Free tool · Paying a contractor

How much can a contractor ask for up front?

Deposit limits, refund deadlines, cancellation rights, and recovery funds for all 50 states and DC. Every entry cites the statute or state agency page it came from.

Checked October 3, 2026. General information, not legal advice.

All states

Deposit rules, state by state

A cap is a hard legal limit on money taken before work starts. Conditional means a larger deposit is allowed but triggers extra duties. Where we could not open the statute itself, the state is marked not verified instead of guessed.

States with a deposit cap (7)

California Down payment may not exceed $1,000 or 10% of the contract amount, whichever is less. Beyond the down payment, the contractor may not request or accept payment exceeding the value of work performed or materials delivered. Cap

Applies to: All home improvement contracts (including swimming pools) over $500 between an owner or tenant and a licensed or license-required contractor (B&P 7159, 7159.5).
Exceptions: A contractor furnishing a CSLB-approved performance and payment bond, lien and completion bond, bond equivalent, or joint control is exempt from the down payment, payment schedule, and value-of-work limits (7159.5(a)(8)).
Other payment and cancellation rules: Contract must be written with a dollar schedule of progress payments tied to work or materials, a 12-point bold down payment notice, and a commencement-of-work statement (7159). 3 business day right to cancel (5 business days for seniors 65+); payments refunded within 10 days of cancellation. Violating the down payment cap is a misdemeanor, fine $100 to $5,000 (7159.5(b)). Since January 1, 2026, the contract must also say whether a subcontractor will be used (SB 517, Stats. 2025, ch. 585).
Source: Cal. Bus. & Prof. Code 7159, 7159.5, 7167. Read it

Maine The initial down payment is limited to no more than 1/3 of the total contract price. "Down payment" means all payments made before or at the signing of the contract. Cap

Applies to: Home construction contracts over $3,000 in materials or labor to build, remodel or repair a residence (including electrical, plumbing, heating, carpeting, windows and other nonstructural work).
Exceptions: Parties may exempt themselves from the chapter only if the contractor specifically informs the homeowner of their rights under it and both mutually agree to a contract without the required parts (10 M.R.S. 1489).
Other payment and cancellation rules: Contracts over $3,000 must be written, signed by both parties, and copies given before work starts; required terms include start and completion dates, total price, method of payment, statutory warranty, dispute resolution options, and the AG consumer information addendum. Change orders must be written and signed. Door-to-door contracts must describe cancellation rights under Maine's home solicitation laws. Violations are prima facie unfair trade practices with $100 to $1,000 civil forfeiture per violation.
Source: 10 M.R.S. 1486, 1487(5), 1488, 1489, 1490. Read it

Maryland A contractor may not receive a deposit of more than one-third of the home improvement contract price before or at the time the contract is signed, and may not demand or receive any payment before the contract is signed. Cap

Applies to: Home improvement contracts under the Maryland Home Improvement Law (licensed by the Maryland Home Improvement Commission).
Other payment and cancellation rules: Contracts must be written, legible and signed, with contractor and salesperson license numbers, approximate start and completion dates, description of work and materials, agreed price, payment schedule, and Commission notices; the owner gets a signed copy before work begins. If payment is secured by an interest in the home, the contract must give a 3 business day right to rescind. Rooftop solar contracts must include a wildlife barrier unless waived.
Recovery fund: Home Improvement Guaranty Fund: pays owners for actual loss from a licensed contractor's act or omission, up to $30,000 per claimant and $250,000 per contractor (Bus. Reg. 8-405).
Source: Md. Code, Bus. Reg. 8-617, 8-501, 8-405. Read it

Massachusetts Any deposit paid before work starts may not exceed the greater of one-third of the total contract price or the actual cost of special order or custom made materials or equipment that must be ordered in advance. No final payment may be demanded until the contract is completed to the satisfaction of the parties. Cap

Applies to: Residential contracting agreements over $1,000 on pre-existing owner occupied buildings of 1 to 4 dwelling units (renovation, repair, additions, etc.).
Exceptions: Special order or custom made materials can raise the deposit above one-third up to their actual cost.
Other payment and cancellation rules: Contracts over $1,000 must be written and include start and completion dates, a payment schedule in dollars, registration number, and notice of 3-day cancellation rights (c.93 s.48 and others) and permit duties. No work may begin before signing and delivery of a copy. Acceleration clauses are banned; an insecure contractor may require the unpaid balance be put in a joint escrow account.
Recovery fund: Residential Contractors' Guaranty Fund: compensates owners for unpaid judgments or arbitration awards against registered contractors; owners who pull their own permits are excluded (c.142A s.2, s.5). Per-claim cap not verified.
Source: M.G.L. c.142A s.1, s.2(a)(6), s.5. Read it

Nevada Initial down payment or deposit before work starts may not exceed $1,000 or 10% of the contract price, whichever is less. This applies to residential improvement contracts with an owner-occupant of a single-family residence (NRS 624.970, contracts on or after Oct 1, 2023), and separately to residential pool/spa (NRS 624.940) and residential solar (NRS 624.875) contracts. Cap

Applies to: Licensed residential contractors contracting with the owner of a single-family residence for construction, remodeling, repair or improvement of a completed home; pool/spa and solar have their own sections with the same cap.
Exceptions: For general residential improvement (624.970) the cap does not apply if the contractor has filed a $100,000 consumer-protection bond with the Board or has been granted relief under NRS 624.270(5). The owner may void a contract that violates the deposit cap.
Other payment and cancellation rules: Written contract with required terms, including a dollar-and-cents progress payment schedule; payments may never exceed 100% of the value of work performed (except the initial deposit) unless a payment and performance bond is furnished. Owner gets copies and a signed receipt for money paid. Pool/spa and solar contractors who take the deposit must start work within 30 days after permits issue (624.935, 624.870).
Recovery fund: Residential Recovery Fund (NRS 624.400 to 624.560): owners of single-family residences damaged by a residential contractor's violation can recover actual damages up to $40,000 per claim; $750,000 or 20% of the fund cap per contractor.
Source: NRS 624.970; NRS 624.940 and 624.935 (pool/spa); NRS 624.875 and 624.870 (solar); NRS 624.470, 624.510. Read it

