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Do landlords have to pay interest on security deposits in Chicago, and when is it due?
Short answer
Pay deposit interest within 30 days after each 12-month rental period (2026 rate 0.01%)
Payment timing: Within 30 days after each lease anniversary
For deposits or prepaid rent held over six months, pay interest at the City Comptroller's rate for the year the lease was made (0.01% for 2026) within 30 days after each 12-month rental period, in cash or as a rent credit; pay remaining interest with the deposit at move-out.
"A landlord who holds a security deposit or prepaid rent pursuant to this section for more than six months shall pay interest to the tenant" codelibrary.amlegal.com
"The landlord shall, within 30 days after the end of each 12-month rental period, pay to the tenant any interest, by cash or credit to be applied to the rent due." codelibrary.amlegal.com
"the rate of interest on security deposits under rental agreements governed for the period from January 1, 2026 through December 31, 2026 shall be:" chicago.gov
Pay deposit interest within 30 days after each 12-month rental period (2026 rate 0.01%) Verified
Deadline: Within 30 days after each lease anniversary
For deposits or prepaid rent held over six months, pay interest at the City Comptroller's rate for the year the lease was made (0.01% for 2026) within 30 days after each 12-month rental period, in cash or as a rent credit; pay remaining interest with the deposit at move-out.
Applies to: any number of units, some owner-occupied buildings exempt, when you hold a security deposit · Layer: Chicago, IL · Topic: Security deposit interest
Who it covers: Residential Landlord and Tenant Ordinance (RLTO). Does not cover units in owner-occupied buildings with six or fewer units (and certain hotels, dorms, co-ops, employee housing).
"A landlord who holds a security deposit or prepaid rent pursuant to this section for more than six months shall pay interest to the tenant" codelibrary.amlegal.com
"The landlord shall, within 30 days after the end of each 12-month rental period, pay to the tenant any interest, by cash or credit to be applied to the rent due." codelibrary.amlegal.com
"the rate of interest on security deposits under rental agreements governed for the period from January 1, 2026 through December 31, 2026 shall be:" chicago.gov