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

1.5 months' rent — Every dollar of prepaid money held to secure the tenancy counts toward that ceiling, whatever it is labeled — 'last month's rent' included (N.J.S.A. 46:8-21.2).

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

30 days. The refund must carry the tenant's portion of accumulated interest or earnings, less lawful deductions, with the itemization delivered by personal delivery, registered mail, or certified mail (N.J.S.A. 46:8-21.1).

What happens if a landlord does not return the deposit on time in New Jersey?

A court that finds for the tenant in an action for return of moneys due SHALL award double the amount wrongfully withheld, together with full costs of the action and, in the court's discretion, reasonable attorney's fees (N.J.S.A. 46:8-21.1).

Do landlords have to pay interest on security deposits in New Jersey?

Yes — New Jersey requires interest on the security deposit to be paid to the tenant. The deposit must be placed in an interest-bearing account at a state or federally chartered bank, savings bank, or savings and loan association in New Jersey; a landlord holding deposits for 10 or more units may instead invest them in an insured money market fund of a New Jersey investment company. The interest or earnings belong to the tenant, paid annually in cash or credited against rent (N.J.S.A. 46:8-19).

What are the security deposit rules in New Jersey?

Verified October 1, 2026 All New Jersey topics →

Check your municipality. New Jersey does not preempt local rent regulation — city or county ordinances may impose rent caps, notice periods, and fee limits that are stricter than the state law on this page. Verify your municipality's ordinances before relying on any figure below. Verified local pages: Atlantic City, Bayonne, East Orange, Elizabeth, Fort Lee, Hoboken, Jersey City, Newark, Passaic, Paterson.

What the state record says

New Jersey has no statewide rent control statute for apartments and houses, but more than 100 municipalities — the Department of Community Affairs' 2026 survey lists 120, including Newark, Jersey City, Elizabeth, Paterson, and Fort Lee — maintain rent control or rent leveling ordinances with their own caps, notice rules, and boards. Since March 1, 2026 one state limit applies: lot rent at a manufactured home park may not rise by more than 3.5% over any 12-month period unless the Commissioner of Community Affairs approves a larger increase on the landlord's petition (N.J.S.A. 52:27D-287.13). New Jersey does not preempt local rent control: municipalities have had confirmed authority to enact rent control since Inganamort v. Borough of Fort Lee, 62 N.J. 521 (1973). State law also polices increases through the Anti-Eviction Act's unconscionability standard.

Enacted but not yet in force. This page reflects the law in force today. The following measure has been signed and takes effect on the date shown:

Assembly Committee Substitute for A3497 (2026) — P.L.2026, c.43, the Forbidding the Algorithmic Inflation of Rent (FAIR) Act — Signed but not yet in force. It makes it a violation of the New Jersey Antitrust Act to use, or to supply, algorithmic revenue management software that sets or recommends rents, lease terms or occupancy levels from the nonpublic information of two or more rental property owners, and to take part in parallel pricing coordination. Research and statistical use, a free public rent estimate, an equal-terms listing database that does not set or recommend prices, and government affordability programs are outside it. Municipalities may not adopt an ordinance that conflicts with it. Status: Passed the Assembly and the Senate on June 30, 2026; approved July 20, 2026 as P.L.2026, c.43. Section 9 sets the effective date at the first day of the twelfth month after enactment. (checked October 1, 2026).

New Jersey caps security deposits at one and a half months' rent — and the cap counts every dollar of prepaid money however it's labeled, so a landlord cannot stack 'last month's rent' on top of a full deposit.

Cited to N.J.S.A. 46:8-21.1 (return of the deposit; deadlines, itemization, double damages) and 3 more cited sources · Verified October 1, 2026

The deposit must sit in an interest-bearing account at a New Jersey institution with the bank details disclosed to the tenant within 30 days, annual interest paid to the tenant, and any additional deposit collected from the tenant limited to 10% of the current deposit per year. Within 30 days of move-out (5 business days after displacement by fire, flood, condemnation, or evacuation; 15 business days for domestic-violence lease terminations) the landlord must return the deposit with interest and a certified-mail or personally delivered itemization — and if the tenant sues for money not properly returned, a court that finds for the tenant must award double the amount due, plus costs and, in its discretion, attorney's fees. One notable carve-out: the Act does not apply in owner-occupied buildings with two or fewer rental units unless the tenant opts in by 30 days' written notice.

