Last updated: August 4, 2026
Texas Security Deposit Laws 2026: No Limit + 30-Day Return
Texas has no cap on security deposits and a 30-day return window. But bad faith retention triggers 3x penalties + $100 + attorney fees. Here is exactly what the law requires.
Key Takeaways
- NO statutory limit on deposit amount — the market determines what tenants will accept
- 30 calendar days to return after move-out (Property Code §92.103)
- Itemized list of deductions required with any partial return
- Bad faith retention: tenant can sue for 3x wrongfully withheld + $100 + attorney fees
- Landlord may deduct: unpaid rent, damages beyond wear, cleaning, early termination charges in lease
Deposit Limits
Texas has no statutory limit on the amount a landlord can charge as a security deposit. Unlike California (which caps deposits at one month’s rent), Arizona (1.5 months), or New York (one month), Texas leaves the amount entirely to the market.
Texas Security Deposit Limit
No Statutory Limit
Market standard: 1–2 months’ rent. No law restricts the amount.
In practice, most Texas landlords collect one month’s rent as a deposit. Some charge more for tenants with lower credit scores or pets (pet deposits are common and unrestricted). The absence of a cap gives landlords flexibility but also means tenants can challenge unreasonable deposits as unconscionable under general contract law.
30-Day Return Rule
Under Property Code §92.103, the landlord must refund the security deposit (or provide a written itemization of deductions) within 30 calendar days after the tenant surrenders the premises and provides a forwarding address in writing.
30 Days
From the date the tenant moves out AND provides a forwarding address
Written
Itemized list of deductions must accompany any partial refund
Key Details
- The 30-day clock does not start until the tenant provides a forwarding address in writing
- If the tenant does not provide a forwarding address, the landlord’s obligation is suspended — but the deposit must still be returned eventually
- The refund (or itemized deduction statement) must be mailed to the forwarding address provided by the tenant
- If the landlord’s duty to refund is disputed, the landlord must still refund the undisputed portion within 30 days
Tip: Include a forwarding address field in your move-out checklist. If the tenant fails to provide one, document your attempts to request it. This protects you from bad-faith claims.
Legal Deductions
Texas law allows landlords to deduct the following from a security deposit (Property Code §92.104):
Unpaid rent
Any rent owed at the time of move-out, including accelerated rent if the lease allows it.
Damages beyond normal wear and tear
Holes in walls, broken fixtures, stained or burned carpets, damaged appliances — not ordinary aging or fading.
Cleaning costs
To restore the unit to move-in condition. Document the condition at move-in and move-out with photos.
Early termination charges
If the lease includes an early termination fee or liquidated damages clause, these can be deducted.
Utility charges
Unpaid utility bills that are the tenant’s responsibility under the lease.
You cannot deduct for: normal wear and tear (paint fading, carpet wear from normal use, minor scuffs), pre-existing damage, or repairs the landlord is responsible for under §92.052. Keep detailed move-in/move-out inspection records.
Penalties for Bad Faith Retention
Under Property Code §92.109, if a landlord retains a security deposit in bad faith, the tenant can recover:
3x the amount wrongfully withheld
Treble damages on the portion of the deposit retained in bad faith.
$100 statutory penalty
Automatic $100 penalty in addition to treble damages.
Reasonable attorney fees
The tenant’s attorney fees are recoverable if the court finds bad faith.
Example Penalty Calculation
$1,500 deposit wrongfully withheld = $4,500 (3x) + $100 + attorney fees = $4,600+ total liability
“Bad faith” includes failing to return the deposit within 30 days, fabricating deductions, withholding the deposit without providing an itemized list, or retaining amounts for normal wear and tear.
Normal Wear vs Damage
Texas law does not define “normal wear and tear” precisely, but courts generally apply common-sense standards. Here is how typical items are categorized:
| Normal Wear and Tear | Tenant Damage (Deductible) |
|---|---|
| Faded paint from sunlight | Crayon, marker, or large scuff marks on walls |
| Minor nail holes (1–2 per wall) | Large holes, anchors, or wall-mounted TV damage |
| Carpet wear in high-traffic areas | Burns, stains, pet damage, or tears in carpet |
| Loose door handles from normal use | Broken doors, damaged locks, kicked-in panels |
| Minor scuffs on wood floors | Deep scratches, gouges, or water damage |
| Worn caulk around tub/shower | Mold from tenant neglect, broken tiles |
Document the unit’s condition at move-in and move-out with timestamped photos. This is your primary evidence if a deposit dispute goes to court.
Frequently Asked Questions
Can I charge a non-refundable deposit in Texas?
A deposit labeled “non-refundable” may still be treated as a security deposit under Texas law and subject to the refund rules of §92.101–109. Texas courts look at the substance of the payment, not what it is called. If it functions as security for the lease, the 30-day return and bad-faith penalty rules apply. Non-refundable fees (like cleaning fees or admin fees) are generally permissible if clearly distinguished from deposits in the lease.
What if the tenant does not provide a forwarding address?
The 30-day clock does not start until the tenant provides a forwarding address in writing. If the tenant never provides one, the landlord’s obligation to refund within 30 days is suspended — but the deposit must still be available for return. Best practice: mail the refund or itemized statement to the tenant’s last known address (the rental property) and keep a copy.
Can I use the deposit for last month’s rent?
The tenant cannot unilaterally apply the deposit to the last month’s rent. The security deposit belongs to the landlord as security, and unpaid rent is one of the allowed deductions. However, the landlord may choose to apply the deposit to unpaid rent after move-out as part of the deduction process. Include a lease clause stating the deposit cannot be used as rent.
Written by Rachid Abadli
Sacramento-based landlord and founder of LeaseBase
This guide is based on Texas Property Code §92.101–§92.109 (Security Deposits) and related case law. Last verified against the Texas Legislature Online database on August 4, 2026.
Texas Security Deposit Resources
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This guide is for informational purposes only and does not constitute legal advice. Security deposit rules and court interpretations vary and are subject to change. Consult a qualified Texas real estate attorney for guidance on your specific situation.