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 sit in an interest-bearing account at a New Jersey state or federally chartered bank, savings bank, or savings and loan, and 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 July 8, 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 rules, and fee limits that are stricter than the state-level rules on this page and are not covered here. 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, but roughly 100 municipalities — including Newark, Jersey City, Elizabeth, Paterson, and Fort Lee — maintain rent control or rent leveling ordinances with their own caps, notice rules, and boards. This is the leading NON-preemption state: 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.

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 and 2 more New Jersey statutes · Verified July 8, 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 renewal-time deposit increase limited to 10% per year. Within 30 days of move-out (5 days after fire, flood, or condemnation; 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 a landlord who misses the deadline or wrongfully withholds owes double the amount due, plus costs and often 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 deposit collected on renewal is capped at 10% of the current deposit per year. 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 days when the tenant is displaced by fire, flood, condemnation, or evacuation (with building-inspector certification mechanics), and 15 business days when a domestic-violence victim terminates the lease under N.J.S.A. 46:8-9.6. 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 sit in an interest-bearing account at a New Jersey state or federally chartered bank, savings bank, or savings and loan, and the interest or earnings belong to the tenant, paid annually in cash or credited against rent (N.J.S.A. 46:8-19). Landlords of 10 or more units may alternatively use qualifying insured money-market funds. The tenant must get written notice of the institution's name and address, the account type, and the rate within 30 days of receipt — and again at each annual interest payment, on transfer, and on sale. 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. Seasonal tenancies of 125 days or less are excused from the interest-bearing-account requirement only — not from the return obligation (NJ App. Div., 2025).
Pet deposits	Permitted only within the combined 1.5-month cap of 46:8-21.2; per the DCA guide, a pet deposit that pushes the combined total above one and one-half months' rent is unlawful.
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 July 8, 2026), landlordatlas.com/laws/security-deposits/new-jersey/" — free to cite and quote with a link (how these records are verified). Every figure above is cited to the New Jersey statute in the citations section below.

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

Notes and caveats

The prepaid-funds rule is the most commonly violated provision — 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. It is the provision New Jersey landlords break most often.
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. Tenants in exempt buildings must make a written demand before suing.
The 46:8-19 self-help remedy is unique to New Jersey — 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).
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.
Why the statute links point to a code mirror — New Jersey's official legislature portal lacks stable deep links to statute sections, so the section link goes to a code mirror and is not marked official. The official DCA 'Truth in Renting' guide and the 2025 Appellate Division opinion carry the official sourcing.

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 sit in an interest-bearing account at a New Jersey state or federally chartered bank, savings bank, or savings and loan, and 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.

Statute citations

N.J.S.A. 46:8-21.1 (verified 2026) Unofficial mirror
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) (verified 2026) Official source
N.J.S.A. 46:8-19 through 46:8-26 (Rent Security Deposit Act) as summarized in the NJ DCA 'Truth in Renting' guide (official state publication) security deposit chapter (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. New Jersey's official statute portal (njleg.state.nj.us) does not provide stable deep links to code sections, so section citations link to a code mirror where no official URL exists, with the official DCA guide and court opinion cited as official sources.