Pennsylvania For a home improvement contract over $5,000, the contractor may not receive a deposit above one-third of the contract price, or one-third plus the cost of special order materials designated in the written contract. No payment may be demanded or received before the contract is signed. Cap

Applies to: Home improvement contracts for private residences (single family, up to 2-unit multifamily, condo/co-op units) under HICPA; excludes new home construction.
Exceptions: Cap does not apply to a home improvement retailer that posts an irrevocable letter of credit ($100,000 per store, up to $2,000,000) and ensures its contractors are registered and insured. Contracts of $5,000 or less have no statutory cap.
Other payment and cancellation rules: Contract must be written and signed and list the down payment and special order materials separately, start and completion dates, registration number, and more (517.7(a)). 3 business day right of rescission (517.7(b)). Contractor must refund within 10 days of a certified-mail request if no substantial work was done and more than 45 days have passed since the contract start date (517.9(2)).
Source: 73 P.S. 517.7, 517.9(9)-(10) (Home Improvement Consumer Protection Act, Act 132 of 2008). Read it

Vermont For registered residential contractors on contracts over $10,000 priced as a maximum price or time-and-materials with a not-to-exceed price, the down payment may be up to one-half of the labor cost or one-half of the materials price, whichever is greater. Cap

Applies to: Residential construction (build, demolish, alter, renovate, repair) on dwellings of four or fewer units, for contracts over $10,000 by persons required to register with the Office of Professional Regulation.
Exceptions: Time-and-materials contracts with no maximum price: down payment as negotiated. Chapter exemptions include licensed engineers, architects and DPS-licensed tradespeople within scope, appliance delivery/installation, landscaping, work on detached structures, and emergency work.
Other payment and cancellation rules: Written contract required before taking a deposit or starting work when value exceeds $10,000; must state price basis, estimated start and completion dates, scope and materials, and a change order process; amendments in signed writing. State 3-day home solicitation cancellation rule not checked.
Source: 26 V.S.A. 5501, 5502, 5509(b) and (c), 5510. Read it

Conditional rules (3)

Arizona Only for residential in-ground swimming pools and spas: down payment at signing may not exceed 15% of the contract price, then payment draws capped at 25% each at excavation, steel/plumbing/shotcrete, and decking, with the balance before interior finish. No general home improvement deposit cap. Pools only

Applies to: Licensed contractors building a residential in-ground pool or spa for a buyer who lives or will live in the home (ARS 32-1158.01).
Exceptions: If the buyer requires a payment and performance bond, the parties may change the pool payment schedule in any manner they agree.
Other payment and cancellation rules: Contracts over $1,000 must be in writing and state total price, any advance deposit amount, each progress payment and the stage at which it is due, and the ROC complaint notice; contractor must give copies and a receipt for cash (ARS 32-1158). Pool contracts must notify the buyer of rights under Title 44 ch. 15 (home solicitation cancellation, not separately opened).
Recovery fund: Residential Contractors' Recovery Fund: for owner-occupants damaged by a licensed residential contractor's violation; max $30,000 per claim (ARS 32-1132, 32-1133).
Source: ARS 32-1158, 32-1158.01, 32-1131 to 32-1140. Read it

Florida No flat percentage cap, but a contractor who takes an initial payment of more than 10% of the contract price on residential work must apply for permits within 30 days and start work within 90 days after permits issue, unless just cause or the owner agrees in writing to longer periods. Failing to do so (and not refunding within 30 days of a certified-mail demand) is a crime graded by amount. Conditional

Applies to: Repair, restoration, improvement, or construction of residential real property; 'contractor' includes anyone doing such work, licensed or not.
Exceptions: Work that needs no permit skips the 30-day permit step; owner may agree in writing to longer periods; 'just cause' defense. A 2024 bill to require escrow of residential deposits (SB 1778, Escrow Accounts for Improvements to Residential Real Property) died in Senate Regulated Industries on 3/8/2024 and is not law.
Other payment and cancellation rules: A contractor paid more than the value of work performed may not stop work for any 90-day period (or contract-specified period) without just cause. Contracts over $2,500 must include the Florida Homeowners' Construction Recovery Fund notice (s. 489.1425). Home solicitation sales over $25 can be cancelled until midnight of the third business day (s. 501.025).
Recovery fund: Florida Homeowners' Construction Recovery Fund: pays, up to a limited amount, homeowners harmed by specified violations of a licensed contractor, after a judgment, arbitration award, or board restitution order and exhausting bonds/insurance (ss. 489.140, 489.141).
Source: Fla. Stat. 489.126; 489.1425; 489.140; 489.141; 501.021, 501.025; 2024 SB 1778 (died). Read it

Tennessee Home improvement contractors may not require a down payment of more than one-third of the contract price (stated by the TN Attorney General and Dept. of Commerce and Insurance). Some counties

Applies to: Home improvement contractors under T.C.A. 62-6-501 et seq.; the home improvement license covers residential remodeling of $3,000 to $24,999 in the counties that adopted it (Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, Shelby).
Exceptions: Secondary sources say a performance/payment bond furnished by the contractor allows a larger deposit; not verified from primary statute text.
Other payment and cancellation rules: Home improvement licensees must post a $10,000 bond or letter of credit for homeowners damaged by breach (Rule 0680). State officials advise a written contract with dates, payment terms and change order terms. 3-day cancellation and refund timing not verified.
Source: T.C.A. 62-6-510 (per secondary sources; statute text on Lexis not opened); T.C.A. 62-6-501. Read it (from the state agency page; statute text not opened)

No statewide cap (39)

Alabama No statewide cap found in statute; check local licensing rules. The Home Builders Licensure Act (Ala. Code 34-14A) and HBLB rules (Ala. Admin. Code 465-X) contain no deposit or down payment limit. No cap

