Security Deposit Interest Calculator — Massachusetts
Calculate the interest you owe a Massachusetts tenant on their security deposit, using the state's own rule and statute.
This rate is set by statute. You can lower it if your bank paid less.
Interest owed to tenant
$202.87
- Time held
- 2.03 yrs
- Total to return
- $2,202.87
Massachusetts rule
Landlords must pay 5% per year (or the actual rate received from the bank, if lower) on deposits held for at least one year.
When paid: At the end of each year of tenancy, and within 30 days of move-out.
Last verified June 1, 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 Massachusetts treats security deposit interest
Landlords must pay 5% per year (or the actual rate received from the bank, if lower) on deposits held for at least one year.
When it must be paid: At the end of each year of tenancy, and within 30 days of move-out.
Worked example
Example: a $1,500.00 deposit held for 2 years at 5.00% per year. Simple interest owed ≈ $150.00, so the landlord returns about $1,650.00 in total. (Rates can change year to year — confirm the current figure.)Last verified June 1, 2026.
Massachusetts security deposit obligations
Even where interest isn't required, Massachusetts still regulates the deposit itself: you generally must return it within 30 days of move-out (Mass. Gen. Laws ch. 186 § 15B). You must include an itemized statement of any deductions. Up to 3x the deposit plus fees.
Open the Massachusetts deposit return tracker to confirm the deadline and build an itemized deductions statement.
Massachusetts security deposit interest FAQ
Do landlords have to pay interest on security deposits in Massachusetts?+
Yes. Landlords must pay 5% per year (or the actual rate received from the bank, if lower) on deposits held for at least one year. (Mass. Gen. Laws ch. 186, § 15B).
How is security deposit interest calculated in Massachusetts?+
Interest is simple (non-compounded). Multiply the deposit by the annual rate and by the number of years held. Interest only begins after the deposit has been held 12 months.
When must Massachusetts landlords pay the interest to the tenant?+
At the end of each year of tenancy, and within 30 days of move-out.
When must a Massachusetts landlord return the security deposit?+
Generally within 30 days of move-out (Mass. Gen. Laws ch. 186 § 15B). Use the LandlordKit deposit return tracker for the exact rule and an itemized statement.
Is the LandlordKit security deposit interest calculator free?+
Yes — it's completely free, requires no signup, and you can download a PDF interest statement to give your tenant.
Other states
Need the full picture? See the security deposit interest calculator for all states.