Ontario landlords can take only a last month's rent deposit, up to one month's rent, and owe interest on it every year. Work out the limit for your rent.
Largest total deposit allowed
$1,800.00
The only deposit allowed is a last month's rent deposit of up to $1,800.00, which pays the final month of rent. At the 2026 rate of 2.1%, a year of interest on it is $37.80.
| Deposit limit | The only deposit an Ontario landlord can take is a rent deposit of up to one month's rent, which pays the rent for the last month of the tenancy. A refundable key or fob deposit, up to the cost of replacing it, is also allowed. |
|---|---|
| Pet deposits | Pet deposits and damage deposits are not allowed in Ontario. |
| Interest | The landlord pays interest on the rent deposit every year at the rent increase guideline in effect when the interest is due: 2.1% in 2026 and 1.9% in 2027. The landlord can keep that interest to top the deposit up to the new rent after an increase. |
| Returning the deposit | There is no refund deadline, because the rent deposit is not refunded. It pays the rent for the last rental period. A key deposit is returned when the key comes back. |
| Disputes | Landlord and Tenant Board |
The calculator multiplies the monthly rent by the fraction of a month the province allows and rounds down to the cent. It then shows one year of interest at the 2026 rate.
Largest last month's rent deposit = monthly rent x 1, rounded down to the centOne year of interest = total deposit x 2.1 / 100Say the rent is $1,800 a month.
| Step | How | Result |
|---|---|---|
| Last month's rent deposit | $1,800 x 1 | $1,800.00 |
| Largest total deposit | Same as above | $1,800.00 |
| One year of interest | $1,800.00 x 2.1 / 100 | $37.80 |
The only deposit allowed is a last month's rent deposit of up to $1,800.00, which pays the final month of rent. At the 2026 rate of 2.1%, a year of interest on it is $37.80.
This page explains the general rules for private rentals and is not legal advice. Rules differ for some kinds of housing, and they change. For a specific situation, check with the Landlord and Tenant Board.
Checked against these official sources on September 27, 2026:
The only deposit an Ontario landlord can take is a rent deposit of up to one month's rent, which pays the rent for the last month of the tenancy. A refundable key or fob deposit, up to the cost of replacing it, is also allowed.
Pet deposits and damage deposits are not allowed in Ontario.
The landlord pays interest on the rent deposit every year at the rent increase guideline in effect when the interest is due: 2.1% in 2026 and 1.9% in 2027. The landlord can keep that interest to top the deposit up to the new rent after an increase.
There is no refund deadline, because the rent deposit is not refunded. It pays the rent for the last rental period. A key deposit is returned when the key comes back.
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