Applies to: Residential remodelers contracting directly with a homeowner when the cost of the undertaking exceeds $10,000 ($2,500 for residential roofing) must be HBLB licensed.
Other payment and cancellation rules: Licensees must use a valid written contract signed by all parties showing the HBLB license number (34-14A-7(f)). Per the AG, insurance-paid roofing contracts must include a notice of cancellation and the homeowner may cancel within 5 business days after the insurer denies coverage (roofing statute itself not opened). No progress payment or refund timing rule found.
Recovery fund: Homeowners' Recovery Fund: pays actual economic damages after a court judgment against a licensee; max $30,000 per transaction and $90,000 per licensee (34-14A-15; Rule 465-X-7).
Source: Ala. Code 34-14A-2, 34-14A-7(f), 34-14A-15; Ala. Admin. Code 465-X-1, 465-X-7. Read it

Alaska No statewide cap found in statute; check local licensing rules. The contractor registration law (AS 08.18) has no deposit or down payment limit and no home improvement contract act. No cap

Applies to: All registered contractors; residential work needs a residential contractor endorsement (AS 08.18.025).
Other payment and cancellation rules: No written contract, progress payment, or refund timing rule in AS 08.18. Door-to-door sales of $10 or more carry a 5 business day right to revoke with written notice (AS 45.02.350).
Source: AS 08.18.011 to 08.18.171 (bond: 08.18.071, $20,000 residential-only general contractor; claims: 08.18.081); AS 45.02.350. Read it

Arkansas No statewide cap found in statute; check local licensing rules. The Residential Contractors licensing law (Ark. Code 17-25-501 et seq.) and committee rules have no deposit or down payment limit. No cap

Applies to: Home improvement and residential building contractors on projects over $2,000 must be licensed by the Residential Contractors Committee (17-25-505, 17-25-513).
Other payment and cancellation rules: No statutory written contract terms, progress payment, or refund timing rule found in the residential licensing law. The AG advises a written contract with payment terms and warns against full payment before work is finished (guidance, not law). Roofing contractors can be disciplined for mishandling entrusted funds (17-25-601 et seq.).
Source: Ark. Code Ann. 17-25-501 to 17-25-515; 17-25-601 et seq. (roofing). Read it

Colorado No statewide cap found in statute; check local licensing rules (Colorado has no statewide contractor license; cities like Denver license locally). Residential roofing only: contractor must hold any owner payment in trust until roofing materials are delivered or a majority of the work is done. No cap

Applies to: The trust rule applies to roofing contractors on residential property (CRS 6-22-103); no general home improvement statute.
Other payment and cancellation rules: Roofing contracts must be written before work, state the cancellation and deposit refund policy, and allow rescission with full deposit refund within 72 hours of signing. If paid by insurance, owner may rescind within 72 hours of a claim denial and payments must be returned within 10 days, less the value of work actually performed (6-22-104).
Source: CRS 6-22-101 to 6-22-105. Read it

Connecticut No statewide cap found in statute; check local licensing rules. The Home Improvement Act (CGS 20-418 to 20-432) sets no deposit amount but requires a refund if work has not substantially started. No cap

Applies to: Registered home improvement contractors on residential work over $200 (private residences up to 6 units, condos, rental property).
Other payment and cancellation rules: Contract must be written, signed by both, contain the entire agreement, start and completion dates, registration number, and notice of cancellation rights; every home improvement contract is a home solicitation sale with a 3 business day cancellation right (20-429). Contractor must refund within 10 days of written request if no substantial work done and more than 30 days have passed since the contract start date (or contract date if none); violation is a misdemeanor (20-427(b)(8)).
Recovery fund: Home Improvement Guaranty Fund: pays owners for losses from registered contractors; max $25,000 per claim (CGS 20-432).
Source: Conn. Gen. Stat. 20-419, 20-427(b)(8), 20-429, 20-432. Read it

Delaware No statewide cap found in statute; check local licensing rules. The AG Home Improvement Services regulation (effective Nov 2023) has no deposit cap; it only bars misleading a buyer into thinking the down payment is the full price. No cap

Applies to: Home improvement contracts on dwellings (not new construction or rebuilding of single-family homes).
Other payment and cancellation rules: Written contract with all material terms and price, approximate completion date, contractor contact details, cost-plus disclosure, and all installation and delivery charges; no signing completion certificates before work is done (6 Del. Admin. Code 106). Door-to-door sales carry a cancellation right under 6 Del. C. ch. 44 (not opened).
Source: 6 Del. Admin. Code 106 (Home Improvement Services), incl. 3.1.29. Read it

District of Columbia No cap on deposit amount found in the DC home improvement regulations; check local licensing rules. Only a licensed home improvement contractor (or its licensed salesperson) may require or accept any payment before all work is fully completed. No cap

Applies to: Home improvement contracts for work in the District (16 DCMR ch. 8).
Other payment and cancellation rules: No payment may be accepted until the deal is reduced to a written contract with payment terms, approximate start and completion dates, specifications, and contractor license number (16 DCMR 808). If the contractor rejects the contract (it must accept or reject within 15 days), any payment must be returned with the rejection notice.
Source: 16 DCMR 800.1, 808. Read it

Hawaii No statewide cap found in statute; check local licensing rules. HRS Chapter 444 and board rule HAR 16-77-80 contain no deposit or down payment limit. No cap

Applies to: Licensed contractors doing home construction or improvements for homeowners (owners or lessees of residential property, including condo and co-op units).
Other payment and cancellation rules: A signed written contract is required before any work, with the exact dollar amount due, start date and days to completion, scope, subcontractor info, a capitalized warning about risk of paying a sales representative, lien-rights explanation, and warranty terms; contractor must verbally explain lien rights and the option to require a bond (HRS 444-25.5, HAR 16-77-80). Violations are unfair or deceptive practices and can void the contract. Door-to-door sales carry a 3-business-day cancellation right (HRS 481C-2).
Recovery fund: Contractors Recovery Fund: owners or lessees of private residences injured by a licensed contractor's violation may recover up to $12,500 per contract by court order (HRS 444-26).
Source: HRS 444-25.5; HRS 444-26; HAR 16-77-80; HRS 481C-2. Read it

