Security Deposit Laws in Indiana

Based on Ind. Code § 32-31-3-12 · Last verified 2026

Indiana Security Deposit at a Glance

Return Deadline
45 days after move-out
Penalty for Late Return
Actual damages + additional penalty
Statute
Ind. Code § 32-31-3-12
Max Deposit
No statutory limit
Itemized Statement Required
Yes (within 45 days)
Walk-Through Required
No
Interest on Deposit
No
Small Claims Limit
$8,000
Filing Fee
~$70

Your Rights Under Ind. Code § 32-31-3-12

Under Ind. Code § 32-31-3-12, landlords in Indiana must return a tenant's security deposit — or the balance after lawful deductions — within 45 days after the tenancy ends and the tenant vacates the unit. Along with the return, the landlord must provide a written, itemized statement of any deductions within 45 days. Failure to provide this statement is independently actionable.

If a landlord fails to return the deposit within 45 days, Indiana law allows tenants to recover the withheld amount plus court costs and attorney fees.

What Your Landlord CAN Deduct

These deductions are permissible under Indiana law when properly documented.

  • Unpaid rent
  • Damage beyond normal wear and tear
  • Cleaning if lease requires and unit was left dirty
  • Lease-break fees if specified in lease
  • Costs to replace items tenant removed or kept

What Your Landlord CANNOT Deduct

These deductions are illegal in Indiana. If your landlord charged you for any of these, you have grounds to dispute them.

  • Normal wear and tear (minor scuffs, small nail holes, faded paint)
  • Carpet replacement after useful life (typically 7-10 years)
  • Painting after 2+ year tenancy (normal wear)
  • Pre-existing damage not noted at move-in
  • Upgrades or improvements beyond restoring to original condition
  • Costs to fix landlord deferred maintenance

Small Claims Court in Indiana

Court
Small Claims Court
Claim Limit
$8,000
Filing Fee
~$70

If your landlord ignores your demand letter, small claims court is designed for exactly this kind of dispute. No lawyer is required — most tenants represent themselves. File in the county where the rental property is located. Bring your lease, move-out checklist, any written communications, and photos of the unit. The entire process typically takes 30–90 days from filing to judgment.

Frequently Asked Questions

How long does my landlord have to return my deposit in Indiana?

Under Ind. Code § 32-31-3-12, landlords in Indiana must return the security deposit within 45 days after the tenancy ends. They must also provide an itemized statement of any deductions within 45 days.

What happens if my Indiana landlord doesn't return my deposit on time?

If a landlord fails to return the deposit within 45 days, Indiana law allows tenants to recover the withheld amount plus court costs and attorney fees. You can send a formal demand letter and, if ignored, file in Small Claims Court without an attorney.

Can my landlord deduct for normal wear and tear in Indiana?

No. Under Ind. Code § 32-31-3-12, normal wear and tear — including minor scuffs, small nail holes, and carpet worn from normal use — cannot be deducted from your security deposit in Indiana. Only damage beyond normal wear and tear is a valid deduction.

How do I file a small claims case for my security deposit in Indiana?

File in Small Claims Court in the county where the rental property is located. The filing fee is approximately $70, and Indiana's small claims limit is $8,000. No lawyer is required. Bring your lease, move-out documentation, and any written communications with your landlord.

Check if your landlord owes you money

Now that you know your Indiana rights — find out if your landlord violated them.

Check My Rights Free

Free. Takes 2 minutes. Real statute citations.

DepositHawk is not a law firm and does not provide legal advice. Information and documents are for informational purposes only. No attorney-client relationship is created. Consult a licensed attorney for advice specific to your situation. This information is based on Ind. Code § 32-31-3-12 as of 2026. Laws change. Verify current statutes at your state legislature's website.