New York Security Deposit Law
A 2026 guide for New York landlords: how much you can hold, the 14-day deadline to return it, whether interest is required, and the penalties for getting it wrong — plus a free calculator set to New York's rules.
Deposit cap
1 month's rent
Refund deadline
14 days
Interest required?
Yes
Required for buildings with 6 or more units; the deposit must be held in an interest-bearing account.
Separate account?
Yes
Penalty for noncompliance
Willful violation of itemization or timing rules can result in forfeiture of the right to withhold and, in bad faith, up to twice the deposit.
Statute: N.Y. Gen. Oblig. Law § 7-108
New York security deposit refund calculator
Pre-set to New York's 14-day deadline and interest rule. Enter the deposit and any deductions to see the refund and the exact due date.
New York 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 York
Return the deposit (or an itemized statement of deductions) within 14 days of move-out.
How to return a security deposit in New York
- 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 York, deductions generally must reflect actual damage beyond normal wear and tear.
- 2
Itemize every deduction in writing
List each deduction with a dollar amount. New York — 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
New York requires interest on held deposits. Required for buildings with 6 or more units; the deposit must be held in an interest-bearing account. Include the interest in the amount returned.
- 4
Return the balance within 14 days
Send the remaining balance and the itemized statement to the tenant's forwarding address within 14 days of move-out. Missing this deadline is the single most common way landlords lose a deposit dispute.
New York security deposit FAQ
How much can a landlord charge for a security deposit in New York?
1 month's rent.
How long does a landlord have to return a security deposit in New York?
A landlord generally has 14 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 York?
Required for buildings with 6 or more units; the deposit must be held in an interest-bearing account.
Does New York require the deposit to be held in a separate account?
Yes. In New York, 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 York?
Willful violation of itemization or timing rules can result in forfeiture of the right to withhold and, in bad faith, up to twice 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 (N.Y. Gen. Oblig. Law § 7-108) or with a local attorney before relying on it.