Idaho No statewide cap found in statute; check local licensing rules. The Idaho Contractor Registration Act (Title 54 Ch. 52) and the residential disclosure statute (45-525) have no deposit limit. No cap

Applies to: Contractors on residential real property; registration act exempts projects under $2,000.
Other payment and cancellation rules: Before a residential contract over $2,000, the general contractor must give a signed disclosure of the homeowner's rights to lien waivers, proof of liability and workers' comp insurance, an extended title policy option, and a surety bond at the owner's expense (Idaho Code 45-525). Home solicitation sales can be cancelled until midnight of the third business day, and the seller must return payments within 10 days (28-43-402, 28-43-404).
Source: Idaho Code 54-5201 et seq.; 45-525; 28-43-402; 28-43-404. Read it

Illinois No statewide cap found in statute; check local licensing rules. The Home Repair and Remodeling Act and Home Repair Fraud Act set no deposit limit, though the required consumer pamphlet tells homeowners the contract should state the down payment and payment schedule. No cap

Applies to: Persons in the business of home repair and remodeling of residential property.
Other payment and cancellation rules: Written contract required for work over $1,000, stating total cost and business address; 'Home Repair: Know Your Consumer Rights' pamphlet required for all contracts (signed acknowledgment over $1,000). 3 business days to cancel home-solicited sales; 15 business days for buyers 65+ sold by an uninvited solicitor (513/22). Insurance-funded contracts can be cancelled within 5 business days of an insurer denial, with payments returned within 10 business days (513/15). Failing to return payments after no substantial performance can support a home repair fraud presumption (815 ILCS 515/3).
Source: 815 ILCS 513/15, 513/20, 513/22; 815 ILCS 515/3. Read it

Indiana No statewide cap found in statute; check local licensing rules. The Home Improvement Contracts Act (IC 24-5-11) regulates contract form and cancellation but sets no deposit limit. No cap

Applies to: Real property improvement contracts over $150 on 1 to 4 unit residential property used as a consumer's dwelling.
Other payment and cancellation rules: Written contract with set contents (price, dates, description, contacts) required; the supplier must sign before the consumer signs or can be required to make any down payment (IC 24-5-11-11). For contracts after June 30, 2017, the consumer may cancel until midnight of the third business day after signing (or after an insurer's final coverage decision), and payments or deposits must be returned within 10 days, less work already done or emergency services (IC 24-5-11-10.6).
Source: IC 24-5-11-4, 24-5-11-10, 24-5-11-10.6, 24-5-11-11. Read it

Iowa No statewide cap found in statute; check local licensing rules. Iowa has contractor registration (Ch. 91C) but no home improvement contract statute with a deposit limit; the AG only advises against paying large sums up front. No cap

Applies to: Contractors registered under Iowa Code 91C; catastrophe repair rule applies to residential contractors on 1 to 4 family homes.
Other payment and cancellation rules: Contractors repairing catastrophe damage must give a signed 'Notice of Contract Obligations and Rights'; the contract is void if the contractor rebates the deductible or negotiates the insurance claim (Iowa Code 103A.71). Door-to-door sales of $25 or more carry a 3-business-day cancellation right with refund (Ch. 555A).
Source: Iowa Code ch. 91C; 103A.71; ch. 555A. Read it

Kansas No statewide cap found in statute; check local licensing rules. Kansas has no general home improvement contractor statute; the Roofing Registration Act (K.S.A. 50-6,121 to 50-6,139) has no deposit limit but bars abandoning a roofing contract after a deposit is paid. No cap

Applies to: Roofing contractors registered with the Attorney General; general consumer sales under the Kansas Consumer Protection Act.
Other payment and cancellation rules: Roofing contractors may not abandon a contract without legal grounds after a deposit is paid or divert entrusted funds (K.S.A. 50-6,133). Door-to-door sales can be cancelled until midnight of the third business day (K.S.A. 50-640).
Source: K.S.A. 50-6,121 to 50-6,139 (esp. 50-6,133); K.S.A. 50-640. Read it

Kentucky No statewide cap found in statute; check local licensing rules. For contracts expected to be paid from property or casualty insurance, the contractor may not require any advance payment until the 5-business-day cancellation period (after an insurer denial notice) has expired. No cap

Applies to: Insurance rule: any 'real estate goods or services contract' (repair, construction, improvement, tree or debris removal, residential and commercial) paid from insurance proceeds, broadened from roofing only by 2025 HB 233 for contracts on or after its effective date.
Exceptions: Contractor may collect a reasonable amount for authorized repairs or emergency goods or services.
Other payment and cancellation rules: On cancellation of an insurance-funded contract, payments and deposits must be returned within 10 days; fee clauses are unenforceable; violations allow double damages and a $5,000 AG civil penalty (KRS 367.626, 367.627). Home solicitation sales of $25 or more can be cancelled until midnight of the third business day, and the seller gets no compensation for services performed before cancellation (KRS 367.410 to 367.450).
Source: KRS 367.620 to 367.628 (2012 Ky. Acts ch. 97; 2025 Ky. Acts ch. 15, HB 233); KRS 367.410 to 367.450 (2024 Ky. Acts ch. 47). Read it

Louisiana No statewide cap found in statute; check local licensing rules. The old home improvement registration sections (La. R.S. 37:2175.1 to 2175.6, which held the written contract rules) were repealed by Acts 2022, No. 195, and the current licensing law (R.S. 37:2158) has no deposit limit. No cap

