How much deposit a contractor should ask for depends on the job and where you work. A common range is 10% to 30% of the contract price, or the cost of special-order materials on jobs that need them. But some places cap deposits by law: California limits home improvement down payments to $1,000 or 10%, whichever is less, and Ontario’s government recommends keeping them to 10%.
So check your local rules first, then size the deposit to cover your real up-front risk: materials you can’t return, permits, and the slot you hold on your schedule. The ranges below are typical market practice, not rules.
The short answer
| Situation | Typical deposit | Why |
|---|---|---|
| Small repair or service call | None, paid on completion | Little risk, quick job, you collect same day |
| Small job, stock materials | 0% to 25% | Covers materials and holds the date |
| Renovation, mostly labour | 10% to 30% | Holds the slot and covers start-up costs |
| Special-order items (cabinets, windows, custom doors) | The cost of those items | You can’t return them if the customer walks |
| Large or long project | 10% deposit plus progress payments | Keeps payments matched to work done |
| Commercial work | Often none; progress billing | Paid on monthly or milestone invoices |
Typical ranges based on common practice in the trades, not a legal standard. Where a law sets a cap, the law wins.
Typical deposit ranges by job
The deposit does three jobs: it pays for things you must commit to before the work starts, it holds a spot on your schedule, and it shows the customer is serious. Your number should reflect how much of each your job involves.
| Trade / job (worked examples) | Job size | Typical deposit | Main driver |
|---|---|---|---|
| Handyman day | $600 | None | Collect on completion |
| Exterior painting | $6,500 | 10% to 25% | Paint and holding the weather window |
| Deck build | $18,000 | 20% to 35% | Lumber order |
| Kitchen renovation | $45,000 | 10% plus cabinet cost at ordering | Custom cabinets and counters |
| Roof replacement | $14,000 | 15% to 30% | Shingles and dumpster booked |
| Furnace replacement | $7,800 | 25% to 50% | Equipment ordered for the job |
| Spring landscape install | $9,500 | 20% to 30% | Plants, sod and stone ordered |
These are illustrative ranges to show how the drivers change the number. Your market and your contract terms decide the final figure, and in the jurisdictions below the law sets a ceiling. For pricing the job itself, see how to price a contractor job, and for specific trades our guides on handyman pricing and bidding a painting job.
Where deposits are capped by law
We checked the official sources for the places contractors ask us about most (November 2026). Most provinces and states don’t set a general cap for renovation deposits, but some do, and the penalties can be serious.
| Jurisdiction | Rule | Source |
|---|---|---|
| California | Home improvement and swimming pool down payment can’t exceed $1,000 or 10% of the contract price, whichever is less, with no exception for special-order materials. Later payments can’t exceed the value of work performed. | CSLB |
| Massachusetts | On residential contracts over $1,000, the deposit before work starts can’t exceed the greater of one-third of the contract price or the actual cost of special-order or custom materials. | M.G.L. c.142A §2 |
| Ontario | No hard cap found, but the province recommends deposits of no more than 10% of the total project cost and requires a written contract for jobs over $50. | Ontario.ca |
| British Columbia | Consumer Protection BC says the law limits down payments on direct (door-to-door) sales contracts to $100 or 10%, whichever is less; it does not set a general cap on other contract deposits. | Consumer Protection BC |
| Other states and provinces | Some other US states also limit deposits on home improvement work. Check your state or provincial consumer protection office and contractor licensing board. | Your licensing board |
On a $40,000 bathroom remodel in California, 10% would be $4,000, so the cap is the lower figure: $1,000. On an $8,000 job, 10% is $800, so the cap is $800. Beyond that, you bill as work is done.
General information, not legal advice. Laws change; confirm with your licensing board or a lawyer before setting your deposit policy.
How to work out your deposit
Start from your real up-front exposure, then round to a clean number your customers understand.
If your jurisdiction sets one, that’s your ceiling. Everything below fits under it.
Special-order materials, non-refundable equipment orders, permit fees, dumpster or equipment bookings.
A modest amount, often 5% to 10%, for the slot you turn other work away for.
If the result is far above your usual 10% to 30%, consider a milestone payment when materials are ordered instead.
State the amount, when it’s due, what it covers, and how it’s credited on the final invoice.
Worked examples
Two jobs in Ontario, with HST at 13% added to each payment. Numbers are illustrative.
| Kitchen renovation, $40,000 + HST | Amount | Due |
|---|---|---|
| Deposit (10%, in line with Ontario’s guidance) | $4,000 + HST | On signing |
| Cabinet and counter order | $14,000 + HST | When the order is placed |
| Rough-ins and drywall complete | $10,000 + HST | At milestone |
| Cabinets installed | $8,000 + HST | At milestone |
| Completion and walkthrough | $4,000 + HST | On completion |
| Total | $40,000 + HST ($45,200) |
Instead of asking for 45% on day one, this schedule keeps the signing deposit at 10% and collects the big materials payment when the cabinets are actually ordered. The customer is never paying far ahead of the work, and you never front the cabinet cost yourself.
| Deck build, $12,000 + HST | Amount | Due |
|---|---|---|
| Deposit to cover the lumber order | $3,600 + HST (30%) | On signing |
| Framing complete | $4,800 + HST | At milestone |
| Completion | $3,600 + HST | On completion |
| Total | $12,000 + HST ($13,560) |
In California, the same deck would start with a $1,000 down payment (10% of $12,000 is $1,200, so the $1,000 limit applies), with progress payments only as work is completed.
How to ask for a deposit
Customers expect a deposit on bigger jobs. What puts them off is a vague one. Say what it covers and when it’s credited.
“A deposit of $3,600 (30%) is due on approval to order your lumber and book your start date. It’s credited in full on your final invoice.”
“Totally fair question. The deposit covers the materials we order specifically for your job, and it locks in your start date of May 12. Everything else is paid as the work gets done, so you’re never paying far ahead of what you can see.”
“Great news, Dev. Here’s your quote to sign, with the deposit link on the same page: [link]. As soon as it’s in, we’ll order materials and confirm May 12.”
A big deposit with no explanation is also a red flag for homeowners who’ve read warnings about contractors who take money and disappear. Being clear and reasonable here helps you close, not just get paid.
Refunds, cancellations and cooling-off
Write what happens to the deposit if the customer cancels: what’s refundable, and what you keep for materials already bought. Then check it against consumer law. In Ontario, for example, a customer who signs a contract at their home has a 10-day cooling-off period to cancel without fees, and the contractor must refund within 15 days of the cancellation notice, according to the province’s renovation business guide. Many contractors wait out a cooling-off period before ordering special materials for that reason.
Also ask your accountant how sales tax applies to deposits in your province or state, so your invoice shows the deposit and the tax correctly.
Collecting it without the hassle
The deposit is easiest to collect at the moment the customer says yes. If they have to sign, then find your e-Transfer email, then remember to send it, you lose days and sometimes the job. Put the signature and the payment on the same screen.
- State the deposit and payment schedule in the quote
- Let the customer sign and pay by card in one step
- Show the deposit as a credit on the final invoice
- Don’t order special materials until it’s paid
That’s how Contruva quotes work: customers sign on their phone and pay the deposit in the same step, and the signed quote turns into a job and an invoice with the deposit already credited. Card payments run through Stripe and Contruva adds no fee of its own on top of standard processing. For the rest of the cash flow picture, read how to get paid faster as a contractor. See Contruva Pro, free for 7 days.