Published 2026-09-27 · 10 min read

New Hampshire Security Deposit Law 2026: Limits, Deadlines & Deductions

New Hampshire's security deposit rules live in the security-deposit subdivision of RSA 540-A, sections 540-A:5 through 540-A:8. The deposit is capped at the greater of $100 or one month's rent, it stays the tenant's money held in trust until you comply with the return section, and you get 30 days from the termination of the tenancy to return it with an itemized list. Blow the return or interest rule and damages are twice the sum of the deposit plus any interest due, minus payments made and lawful charges owing (RSA 540-A:8, I(b)). Violate the cap, trust-account, or transfer rule instead, and it is automatically an unfair practice under RSA 358-A:2 (RSA 540-A:8, I(a)) — a different, potentially larger exposure.

The short version: First check whether you are even a "landlord" under this subdivision — a person who rents a single-family residence and owns no other rental property, or units in an owner-occupied building of five or less, is not, except for a unit occupied by someone 60 or older (RSA 540-A:5, I). If covered: collect no more than the greater of $100 or one month's rent, counting everything beyond the monthly rent (RSA 540-A:5, II; 540-A:6, I(a)). Receipt forthwith at collection, money held in trust at a New Hampshire institution (or post the statutory bond), interest at the regular savings rate once held a year or longer, and the balance plus interest with an itemized list returned within 30 days after termination (RSA 540-A:6; 540-A:7).

What the earlier version of this page got wrong: It cited the wrong sections throughout — return is RSA 540-A:7 (not 540-A:8), interest is RSA 540-A:6, IV (not 540-A:7), the penalty is RSA 540-A:8 (not 540-A:4). Substantively: there is no 30-day written notice of where the deposit is held — the receipt is due forthwith at collection (RSA 540-A:6, I(b)). The penalty is not "double the amount wrongfully withheld," and the text has no willfulness element — it is twice the deposit plus interest due, less payments and lawful charges (RSA 540-A:8, I(b)). Estimates are acceptable repair evidence (RSA 540-A:7, I). The old page also omitted the RSA 540-A:5 exemptions and definition, the bond alternative, the transfer rule, the forwarding-address defense, and the void-waiver rule.

New Hampshire's 30-day return clock runs with itemized receipts and annual interest owed after a year — the paperwork never really stops. The Security Deposit Disposition & Deadline Tracker ($14.95) keeps your return deadlines, itemized deductions, and mailing dates in one spreadsheet so the clock never sneaks up on you.

The statute table

Limits: how much can you charge?

The cap is one month's rent or $100, whichever is greater (RSA 540-A:6, I(a)) — and RSA 540-A:5, II defines what counts toward it: all funds in excess of the monthly rent transferred for any purpose. That is why pet and key deposits live inside the cap rather than on top of it: money beyond the monthly rent is a security deposit whatever you call it. A lease requiring quarterly rent payments is allowed, but the deposit taken on top of the initial payment still may not exceed one month's rent equivalent. The subdivision covers rentals for other than vacation or recreational purposes (including manufactured housing park space), subject to the RSA 540-A:5, I carve-outs. Check your numbers with the Security Deposit Max Checker.

The 30-day deadline, precisely

Within 30 days from the termination of the tenancy, return the deposit and pay the interest due, if any (RSA 540-A:7, I). If you deduct for damage, the return must come with a written, itemized list stating with particularity the nature of each repair, plus satisfactory evidence the repair has been or will be completed: receipts for repair materials, labor estimates, and invoices at actual or estimated cost. Two front-end deadlines also run: the receipt is due forthwith at collection (RSA 540-A:6, I(b)), and on a sale or assignment the deposit changes hands within 5 days (RSA 540-A:6, III(a)). Find your exact cutoff with the Security Deposit Deadline Finder.

When the clocks actually start

New Hampshire runs several clocks off different events, and summaries blur them:

• The 30-day return clock runs from the termination of the tenancy (RSA 540-A:7, I) — the legal end date, not the day the keys come back. A holdover or early-surrender dispute is a termination question first.
• The interest clock runs from the date you received the deposit (RSA 540-A:6, IV(a)): it accrues from receipt, and the duty attaches at one year or longer. No annual payment date exists apart from the every-3-years request right in IV(c).
• The 6-month unclaimed clock also runs from termination (RSA 540-A:8, II), only in the forwarding-address situation below.
• The receipt has no clock at all — "forthwith" means at collection, not within 30 days.

