Contractor Deposit Limits by State (2026), Worked in Dollars
The most a contractor can take up front on a home improvement job in every state and DC, quoted from each statute and worked on $8,000, $25,000 and $60,000 jobs.
Not legal advice. General information from each state's statutes, checked Oct 20, 2026. Local rules and the facts of your contract can change the answer; for a specific contract, ask a lawyer licensed in your state.
Set the deposit
Every payment tied to a stage
The deposit and payment schedule in the Clamp app: a $1,000 deposit due when the customer signs, then every other payment tied to a stage of the job. $1,000 on this $17,699 bathroom is under every state's cap. Sample data.
Look up your state's maximum deposit
Tap a state or pick it from the list, enter the contract price, and see the most the law lets a contractor collect before work starts.
- Caps the deposit (9)
- Limits certain jobs (22)
- No statewide cap found (12)
- Still being checked (8)
The states that cap deposits, compared
Each cap as the statute words it and the maximum on three contract sizes. Figures assume no exception applies; one thirds are rounded down to the cent.
| State | The cap | $8,000 job | $25,000 job | $60,000 job | Statute |
|---|---|---|---|---|---|
| California | $1,000 or 10% of the contract, whichever is less, on every home improvement contract. | $800 | $1,000 | $1,000 | BPC 7159.5(a)(3) |
| Nevada | $1,000 or 10%, whichever is less, on work for an owner who lives in a single-family home (contracts since October 1, 2023). | $800 | $1,000 | $1,000 | NRS 624.970(2)(g) |
| Maryland | One third of the contract price, at or before signing, at any contract size. | $2,666.66 | $8,333.33 | $20,000 | Bus. Reg. 8-617(b) |
| Maine | One third of the contract price, on contracts over $3,000. | $2,666.66 | $8,333.33 | $20,000 | 10 MRS 1487(5) |
| Massachusetts | One third, or the cost of special-order materials if that is greater, on contracts over $1,000. | $2,666.66 | $8,333.33 | $20,000 | G.L. c.142A s.2 |
| Pennsylvania | One third, plus special-order materials named in the contract, on contracts over $5,000. | $2,666.66 | $8,333.33 | $20,000 | Act 132 of 2008, s.9(10) |
| Ohio | 10% before work starts, plus up to 75% of non-returnable special-order items, for insured contractors on contracts over $25,000. Cost-plus contracts are exempt. | No cap | Unsettled ($2,500 is safe) | $6,000 | ORC 4722.04 |
| Vermont | Half the labor or half the materials, whichever is greater, on contracts with a maximum price: every job over $10,000, and a registered contractor's smaller jobs. Time-and-materials contracts with no maximum have no cap. | $2,000 to $4,000 | $6,250 to $12,500 | $15,000 to $30,000 | 26 VSA 5509(c)(1) |
| Tennessee | One third at or before signing on home improvements over $3,000, in the nine counties that adopted the Home Improvement law, unless the contractor is bonded or the owner agrees in writing to a payment schedule. | $2,666.66 | $8,333.33 | $20,000 | T.C.A. 62-6-510(12) |
Special-order example: on a $25,000 kitchen with $10,000 of custom cabinets, Massachusetts allows $10,000 (the greater figure) and Pennsylvania allows $18,333.33 (one third plus the cabinets).
No cap, but these jobs have their own rules
These rules apply to a kind of job, not to every contract, and most pages that list deposit limits leave them out.
Insurance roofing: $0 until the window closes
On roofing paid by an insurance claim, no payment can be required until a short cancellation window after the claim decision has passed, except emergency work.
Alabama, Georgia, Kentucky, North Carolina, South Carolina, West Virginia
New York roofing: no deposit at all
A roofing contractor "shall not require" a deposit, insurance claim or not. Materials are invoiced on delivery and the rest at completion. GBL 771-b
New York
Texas disaster repair: $0 before work
After a declared disaster, a contractor from outside the area can't require any payment before work begins, and a waiver is void. Bus. & Com. Code ch. 58
Texas
Arizona pools 15%, storm repair 50%
In-ground pools and spas: 15% down, $3,750 on a $25,000 pool. Catastrophic-storm repair: no more than 50% can be required. Other work has no cap.
