Texas Contractor Deposit Rules (2026): No Cap, but $0 Before Disaster Work
Texas sets no general cap on contractor deposits, but disaster repair contractors can't require payment before work begins. Quoted from Business and Commerce Code chapter 58.
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
“may not require a person to make a full or partial payment under a contract before the contractor begins work”
The maximum deposit, worked
| Contract price | How it works out | Maximum deposit |
|---|---|---|
| $8,000 | Covered disaster repair: nothing before work begins | $0 |
| $25,000 | Covered disaster repair: nothing before work begins | $0 |
| $60,000 | Covered disaster repair: nothing before work begins | $0 |
Who it covers and how the money is held
Who is exempt
A contractor who has kept a physical business address for at least one year in the property's county or an adjacent county.
After work starts
Partial payments must be reasonably proportionate to the work performed. A violation is a deceptive trade practice.
Trust account
Construction payments are trust funds, and a written homestead contract over $5,000 needs a construction account. Misapplying $500 or more is a Class A misdemeanor (Property Code ch. 162).
Texas deposit questions
Is there a cap on contractor deposits in Texas?
No general cap. The disaster rule bars requiring payment before work on covered disaster repair, and homestead contracts over $5,000 need a construction trust account.
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.