How much can a landlord deduct from a security deposit in Illinois?
Short answer: Illinois does not set a fixed dollar cap on deposit deductions. A lessor may withhold part of a security deposit as reimbursement for property damage only if the lessor furnishes a statutory itemized statement of the damage and the estimated or actual repair/replacement cost for each item—with paid receipts or copies attached—within 30 days after the lessee vacated or the lessee's right of possession ended, whichever is later.
If that statement and the required receipts (or copies) are not furnished, the lessor must return the deposit in full within 45 days of the vacate date. A circuit court finding that the lessor refused to supply the statement, or supplied it in bad faith, and failed to return the amount due on time can mean liability for twice the security deposit due, plus court costs and reasonable attorney's fees.
Do the math in 2 minutes: the free Kitwright Security Deposit Deduction Calculator prorates replaced items for wear and tear, totals your deductions, estimates Illinois return and statement dates, and prints an itemized statement. No sign-up, and nothing you type leaves your browser.
Who this guide covers
The Security Deposit Return Act (765 ILCS 710) applies to a lessor of residential real property who has received a security deposit from a lessee to secure the payment of rent or to compensate for damage to the leased premises. The Act took effect January 1, 1974 and applies to leases executed on or after that date (765 ILCS 710/2). A separate statute—the Security Deposit Interest Act (765 ILCS 715)—adds interest duties for lessors of properties with 25 or more units. Chicago units may also fall under the City's Residential Landlord and Tenant Ordinance (see the Chicago note below).
What an Illinois landlord can deduct
765 ILCS 710/1 regulates how and when a lessor may withhold deposit money as reimbursement for property damage. There is no statewide fixed dollar cap in § 1. In practice:
- Property damage with a timely itemized statement: you may withhold for damage allegedly caused to the leased premises if you furnish the statutory itemized statement (estimated or actual cost for repairing or replacing each item, with paid receipts or copies attached) within the 30-day window described below.
- Your own labor: if you use your own labor to repair or replace damage or damaged items caused by the lessee, you may include the reasonable cost of that labor (§ 1(a)).
- Lease-specified component costs: if a written lease specifies the cost for cleaning, repair, or replacement of a component of the leased premises (or of the building or common areas that, if damaged, will not be replaced), you may withhold the dollar amount specified in the lease. Those lease-specified costs must be for damage beyond normal wear and tear and reasonable to restore the premises to the condition at lease start. The itemized statement must reference the lease dollar amount for that component and include a copy of the applicable lease portion. Deductions for costs not specified in the lease still must follow the rest of the § 1 process.
What a landlord can't (or shouldn't) deduct: normal wear and tear
§ 1 does not define "normal wear and tear" with a statutory checklist. It does require that costs specified in a written lease for cleaning, repair, or replacement be for damage beyond normal wear and tear and be reasonable to restore the leased premises to the same condition as at the time the lease began. Treat ordinary aging from intended occupancy as non-claimable against the deposit, and reserve deductions for documented damage.
| Wear and tear (generally not a deposit claim) | Damage (may support a claim under § 1) |
|---|---|
| Carpet worn thin in a hallway from years of normal foot traffic | Carpet stained or destroyed by a pet the current tenant kept |
| Paint faded from sunlight and light scuffs from furniture | Large holes, unauthorized paint left unrestored, or marker damage |
| A defect already noted on a dated move-in walkthrough | A new broken window, missing appliance part, or similar tenant-caused damage |
Illustrative only—765 ILCS 710 does not list these examples. Keep invoices, receipts and dated photos. If the tenant sues over the deposit, expect to justify each dollar.
The 30-day statement / 45-day full-return timeline
- Itemized statement within 30 days: a lessor may not withhold any part of the deposit as reimbursement for property damage unless, within 30 days of the date the lessee vacated or within 30 days of the date the lessee's right of possession ends, whichever is later, the lessor furnished to the lessee an itemized statement of the damage allegedly caused and the estimated or actual cost for repairing or replacing each item, attaching paid receipts or copies (765 ILCS 710/1(a)).
