How Much Deposit Should a Contractor Ask For? (State Limits, 2026)

Enough to cover what you buy up front, never more than your state allows, and written on the estimate before the customer signs.

Quick answer

Ask for enough to cover the materials you have to buy before you start, and check your state's cap first. Some states set one for home improvement work: California caps the down payment at $1,000 or 10% of the contract price, whichever is less. Maryland caps it at one-third of the contract price. Massachusetts caps it at one-third or the cost of special-order materials, whichever is greater. Maine (over $3,000) and Pennsylvania (over $5,000) cap it at one-third, with Pennsylvania adding special-order materials. Nevada caps residential pool and spa contracts at $1,000 or 10%, whichever is less. Florida has no cap, but more than 10% up front starts a 30-day clock to apply for permits. Write the deposit amount and what it covers on the estimate, and get it signed before you buy anything.

The state limits we checked

State	Applies to	Most you can take up front	Source
California	Home improvement and swimming pool contracts	$1,000 or 10% of the contract price, whichever is less. No exception for special-order materials. Later payments can't run ahead of the work done.	CSLB, bulletin 22-14
Maryland	Home improvement contracts	One-third of the contract price, and nothing before the contract is signed.	Md. Code, Bus. Reg. § 8-617
Massachusetts	Residential contracting services	One-third of the contract price, or the actual cost of special-order or custom materials that must be ordered before work starts, whichever is greater.	M.G.L. c. 142A § 2
Maine	Home construction contracts over $3,000	The initial down payment is limited to no more than one-third of the total contract price, and the contract must be in writing.	10 M.R.S. § 1487
Pennsylvania	Home improvement contracts over $5,000	One-third of the contract price, plus the cost of special-order materials if they're named in the written contract.	Home Improvement Consumer Protection Act, 73 P.S. § 517.9(10)
Florida	Residential repair, improvement and construction	No cap, but taking more than 10% of the contract price as the first payment means you must apply for permits within 30 days and start work within 90 days after permits are issued, unless the customer agrees in writing to longer.	Fla. Stat. § 489.126
Nevada	Residential pool and spa contracts	$1,000 or 10% of the contract amount, whichever is less.	Nevada State Contractors Board (NRS 624.900–624.965)

Checked November 4, 2026. Laws change and other states have their own rules, some by city or county. This is not legal advice; check your state contractor board before you set a deposit policy.

Want the number for a specific job? Use the deposit limit calculator.

How to pick the number

Start from materials. The deposit's job is to keep you from paying for the customer's job out of your own pocket. Add up what you have to buy before day one and start there.
Stay under your state's cap. If the cap is lower than your materials, as it can be in California on a big job, schedule a progress payment when the materials are delivered instead of taking a larger deposit.
Small repair jobs often don't need one. A same-day repair with parts on the truck can be invoiced on completion with a pay link instead.
Special orders are different. Custom doors, fixtures and equipment that can't be returned are the classic reason to ask for money up front. Where your state allows it, say on the estimate that the deposit covers them.

How to write it on the estimate

Put the deposit on its own line under the total, with the amount and what it covers: "Deposit to start: $650 (materials ordered on approval). Balance due on completion." Then add one line to your terms: "Work is scheduled once the deposit is received." A customer who signed that line doesn't argue about it later.

In Settle you can add a deposit percentage to any estimate. It shows on the estimate and the PDF your customer approves. Settle doesn't check your state's limit for you, so set the percentage with the table above in mind.

Questions

What is a normal deposit for a contractor?

There isn't one number. It depends on the job's material costs and your state's law. California caps home improvement down payments at $1,000 or 10%, whichever is less, while Maryland and Massachusetts allow up to one-third. Ask for enough to cover the materials you buy up front, within your state's limit.

Can a contractor ask for 50% up front?

Not in every state. California, Maryland, Massachusetts, Maine and Pennsylvania all cap home improvement deposits below 50% (Massachusetts and Pennsylvania allow more for special-order materials), and Nevada caps residential pool and spa down payments at $1,000 or 10%. In Florida, anything over 10% up front starts permit and start-date deadlines. Check your state contractor board before asking for half up front.

Can I take a deposit before the customer signs?

In Maryland, no: the law bars taking any payment before the home improvement contract is signed. Elsewhere it's still a bad idea. Get the signed estimate first; it's your proof of what the money was for.

Does the deposit limit include special-order materials?

It depends on the state. California says there is no exception for special-order materials. Massachusetts lets the deposit go up to the cost of special-order or custom materials if that is more than one-third of the price.

Sources

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