Arizona
Florida: over 10% starts a clock
Take more than 10% and the contractor must apply for permits within 30 days and start within 90 days after the permits are issued. It is not a cap.
Florida
Trust funds: where the money goes
In these states a deposit belongs to that job's labor and materials, and misusing it is theft or a felony.
Delaware, Michigan, Minnesota, New York (escrow), Texas, Wisconsin
All 50 states and DC
Every row links to the statute we read. "Mirror copy" means the official site would not load and we read a Justia or similar copy; those rows are re-checked first.
| State | Rule | What the law says | On a $25,000 job | Statute | Read on |
|---|---|---|---|---|---|
| Alabama | Certain jobs | Insurance roofing: no payment can be required until 5 business days after a claim denial, except emergency work. | No cap; $0 in the roofing window | Ala. Code 8-36-2 | Mirror copy |
| Alaska | Being checked | No cap in the sections read; the full contractor chapter is still being read. | Being checked | AS 08.18 | Mirror copy |
| Arizona | Certain jobs | In-ground pools and spas: 15% down. Catastrophic-storm repair: no more than 50% can be required. Other work: no cap. | Pool $3,750; storm repair $12,500 | A.R.S. 32-1158.01, 32-1158.02 | Official code |
| Arkansas | Certain jobs | Insurance repair: no work may start in the 3-business-day window after a denial; 10-day refund if the owner cancels. | No cap | Ark. Code 4-88-904 | Mirror copy |
| California | Caps the deposit | $1,000 or 10% of the contract, whichever is less, on every home improvement contract. | $1,000 | BPC 7159.5(a)(3) | Official code |
| Colorado | Certain jobs | Residential roofing over $1,000: payments held in trust until materials arrive or most of the work is done; full deposit refund if the owner cancels within 72 hours of signing. | No cap | C.R.S. 6-22-103 | Mirror copy |
| Connecticut | No cap found | No cap. The contractor must refund within 10 days of a written request if no substantial work is done 30 days past the start date. | No cap | Gen. Stat. 20-427(b)(8) | Official code |
| Delaware | Certain jobs | No cap. Construction payments are trust funds; misuse is punishable by up to $1,000 and 3 years. | No cap | 6 Del. C. 3502 | Official code |
| District of Columbia | Being checked | No advance payment before the work is complete unless the contractor is licensed; the rest of the chapter is still being read. | Being checked | 16 DCMR 800.1 | Court opinion |
| Florida | Certain jobs | No cap. An initial payment over 10% means the contractor must apply for permits within 30 days and start within 90 days after the permits issue. | No cap; over $2,500 starts the clock | Fla. Stat. 489.126 | Official code |
| Georgia | Being checked | Insurance roofing: no payment can be required in the 5-day window after a denial. The licensing law is still being read. | Being checked | OCGA 10-1-393.12 | Mirror copy |
| Hawaii | No cap found | No cap. A written contract is required before work starts. | No cap | HRS 444-25.5 | Official code |
| Idaho | No cap found | No cap. Contracts over $2,000 need a disclosure statement. | No cap | Idaho Code 45-525 | Official code |
| Illinois | No cap found | No cap. Insurance-repair contracts can be cancelled after a denial, with a 10-day refund. | No cap | 815 ILCS 513 | Mirror copy |
| Indiana | Being checked | No deposit rule in IC 24-5-11-10; the rest of the chapter is still being read. | Being checked | IC 24-5-11 | Mirror copy |
| Iowa | No cap found | No cap. After a catastrophe, contractors can't rebate the deductible or negotiate the owner's claim. | No cap | Iowa Code 103A.71 | Official code |
| Kansas | Certain jobs | No cap. A roofer may not abandon a contract after a deposit has been paid. | No cap | K.S.A. 50-6,133 | Official code |
| Kentucky | Certain jobs | Insurance-paid work, residential or commercial: no advance payment can be required until 5 business days after a denial notice. | No cap; $0 in the window | KRS 367.626 | Official code |
| Louisiana | Certain jobs | No cap. Doing no work for 45 days after taking payment can show intent to defraud. | No cap | La. R.S. 14:202.1 | Official code |
| Maine | Caps the deposit | One third of the contract price, on contracts over $3,000. | $8,333.33 | 10 MRS 1487(5) | Official code |