- How to deliver the statement: personal delivery, postmarked mail directed to the lessee's last known address, or electronic mail to a verified electronic mail address provided by the lessee.
- If you gave estimates: furnish paid receipts (or copies) within 30 days from the date the estimate statement was furnished, delivered in person or by postmarked mail to the last known address or another address provided by the lessee.
- No statement → full return within 45 days: if no such statement and receipts (or copies) are furnished as required, the lessor shall return the security deposit in full within 45 days of the date the lessee vacated, delivered in person or by postmarked mail to the last known address or another address provided by the lessee. Example: vacate October 31 → full refund due by December 15 if no qualifying statement was furnished.
- Missing forwarding address: if the lessee fails to provide a mailing address or electronic mail address, the lessor is not liable for damages or penalties as a result of that failure (§ 1(a)).
- Unable to produce receipts through no fault of yours (§ 1(b)): produce an itemized list of the cost of repair or replacement, any other evidence of cost you have, and a verified statement detailing why receipts cannot be produced and verifying that all other evidence of cost was provided.
Need the dates on a calendar? Open the free calculator, pick Illinois, and it will estimate the statement / return window from your vacate date.
Worked example: an Illinois move-out
Hypothetical example (made-up numbers for illustration). A tenant with a $1,800 deposit vacates on October 31, 2026, provides a forwarding address, and owes no rent. You intend to claim two repair items and furnish a timely itemized statement with receipts.
| Item | How it's figured | Claim |
|---|---|---|
| Bedroom carpet ruined by pet urine (4 years old, expected to last 8, $1,000 to replace with similar quality) | Charge only the life it had left: $1,000 × (8 − 4) ÷ 8 | $500.00 |
| Patching and repainting a wall with many large anchor holes ($225 painter's invoice / paid receipt) | Invoice / receipt amount | $225.00 |
| Paint faded and lightly scuffed in the living room | Ordinary wear — not claimed | $0.00 |
| Total on the § 1 itemized statement | $725.00 | |
| Balance returned ($1,800 − $725), plus any interest due under 765 ILCS 715 or local rules | $1,075.00+ | |
Furnish the itemized statement with paid receipts (or copies) by November 30, 2026—the 30th day after vacate (or after the right of possession ends, if that is later)—by personal delivery, postmarked mail to the last known address, or e-mail to a verified address the lessee provided. If instead you never furnish the required statement and receipts, return the full $1,800 by December 15, 2026 (45 days after vacate). Illinois's statute does not prescribe a carpet-proration formula; charging only remaining useful life is one way to keep a claim defensible. Keep the invoice, receipts, and photos with your copy of the statement.
Run your own numbers: the free calculator applies the same proration approach and works out return-by dates for Illinois and 50 other jurisdictions (49 states + DC).
Security Deposit Interest Act (765 ILCS 715)
Separate from the Return Act, the Security Deposit Interest Act applies to a lessor of residential real property containing 25 or more units in either a single building or a complex of buildings on contiguous parcels who receives a security deposit:
- Rate: pay interest from the date of the deposit at a rate equal to the interest paid by the largest commercial bank (by total assets) with its main banking premises in Illinois on minimum deposit passbook savings accounts as of December 31 of the calendar year immediately preceding the inception of the rental agreement, on any deposit held more than 6 months (765 ILCS 715/1).
- When to pay: within 30 days after the end of each 12-month rental period, pay interest that has accumulated to $5 or more (cash or rent credit), except when the lessee is in default. Pay all unpaid accumulated interest (any amount) upon termination of the tenancy (§ 2).
- Willful failure: a lessor who willfully fails or refuses to pay the required interest is, upon a circuit court finding, liable for an amount equal to the security deposit, together with court costs and reasonable attorneys fees (§ 2).