New Jersey security deposits at a glance

Maximum deposit	1.5 months' rent — Every dollar of prepaid money held to secure the tenancy counts toward that ceiling, whatever it is labeled — 'last month's rent' included (N.J.S.A. 46:8-21.2). The statute allows no more than one and one-half times one month's rent, so a landlord may collect only the first month's rent plus 1.5 months as security at move-in. The prepaid-funds rule comes from Brownstone Arms v. Asher and Reilly v. Weiss, as summarized in the official DCA Truth in Renting guide. Any additional security deposit collected from the tenant is capped at 10% of the current deposit in any year (N.J.S.A. 46:8-21.2). Pet deposits are allowed only within the same combined 1.5-month ceiling.
Return deadline	30 days
Deadline conditions	The refund must carry the tenant's portion of accumulated interest or earnings, less lawful deductions, with the itemization delivered by personal delivery, registered mail, or certified mail (N.J.S.A. 46:8-21.1). The deadline runs 30 days from termination of the tenancy, and two accelerated deadlines displace it: 5 business days when the tenant is displaced by fire, flood, condemnation, or evacuation and either a public official has posted the premises against occupancy or a building inspector has certified that the displacement will last more than seven days, and 15 business days when a domestic-violence victim terminates the lease under N.J.S.A. 46:8-9.6. In both cases the money must be available to the tenant on demand. No deductions may be taken while the tenant remains in possession.
Itemization required	Yes
Itemization rules	Any deductions and the interest/earnings must be itemized and delivered by personal delivery, registered mail, or certified mail within the deadline. The statute does not enumerate permitted deduction categories; deductions must be 'charges expended in accordance with the terms of the contract, lease or agreement' plus rent due — in practice unpaid rent and damage beyond ordinary wear and tear.
Separate account required	Yes
Interest owed to tenant	Yes
Account & interest rules	The deposit must be placed in an interest-bearing account at a state or federally chartered bank, savings bank, or savings and loan association in New Jersey; a landlord holding deposits for 10 or more units may instead invest them in an insured money market fund of a New Jersey investment company. The interest or earnings belong to the tenant, paid annually in cash or credited against rent (N.J.S.A. 46:8-19). The tenant must be told in writing where the money is: the name and address of the bank or investment company, the type of account, the current interest rate for that account, and the amount of the deposit or investment. That notice is due within 30 days of receiving the deposit, within 30 days of moving the deposit to a different institution, fund or account, at the time of each annual interest payment, and within 30 days after ownership or control of the property is transferred. A change of account made more than 60 days before the annual interest payment needs its own notice; where institutions or funds merge, the 30 days run from the day the landlord learns of the merger. If the landlord fails to invest the money or to provide the required notices, the tenant may give written notice directing that the deposit plus 7% annual interest be applied to rent, after which the landlord may not demand a new deposit. A seasonal rental — a term of not more than 125 consecutive days by a tenant who has a permanent residence elsewhere — is excused from the interest-bearing-account requirement only, not from the return obligation (N.J.S.A. 46:8-19(d); an unpublished 2025 Appellate Division decision applied it that way).
Pet deposits	A pet deposit counts inside the general deposit cap and has no figure of its own. The pet-deposit rule, pet rent and fees, and the assistance-animal rules are on the pets and assistance animals page.
Non-refundable fees allowed	Not addressed by statute
Penalty for violation	A court that finds for the tenant in an action for return of moneys due SHALL award double the amount wrongfully withheld, together with full costs of the action and, in the court's discretion, reasonable attorney's fees (N.J.S.A. 46:8-21.1). The doubling applies to the net amount due, so a landlord with legitimate partial deductions who simply misses the 30-day deadline still doubles the balance owed. Separate civil penalties of $500-$2,000 per offense apply to willful withholding of deposits made by state entities on a tenant's behalf.
Tenant forwarding-address duty	Not addressed by statute

Cite this page: "Landlord Atlas, New Jersey Security Deposit Laws (verified October 1, 2026), landlordatlas.com/laws/security-deposits/new-jersey/" — free to cite and quote with a link (how these records are verified). Everything above is cited in the citations section below.

Generate a New Jersey security-deposit return letter — free, no signup, built on the same verified New Jersey law as this page.

Editable New Jersey deposit kit — the deposit disposition letter, the move-in receipt with the custody and interest statements, a deposits-held register with the return deadline computed, and the rules fact sheet built on the verified New Jersey rules on this page, in Word, fillable PDF and Excel.

