-out.

Full New Jersey deposit law guide →Generate itemized deduction letter →

How to return a security deposit in New Jersey

  1. 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 New Jersey, deductions generally must reflect actual damage beyond normal wear and tear.

  2. 2

    Itemize every deduction in writing

    List each deduction with a dollar amount. New Jersey — like nearly every state — can bar a landlord from keeping any of the deposit if deductions aren't itemized in a written statement.

  3. 3

    Add any interest owed

    New Jersey requires interest on held deposits. Annual interest at the rate paid on a standard savings account is required. Include the interest in the amount returned.

  4. 4

    Return the balance within 30 days

    Send the remaining balance and the itemized statement to the tenant's forwarding address within 30 days of move-out. Missing this deadline is the single most common way landlords lose a deposit dispute.

New Jersey security deposit FAQ

How much can a landlord charge for a security deposit in New Jersey?

1.5 months' rent.

How long does a landlord have to return a security deposit in New Jersey?

A landlord generally has 30 days after the tenant moves out to return the deposit or send an itemized statement of deductions.

Is interest required on security deposits in New Jersey?

Annual interest at the rate paid on a standard savings account is required.

Does New Jersey require the deposit to be held in a separate account?

Yes. In New Jersey, landlords are generally required to keep security deposits in a separate account rather than commingling them with personal funds.

What happens if a landlord wrongfully withholds a deposit in New Jersey?

Failure to comply can result in double the deposit amount as damages.

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 (N.J. Stat. § 46:8-19) or with a local attorney before relying on it.