Applies to: Residential construction and home improvement contractors licensed or registered with the State Licensing Board for Contractors.
Other payment and cancellation rules: Failure to have a written contract signed and dated by all parties is a disciplinary violation (R.S. 37:2158(A)(20)). Under the residential contractor fraud statute (R.S. 14:202.1), failing to perform any work for 45 days or more after receiving payment, unless the contract sets a longer period, allows an inference of misappropriation. Home solicitation 3-day cancellation rules: I have not checked.
Source: La. R.S. 37:2158(A)(20); La. R.S. 14:202.1; La. R.S. 37:2175.1 to 2175.6 (repealed 2022). Read it

Michigan No statewide cap found in statute; check local licensing rules. The Home Improvement Finance Act defines and requires disclosure of the down payment on financed contracts but sets no maximum, and the residential builder licensing law (MCL 339.2411) has no deposit limit. No cap

Applies to: Licensed residential builders and maintenance and alteration contractors; financed home improvement contracts under 1965 PA 332.
Other payment and cancellation rules: Financed home improvement installment contracts and charge agreements can be cancelled until 5 p.m. the next business day. Home solicitation sales can be cancelled until midnight of the third business day, and the seller must return payments within 10 days of cancellation. Diverting project funds to another job, failing to account for others' money, and abandonment are licensing violations.
Source: MCL 445.1101 et seq. (Home Improvement Finance Act); MCL 339.2411; MCL 445.112, 445.114; MCL 570.1201 to 570.1207 (repealed 2010). Read it

Minnesota No statewide cap found in statute; check local licensing rules. The residential contractor law (Minn. Stat. ch. 326B) requires written contracts but sets no deposit limit. No cap

Applies to: Licensed residential building contractors, remodelers and roofers.
Other payment and cancellation rules: All agreements (bids, contracts, change orders) must be written with a work summary, materials, and total price or pricing basis, plus performance guidelines, signed and dated, with a copy to the customer. Insurance-paid contracts can be cancelled within 72 hours after the insurer denies the claim, with payments returned within 10 days (emergency work excepted). General home solicitation 3-day rule: I have not checked.
Recovery fund: Contractor Recovery Fund: pays homeowners on judgments against licensed residential contractors, up to $100,000 per owner per licensee and $550,000 total per licensee (Minn. Stat. 326B.89).
Source: Minn. Stat. 326B.809, 326B.811, 326B.89. Read it

Mississippi No statewide cap found in statute; check local licensing rules. The Residential Builders and Remodelers law and Board rules (Miss. Code 73-59) contain no deposit or contract payment rules. No cap

Applies to: Licensed residential remodelers (improvements to an existing residence over $10,000) and residential builders.
Other payment and cancellation rules: An unlicensed builder or remodeler cannot sue to enforce the contract and may recover only documented labor and material costs. No written contract or cancellation rules in the licensing law; home solicitation rules: I have not checked.
Source: Miss. Code Ann. 73-59-1 et seq. (as published by the State Board of Contractors, 2022). Read it

Missouri No statewide cap found in statute; check local licensing rules. Missouri has no statewide home improvement contractor licensing act; contractor rules are local. No cap

Applies to: All home solicitation sales; roofing and exterior work paid by insurance.
Other payment and cancellation rules: Home solicitation sales can be cancelled until midnight of the third business day, with a written notice of cancellation; seller returns buyer property within 10 days. Insurance-paid roofing and exterior contracts can be cancelled until midnight of the fifth business day after a claim denial, with all payments and deposits returned within 10 days (emergency work excepted); contractors cannot rebate deductibles.
Source: RSMo 407.700 to 407.720 (esp. 407.705, 407.710); RSMo 407.725. Read it

Montana No statewide cap found in statute; check local licensing rules. The construction contractor licensing law (MCA Title 37, ch. 45, formerly 39-9) and the residential construction contract statute have no deposit limit. No cap

Applies to: Licensed construction contractors; new home construction contracts between a general contractor and owner.
Other payment and cancellation rules: Contracts to build a new residence must be written and include insurance disclosures, the billing cycle and payment schedule, change order procedures, inspections, and an express warranty of at least 1 year (MCA 28-2-2201). This does not cover remodels. Home solicitation 3-day rules: I have not checked.
Source: MCA 28-2-2201; MCA 37-45-101 to 37-45-302. Read it

Nebraska No statewide cap found in statute; check local licensing rules. Nebraska has no home improvement contract act; the Contractor Registration Act (48-2101 to 48-2117) is registration only and has no deposit or payment terms. No cap

Applies to: All contractors (registration with the Department of Labor).
Other payment and cancellation rules: Home Solicitation Sales Act: buyer may cancel a home solicitation sale of $25 or more until midnight of the third business day after notice; seller must return all money, including any downpayment, within 10 days of cancellation (69-1603, 69-1605).
Source: Neb. Rev. Stat. 48-2101 to 48-2117; 69-1601 to 69-1607. Read it

New Hampshire No statewide cap found in statute; check local licensing rules. New Hampshire does not license home improvement contractors and has no home improvement contract chapter in Title XXXI (checked the official RSA table of contents and RSA 358-A). No cap

Applies to: Not applicable (no home improvement statute).
Other payment and cancellation rules: Home solicitation sales (RSA 361-B) carry a right to cancel until midnight of the third business day. Deposit-taking abuses are pursued by the AG under the Consumer Protection Act (RSA 358-A). RSA 359-G sets a pre-suit notice and repair process for residential construction defects.
Source: RSA 358-A; RSA 361-B; RSA 359-G. Read it

New Jersey No statewide cap found in statute; check local licensing rules. The Contractors' Registration Act contract section (N.J.S.A. 56:8-151) sets no deposit limit, and the Home Improvement Practices regulations (N.J.A.C. 13:45A-16.2) set none either. No cap

Applies to: Registered home improvement contractors; written contract required for contracts over $500.
Exceptions: Regulation text (13:45A-16.2) was read via a secondary copy (Cornell LII) because the Division of Consumer Affairs site blocked access; the statute was read on the Legislature's site.
Other payment and cancellation rules: Contracts over $500 must be in writing with required terms. Consumer may cancel until midnight of the third business day after receiving the contract, and all money must be refunded within 30 days of the cancellation notice. Regulations bar demanding final payment before work is completed and failing to start or finish work by the contract dates (absent causes beyond the seller's control).
Source: N.J.S.A. 56:8-136 to -152 (esp. 56:8-151, as amended by P.L.2004, c.155); N.J.A.C. 13:45A-16.2. Read it

