Which States Limit Contractor Deposits by Statute?

Key facts

• Md. Code, Bus. Reg. § 8-617(b): "(b) A person may not receive a deposit of more than one-third of the home improvement contract price before or at the time of execution of the home improvement contract."

  Source: Maryland Code, Business Regulation § 8-617, Maryland General Assembly, archived copy of 14 October 2026, re-checked 22 October 2026, read 22 October 2026.

• Cal. Bus. & Prof. Code § 7159.5(a)(3): "(3) If a downpayment will be charged, the downpayment shall not exceed one thousand dollars ($1,000) or 10 percent of the contract amount, whichever amount is less."

  Source: California Business and Professions Code § 7159.5, California Legislative Information, archived copy of 14 October 2026, re-checked 22 October 2026, read 22 October 2026 (our saved browser copy, as read on 2026-10-24).

• Cal. Bus. & Prof. Code § 7159.5(a)(8): "(8) A contractor furnishing a performance and payment bond, lien and completion bond, or a bond equivalent or joint control approved by the registrar covering full performance and payment is exempt from paragraphs (3), (4), and (5), and need not include, as part of the contract, the statement regarding the downpayment specified in subparagraph (C) of paragraph (8) of subdivision (d) of Section 7159, the details and statement regarding progress payments specified in paragraph (9) of subdivision (d) of Section 7159, or the Mechanics Lien Warning specified in paragraph (4) of subdivision (e) of Section 7159."

  Source: California Business and Professions Code § 7159.5, California Legislative Information, archived copy of 14 October 2026, re-checked 22 October 2026, read 22 October 2026 (our saved browser copy, as read on 2026-10-24).

• Mass. Gen. Laws ch. 142A, § 2(a)(6): "(6) a time schedule of payments to be made under said contract and the amount of each payment stated in dollars, including all finance charges. Any deposit required under the contract to be paid in advance of the commencement of work under said contract shall not exceed the greater of one-third of the total contract price or the actual cost of any materials or equipment of a special order or custom made nature, which must be ordered in advance of the commencement of work, in order to assure that the project will proceed on schedule. No final payment shall be demanded until the contract is completed to the satisfaction of the parties thereto;"

  Source: Mass. Gen. Laws ch. 142A, § 2, Massachusetts Legislature, archived copy of 14 October 2026, re-checked 22 October 2026, read 22 October 2026.

Which jurisdictions set a statutory deposit limit?

Each entry below gives the state, the statute citation and the statute's own words; the sources list at the end links each official page with the date of its archived copy and the date that copy was re-checked. Maryland's limit is the only one quoted here with no condition attached to it; the other entries carry their scope, exemptions or alternative amounts in the quoted text.

Source: Maryland Code, Business Regulation § 8-617, Maryland General Assembly, archived copy of 14 October 2026, re-checked 22 October 2026, read 22 October 2026.

1. Arizona. Ariz. Rev. Stat. § 32-1158.01(A) (intro): "A. In addition to the requirements of section 32-1158, a licensed contractor who enters into a contract for the construction or installation of a residential in-ground swimming pool or spa with a purchaser who resides in the residence or who intends to reside in the residence after the completion of the contract shall include at least the following provisions:" Ariz. Rev. Stat. § 32-1158.01(A)(2)(a): "(a) A down payment payable on the execution of the contract of not more than fifteen percent of the original contract price." Ariz. Rev. Stat. § 32-1158.01(B): "B. If a purchaser requires the contractor to furnish a payment and performance bond securing the performance of the contract, the contract provisions required by subsection A, paragraph 2 of this section may be changed in any manner agreed to by the parties to the contract."

   Source: Arizona Revised Statutes § 32-1158.01, Arizona State Legislature, archived copy of 14 October 2026, re-checked 22 October 2026, read 22 October 2026.

2. California. Cal. Bus. & Prof. Code § 7159.5(a)(3): "(3) If a downpayment will be charged, the downpayment shall not exceed one thousand dollars ($1,000) or 10 percent of the contract amount, whichever amount is less." Cal. Bus. & Prof. Code § 7159.5(a)(8): "(8) A contractor furnishing a performance and payment bond, lien and completion bond, or a bond equivalent or joint control approved by the registrar covering full performance and payment is exempt from paragraphs (3), (4), and (5), and need not include, as part of the contract, the statement regarding the downpayment specified in subparagraph (C) of paragraph (8) of subdivision (d) of Section 7159, the details and statement regarding progress payments specified in paragraph (9) of subdivision (d) of Section 7159, or the Mechanics Lien Warning specified in paragraph (4) of subdivision (e) of Section 7159."

   Source: California Business and Professions Code § 7159.5, California Legislative Information, archived copy of 14 October 2026, re-checked 22 October 2026, read 22 October 2026 (our saved browser copy, as read on 2026-10-24).