A worked example

Rent is $1,200 a month, and you hold a $1,200 deposit — exactly at the cap. The tenancy terminates on Monday, March 2, 2026.

• The deposit and any interest due must be returned by Wednesday, April 1, 2026 — 30 days after termination.
• Your lawful deductions total $650: unpaid rent and documented damage beyond wear and tear, itemized with particularity and backed by receipts and a labor estimate. The balance due is $550.
• You send the list and the $550 on or before April 1: you have complied.
• If instead you keep the whole $1,200 past April 1, damages under RSA 540-A:8, I(b) are twice the deposit plus interest due (2 × $1,200 = $2,400), less the $650 in lawful charges — $1,750. The formula doubles the deposit, not the $550 withheld.

Deductions and the itemized list

RSA 540-A:7 allows exactly two deduction tracks, each with its own itemization rule:

• Damage (paragraph I). Deduct repair costs for damage to the premises, excluding reasonable wear and tear. The list must state each damage and the repair needed with particularity, with satisfactory evidence the repair has been or will be completed — receipts, labor estimates, or invoices at actual or estimated cost.
• Money claims (paragraph II). Deduct unpaid rent, the tenant's share of any increase in real estate taxes levied and due during the term — only if the lease requires the tenant to pay it — and other lawful charges due under the lease. State the period for each claim.

The move-in paperwork makes deductions defensible: the receipt (or the separate written notice for check-paid deposits) tells the tenant to note conditions needing repair within 5 days of occupancy (RSA 540-A:6, I(b)–(c)) — the baseline every later claim is measured against. Generate a compliant letter with the Security Deposit Deduction Letter Generator.

Move-out compliance checklist

1. Confirm coverage before you collect. If you qualify for the RSA 540-A:5, I carve-outs (single-family only, or owner-occupied building of 5 or less with no tenant 60 or older), this subdivision does not govern you — document why.

2. Total everything beyond the monthly rent against the cap — deposit, pet money, key money — at or under the greater of $100 or one month's rent (RSA 540-A:5, II; 540-A:6, I(a)).

3. Receipt forthwith at collection, signed, stating the amount and where the deposit or bond will be held — unless the deposit came by personal, bank, or agency check; then give the written 5-day notice instead (RSA 540-A:6, I(b)–(c)). The 5-day notice is owed either way.

4. Hold the money in trust at a New Hampshire bank, savings and loan, or credit union — one account for all deposits is fine; your personal funds in it are not. Or post the RSA 540-A:6, II(c) bond.

5. Calendar the one-year interest date from receipt, and answer any tenant request for the institution, account number, balance, and rate (RSA 540-A:6, IV).

6. Log the termination date the day it happens, inspect immediately, and price deductions against the two RSA 540-A:7 tracks.

7. Return the balance plus interest due by day 30 with the itemized list; keep proof of sending. If the tenant left no new address, document it — your RSA 540-A:8, II defense; unclaimed funds are not yours until 6 months after termination.

Interest and where the money sits

The deposit is the tenant's money, held in trust (RSA 540-A:6, II(a)): never mingled with your personal money, and not your asset until RSA 540-A:7 is complied with. All tenants' deposits may share one trust account at a New Hampshire bank, savings and loan, or credit union (II(b)) — or post a bond with the town clerk, from a New Hampshire company, equal to total deposits held in that town (II(c)). Hold a deposit one year or longer and you owe interest at the regular savings rate, accruing from receipt; on a mingled account, each tenant gets the actual interest earned, proportionately (IV(a)). On request, disclose the institution, account number, amount, and rate, and let the tenant examine the records (IV(b)). Every three years the tenant may claim accrued interest early — request 30 days before that year's tenancy expires, payment within 15 days after (IV(c)). Run the numbers with the Security Deposit Interest Calculator.

The penalty, spelled out

RSA 540-A:8 runs two remedy tracks, depending on which duty you broke:

• Return and interest failures (RSA 540-A:8, I(b)). Fail the interest rule (RSA 540-A:6, IV) or the return rule (RSA 540-A:7) and damages are twice the deposit plus any interest due, less payments made and charges owing. The text has no willfulness requirement — a negligent miss pays the same doubled base. On a $1,200 deposit with $650 of lawful charges and no interest due: 2 × $1,200 − $650 = $1,750, though the balance owed was only $550. With no lawful charges, the full $2,400.
• Cap, account, and transfer failures (RSA 540-A:8, I(a)). Break RSA 540-A:6, I, II, or III and you are deemed to have violated RSA 358-A:2. Under RSA 358-A:10 the tenant recovers actual damages or $1,000, whichever is greater — 2 to 3 times that if willful or knowing — plus costs and attorney's fees. A $300 pet deposit collected "on top" starts at the $1,000 floor.
• The forwarding-address defense (RSA 540-A:8, II). No liability, and no forfeiture, if the failure was due to the tenant not notifying you of a new address on termination. Deposits unclaimed 6 months after termination then become your property — absent fraud. Document the missing address; without it, the defense does not exist.
• Waivers are void (RSA 540-A:8, III). A lease clause waiving any of these rights is void.