New York No percentage or dollar cap. Instead, all payments received before substantial completion must be deposited in an escrow account within 5 business days (owner told the depositary within 10 business days if not named in the contract), or the contractor may post a bond, contract of indemnity or irrevocable letter of credit guaranteeing return or proper use of the money. No cap

Applies to: Home improvement contracts over $500 between a home improvement contractor and an owner (homeowner, co-op shareholder, residential tenant, or custom home buyer).
Exceptions: Payments for work billed hourly are not progress payments and need not be escrowed.
Other payment and cancellation rules: Signed written contract required with a progress payment schedule tied to stages of completion; progress payments must bear a reasonable relationship to work performed, materials purchased or expenses. Escrow withdrawals may not exceed the contract payment schedule. Owner may cancel until midnight of the third business day after signing (emergency waiver exception).
Source: N.Y. Gen. Bus. Law 770, 771; N.Y. Lien Law 71-a(4). Read it

North Carolina No statewide cap found in statute; check local licensing rules. The General Contractors Licensing Act (G.S. Chapter 87, Article 1) contains no deposit or down payment limit. No cap

Applies to: General contractor license required for projects of $40,000 or more (G.S. 87-1).
Other payment and cancellation rules: No home improvement contract statute found in Chapter 87. 3-day cancellation and refund timing not checked.
Recovery fund: Homeowners Recovery Fund (G.S. 87-15.5 to 87-15.9): reimburses owners of single-family homes for losses from dishonest or incompetent conduct of a licensed general contractor after an unsatisfied judgment; payment amounts are discretionary (per-claim caps are in Board rules, not verified).
Source: N.C. Gen. Stat. 87-1 et seq.; 87-15.5 to 87-15.9. Read it

North Dakota No statewide cap found in statute; check local licensing rules. NDCC 43-07 sets no deposit amount limit but treats abandonment after a deposit, and failure to refund it, as grounds for license action. No cap

Applies to: Licensed contractors (license required for jobs over $4,000).
Other payment and cancellation rules: Abandonment is presumed if work does not substantially start within 60 days of the written start date (90 days from contract if none) or is not finished within 90 days of the written completion date (180 days if none); failing to fully refund the advance payment on request after that presumption is a violation (43-07-14). Personal solicitation sales: 3 business days to cancel (15 for buyers 65+ on items over $50), refund within 10 days (51-18-02, 51-18-06).
Source: N.D.C.C. 43-07-02, 43-07-14; 51-18-02, 51-18-06. Read it

Ohio No statewide cap found in statute; check local licensing rules. Neither the Home Construction Service Suppliers Act (R.C. 4722) nor the Home Solicitation Sales Act (R.C. 1345.21 to 1345.28) limits deposits. No cap

Applies to: R.C. 4722 covers home construction services (new builds and repair/remodel of 1 to 3 family dwellings) costing $25,000 or more.
Other payment and cancellation rules: Contracts of $25,000+ must be written with required terms, and owner gets a written or oral estimate before unforeseen extra costs over $5,000 total (4722.02); supplier must give a full refund within a reasonable time for goods or services paid for but not delivered (4722.03). Home solicitation sales: 3 business days to cancel, no services may start during that period, refunds within 10 business days. Ohio Admin. Code 109:4-3-05 requires estimate forms for repairs/services over $25.
Source: R.C. 4722.01 to 4722.03; R.C. 1345.21 to 1345.23; Ohio Admin. Code 109:4-3-05. Read it

Oklahoma No statewide cap found in statute; check local licensing rules. Oklahoma has no general home improvement contractor statute; the AG only advises consumers to avoid large upfront payments. No cap

Applies to: Residential home improvement generally; roofing contractors are registered with the Construction Industries Board under the Roofing Contractor Registration Act (59 O.S. 1151.1 et seq.).
Other payment and cancellation rules: Insurance-funded residential contracts: owner may cancel within 72 hours after the insurer denies the claim, and the contractor must return payments within 10 days (emergency work excepted) (59 O.S. 1151.21). Roofers may not pay or rebate insurance deductibles. Home solicitation 3-day rules not checked.
Source: 59 O.S. 1151.1 et seq. (Roofing Contractor Registration Act), 1151.21. Read it

Oregon No statewide cap found in statute; check local licensing rules. ORS 701.312 lets the CCB put a contractor on probation if it takes a deposit over 50% of the contract price and then fails to perform or to return the deposit within 10 days of a reasonable demand. No cap

Applies to: CCB-licensed contractors doing residential construction, improvement or repair.
Other payment and cancellation rules: Written contract required when the price exceeds $2,000, with CCB standard terms (ORS 701.305). Owner may cancel an initial written contract until midnight of the next business day unless work was agreed to start sooner or has substantially begun (ORS 701.310). Consumer notice forms required (ORS 701.330). The ORS 701.625 progress payment rules do not apply to houses under the low-rise residential code (ORS 701.645).
Source: ORS 701.305, 701.310, 701.312, 701.330, 701.645; bonds ORS 701.068. Read it

Rhode Island No statewide cap found in statute; check local licensing rules. Neither R.I. Gen. Laws 5-65 nor the CRLB rules (440-RICR-10-00-1) cap deposits; the board can order a deposit returned if no work has started. No cap

Applies to: Contractors registered with the Contractors' Registration and Licensing Board doing residential work.
Other payment and cancellation rules: Written contract required for work over $1,000, including the mechanic's lien notice and board-required disclosures (5-65-3(o)); contracts must include the rescission notice (5-65-3(p)). Elderly homeowners (in-home solicitation) get 3 days to cancel, and the deposit must be returned within 20 days or double damages apply (5-65-27). Door-to-door sales 3-day cancellation (6-28-4).
Source: R.I. Gen. Laws 5-65-3(o)-(p), 5-65-10, 5-65-27; 440-RICR-10-00-1. Read it