3. Maine. 10 M.R.S. § 1487 (intro): "§1487. Home construction contracts Any home construction contract for more than $3,000 in materials or labor must be in writing and must be signed by both the home construction contractor and the homeowner or lessee. Both the contractor and the homeowner or lessee must receive a copy of the executed contract prior to any work performance. This basic contract must contain the entire agreement between the homeowner or lessee and the home construction contractor and must contain at least the following parts:" 10 M.R.S. § 1487(5): "5. Payment. The method of payment, with the initial down payment being limited to no more than 1/3 of the total contract price;"

   Source: Maine Revised Statutes, Title 10, § 1487, Maine Legislature, archived copy of 14 October 2026, re-checked 22 October 2026, read 22 October 2026.

4. Maryland. Md. Code, Bus. Reg. § 8-617(b): "(b) A person may not receive a deposit of more than one-third of the home improvement contract price before or at the time of execution of the home improvement contract."

   Source: Maryland Code, Business Regulation § 8-617, Maryland General Assembly, archived copy of 14 October 2026, re-checked 22 October 2026, read 22 October 2026.

5. Massachusetts. Mass. Gen. Laws ch. 142A, § 2(a)(6): "(6) a time schedule of payments to be made under said contract and the amount of each payment stated in dollars, including all finance charges. Any deposit required under the contract to be paid in advance of the commencement of work under said contract shall not exceed the greater of one-third of the total contract price or the actual cost of any materials or equipment of a special order or custom made nature, which must be ordered in advance of the commencement of work, in order to assure that the project will proceed on schedule. No final payment shall be demanded until the contract is completed to the satisfaction of the parties thereto;"

   Source: Mass. Gen. Laws ch. 142A, § 2, Massachusetts Legislature, archived copy of 14 October 2026, re-checked 22 October 2026, read 22 October 2026.

6. Nevada. NRS 624.970(1): "… On and after October 1, 2023, any contract entered into between a residential contractor and the owner of a single-family residence who occupies the single-family residence for work concerning a residential improvement must comply with the provisions of this section and all applicable regulations adopted by the Board. …" NRS 624.970(1)(b): "… A contract that does not comply with the provisions of: … (b) Paragraph (g) of subsection 2 is voidable by the owner of the single-family residence." NRS 624.970(2)(g): "(g) The amount, not to exceed $1,000 or 10 percent of the aggregate contract price, whichever is less, of any initial down payment or deposit paid or promised to be paid to the residential contractor by the owner before the start of the work. The provisions of this paragraph do not apply if the residential contractor has filed with the Board a bond solely for the protection of consumers in the amount of $100,000 or has been granted relief by the Board pursuant to subsection 5 of NRS 624.270." NRS 624.970(7)(d): "… The term does not include work concerning a residential photovoltaic system used to produce electricity, as defined in NRS 624.855, or work concerning a residential pool or spa, as defined in NRS 624.915."

   Source: Nevada Revised Statutes, Chapter 624, Nevada Legislature, archived copies of 14 October 2026 and 19 October 2026, re-checked 22 October 2026, read 22 October 2026.

7. Pennsylvania. Home Improvement Consumer Protection Act, Act 132 of 2008, 73 P.S. § 517.9(10)(i) (HICPA §9(10)(i)): "(10) (i) Except as provided under subparagraph (ii), for a home improvement contract in which the total price is more than $5,000, receive a deposit in excess of: (A) one-third of the home improvement contract price; or (B) one-third of the home improvement contract price plus the cost of special order materials that will be ordered, as designated in the written contract." Home Improvement Consumer Protection Act, Act 132 of 2008, 73 P.S. § 517.9(10)(ii) (HICPA §9(10)(ii)): "(ii) The provisions of subparagraph (i) shall not apply to a home improvement retailer, regardless of net worth, who does all of the following: (A) Posts an irrevocable letter of credit payable to the bureau for the use and benefit of every person protected by the provisions of this subparagraph in a form approved by the bureau, in the amount of $100,000 per store location but not to exceed $2,000,000 for a home improvement retailer that has multiple stores. (B) Ensures that its contractors are registered under this act and have proof of liability insurance as defined in section 4(a)(1)(ix)."

   Source: Pennsylvania Home Improvement Consumer Protection Act, Act 132 of 2008 (PDF), Pennsylvania General Assembly, archived copy of 14 October 2026, re-checked 22 October 2026, read 22 October 2026.

Vermont: a limit only when the contract sets a maximum price

Source: Vermont Statutes, Title 26, Chapter 106, Vermont General Assembly, archived copy of 14 October 2026, re-checked 22 October 2026, read 22 October 2026.