FAQ

Am I exempt from the New Hampshire deposit rules?

Possibly. Under RSA 540-A:5, I, a person renting a single-family residence who owns no other rental property is not a "landlord" under this subdivision, and neither is a person renting units in an owner-occupied building of five or less — except any unit occupied by a person 60 or older. Vacation rentals sit outside the definitions too.

Can I collect first month, last month, and a deposit?

The cap is on the security deposit — all funds in excess of the monthly rent (RSA 540-A:5, II; 540-A:6, I(a)). Pet and key deposits count toward the cap instead of stacking on it. A lease may require quarterly payments, but the deposit taken with the initial payment still cannot exceed one month's rent equivalent.

Do I always have to give a receipt?

Almost. On receiving a deposit you must forthwith deliver a signed receipt stating the amount and where the deposit or bond will be held (RSA 540-A:6, I(b)). No receipt is required when the deposit is paid by personal check, bank check, or agency check (I(c)) — but the written 5-day condition-list notice is owed either way.

Does each tenant's deposit need its own bank account?

No. RSA 540-A:6, II(b) allows all deposits in a single trust account at a New Hampshire bank, savings and loan, or credit union. Never mingle them with personal money (II(a)). A clerk-posted bond under II(c) replaces the account.

When exactly does the 30-day clock start — move-out or termination?

Termination. RSA 540-A:7, I requires return "within 30 days from the termination of the tenancy" — the legal end date controls, not the key-return date.

Can I support a deduction with an estimate instead of a paid invoice?

Yes. RSA 540-A:7, I accepts "satisfactory evidence" the repair has been or will be completed, expressly including repair-material receipts, labor estimates, and invoices at actual or estimated cost — paired with an itemized list describing each repair with particularity.

What if the tenant leaves no forwarding address?

Hold the money and document the omission. Under RSA 540-A:8, II, you are not liable if the noncompliance was due to the tenant's failure to notify you of a new address on termination — and a deposit plus interest unclaimed 6 months after termination becomes yours, absent fraud.

What does a missed deadline actually cost — is it double what I withheld?

No. For return and interest failures, RSA 540-A:8, I(b) sets damages at twice the deposit plus interest due, less payments made and lawful charges — the base is the whole deposit, with no willfulness element. Cap, account, and transfer violations are deemed RSA 358-A:2 violations instead: actual damages or $1,000, whichever is greater, 2-to-3 times if willful or knowing, plus costs and fees (RSA 358-A:10).

Read the statute yourself

Everything here traces back to RSA 540-A:5 through 540-A:8 (and RSA 358-A:10 for the consumer-protection track). If anything is disputed, the primary sources control:

• RSA 540-A (New Hampshire Legislature) — the official full chapter text: definitions (§ 540-A:5), cap, receipt, account, bond, transfer, and interest (§ 540-A:6), return (§ 540-A:7), remedies (§ 540-A:8).
• RSA 358-A:10 (New Hampshire Legislature) — the official private-action remedy incorporated by RSA 540-A:8, I(a).
• RSA 540-A:7 (Justia) — the return section on Justia, with §§ 540-A:5, :6, and :8 in the same listing.
• RSA 540-A:6 (Cornell LII) — Legal Information Institute mirror of the procedure section.

The deposit is only one piece of New Hampshire compliance. Our full New Hampshire landlord-tenant law guide covers the rest of the relationship — rent, fees, and increases, the rental agreement rules, required disclosures, the RSA 48-A:14 habitability standards and the RSA 540:13-d defense, entry under RSA 540-A:3, and the RSA 540:3 termination notice ladder.

More security deposit guides

• Security deposit laws by state
• Nevada security deposit law
• New Jersey security deposit law
• Nebraska security deposit law
• New Mexico security deposit law

Last verified: October 15, 2026. This is general information, not legal advice. Verify with a licensed New Hampshire attorney before acting.