Guides

How Much Deposit Should a Contractor Ask For? Typical Percentages and State Limits

Typical deposit percentages for service and install work, the state laws that cap them (California, Maryland, Massachusetts and more), and wording to ask without losing the job.

Ijharul Islam October 14, 2026 8 min read

Most contractors ask for a deposit of 10% to 50% depending on the job: little or none for service calls, about 25% to 40% for mid-size installs, and up to the cost of special-order equipment. State law can cap it. California limits home improvement deposits to 10% or $1,000, whichever is less; Maryland and Massachusetts cap most at one-third.

More on this topic: Pricing, estimates and getting paid, every guide in one place.

A deposit does two jobs. It covers what you spend before the job starts, mainly equipment and materials, and it tells you the customer is serious. Ask for too little and you finance the customer's project; ask for too much and you lose jobs or, in some states, break the law. This guide covers typical amounts, the state rules that matter most, and the words to use.

Key takeaways

Service and repair calls rarely take a deposit; collect on completion.
Installs and replacements commonly take 25–50%, often matched to the cost of equipment you must order.
California: home improvement deposits are capped at 10% of the price or $1,000, whichever is less.
Maryland: no more than one-third of the contract price as a deposit. Massachusetts: one-third, or the actual cost of special-order materials.
Check your own state before you set a policy. Rules differ, and this is not legal advice.
Put the deposit in writing on the quote or contract, with when it's due and how it comes off the final bill.

What is a typical contractor deposit?

Job type	Typical deposit	Why
Service call or small repair	None; pay on completion	Little cost before the visit; the job is done the same day
Repair needing a special-order part	The part's cost, or 50% of the job	You're buying something only this customer can use
Equipment replacement (AC, furnace, water heater)	25–50%	Equipment is ordered before the install day
Larger installs and remodels ($10,000+)	10–30%, then progress payments	Spread the risk over milestones
Roofing	Varies widely; often a share up front and a payment when materials are delivered	Materials are a big share of the price
Commercial work	Set by the contract; often none, with progress billing	Customers expect net terms and draw schedules

These are common ranges, not rules. One invoicing vendor's guide suggests 30–50% on small jobs, 25–40% on medium ones and 20–30% on large ones, with a $6,000 HVAC install taking about $2,000. Virginia's Board for Contractors recommends that homeowners expect a down payment of about 10%, or about 30% when the job needs custom-made items. In every case, state law comes first.

Which states cap contractor deposits?

Several states limit how much a contractor can take up front on a home improvement contract. A few well-known examples, from each state's own pages:

State	Limit	Notes
California	10% of the contract price or $1,000, whichever is less	Applies to home improvement and swimming pool contracts. CSLB says there is no exception for special-order materials; a few licensees with blanket performance and payment bonds are exempt.
Maryland	No more than one-third of the contract price	No payment may be taken until the contract is signed. After the deposit, the payment schedule is up to you and the homeowner.
Massachusetts	One-third of the total price, or the actual cost of special-order or custom equipment, if higher	Final payment can't be demanded until the work is done to both parties' satisfaction.
Virginia	No statutory cap found; the Board recommends about 10%, or about 30% for custom items	Guidance to homeowners, not a hard limit.

Not legal advice. Rules change, have exceptions, and often depend on the type of job (home improvement vs new construction vs repair) and the contract amount. Check your state licensing board's website or ask a local construction attorney before you set a deposit policy. If your state isn't listed here, don't assume it has no limit.

California's rule surprises shops that move there or work near the state line. On a $9,000 AC replacement, the most you can take before work starts is $900, not $1,000 and certainly not half. After that, California requires a payment schedule in the contract, and payments shouldn't run ahead of the work completed.

How do you set your own deposit policy?

Look up your state's limit and any rules on payment schedules for home improvement work.
Sort jobs into groups: service and repair, special-order repair, replacement, large project.
Set a deposit for each group that covers your up-front costs (mainly equipment) within the legal limit.
Decide what's refundable. If the customer cancels, what do you keep? Special-order items you can't return are the usual answer. Put it in writing.
Write the policy into your quote template so every quote says the same thing.
Collect it at approval, not days later. The moment they say yes is the moment they're most willing to pay.