| Maryland | Caps the deposit | One third of the contract price, at or before signing, at any contract size. | $8,333.33 | Bus. Reg. 8-617(b) | Official code |
| Massachusetts | Caps the deposit | One third, or the cost of special-order materials if that is greater, on contracts over $1,000. | $8,333.33 or the special-order cost | G.L. c.142A s.2 | Official code |
| Michigan | Being checked | Construction payments are trust funds; fraudulent diversion is a felony. The builder licensing rules are still being read. | Being checked | MCL 570.152 | Official code |
| Minnesota | Certain jobs | No cap. Payments are held in trust for the people who did the work; misuse is theft. | No cap | Minn. Stat. 514.02 | Official code |
| Mississippi | Being checked | An insurance roofing payment rule is reported; the official text is still being read. | Being checked | Miss. Code 73-59 | Mirror copy |
| Missouri | Certain jobs | Insurance-paid exterior work: the owner can cancel until the fifth business day after a denial. | No cap | RSMo 407.725 | Official code |
| Montana | No cap found | No cap. Misappropriating client funds is unprofessional conduct. | No cap | MCA 37-45-301 | Official code |
| Nebraska | Certain jobs | Insurance repair: the owner can cancel after a denial, with a 10-day refund. | No cap | Neb. Rev. Stat. 44-8603 | Official code |
| Nevada | Caps the deposit | $1,000 or 10%, whichever is less, on work for an owner who lives in a single-family home (contracts since October 1, 2023). | $1,000 | NRS 624.970(2)(g) | Official code |
| New Hampshire | No cap found | No cap. Home solicitation sales of $150 or more can be cancelled within 3 business days. | No cap | RSA 361-B | Official code |
| New Jersey | Being checked | No cap in the home improvement practices rule; final payment can't be required before completion. The statute is still being read. | Being checked | N.J.A.C. 13:45A-16.2 | Mirror copy |
| New Mexico | No cap found | No cap. Abandoning a job or converting funds is grounds for license discipline. | No cap | 14.5.8 NMAC | Official code |
| New York | Certain jobs | A roofing contractor can't require any deposit. Other home improvement advance payments go into escrow within 5 business days, or are bonded. | No general cap; roofing $0 | GBL 771-b(5) | Official code |
| North Carolina | Certain jobs | Insurance roofing: no work and no payment until 5 business days after a denial (contracts since October 1, 2024). | No cap; $0 in the window | G.S. 14-401.13(b1) | Official code |
| North Dakota | Certain jobs | No cap. Abandoning a job after payment is a felony, graded by the amount paid. | No cap | N.D.C.C. 43-07 | Official code |
| Ohio | Caps the deposit | 10% before work starts, plus up to 75% of non-returnable special-order items, for insured contractors on contracts over $25,000. Cost-plus contracts are exempt. | Unsettled; $2,500 is safe | ORC 4722.04 | Official code |
| Oklahoma | Certain jobs | Insurance roofing: the owner can cancel within 72 hours of a denial, with a 10-day refund; a roofer may not abandon a job after a deposit. | No cap | 59 O.S. 1151.21 | Mirror copy |
| Oregon | Certain jobs | No cap. Taking over 50% and then not performing, or not refunding within 10 days of a demand, allows license probation. | No cap | ORS 701.312 | Enacting law |
| Pennsylvania | Caps the deposit | One third, plus special-order materials named in the contract, on contracts over $5,000. | $8,333.33 plus named materials | Act 132 of 2008, s.9(10) | Official code |
| Rhode Island | No cap found | No cap. Work over $1,000 needs a written contract. | No cap | R.I. Gen. Laws 5-65 | Official code |
| South Carolina | Certain jobs | Insurance roofing: no payment can be required until the 5-day cancellation period ends. | No cap; $0 in the window | S.C. Code 40-59-25(C) | Official code |
| South Dakota | Certain jobs | Insurance roofing: the owner can cancel within 72 hours of a denial, with a 10-day refund. | No cap | SDCL 37-24-51 | Official code |
| Tennessee | Caps the deposit | One third at or before signing on home improvements over $3,000, in the nine counties that adopted the Home Improvement law, unless the contractor is bonded or the owner agrees in writing to a payment schedule. | $8,333.33 in those 9 counties | T.C.A. 62-6-510(12) | Mirror copy |