South Carolina No statewide cap found in statute; check local licensing rules. The residential builders chapter (S.C. Code Title 40, Ch. 59) has no deposit cap. Pending bill H.4748 (2025-2026, in House committee) would require client funds to be held in escrow or trust accounts. No cap

Applies to: Licensed residential builders and registered residential specialty contractors.
Other payment and cancellation rules: Roofing contracts paid from insurance: owner may cancel until midnight of the 5th business day after a coverage denial, and no payment may be required until that period ends (emergency work excepted) (40-59-25). Builders post a bond of at least $15,000; specialty contractors need a bond for jobs over $5,000 (40-59-220). Home solicitation rules not checked.
Source: S.C. Code 40-59-25, 40-59-220; H.4748 (pending). Read it

South Dakota No statewide cap found in statute; check local licensing rules. No home improvement contractor statute found; the AG only advises limiting down payments. No cap

Applies to: Residential contractors generally (no state home improvement licensing statute found).
Other payment and cancellation rules: Door-to-door sales: 3 business day cancellation notice required (SDCL 37-24-5.3). Storm damage residential roofing contracts can be cancelled within 72 hours of signing or of an insurance denial (SDCL 37-24-51); roofers may not rebate deductibles (37-24-50).
Source: SDCL 37-24-5.1 to 37-24-5.7, 37-24-49 to 37-24-51. Read it

Texas No statewide cap found in statute; check local licensing rules. Texas has no home improvement contractor licensing act; Property Code 41.007 sets contract terms but no deposit limit. No cap

Applies to: Contracts for improvements to an existing homestead residence (Prop. Code 41.007) and residential construction contracts (Prop. Code 53.255).
Other payment and cancellation rules: Homestead improvement contracts need a conspicuous notice and conspicuous arbitration clause (41.007). Contractor must give a disclosure statement before a residential construction contract is signed (53.255). Owner must hold 10% retainage for 30 days after completion (53.101). Construction payments are trust funds (Ch. 162). Home solicitation sales over $25 have a 3 business day cancellation right (Bus. & Com. Code 601.051).
Source: Tex. Prop. Code 41.007, 53.101, 53.255, 162.001; Tex. Bus. & Com. Code 601.002, 601.051. Read it

Utah No statewide cap found in statute; check local licensing rules. The Construction Trades Licensing Act (Utah Code 58-55) has no deposit cap. No cap

Applies to: Licensed contractors doing residential work.
Other payment and cancellation rules: Written contracts with owners must explain what the owner must do to be protected from liens under 38-11-107 (38-11-108). Home solicitation (consumer credit) sales: 3 business day cancellation and payments returned within 10 days (70C-5). Note: Chapter 58-55 is repealed and re-enacted effective 1/1/2027 (2026 Gen. Session Ch. 42).
Recovery fund: Residence Lien Recovery Fund (Utah Code 38-11): protects owner-occupants who paid a licensed contractor in full under a written contract from subcontractor and supplier liens; it does not refund deposits.
Source: Utah Code 58-55; 38-11-107, 38-11-108; 70C-5. Read it

Virginia No statewide cap found in statute or Board for Contractors regulations; check local licensing rules. The contract must state the down payment amount, and DPOR consumer guidance (not law) advises limiting deposits to 10% or $1,000, whichever is less (up to 30% for custom-made items). No cap

Applies to: Residential contracting by DPOR-licensed contractors (construction, removal, repair, or improvements to single or multifamily residential buildings).
Other payment and cancellation rules: Legible written contract signed by both parties before work starts or payment is accepted, stating start and completion dates, total cost, amounts and schedule of progress payments including the down payment, cancellation rights, and a Recovery Fund notice. Retaining funds for work not performed is a prohibited act; failing with fraudulent intent to perform or return an advance within 15 days of a certified-mail request is larceny (18.2-200.1). Home solicitation sales carry a 3-day cancellation right (59.1-21.3).
Recovery fund: Virginia Contractor Transaction Recovery Fund: pays residential claimants with unsatisfied judgments for improper or dishonest conduct by a licensed contractor (not mere breach of contract).
Source: 18VAC50-22-260(B)(8)-(10), (16); Va. Code 54.1-1118 et seq.; 18.2-200.1; 59.1-21.3. Read it

Washington No statewide cap found in statute; check local licensing rules. RCW 18.27 (contractor registration) has no deposit or down payment limit. No cap

Applies to: Registered contractors under RCW 18.27.
Other payment and cancellation rules: For residential work on four or fewer units with a bid or price of $1,000 or more, the contractor must give and get signed a 'Notice to Customer' disclosure (bond amount, retainage option, lien risk, lien releases) before starting work; it is a prerequisite to a lien claim. Contractor bond claims by homeowners must be filed within 2 years. State 3-day cancellation rule not checked.
Recovery fund: Homeowner Recovery Program (L&I): from July 1, 2026, pays unsatisfied judgments against registered contractors on a primary residence after the bond is exhausted, up to $25,000 per contractor per parcel, subject to available funds.
Source: RCW 18.27.040, 18.27.114, 18.27.410, 18.27.420. Read it

West Virginia No statewide cap found in statute; check local licensing rules. The Contractor Licensing Act (now W. Va. Code 30-42, recodified from repealed 21-11) has no deposit or down payment limit. No cap

Applies to: Contractors licensed by the West Virginia Contractor Licensing Board.
Other payment and cancellation rules: Licensed contractors need a written contract signed by both parties, describing the work and its cost, for work of $10,000 or more (labor and materials). The board must publish a standard contract form by rule. State home solicitation 3-day rule not checked.
Source: W. Va. Code 30-42-10(b) and (c). Read it

Wisconsin No statewide cap found in statute or ATCP 110; check local licensing rules. ATCP 110 instead restricts how prepayments are used: payments received before completion may only be used for materials or services for that job. No cap

