Texas Security Deposit Law 2026: Limits, Deadlines, and the $100 + 3x Penalty
- How long does a Texas landlord have to return a security deposit? 30 days after the tenant surrenders the property, running from when you also have the tenant's written forwarding address (§§92.103, 92.107).
- Is there a limit on security deposits in Texas? No state limit. Subchapter C caps nothing — the amount is set by your lease and the market.
- What can be deducted from a Texas security deposit? Damages and charges the tenant is legally liable for under the lease or by breaching it — unpaid rent, damage beyond normal wear and tear, early-termination costs. Never normal wear and tear (§92.104).
Texas gives landlords plenty of room on security deposits — no state cap on the amount, no required separate bank account. But the refund process is a minefield: miss the 30-day deadline and you can owe the tenant $100 plus three times the amount wrongfully withheld, plus their attorney's fees. Every section below is from Texas Property Code Chapter 92, Subchapter C (§§92.101–92.109).
The short version: Charge what the market bears (no state limit). Return the deposit — or the balance plus a written, itemized deduction list — within 30 days after the tenant surrenders the property and gives you a written forwarding address. Withhold in bad faith and §92.109 will ruin your month.
Watch the walkthrough: How long does a landlord have to return a security deposit in Texas? — the Practical Landlord video walkthrough of the 30-day rule, the § 92.107 forwarding-address freeze, and the § 92.109 bad-faith penalty, with the statute text on screen.
The statute table
| Citation | What it says (one line) |
|---|---|
| Tex. Prop. Code §92.101 | Subchapter C applies to residential tenancies — this is the deposit rulebook. |
| Tex. Prop. Code §92.102 | Defines "security deposit": any advance of money (not an application deposit or prepaid rent) meant to secure lease performance. |
| Tex. Prop. Code §92.103 | Refund the deposit by the 30th day after the tenant surrenders the premises; a lease clause conditioning the refund on advance notice of surrender is enforceable only if underlined or in conspicuous bold print. |
| Tex. Prop. Code §92.104(a)–(b) | Deduct only damages and charges the tenant is legally liable for under the lease or by breaching it — never normal wear and tear. |
| Tex. Prop. Code §92.104(c) | If you keep any of the deposit, deliver the balance plus a written description and itemized list of all deductions (exception: undisputed rent owed at surrender). |
| Tex. Prop. Code §92.107 | You owe nothing until the tenant gives you a written forwarding address — but the tenant doesn't forfeit the deposit by failing to provide one. |
| Tex. Prop. Code §92.109(a)–(b) | Bad-faith withholding: liable for $100 + 3x the amount wrongfully withheld + tenant's reasonable attorney's fees; bad-faith failure to itemize forfeits your right to withhold anything or sue for damages. |
| Tex. Prop. Code §92.109(c)–(d) | In a deposit suit, you must prove the retention was reasonable; missing the 30-day deadline creates a presumption you acted in bad faith. |
Limits: how much can you charge?
No state maximum. Nothing in Subchapter C caps the deposit amount — one month, two months, more; Texas leaves it to the market and your lease. Texas also doesn't require you to hold the deposit in a separate account or pay interest on it.
Practical guardrails still apply: an outsized deposit shrinks your applicant pool and invites scrutiny. Check what your local market charges with our Security Deposit Max Checker.
The 30-day deadline, precisely
The clock has two triggers, and landlords get this wrong constantly:
1. Surrender — the tenant vacates and gives up possession (§92.103).
2. Forwarding address — the tenant gives you a written statement of where to send the refund (§92.107(a)).
You're not obligated to send anything until you have the address — but the tenant doesn't lose the deposit by being slow to provide it (§92.107(b)). Once you have both, the 30 days run. Miss the deadline and §92.109(d) presumes you acted in bad faith — and in a lawsuit, the burden is on you to prove the retention was reasonable (§92.109(c)).
Get the date right every time with the Security Deposit Deadline Finder.
Track every deposit to its deadline: the Security Deposit Disposition & Deadline Tracker for Landlords 2026 ($14.95) keeps per-unit deposit records, deduction itemization, and the refund deadline in one workbook — so the 30-day clock never sneaks past you. General information, not legal advice.
Deductions and the itemized list
You may deduct damages and charges the tenant is legally liable for — unpaid rent, damage beyond normal wear and tear, lease-break costs. You may not deduct for normal wear and tear (§92.104(b)): that's deterioration from ordinary, intended use.
If you keep any portion, you must deliver the balance with a written description and itemized list of all deductions (§92.104(c)). The only exception: no list is required when the tenant owed rent at surrender and there's no dispute about the amount. Generate a compliant letter with the Security Deposit Deduction Letter Generator.
The penalty, spelled out
Under §92.109, a landlord who in bad faith retains a deposit owes:
- $100 flat,
- three times the portion wrongfully withheld,
- the tenant's reasonable attorney's fees.
Fail in bad faith to provide the itemized list, and you additionally forfeit the right to withhold any of the deposit or to sue the tenant for damages — even if the tenant trashed the place. Don't be the example.
Don't let a paperwork error cost you 3x the deposit
Rocket Lawyer's Texas-specific lease and move-out forms include the itemization language courts expect — a cheap shield against a §92.109 claim. Get Texas deposit forms
Facing a deposit dispute?
If a tenant is threatening a bad-faith claim, talk to a licensed Texas landlord-tenant attorney before the 30 days run out. LegalZoom can connect you quickly. Consult a Texas attorney
FAQ
How long does a Texas landlord have to return a security deposit?
30 days after the tenant surrenders the property, running from when you also have the tenant's written forwarding address (§§92.103, 92.107).
Is there a limit on security deposits in Texas?
No state limit. Subchapter C caps nothing — the amount is set by your lease and the market.
What can be deducted from a Texas security deposit?
Damages and charges the tenant is legally liable for under the lease or by breaching it — unpaid rent, damage beyond normal wear and tear, early-termination costs. Never normal wear and tear (§92.104).
What happens if the landlord misses the 30-day deadline?
The law presumes bad faith (§92.109(d)), exposing the landlord to $100 + triple the wrongfully withheld amount + the tenant's attorney's fees.
Does the tenant lose the deposit if they don't provide a forwarding address?
No — §92.107(b) says the right isn't forfeited. But the landlord's 30-day obligation doesn't start until the written address arrives, so tenants should send it the day they move out.
Can the deposit be applied to the last month's rent?
Not unilaterally — only with the landlord's express agreement. Note that §92.108 ("Liability for Withholding Last Month's Rent") bars tenants from withholding last month's rent on the theory that the deposit secures it — don't advise tenants to do it, and don't accept it as standard practice.
More security deposit guides
- Security deposit laws by state
- Tennessee security deposit law
- Utah security deposit law
- South Dakota security deposit law
- Vermont security deposit law
Last verified: September 28, 2026. This is general information, not legal advice. Verify with a licensed Texas attorney before acting.