How much of a deposit can a California contractor ask for?
Researched by the LokalMatch editorial team1 answer
We were asked for a third up front on a kitchen, supposedly to order the cabinets.
Answers (1)
LokalMatch EditorialLokalMatch editorial
One thousand dollars or ten percent of the contract price, whichever is the smaller number. That is the ceiling on a home improvement down payment in California, and on a large job it means the cap is almost always the flat 1,000 dollars rather than the percentage.
There is no special-order exception. Cabinets made to size, windows made to measure, a spa ordered from a factory — none of it lifts the limit, which is precisely the argument you are being given for exceeding it.
Everything after the down payment is tied to work you can see. Payments to the contractor cannot exceed the value of the work performed, so a schedule that front-loads money against future progress is not a schedule California allows.
And get it in writing from the start: a written contract is required for every home improvement project over 500 dollars. A contractor who begins without one has already broken a rule on a job where you are about to hand over money.
Answers come from pros and are reviewed by LokalMatch before they’re published. They’re general information — for regulated or safety-critical work, have a licensed professional assess your situation.
Sources
Where the facts on this page come from.
Learn About Home Improvement Contracts — Contractors State License Board (accessed September 24, 2026)