Applies to: Home improvement contracts (remodeling, repair, additions, etc.) on residential or noncommercial property; excludes new home construction and major renovations costing more than the structure's assessed value.
Other payment and cancellation rules: Written contract required if any payment is due before completion, or if sold door-to-door/by phone or mail; must state price, start and completion dates, materials, and warranties, and a copy must be given before work or payment. Seller cannot demand final payment before completion. If the seller misses the deadline, the buyer may cancel and demand return of unspent payments within 15 days and a written accounting within 30 days. Lien waivers on request; liquidated damages capped at 10%.
Source: Wis. Admin. Code ATCP 110.02(6)(e), 110.02(10), 110.05, 110.07. Read it

Wyoming No statewide cap found in statute; check local licensing rules. Wyoming has no statewide general contractor license or home improvement contractor act. No cap

Applies to: All residential contractors (no state home improvement statute).
Other payment and cancellation rules: Exterior storm damage repair contracts (roof, siding, gutters on dwellings of up to 4 units) have a 3-business-day cancellation right (or 3 days after an insurance denial), with payments refunded within 3 days. The general home solicitation sale law (3-day cancel, refund within 10 days, up to 5% cancellation fee) covers sales or leases of merchandise.
Source: Wyo. Stat. 40-12-104, 40-12-701 to 40-12-706. Read it

Not verified (2)

Georgia No statutory deposit cap found, but the licensing statute (O.C.G.A. Title 43 Ch. 41) is published only on Lexis and could not be opened. The Attorney General's consumer page only advises homeowners to limit the down payment to 25% and withhold 10% until completion, which is guidance, not law. Not verified

Applies to: Residential home improvement generally; roofing rule applies to residential roofing contractors on 1 to 4 family homes paid from insurance proceeds.
Exceptions: Roofing contractors may collect for emergency services the homeowner acknowledged in writing as necessary.
Other payment and cancellation rules: For insurance-paid roof work, the contractor may not require any payment until the homeowner's 5-business-day cancellation window (after an insurer denial notice) expires (O.C.G.A. 10-1-393.12, as enacted by 2011 HB 423; later amendments not checked). AG page states a 3-day right to cancel home improvement contracts over $25 signed in the home, with refund within 10 days. Board rule 553-9-.01 makes diverting project funds and abandoning a project grounds for discipline.
Source: O.C.G.A. 10-1-393.12 (2011 HB 423); Ga. Comp. R. & Regs. 553-9-.01; O.C.G.A. 43-41 (not opened). Read it

New Mexico No deposit cap found in the Construction Industries Division rules (14.6.2 to 14.6.7 NMAC, read on the official NMAC site). The licensing statute itself (NMSA 60-13) could not be opened on the official site, so absence of a cap is not confirmed. Not verified

Applies to: Licensed contractors under the Construction Industries Licensing Act.
Exceptions: An exam-prep site claims a 30% deposit limit; no such rule appears in the NMAC parts checked and it is likely wrong, but not ruled out.
Other payment and cancellation rules: Contractor license bond under NMSA 60-13-49 pays to cure CID-certified code violations not corrected by the licensee (14.6.3 NMAC). 3-day cancellation and refund rules not checked.
Source: NMSA 1978, 60-13 (not read); 14.6.3 NMAC. Read it

Questions

Deposits, refunds, and getting your money back

Is there a legal limit on how much deposit a contractor can take?

In most states, no. We found a statewide cap on residential deposits in 7 states: California, Maine, Maryland, Massachusetts, Nevada, Pennsylvania, Vermont. California and Nevada cap it at $1,000 or 10% of the price, whichever is less. Maryland and Maine cap it at one third, Maine only above $3,000. Massachusetts and Pennsylvania also use one third, but allow more for special-order materials. Tennessee applies a one-third limit only to licensed home improvement contractors in nine counties, on jobs of $3,000 to $24,999. Vermont allows up to half the labor or half the materials on larger jobs. Florida has no cap, but a deposit over 10% starts a permit and start-date clock. Arizona caps deposits only on in-ground pools and spas.

What is the most a California contractor can ask for up front?

$1,000 or 10% of the contract price, whichever is less, on home improvement contracts over $500 (Business and Professions Code 7159.5). After that, the contractor cannot ask for or take more than the value of the work done or materials delivered. The limits do not apply if the contractor provides a bond or joint control approved by the Contractors State License Board.

What if my contractor took a deposit and never started?

Several states set a deadline. In Florida, a contractor who takes more than 10% must apply for permits within 30 days and start within 90 days after they issue. In Connecticut, if no substantial work has been done and 30 days have passed since the start date, the contractor must refund within 10 days of a written request. Many states also have a recovery fund that pays homeowners after a judgment against a licensed contractor. Check your state below, then talk to your state attorney general or licensing board.

Can I cancel a home improvement contract after I sign it?

Often, yes, within a short window. Many states give 3 business days to cancel a contract signed at your home (a home solicitation sale), and some give longer to older homeowners or to jobs paid by an insurance claim. The rule and the refund deadline vary by state; each state entry below lists what we found.

Which states have a homeowner recovery fund?

We found one in 13 states: Alabama, Arizona, Connecticut, Florida, Hawaii, Maryland, Massachusetts, Minnesota, Nevada, North Carolina, Utah, Virginia, Washington. Most pay only after you win a judgment against a licensed contractor, and each has a per-claim limit.

How much deposit is reasonable if my state has no cap?

Enough to get the job scheduled and to buy materials that are ordered specially for you, and no more. After the deposit, pay in stages that match finished work, so you never pay ahead of what you can see. Holding the rest until each stage is done gives you leverage if something goes wrong.

Never pay ahead of the work

On RenovationRoute the quote comes with a milestone schedule. You pay each stage when it comes due, the money is held with Stripe, and the contractor is paid out when you approve the work. Every change needs your yes, and the photos and approvals stay on one record. Free to post a project.

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