How Much Deposit Can a Contractor Ask For in Indiana?
Indiana does not set a single percentage cap on a contractor deposit; its protections are specific statutory rules, each verified against its primary source.
Indiana regulates home improvement and contractors through its statutes rather than a single deposit percentage. The rules below each bear on a homeowner's deposit, and every one is tied to its primary source and verified against it.
Rules that bear on your deposit
Indiana's home improvement law defines a real property improvement contract as an agreement between a supplier and a consumer to make a real property improvement for which the contract price exceeds one hundred fifty dollars ($150). 1
A real property improvement supplier must provide a completed real property improvement contract to the consumer before the consumer signs it. 2
Before the consumer can be required to make any down payment on a real property improvement contract, the supplier must have agreed unequivocally by written signature. 3
Not later than ten (10) days after a real property improvement contract is canceled under this section, the supplier must tender to the consumer any payment or deposit. 4
Sources
Indiana's home improvement law defines a real property improvement contract as an agreement between a supplier and a consumer to make a real property improvement for which the contract price exceeds one hundred fifty dollars ($150).
A real property improvement supplier must provide a completed real property improvement contract to the consumer before the consumer signs it.
Before the consumer can be required to make any down payment on a real property improvement contract, the supplier must have agreed unequivocally by written signature.
Not later than ten (10) days after a real property improvement contract is canceled under this section, the supplier must tender to the consumer any payment or deposit.
Frequently asked questions
- Does Indiana cap how much deposit a contractor can ask for?
- Indiana does not set a single percentage deposit cap in these provisions. Its protections are the specific statutory rules on this page, each tied to its primary source.
- What protects my deposit in Indiana?
- The rules cited on this page, drawn from Indiana law, are what stand behind a deposit; confirm the contractor is properly licensed or registered before you pay.
Last reviewed August 3, 2026
This page is general information about state law, not legal advice. Laws change, and how they apply depends on the facts of your situation.