Deposit limits · Indiana

Indiana Contractor Deposit Rules (2026): No Cap, a 3-Day Cancel and a 10-Day Refund

Indiana sets no deposit cap, but every residential home improvement contract can be cancelled for 3 business days, later on insurance work, and the deposit comes back within 10 days. From IC 24-5-11-10.6.

By Clamp ResearchReviewed by Emmanuel ForgeChecked against the official codesUpdated Oct 28, 2026

Short answer: Indiana sets no limit on deposit size. For residential real property improvement contracts entered after June 30, 2017, the consumer may cancel before midnight of the third business day after signing or, if applicable, after receiving the insurer's written final coverage decision, whichever is later (IC 24-5-11-10.6(c)). Within 10 days of a cancellation the supplier must return any payment or deposit, less the reasonable value of emergency services the consumer acknowledged in writing (IC 24-5-11-10.6(d), (e)). A violation is a deceptive act under the Deceptive Consumer Sales Act (IC 24-5-11-14).

Not legal advice. General information from each state's statutes, checked Oct 28, 2026. Local rules and the facts of your contract can change the answer; for a specific contract, ask a lawyer licensed in your state.

Clamp's payment edit sheet for payment 1 of 5, a deposit set to a fixed $1,000 (5.7% of a $17,698.76 proposal), due when signed

Set the deposit

Clamp's proposal payment schedule for a $17,698.76 bathroom remodel: a $1,000 deposit due when signed, stage payments of $7,124.52, $5,678.11 and $3,542.15 due when demolition, tile and carpentry start, and a $353.98 final payment at walkthrough

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.

What the law says

“any payment or deposit made by the consumer”
Indiana law IC 24-5-11-10.6(d) (mirror copy)

The maximum deposit, worked

Deposits on three Indiana jobs
Contract price	How it works out	Maximum deposit
$8,000	Any home improvement job: no cap, but the deposit is refundable for 3 business days	No cap
$25,000	Any home improvement job: no cap, but the deposit is refundable for 3 business days	No cap
$60,000	Any home improvement job: no cap, but the deposit is refundable for 3 business days	No cap

Who it covers and the exceptions

Covers

Real property improvement contracts on residential real property in Indiana entered after June 30, 2017 (IC 24-5-11-1, IC 24-5-11-10.6(a)).

Refund deadline

Supplier must tender any payment or deposit and any note within 10 days after cancellation (IC 24-5-11-10.6(d)).

Insurance work

Suppliers may not offer to pay or rebate an insurance deductible to win the job (IC 24-5-11-10.5(a)) and may not act as public adjusters (IC 24-5-11-10.5(d)).

Enforcement

A violation is a deceptive act actionable by the attorney general or the consumer under IC 24-5-0.5 (IC 24-5-11-14).

Indiana deposit questions

Does Indiana cap down payments?

No. IC 24-5-11 sets no deposit amount or percentage. It requires the contract price in the written contract and a refundable cancellation window.

When does the cancellation window close on an insurance job?

Midnight of the third business day after the later of signing or the consumer's receipt of the insurer's written final coverage determination (IC 24-5-11-10.6(c)).

Compare other states

Ohio: 10% over $25,000 Kentucky: insurance-paid work Wisconsin: prepayment rules All 50 states and DC

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 Oct 28, 2026.

This guide explains what the statutes say. It is not legal advice; for a specific contract, ask a lawyer licensed in your state.