The short answer
No more than one and a half months' rent in total. After the first year, any increase is limited to 10% of the current deposit per year. The deposit must be held in a New Jersey bank or savings institution, and the tenant must be told in writing where it is within 30 days.
The full rules
See our guide to New Jersey security deposit rules, including interest, exemptions, and return timing.
New York is different
In Chester and elsewhere in New York, most residential deposits are capped at one month's rent. See property management in Chester, NY.
General information about New Jersey rules as of October 2026, not legal advice. Laws and municipal requirements change — confirm specifics with your attorney or the municipality before acting.