Free tool

California contractor deposit calculator

Enter the job price and your deposit. See what to collect up front and what’s left, with a check against California’s down payment limit.

$
Sales tax

On lump-sum construction contracts, California contractors usually pay tax on materials when they buy them and don’t add sales tax to the customer’s bill. CDTFA: construction contractors

Deposit
%

Deposit to get started

$1,500.00

30% of the job total

This is above California’s usual limit of $500.00 for this job ($1,000 or 10%, whichever is less). Some bonded contractors are exempt.

Job price
$5,000.00
Sales tax
None
Job total
$5,000.00
Deposit
− $1,500.00
Balance on completion
$3,500.00

Text for your customer

Deposit to get started: $1,500.00 (30% of the job). Balance on completion: $3,500.00. Job total: $5,000.00.

Nothing you type is saved or sent anywhere. The deposit is figured on the total including tax, rounded to the cent.

California deposit rules to know

  • On home improvement contracts, the down payment can’t be more than $1,000 or 10% of the contract price, whichever is less, with exceptions for some bonded contractors. Cal. Bus. & Prof. Code § 7159.5

General information, not legal or tax advice. Rules change and depend on the type of work, so check the official source or a professional for your situation.

California deposit & tax questions

How big a deposit can I take in California?

On home improvement contracts, the down payment can’t be more than $1,000 or 10% of the contract price, whichever is less. Some bonded contractors are exempt. Cal. Bus. & Prof. Code § 7159.5

Do California contractors add sales tax to the bill?

On lump-sum contracts to improve real property, the contractor generally pays sales or use tax on materials when buying them and does not separately bill the customer for sales tax. CDTFA: construction contractors

Send it as a real deposit invoice

Put the deposit right on your quote. When the customer accepts, Lead2Project can send the deposit request automatically, and they pay by card on the spot.

Start freeHow deposits work →

How much deposit should a contractor charge?

There’s no single right number. A deposit has two jobs: cover what you have to spend before the work starts, and show the customer is committed. Start from those two and the number usually picks itself.

What to think about

  • Materials you buy up front. If you’re ordering shingles, fixtures or custom pieces before day one, the deposit should cover them. You shouldn’t be financing a customer’s job.
  • Special orders. Anything made to measure or non-returnable is money you can’t get back if the customer cancels.
  • Job size and length. On a short repair you might ask for a small deposit or none. On a long job, consider progress payments instead of one big deposit.
  • The customer. A repeat customer you trust might get lighter terms than a first-time one.
  • The law and taxes where you work. Some states limit deposits or control where the money goes, and sales tax depends on the state and the type of job. Pick your state in the calculator to see its rules.

Put it on the quote, not in a text later

The easiest deposit to collect is one the customer saw before they said yes. Show the deposit and the balance right on the quote, and send the deposit request as soon as they accept, while the job is fresh. Use the calculator above, copy the text, and paste it into your quote or message.