1. Vermont. 26 V.S.A. § 5509(c)(1): "(c) Down payment. (1) If a contract specifies a maximum price for all work and materials or a statement that billing and payment will be made on a time and materials basis, not to exceed a maximum price, the contract may require a down payment of up to one-half of the cost of labor to the consumer, or one-half of the price of materials, whichever is greater." 26 V.S.A. § 5509(c)(2): "(2) If a contract specifies that billing and payment will be made on a time and materials basis and that there is no maximum price, the contract may require a down payment as negotiated by the parties."

   Source: Vermont Statutes, Title 26, Chapter 106, Vermont General Assembly, archived copy of 14 October 2026, re-checked 22 October 2026, read 22 October 2026.

What about the other states and the District of Columbia?

A statutory deposit limit was not found for Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, Wyoming, or the District of Columbia, in the state sources reviewed 22 October 2026 for this page. Florida is not in that list: its statute sets a timing rule, not a deposit limit, and the table below quotes it in full. Not found means not found in the sources checked; it is not an official statement that the state has no cap.

How do the states compare in one table?

The table below lists every state and the District of Columbia with its status, the sections reviewed, the statute's own words where a limit or a timing rule was found, the official source and the review date, and the same rows download as a CSV file.

How was this table built?

Scope: state statutes that set an upfront deposit or down-payment limit for residential or home-improvement contracts. Local ordinances and case law are outside its scope, and regulations were not reviewed for every jurisdiction.

Sources: every limit quoted here comes from an official state legislature statute page; the other jurisdictions were reviewed in official state statute and agency pages. Each page was captured and archived, and each quote was checked as an exact substring of its archived copy. All rows were reviewed 22 October 2026: that review re-checked every quote and source against the archived copies, which are dated 14 October 2026 (the copy behind the Nevada excerpts is dated 19 October 2026), and fetched no page again. Florida's timing-rule row uses the official statute capture reviewed 24 October 2026.

Coding: a limit means the statute text sets a maximum deposit for some home contracts. The conditions the statute attaches, such as the kind of job, a bond or the contract size, are quoted with it. Arizona's limit covers residential in-ground swimming pools and spas only, and Vermont's is framed as what a contract may require.

Source: Arizona Revised Statutes § 32-1158.01, Arizona State Legislature, archived copy of 14 October 2026, re-checked 22 October 2026, read 22 October 2026.
Source: Vermont Statutes, Title 26, Chapter 106, Vermont General Assembly, archived copy of 14 October 2026, re-checked 22 October 2026, read 22 October 2026.

Not found means not found in the sources checked; it is not an official statement that the state has no cap.

This table is a compilation of statute text, reviewed 22 October 2026. It is not legal advice.

What can you look for in a deposit clause before you sign?

Read the deposit clause in your contract against your state's statute text, and keep a copy of the official page you read with its date. This is practical reasoning, not legal advice and not a finding from any state.

1. Find your state in the list above, then open its official page and read the whole section, since a quoted line can depend on the text around it.
2. Compare the deposit your contract asks for with the limit in that text, and note any condition the statute attaches, such as the kind of job or a bond.
3. If your state is not in the list, ask the contractor in writing what the deposit pays for and when the rest is due.
4. Keep the signed contract and a receipt for every payment.
5. If something looks wrong, contact your state attorney general's consumer protection office before you pay more.

Who sees your contact details when you post on InstaBids?

Contact details stay hidden until the homeowner picks a contractor and they confirm the connection.

Source: InstaBids process and privacy, live-page excerpts, read 22 October 2026.

Sources for the facts on this page

• Arizona Revised Statutes § 32-1158.01, Arizona State Legislature, archived copy of 14 October 2026, re-checked 22 October 2026
• California Business and Professions Code § 7159.5, California Legislative Information, archived copy of 14 October 2026, re-checked 22 October 2026
• Maine Revised Statutes, Title 10, § 1487, Maine Legislature, archived copy of 14 October 2026, re-checked 22 October 2026
• Maryland Code, Business Regulation § 8-617, Maryland General Assembly, archived copy of 14 October 2026, re-checked 22 October 2026
• Mass. Gen. Laws ch. 142A, § 2, Massachusetts Legislature, archived copy of 14 October 2026, re-checked 22 October 2026
• Nevada Revised Statutes, Chapter 624, Nevada Legislature, archived copies of 14 October 2026 and 19 October 2026, re-checked 22 October 2026
• Pennsylvania Home Improvement Consumer Protection Act, Act 132 of 2008 (PDF), Pennsylvania General Assembly, archived copy of 14 October 2026, re-checked 22 October 2026
• Vermont Statutes, Title 26, Chapter 106, Vermont General Assembly, archived copy of 14 October 2026, re-checked 22 October 2026
• InstaBids process and privacy, live-page excerpts reviewed 22 October 2026.