- Public housing: the Act does not apply to deposits made with respect to public housing (§ 3).
IDFPR's January 6, 2026 release reported that as of December 31, 2025, the largest commercial bank with main banking premises in Illinois was The Northern Trust Company, Chicago, and the rate on minimum deposit savings accounts was 0.005% with an APY of 0.01%. The rate that applies to a given lease depends on the December 31 preceding that lease's inception—not necessarily the latest IDFPR announcement.
Chicago RLTO note
Chicago properties may also be covered by the City of Chicago Residential Landlord and Tenant Ordinance (Municipal Code Chapter 5-12). See the City's RLTO overview and security deposit interest rates pages. At a high level, the city's own summary on those official pages states that landlords must give a receipt for a security deposit; pay annual interest set by the City Comptroller on security deposits and prepaid rent held more than six months; provide an itemized statement of damages within 30 days of the date the tenant vacates before deducting; and, within 45 days of vacating, return the security deposit and required interest (if any) minus unpaid rent and expenses for damages. The city's 2026 interest-rate page sets the Chicago rate at 0.01% for calendar year 2026 (January 1 through December 31, 2026).
This guide does not restate the full RLTO. Check the city ordinance and the city's official summary for Chicago units. Local rules can be stricter than state law; when both apply, follow the stricter obligations that cover your property.
Penalties and disputes
- Double-deposit penalty (Return Act): upon a finding by a circuit court that a lessor refused to supply the itemized statement required by § 1, or supplied such statement in bad faith, and failed or refused to return the amount of the security deposit due within the time limits, the lessor is liable for an amount equal to twice the amount of the security deposit due, together with court costs and reasonable attorney's fees (765 ILCS 710/1(c)).
- Interest Act willful failure: willful failure or refusal to pay required interest → liability equal to the security deposit, plus court costs and reasonable attorneys fees, upon a circuit court finding (765 ILCS 715/2).
- Where disputes go: under Illinois Supreme Court Rule 281, a small claim is a civil action based on tort or contract for money not in excess of $10,000, exclusive of interest and costs. See also the Illinois Courts small claims page. Larger claims and the statutory penalty actions proceed in circuit court under the Acts.
When the property is sold or transferred
- Ordinary sale / transfer (765 ILCS 710/1.1): on sale, lease, transfer, or other direct or indirect disposition of residential real property—other than to the holder of a lien interest—by a lessor who has received a security deposit or prepaid rent, the transferee is liable to the lessee for any security deposit (including statutory interest) or prepaid rent the lessee paid to the transferor. The transferor remains jointly and severally liable with the transferee.
- Foreclosure purchaser / certificate holder (765 ILCS 710/1.2): when a lessor transfers actual possession of a security deposit (including unpaid statutory interest) to a holder of a certificate of sale or deed, or to the purchaser of a foreclosed property under Article XV of the Code of Civil Procedure, that holder or purchaser is liable to the lessee for the transferred deposit and unpaid statutory interest. Within 21 days after the transfer of the deposits and receipt of the lessee's name and address, the holder or purchaser must post a written notice on the primary entrance of each dwelling unit stating that the holder or purchaser has acquired the security deposit paid by the lessee for that unit.
Quick checklist before you send the refund or statement
- Confirm the vacate date and (if different) when the lessee's right of possession ended; start the 30-day statement clock from the later date.
- Decide: furnish a § 1 itemized statement with receipts within 30 days, or return the deposit in full within 45 days of vacate.
- If claiming, deliver by personal delivery, postmarked mail to last known address, or e-mail to a verified address the lessee provided; if you used estimates, calendar the follow-up 30-day receipt deadline.
- Cut anything that is ordinary wear and tear or was already present at move-in; for lease-specified component amounts, attach the applicable lease portion.
- Tie each claimed dollar to an invoice, receipt, or (when § 1(b) applies) other evidence plus a verified statement explaining missing receipts.
