Contractor Laws

New 2026 Laws Cap Contractor Deposits for Homeowners

Effective 2026, contractor deposits are limited to 10% or $1,000 to prevent financial losses from incomplete projects. These laws enforce milestone payments for transparency and trust in renovations nationwide.

By Katlyn Polino•January 27, 2026

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Contractor Deposit Laws Explained State by State Changes

Updated 2025 contractor deposit laws introduce tighter limits on upfront payments, varying by state and project type from 10% to 30%. These changes enhance homeowner protections against fraud, enforce refund timelines, and influence budgeting strategies for renovations.

Cody Gautson•Aug 10