All of these answers are a bit odd in that they try to do a little too much. A simpler and visually more pleasing way (because it shows the text quickly being cut off) – and with with less oddities that the previous example (note how it overwrites the final key?) – is to simply cut off the number of characters on keyUp to the number that’s allowed.
var maxchars = 400;
$('body').on('keyup paste', 'textarea', function () {
$(this).val($(this).val().substring(0, maxchars));
var tlength = $(this).val().length;
remain = maxchars - parseInt(tlength);
$('#remain').text(remain);
});
Note that this then also works for pasting in text, as some of the examples above don’t.
Example here: http://jsfiddle.net/PzESw/5/