Pennsylvania Contractor Deposit Limit (2026): One Third Plus Special Order
The most a Pennsylvania home improvement contractor can take up front, quoted from the Home Improvement Consumer Protection Act and worked with custom materials.
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.
What the law says
“Except as provided under subparagraph (ii), for a home improvement contract in which the total price is more than $5,000, receive a deposit in excess of: (A) one-third of the home improvement contract price; or (B) one-third of the home improvement contract price plus the cost of special order materials that will be ordered, as designated in the written contract.”
The maximum deposit, worked
| Contract price | How it works out | Maximum deposit |
|---|---|---|
| $5,000 | At or under $5,000, the cap does not apply | No cap |
| $8,000 | One third, with no special order | $2,666.66 |
| $25,000 | One third, with no special order | $8,333.33 |
| $25,000 | With $10,000 of custom cabinets named in the contract: $8,333.33 plus $10,000 | $18,333.33 |
| $60,000 | One third, with no special order | $20,000 |
Who it covers and the penalty
Covers
Home improvement contracts over $5,000. The definition of home improvement does not include the construction of a new home.
Before signing
No person may demand or receive any payment for a home improvement before the contract is signed (s.9(9)).
The penalty
A violation is deemed a violation of the Unfair Trade Practices and Consumer Protection Law (s.10).
Also in the law
- A home improvement retailer that posts an irrevocable letter of credit of $100,000 per store, up to $2,000,000, is outside the cap.
- Bills to change the cap, such as SB 1324 (laid on the table June 25, 2026), are not law.
Pennsylvania deposit questions
Can special-order materials push the deposit above one third?
Yes, if the materials are named in the written contract: the deposit can be one third plus their cost.
Compare other states
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.