Minnesota Security Deposit Rules: Caps, Lawful Deductions & Penalties (2026)

How much a landlord can charge, and which deductions are actually legal

At a glance

Who this covers — and who it does not

This page covers how much a landlord may charge in Minnesota, and which deductions from a residential deposit are lawful. It assumes the tenancy has ended and the question is what may be withheld.

It does not cover:

How much the landlord may charge in the first place

No statewide cap. Minnesota imposes no statutory limit on the amount of a security deposit under § 504B.178. (A landlord may not, however, require a tenant to use the deposit to pay the last month's rent in violation of Subd. 8.)

Caps frequently carry exceptions — smaller landlords, furnished units, or pets are treated differently in most states. Read the provision itself rather than relying on the headline figure.

Which deductions the statute permits

Claimed deductionPermitted in Minnesota
Amounts reasonably necessary to remedy tenant defaults in payment of rent or other funds duePermitted, if substantiated
Amounts reasonably necessary to restore the premises to their condition at the start of the tenancy, ordinary wear and tear exceptedPermitted, if substantiated

Which deductions the statute does not permit

Claimed deductionPermitted in Minnesota
Ordinary wear and tearNot permitted
Any amount withheld without a written statement of the specific reason within 3 weeksNot permitted
Any amount withheld after failure to comply with the notice requirements (penalty + bad-faith presumption)Not permitted

Whether a specific charge is lawful depends on the facts — how old the damage is, whether the lease addressed it, and whether the landlord can document the cost. A charge being in the "permitted" column does not make it automatically collectable.

Who has to prove what

In any action concerning the deposit, the burden of proving, by a fair preponderance of the evidence, the reason for withholding all or any portion of the deposit is on the landlord.

In Minnesota the burden sits with the landlord. This matters strategically: if the burden is theirs, your task is to request the documentation rather than to prove the deduction wrong. Minn. Stat. § 504B.178 Subd. 3(c) ↗

What you can claim if deductions are unlawful

Tools that exist in Minnesota

Three weeks (21 days), not 30 days

Minnesota's return deadline is three weeks after termination of the tenancy — shorter than the 30-day standard in many states. Do not confuse it with 30 days.

Minn. Stat. § 504B.178 Subd. 3(a)(1) ↗

Penalty equal to the withheld amount, plus the withheld amount

On failure to comply, the landlord owes the withheld amount back, plus an equal amount as a penalty — roughly 2x the withheld amount. Bad-faith retention adds punitive damages up to $500 per deposit.

Minn. Stat. § 504B.178 Subd. 4, Subd. 7 ↗

1% simple interest on the deposit

Minnesota requires the landlord to pay 1% per annum simple (non-compounded) interest on the deposit, computed from the first day of the next month after full payment of the deposit.

Minn. Stat. § 504B.178 Subd. 2 ↗

Statute of limitations: 6 years on a written contract

A deposit claim under a written lease is subject to a 6-year limitations period under Minn. Stat. § 541.05.

Minn. Stat. § 541.05 ↗

Common landlord defences and how to answer them

““I kept the deposit for damages.””

Minnesota requires return of the deposit or a written statement of the specific withholding reason within 3 weeks (21 days). You may withhold only for rent defaults or damage beyond ordinary wear and tear. Provide the statement, or return my deposit with interest.

Minn. Stat. § 504B.178 Subd. 3

““You did not provide a forwarding address.””

I provided my mailing address in writing. The 3-week clock runs from your receipt of that address, and the return/statement obligation now attaches.

Minn. Stat. § 504B.178 Subd. 3(a)

““The deposit covered normal wear.””

Ordinary wear and tear is expressly excepted. You may withhold only amounts reasonably necessary to remedy rent defaults or restore the premises beyond ordinary wear.

Minn. Stat. § 504B.178 Subd. 3(b)(2)

Where sources disagree

Some widely circulated summaries of Minnesota deposit law state things the statute does not say. We list the disagreements rather than picking a side silently.

Return deadline (30 days vs 3 weeks)

SourceWhat it says
Some generic summaries30 days
Minn. Stat. § 504B.178 Subd. 3(a)(1)three weeks (21 days)

What we follow: 21 days

The statute plainly states "within three weeks after termination of the tenancy." Reporting 30 days overstates the landlord's window.

Penalty structure (2x vs penalty-plus-return)

SourceWhat it says
Some summaries2x the deposit
Minn. Stat. § 504B.178 Subd. 4withheld amount back + equal penalty (≈2x withheld), plus up to $500 punitive for bad faith

What we follow: Withheld amount + equal penalty (≈2x withheld)

The statute's structure is "an amount equal to the portion withheld as a penalty, in addition to the portion wrongfully withheld" — keyed to the withheld amount, not the full deposit, with a separate $500 punitive cap for bad faith.

Sources and how to verify them

Every figure on this page comes from the official text, not from a summary. The table below lists each provision used and the date it was last checked against the source.

StatuteLast verifiedSource
Minn. Stat. § 504B.178 Subd. 3(a) 2026-10-15 official text ↗
Minn. Stat. § 504B.178 Subd. 4 2026-10-15 official text ↗
Minn. Stat. § 504B.178 Subd. 7 2026-10-15 official text ↗
Minn. Stat. § 504B.178 Subd. 3(c) 2026-10-15 official text ↗
Minn. Stat. § 504B.178 Subd. 3(a)(1) 2026-10-15 official text ↗
Minn. Stat. § 504B.178 Subd. 4, Subd. 7 2026-10-15 official text ↗
Minn. Stat. § 504B.178 Subd. 2 2026-10-15 official text ↗
Minn. Stat. § 541.05 2026-10-15 official text ↗

Primary reference: Minn. Stat. § 504B.178. Where the official text and a secondary summary disagree, this page follows the official text and says so. Amendments are recorded on the site changelog.

When you need a lawyer instead of a tool

A self-help letter is the right starting point for a single deposit you can document. Get legal help if:

Local legal aid organisations and tenant unions offer free help for qualifying cases. They are independent of this site — we list them because they are the right place to go, not because they link here.

More Minnesota guides

Minnesota Security Deposit Return

→ All Minnesota tenant rights topics

Common questions

What can a landlord not deduct from my Minnesota deposit?

The statute does not permit deductions for: ordinary wear and tear; any amount withheld without a written statement of the specific reason within 3 weeks; any amount withheld after failure to comply with the notice requirements (penalty + bad-faith presumption).

Who has to prove that a deduction was justified in Minnesota?

The landlord. In any action concerning the deposit, the burden of proving, by a fair preponderance of the evidence, the reason for withholding all or any portion of the deposit is on the landlord.

How much can a landlord charge as a deposit in Minnesota?

No statewide cap. Minnesota imposes no statutory limit on the amount of a security deposit under § 504B.178. (A landlord may not, however, require a tenant to use the deposit to pay the last month's rent in violation of Subd. 8.)

Is ordinary wear and tear deductible from my Minnesota deposit?

No. Ordinary wear and tear