HavenCostGuide

50 states · 11 project types · 550 deep-link deposit pages

How much deposit can a contractor legally ask for?

Oversized deposits are the #1 way bad contractors disappear with your money. Some states cap deposits by statute (California: 10% or $1,000, whichever is less). Most states don't — meaning industry standard + your written contract are the only protection. Pick your state to see the rules.

Universal red flag

If your contractor asks for more than 1/3 of the contract upfront — or if they ask you to wire payment to a personal account instead of a business bank — walk away. No legitimate licensed contractor in any state needs more than that to begin work.

Statutory caps — states that legally limit deposits

No statutory cap — industry standard applies

These states leave the deposit ceiling up to the contract. Industry standard: 10% for large jobs (kitchen, basement, pool), 15–25% for mid-size (bathroom, windows, deck), 25%+ for material-heavy short jobs (flooring, fence, painting).

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