Los Angeles Security Deposit Interest Calculator (2026)
California has no statewide deposit-interest law — but Los Angeles does. Current rate: 3.03% for 2026 (set each January).
Who Los Angeles's rule covers
Rent-stabilized (RSO) units in the City of Los Angeles — generally rental units with a certificate of occupancy first issued before October 1, 1978. Deposits held at least one year earn interest.This rate is published each year — confirm the current year's figure with the cited source before relying on it.
Interest owed to tenant
$144.34
- Time held
- 2.38 yrs
- Total to return
- $2,144.34
Los Angeles, California rule
City of Los Angeles landlords with RSO units must pay interest on security deposits held at least one year. The Rent Adjustment Commission set the 2026 rate at 3.03% (down from 4.32% in 2025). Since 2004 landlords may instead pay the actual interest earned, documented with a bank statement.
When paid: Annually, for deposits held at least one year. You may pay either the Rent Adjustment Commission's rate or the interest the deposit actually earned — if you pay actual earnings, give the tenant a copy of the bank statement showing them.
Last verified October 19, 2026.
Not legal advice. LandlordKit provides general informational tools, not legal advice. Landlord-tenant laws change and vary by city and county. Verify the cited statute and consult a licensed attorney before acting on any result.
How Los Angeles deposit interest works
City of Los Angeles landlords with RSO units must pay interest on security deposits held at least one year. The Rent Adjustment Commission set the 2026 rate at 3.03% (down from 4.32% in 2025). Since 2004 landlords may instead pay the actual interest earned, documented with a bank statement.
When it must be paid: Annually, for deposits held at least one year. You may pay either the Rent Adjustment Commission's rate or the interest the deposit actually earned — if you pay actual earnings, give the tenant a copy of the bank statement showing them.
Worked example
A $2,500.00 deposit held 1 year at 3.03% earns $75.75 in interest. The 2025 rate was 4.32%. Rates reset every year, so confirm the current figure with the city source below before paying.Last verified October 19, 2026.
Los Angeles security deposit interest FAQ
Which Los Angeles rentals owe security deposit interest?+
Units covered by the City of Los Angeles Rent Stabilization Ordinance — generally rentals whose certificate of occupancy was first issued before October 1, 1978. Newer buildings and units outside city limits (e.g. Santa Monica, West Hollywood, unincorporated LA County) follow their own rules.
What is the LA RSO security deposit interest rate for 2026?+
3.03%, set by the Rent Adjustment Commission (LAHD bulletin dated January 13, 2026). The 2025 rate was 4.32%. You may pay the actual interest your bank paid instead, if you give the tenant the bank statement.
Does West Hollywood use the same rate?+
No. West Hollywood runs its own rent stabilization program with its own deposit-interest rate. These figures apply only to RSO units in the City of Los Angeles.