- If you hold 25+ units, calendar Interest Act payments ($5+ annually; all unpaid interest at termination) using the rate for the December 31 preceding lease inception.
- If the unit is in Chicago, also check the RLTO and city interest rules—local requirements can be stricter.
For your year-end records, the free Year-End Landlord Ops Checklist (Excel) includes a deposits section.
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Guides for other states
- Arizona: how much can a landlord deduct from a security deposit? (14 business-day itemized list after possession and demand, 1.5-month cap, nonrefundable fees in writing, move-out inspection notice, twice-the-amount damages)
- California: how much can a landlord deduct from a security deposit? (21-day itemized statement, receipts and photos, 2026 changes)
- Florida: how much can a landlord deduct from a security deposit? (15-day full return or 30-day claim notice, tenant 15-day objection, itemized claim)
- Georgia: how much can a landlord deduct from a security deposit? (30-day return after possession, move-in/out damage lists, two-month cap, escrow or bond, treble damages for wrongful withholding)
- New Jersey: how much can a landlord deduct from a security deposit? (30-day itemized return by personal delivery or registered/certified mail, 1.5-month cap, interest-bearing NJ account with written notice, double damages)
- New York: how much can a landlord deduct from a security deposit? (14-day refund, one-month cap, itemized list, forfeiture if late)
- North Carolina: how much can a landlord deduct from a security deposit? (30-day itemized accounting (60-day final if needed), statutory deposit caps, trust account or bond, willful noncompliance voids retention)
- Ohio: how much can a landlord deduct from a security deposit? (30-day itemized written notice + refund, written forwarding address, wrongful withholding doubled + attorney fees)
- Pennsylvania: how much can a landlord deduct from a security deposit? (30-day written damages list + refund, forfeit if late, double excess withheld)
- Texas: how much can a landlord deduct from a security deposit? (30-day refund, forwarding address, itemized list, bad-faith penalties)
- Washington: how much can a landlord deduct from a security deposit? (move-in checklist required, 30-day full and specific statement, up to 2x deposit)
For every other state's return deadline and statute, see the 51-jurisdiction table in the free deposit calculator.
Also for landlords: Do I need to send a 1099 to my contractor? (IRS rules for 2026 payments)
FAQ
How much can a landlord deduct from a security deposit in Illinois?
765 ILCS 710/1 does not set a fixed dollar cap. A lessor may withhold part of a security deposit as reimbursement for property damage only if the lessor furnishes the statutory itemized statement (with estimated or actual costs and paid receipts or copies) within 30 days after the lessee vacated or the lessee's right of possession ends, whichever is later. If a written lease specifies a dollar amount for cleaning, repair, or replacement of a component, the lessor may withhold that lease-specified amount for damage beyond normal wear and tear; the itemized statement must reference the lease amount and include a copy of the applicable lease portion. Other deductions still need the § 1 process.
How long does an Illinois landlord have to give the itemized damage statement?
Within 30 days of the date the lessee vacated the leased premises or within 30 days of the date the lessee's right of possession ends, whichever is later (765 ILCS 710/1(a)). Delivery may be by personal delivery, postmarked mail to the lessee's last known address, or electronic mail to a verified electronic mail address provided by the lessee.
What if an Illinois landlord does not furnish the statement and receipts?
If no such statement and receipts (or copies) are furnished as required by § 1, the lessor shall return the security deposit in full within 45 days of the date the lessee vacated the premises, delivered in person or by postmarked mail to the last known address or another address provided by the lessee (765 ILCS 710/1(a)). If the lessee fails to provide a mailing or electronic mail address, the lessor is not liable for damages or penalties from that failure.
What is the penalty for refusing to supply the statement or acting in bad faith in Illinois?
Upon a finding by a circuit court that a lessor refused to supply the itemized statement required by § 1, or supplied it in bad faith, and failed or refused to return the amount of the security deposit due within the time limits, the lessor is liable for twice the amount of the security deposit due, together with court costs and reasonable attorney's fees (765 ILCS 710/1(c)).
