Reference: the security deposit rule in each state and covered city. To settle a deposit, use the free Deposit settlement tool.

Reference

Security deposit rules in Maryland

Maryland: return the deposit within 45 calendar days of the end of the tenancy. 8-203(h): a tenant who was evicted or abandoned must demand return by first-class mail within 45 days, giving a new address; the landlord then has 45 days from receipt of that notice. Interest: conditional. Penalty if the deposit is kept without a reasonable basis: 3x the amount withheld. (Md. Code, Real Prop. 8-203)

The rule in plain words

Return by: 45 calendar days after the end of the tenancy.
Deductions allowed: unpaid rent, damage beyond wear, other lease obligations. Normal wear and tear never. Depreciation: none.
Interest: Conditional, 3.47%.
Penalty: 3x the amount withheld if the deposit is kept without a reasonable basis.
Deposit cap: 1 month(s) of rent.

The rule text

Within 45 days after the end of the tenancy, the landlord shall return the security deposit to the tenant together with simple interest which has accrued at the daily U.S. Treasury yield curve rate for 1 year, as of the first business day of each year, or 1.5% a year, whichever is greater, less any damages rightfully withheld.

Md. Code, Real Prop. 8-203(e)(1). Source: Md. Code, Real Property 8-203 Security deposits, read 2026-10-09.

Notes on this rule (1)

Official worked tool: the DHCD Rental Security Deposit Calculator (interest), usable for deposits held on or after 2015-01-01.

Research notes (1)

How we sourced this rule: where the text was read and what we could not check.

Condition 'bad_faith' maps the statute's 'without a reasonable basis'.

Worked example

A $2,000.00 deposit; the tenant moved in on June 1, 2023 and out on September 30, 2026. Intended deductions: $300.00 unpaid rent, $150.00 cleaning and a $1,200.00 carpet that was 5 years old.

Return by: November 14, 2026
45 calendar days after the end of the tenancy.
Allowed deductions: $1,500.00
Of $1,650.00 claimed.
Refund due: $772.07
Interest $272.07.

The draft statement for this example

DRAFT ITEMIZED STATEMENT OF SECURITY DEPOSIT
Rule: Md. Code, Real Prop. 8-203 (Maryland)
Move-out date: September 30, 2026

Security deposit held                            $2,000.00
Interest credited                                  $272.07
Deduction: Unpaid rent                            -$300.00
Deduction: Carpet                               -$1,200.00
Total deductions                                -$1,500.00
Refund due to tenant                               $772.07
Return by                                   November 14, 2026

Notes:
- The itemized statement of costs must include supporting documentation identifying the materials or services provided ((j)(1)). An estimate may be used; the landlord must then notify the tenant when repairs are done, with a copy of the final invoice, and refund any excess over actual cost within 30 days after completing repairs ((k)). Effective date of (j)-(k) not established.
- Itemized under Md. Code, Real Prop. 8-203.

Settle a deposit in Maryland

required

Where and how much

The state sets the rules; a covered city adds its own.

StateCityAdds the city's ordinance where we cover one.Deposit heldMonthly rentChecks the deposit cap.Units in the buildingInterest depends on it in IL, NY.

Dates

The dates start the clock.

Tenant moved outTenancy startedFor interest and item ages.Lease endedIf not the move-out day.Forwarding address receivedStarts or holds the clock in CT, IA, MN, RI, SD, TX, WY.Tenant's written demand receivedStarts the clock in AZ, KS, MD, MS, OK, SC, UT.New tenant moved inCan start the clock in WI, WV.Notice of claim sentFlorida: the day you sent the notice of your claimReturn period in the lease (days)The lease may set it in CO, ID, ME.

The tenant gave the notice the statute requiresChanges the deadline in AK.Repairs exceed the deposit and need a contractorCan extend the deadline in VA, WV.

Check as of another date

Check as ofDefaults to today. Use it to see where a past or future date stands.

Deductions

What you intend to keep; leave it empty to return everything. An item's age depreciates carpet, paint, blinds and appliances.

Deduction 1

CategoryAmountItem age or install dateNormal wear and tearOrdinary aging: never deductible.

Up to 9 lines.

Documentation

Some states require receipts or dated photos before a deduction stands.

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Computes and cites the published rule; it is not legal advice. You sign the statement: check the statute, your lease and any local ordinance first. Read the disclaimer.

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