| Texas | Certain jobs | Disaster repair by out-of-area contractors: no payment can be required before work begins. Homestead contracts over $5,000: payments go in a construction trust account. | No general cap; disaster $0 | Bus. & Com. Code 58.003 | Official code |
| Utah | No cap found | No cap. Abandoning a job is unprofessional conduct. | No cap | Utah Code 58-55-502 | Mirror copy |
| Vermont | Caps the deposit | Half the labor or half the materials, whichever is greater, on contracts with a maximum price: every job over $10,000, and a registered contractor's smaller jobs. Time-and-materials contracts with no maximum have no cap. | $6,250 to $12,500 | 26 VSA 5509(c)(1) | Official code |
| Virginia | No cap found | No cap. The contract must state the down payment. | No cap | 18VAC50-22-260 | Official code |
| Washington | No cap found | No cap. The required disclosure tells owners they can withhold retainage. | No cap | RCW 18.27 | Official code |
| West Virginia | Being checked | Insurance roofing: no advance payment until the cancellation period ends. The contractor chapter is still being read. | Being checked | W. Va. Code 46A-6M-4 | Official code |
| Wisconsin | Certain jobs | No cap. Any payment before the work is done needs a written contract with dates, can be spent only on that job, and is refunded within 15 days if a deadline is missed. | No cap | ATCP 110.05 | Official code |
| Wyoming | Certain jobs | Storm repair: the owner can cancel within 3 business days; payments are refunded within 3 days. | No cap | W.S. 40-12-705 | Enacting law |
What other deposit-limit pages get wrong
We read about twenty pages that answer this question. These are the claims they repeat most, checked against the statute.
“New York has no cap, just escrow”
Roofing contractors can't require any deposit at all under GBL 771-b(5).
“Texas has no deposit rule”
Disaster repair contractors can't require payment before work begins under chapter 58.
“Tennessee caps at one third statewide”
It applies only in the nine counties that adopted the Home Improvement law: Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford and Shelby.
“Massachusetts is one third plus materials”
It is whichever is greater: one third, or the special-order cost. Pennsylvania is the state that adds them.
“Nevada is pools only; Vermont has no cap”
Nevada's cap covers owner-occupied homes since October 2023. Vermont caps maximum-price contracts at half the labor or half the materials.
“Maryland went to 50% in October 2026”
HB1499 proposed it; its hearing was canceled in March 2026. Maryland is still one third.
Questions contractors and homeowners ask
How much deposit can a contractor legally ask for?
In most states, whatever the contract says. A handful set a cap: $1,000 or 10% in California and Nevada, and one third in Maryland, Maine, Massachusetts and Pennsylvania. Look up your state above.
Is it legal for a contractor to ask for 50% down?
Not on a covered job in the states that cap deposits (Vermont reaches 50% only when a job is all labor or all materials), and not on insurance roofing in six states or any roofing in New York. Elsewhere it is legal, though Oregon can put a contractor on probation for taking over 50% and then not performing.
Does Florida cap contractor deposits at 10%?
No. Over 10% is allowed, but it obliges the contractor to apply for permits within 30 days and start within 90 days after the permits are issued.
Do special-order materials change the limit?
In three states. Massachusetts allows the special-order cost if it is more than one third, Pennsylvania adds materials named in the contract, and Ohio allows up to 75% of non-returnable special-order items.
What happens if a contractor takes too much?
It depends on the state: a misdemeanor in California and Maryland, an unfair trade practice in Massachusetts and Pennsylvania, and in Nevada the owner can void the deposit term.
How we checked
We read each state's statute or licensing rule on the official legislature or agency site and quote it as written. Where the official site would not load, the row says so and names the copy we read. A state stays "still being checked" until we have read the full rule; we never mark it "no cap" before then. Last checked .
This guide explains what the statutes say. It is not legal advice; for a specific contract, ask a lawyer licensed in your state.