Notes and caveats

The prepaid-funds rule counts every advance payment — All advance money held to secure the tenancy counts toward the 1.5-month cap, whatever it is labeled, per Brownstone Arms v. Asher and Reilly v. Weiss as stated in the official DCA guide.
The small-landlord carve-out for owner-occupied buildings — N.J.S.A. 46:8-26 exempts owner-occupied buildings with no more than two rental units, though a tenant may opt in by giving 30 days' written notice. An exempt tenancy is outside the Act altogether until the tenant gives that notice.
The 46:8-19 remedy: applying the deposit to rent — If the landlord defaults on investing the deposit or on the required notices, the tenant may direct that the deposit plus 7% interest be applied to rent (N.J.S.A. 46:8-19). One limit applies to that remedy: where the default is a missed annual interest payment or a missed annual notice, and the annual notice is not also serving as a notice of a change of account or institution, the tenant must first send the landlord written notice of the failure and allow 30 days to put it right.
Why non-refundable fees are left blank rather than answered — No New Jersey statute addresses non-refundable fees generally, so no answer is shown here rather than a rule. A fee that functions as security is recharacterized under the prepaid-funds rule.
Where the statute links point — Statute links go to the New Jersey Legislature's official statutes database. The Department of Community Affairs' 'Truth in Renting' guide and a 2025 Appellate Division opinion are cited alongside them.

Common questions: New Jersey security deposits

Each answer is the verified value from the table above, restated as a direct answer. Free to quote with a link to this page.

How much can a landlord charge for a security deposit in New Jersey?: 1.5 months' rent — Every dollar of prepaid money held to secure the tenancy counts toward that ceiling, whatever it is labeled — 'last month's rent' included (N.J.S.A. 46:8-21.2).
How long does a landlord have to return a security deposit in New Jersey?: 30 days. The refund must carry the tenant's portion of accumulated interest or earnings, less lawful deductions, with the itemization delivered by personal delivery, registered mail, or certified mail (N.J.S.A. 46:8-21.1).
What happens if a landlord does not return the deposit on time in New Jersey?: A court that finds for the tenant in an action for return of moneys due SHALL award double the amount wrongfully withheld, together with full costs of the action and, in the court's discretion, reasonable attorney's fees (N.J.S.A. 46:8-21.1).
Do landlords have to pay interest on security deposits in New Jersey?: Yes — New Jersey requires interest on the security deposit to be paid to the tenant. The deposit must be placed in an interest-bearing account at a state or federally chartered bank, savings bank, or savings and loan association in New Jersey; a landlord holding deposits for 10 or more units may instead invest them in an insured money market fund of a New Jersey investment company. The interest or earnings belong to the tenant, paid annually in cash or credited against rent (N.J.S.A. 46:8-19).
Can a landlord charge a non-refundable fee in New Jersey?: Not addressed by statute.

Citations

N.J.S.A. 46:8-21.1 (return of the deposit; deadlines, itemization, double damages) (verified 2026) Official source
N.J.S.A. 46:8-19 and 46:8-21.1 as construed in Wallace v. Wilson, NJ App. Div. No. A-3697-22 (2025) (unpublished) (verified 2026) Official source
N.J.S.A. 46:8-19 (Rent Security Deposit Act; investment of the deposit, the required written notice and its timing) · c.(1)-(5) (verified 2026) Official source
Truth in Renting, Department of Community Affairs (security deposit chapter) · security deposits (verified 2026) Official source

How this record was verified: Direct read of statute text of N.J.S.A. 46:8-21.1 (full text via the 2025 code mirror, corroborated by a 2025 NJ Appellate Division opinion on njcourts.gov construing 46:8-19 and 46:8-21.1), cross-checked against the New Jersey Department of Community Affairs' official 'Truth in Renting' guide (the state's authoritative landlord-tenant publication) for the 46:8-21.2 cap, prepaid-rent rule, 10% annual increase cap, pet-deposit rule, late-charge rules, and the 2A:42-6.1 protected-tenant grace period. September 12, 2026 addendum: N.J.S.A. 46:8-19 was re-read on the Legislature's statute viewer and its plain-text export, N.J.S.A. 55:13A-3 and 55:13A-7 on the statute viewer, and N.J.A.C. 5:10-5.1, 5:10-10.2 and 5:10-27.1 on the Department of Community Affairs compilation; the two remaining citations to a municipal copy of the Truth in Renting booklet were replaced with the Department's own current copy and the statutes themselves. October 1, 2026: every section the security deposit, rent increase, late fee, entry and eviction answers rest on was read again in the Legislature's own statutes database (lis.njleg.state.nj.us) and in its published statutes text, both updated through P.L.2026, c.30; each later 2026 chapter law through c.97 was opened, and none amends them. The sections: N.J.S.A. 46:8-19 to 46:8-26, 46:8-48 to 46:8-49.3, 2A:18-53 to 2A:18-61.3, 2A:39-1 and 2A:39-8, 2A:42-6.1 to 2A:42-6.3, 2A:42-9 and 2A:42-10.6 to 2A:42-10.16a, with P.L.2025, c.85. The Special Civil Part rules (R. 6:2-1 and R. 6:7-1) were read on the Judiciary's website, and the Department of Community Affairs' Truth in Renting guide and 2026 Rent Control Survey on nj.gov.