A worked example

A shop in a state with no deposit cap quotes a $12,000 heat pump replacement. The equipment costs the shop $5,200 and must be ordered a week ahead. A 40% deposit ($4,800) covers most of the equipment. The remaining $7,200 is due on completion. The same job in California could take at most $1,000 up front (10% would be $1,200, so the $1,000 cap applies), with the rest scheduled against the work as it's done.

Deposit wording for quotes and contracts

On the quote

“A deposit of 40% ($4,800) is due when you approve this quote. It reserves your install date and pays for equipment ordered for your home. The deposit is taken off your final invoice. The balance of $7,200 is due when the work is complete.”

Cancellation line

“If you cancel after equipment has been ordered, we refund your deposit minus the cost of any special-order items we can't return.”

Check that any cancellation terms fit your state's rules, including the right some homeowners have to cancel within three days of signing in their home.

What to say when asking for a deposit

In person, after they choose an option

“Great choice. To lock in Thursday the 12th and get your unit ordered, we take a 40% deposit today. That's $4,800, and it comes off the final bill. I can take a card now or text you a link.”

When the customer pushes back

“I understand. The deposit pays for the equipment we buy for your house before we start. It isn't extra; it's part of the $12,000. You'll pay the rest only when everything's in and working.”

Text with a deposit link

“Hi Pat, thanks for choosing the two-stage system. Here's the link to pay your $4,800 deposit and lock in Thursday the 12th. It comes off your final invoice. Questions? Just reply here.”

Mistakes to avoid with deposits

Taking more than your state allows. In capped states it can mean a refund, a fine or discipline from your licensing board.
No written terms. A deposit with no written refund policy invites a dispute.
Spending deposits on other jobs. Use the deposit for the job it came from. If that job falls apart, you'll need to refund it.
Forgetting to deduct it. An invoice that doesn't show the deposit makes the customer think they're paying twice.
Collecting days later. Ask at approval. Every day between yes and paid is a day they might get another quote.

For what goes on the final bill, see what to include on a contractor invoice. For building the options a deposit attaches to, see good, better, best quotes.

Where CrewRobin fits

On CrewRobin quotes you can ask for a deposit when the customer approves: a percent (like 25% or 50%) or a fixed amount, which fits a capped state like California. The customer pays by card through your own Stripe account, and the deposit is taken off the final invoice automatically.

Frequently asked questions

How much deposit should a contractor ask for?

Commonly 10% to 50% depending on the job: none for service calls, 25% to 50% for equipment replacements, and less on big projects with progress payments. Your state may set a lower limit.

What is the maximum deposit a contractor can take in California?

For home improvement and swimming pool contracts, California limits the down payment to 10% of the contract price or $1,000, whichever is less, with narrow exceptions for bonded licensees.

How much deposit can a contractor take in Maryland?

Maryland's Home Improvement Commission says a contractor cannot accept more than one-third of the contract price as a deposit, and no payment until the contract is signed.

Is it normal for a contractor to ask for 50% up front?

On replacement jobs with expensive equipment, 50% is common in states without a cap. On large projects, most contractors take less up front and use progress payments.

Should a deposit be refundable?

Spell it out in writing. Many contractors refund the deposit minus any special-order items they can't return, but check your state's rules first.

Do HVAC companies take deposits for repairs?

Usually not for ordinary repairs, which are paid on completion. A deposit is common when a repair needs a special-order part.

Put it to work this week

Ask for the deposit in the same moment the customer says yes. CrewRobin is free until your first 10 booked jobs, no card up front. Start free or see pricing.

Sources

Figures from outside CrewRobin were checked against these pages in October 2026. Most industry benchmarks come from vendors and agencies, so treat them as ranges, not rules.

#pricing #operations #templates #guides