Do Illinois landlords have to pay interest on security deposits?
Under the Security Deposit Interest Act (765 ILCS 715), a lessor of residential real property containing 25 or more units in a single building or a contiguous complex who receives a security deposit must pay interest from the date of the deposit on any deposit held more than 6 months, at the rate paid by the largest commercial bank (by total assets) with its main banking premises in Illinois on minimum deposit passbook savings accounts as of December 31 of the calendar year immediately preceding the inception of the rental agreement. Interest of $5 or more accumulated must be paid within 30 days after the end of each 12-month rental period (cash or rent credit), except when the lessee is in default; all unpaid accumulated interest (any amount) is due upon termination of the tenancy. The Act does not apply to public housing deposits. IDFPR's January 6, 2026 release reported that as of December 31, 2025 the largest such bank was Northern Trust and the rate was 0.005% (APY 0.01%); the rate for a given lease depends on the December 31 preceding that lease's inception.
What counts as normal wear and tear in Illinois?
765 ILCS 710/1 does not publish a wear-and-tear checklist. It does require that costs specified in a written lease for cleaning, repair, or replacement be for damage beyond normal wear and tear and be reasonable to restore the premises to the condition at the start of the lease. Charge for deterioration beyond ordinary use, document move-in condition, and keep invoices, receipts, and photos.
Do Chicago landlords have extra rules beyond state law?
Chicago properties may also be covered by the City of Chicago Residential Landlord and Tenant Ordinance (Municipal Code Chapter 5-12). The city's official pages summarize additional deposit rules (receipt, interest set by the City Comptroller, itemized damage statement within 30 days, return within 45 days, and more). This guide does not restate the full RLTO; check the city's ordinance and summary. Local rules can be stricter than state law.
Where do Illinois security deposit disputes go?
Under Illinois Supreme Court Rule 281, a small claim is a civil action based on tort or contract for money not in excess of $10,000, exclusive of interest and costs. Circuit courts also hear deposit cases under 765 ILCS 710 and 715 (including the statutory double-deposit and interest-Act penalties). See the Illinois Courts small-claims information.
What happens to the deposit when an Illinois rental property is sold or transferred?
On sale, lease, transfer, or other disposition other than to a lien holder, the transferee is liable to the lessee for the security deposit (including statutory interest) or prepaid rent paid to the transferor, and the transferor remains jointly and severally liable (765 ILCS 710/1.1). Separate rules apply when a foreclosure purchaser or certificate holder receives actual possession of the deposit, including a 21-day posted notice requirement (765 ILCS 710/1.2).
Is this legal advice?
No. This page is general information based on 765 ILCS 710 and 765 ILCS 715 as published on ilga.gov, IDFPR's interest-rate release, and official City of Chicago and Illinois Courts pages as of November 2026. The lease and the facts of each case matter. Read the statute or talk to an Illinois attorney before you withhold money.
Sources
- 765 ILCS 710 (Security Deposit Return Act), including §§ 0.01, 1, 1.1, 1.2, and 2. Illinois General Assembly: ilga.gov ActID=2202; § 1 text: 076507100K1.htm (P.A. 103-224, eff. 1-1-24)
- 765 ILCS 715 (Security Deposit Interest Act), §§ 1–3: ilga.gov ActID=2203
- Illinois Department of Financial and Professional Regulation, Interest Rates Affecting the Security Deposit Interest Act (Jan 6, 2026 release; Dec 31, 2025 Northern Trust rate 0.005% / APY 0.01%)
- City of Chicago, Residential Landlord and Tenant Ordinance overview (Municipal Code Chapter 5-12)
- City of Chicago, Security Deposit Interest Rates (0.01% for calendar 2026)
- Illinois Supreme Court Rule 281 (Definition of Small Claim — $10,000 exclusive of interest and costs); Illinois Courts Small Claims