How much deposit can a painter ask for? Limits by state
A deposit holds the date and pays for the paint. Most states leave the amount to you, but a few cap it by law for home improvement work, and some say when you may collect it at all.
Here's what we found in the states with rules. We researched them for BidCoat's proposals in September 2026. Laws change, and this isn't legal advice: check with your state's contractor board or attorney general before you rely on it.
States that cap the deposit
| State | Deposit limit | When it applies | Law |
|---|---|---|---|
| California | 10% of the price or $1,000, whichever is less | Every home improvement contract, painting included. After the deposit, no payment ahead of work done | Bus. & Prof. Code §7159.5 |
| Maryland | One-third of the price, and nothing before the contract is signed | Home improvement, interior painting included | Bus. Reg. §8-617 |
| Massachusetts | One-third, or the cost of special-order materials if that's more | Contracts over $1,000 | M.G.L. c.142A §2 |
| Pennsylvania | One-third, plus special-order materials named in the contract | Contracts over $5,000. No payment before signing on any contract | 73 P.S. §517.9 |
| British Columbia | C$100 or 10%, whichever is less | Contracts made away from your place of business | Business Practices and Consumer Protection Act |
In California, a bonded contractor is exempt from the cap. In Massachusetts, contractors who do only interior painting are exempt from registration, and the regulations suggest the deposit rule may not bind them either; following it anyway is the safe choice. In Alberta, taking any payment before the work needs a prepaid contracting licence.
New York: no cap, but the money must be held
New York doesn't cap the deposit. Instead, money paid before the job is substantially complete must go into an escrow account at a New York bank within 5 business days, or you post a bond or letter of credit. Unless the contract names the bank, you tell the client which one within 10 business days (Lien Law §71-a(4)). A PayPal or Venmo balance isn't a New York bank account.
In New York City, the Department of Consumer and Worker Protection advises homeowners to pay no more than 25% up front. Painting-only jobs don't need the city's home improvement license, so state rules apply to them.
The right to cancel, and when you can start
When you sell at the client's home, the client can usually cancel and get the deposit back. The FTC's Cooling-Off Rule gives 3 business days for sales of $25 or more made at the buyer's home, with a refund within 10 business days. Several states have their own rules on top:
| State | Time to cancel | Can work start during it? |
|---|---|---|
| California | 3 business days, 5 if the client is 65 or older, from receiving the signed copy | Give the signed copy before work starts |
| Maryland | 5 business days, 7 if the client is 65 or older | Not restricted |
| Massachusetts | 3 business days | No |
| New York State | 3 business days, contracts over $500 | Not restricted, except Nassau County: no work for 3 days |
| New York City | 3 business days from signing or getting the notice, whichever is later | No |
| Ohio | 3 business days | No |
| Pennsylvania | 3 business days, contracts over $500, wherever signed | Not restricted |
| Michigan | 3 business days, counting Monday to Friday | Not restricted |
Since the deposit can come back during this window, don't spend it on special-order paint until the window has passed.
Other states
In Arizona, Florida, Georgia, Illinois, New Jersey, North Carolina, Texas and Washington we found no deposit cap for painting contracts. Most of them still require their own notices on the contract: Florida's construction lien notice over $2,500, New Jersey's “Notice to Consumer” over $500, and Washington's notice to customer over $1,000, for example. The FTC's 3-day rule applies everywhere in the US.
A deposit that holds up
- Put the deposit amount and when it's due in the signed proposal.
- Collect it only after the client signs. Maryland and Pennsylvania require that, and it's good practice everywhere.
- Keep it within your state's cap, whatever the job size.
- Say what it's for: scheduling the job and buying materials.
- Give a receipt, and refund it promptly if the client cancels within the cancellation period.
Sources
- California: Bus. & Prof. Code §7159.5 and §7159.
- Maryland: Business Regulation §8-617; Commercial Law §14-302.1.
- Massachusetts: M.G.L. c.142A §2; c.93 §48; 201 CMR 18.
- Pennsylvania: Home Improvement Consumer Protection Act, 73 P.S. §517.7 and §517.9.
- New York: Lien Law §71-a; General Business Law §771; NYC Admin. Code §20-386 and §20-394.1.
- Federal: FTC Cooling-Off Rule.
- Canada: British Columbia Business Practices and Consumer Protection Act; Alberta Consumer Protection Act.