Maximum Invoice Late Fees by State (2026): What a Business May Charge

Business invoice or rent? This page covers late fees and interest on invoices between businesses, which state interest and usury statutes govern.

  • Rent: limits on residential rent late fees come from landlord–tenant statutes. Our rent pages: Massachusetts, Hawaii and New Mexico. See also figures that come from rent law.
  • Consumers and credit cards: consumer credit, including credit-card late fees, is often governed by separate rules that this page does not cover.

Is there a legal maximum late fee on a business invoice?

Not one national figure. Each state sets its own rule, and the maximum depends on the state whose law governs your contract. Of the 51 jurisdictions in the table below (50 states + DC):

The counts are derived from our dataset when the page is built. The regime is our reading of each state's statutes, explained in each row with the citation; how we verify this data. A monthly rate compares with an annual cap after multiplying by 12: 1.5% per month is 18% a year, simple.

Maximum invoice late fee by state: all 50 states + DC

Maximum is the written-contract ceiling as our dataset summarises it. Conditions are the amount thresholds, debtor types and agreement requirements that decide whether it applies. Where we hold the verified statute text that states the cap, it is under “Cap text”. Each row links to that state's own page, which has a calculator and a “Maximum late fee” section. Every row has an anchor, for example #texas.

Maximum late-payment interest a written B2B contract may charge in each US state and DC: cap regime, maximum, conditions, statute and verification date
State Cap regime Maximum Conditions Statute · verified
Alabama Alabama cap section → Conditional cap 8% (deals under $2,000) 8% written-contract cap — but any agreed rate is allowed when the deal is $2,000 or more (covers most B2B invoices). 8% written cap, but any agreed rate is lawful once the deal is $2,000+ (covers most invoices); usury defense barred above that. Under $2,000 stays at 8%. Ala. Code §§ 8-8-1, 8-8-5 verified
Alaska Alaska cap section → Conditional cap greater of 10% or Fed 12th-District rate +5 pts (deals $25,000 or less) Greater of 10% or Fed 12th District rate +5 pts — but contracts over $25,000 are exempt (any agreed rate). Cap = greater of 10% or Fed 12th-Dist rate +5 pts. Only contracts OVER $25,000 escape it, so a typical smaller invoice stays under that floating ceiling (never below 10%). AS 45.45.010(b) verified
Arizona Arizona cap section → No rate ceiling No cap — any rate agreed in writing is lawful. No usury ceiling: any rate is lawful if agreed in writing. The 10% figure is only a gap-filler when the contract sets no rate. A.R.S. §§ 44-1201, 44-1202 verified
Arkansas Arkansas cap section → Hard cap 17% (constitutional) 17% per year — constitutional cap (amend. 89, § 3); no business exemption. Usurious contracts are void as to principal and interest. Hard 17%/yr constitutional cap on all contracts; no business exemption. A clause above 17% makes the contract void as to BOTH principal and interest. Ark. Const. amend. 89 §§ 3, 6 verified
Cap text

“The maximum lawful rate of interest on loans or contracts not described in Sections 1 and 2 shall not exceed seventeen percent (17%) per annum. [...] All contracts under Section 3 having a rate of interest in excess of the maximum lawful rate shall be void as to principal and interest”

Ark. Const. amend. 89, §§ 3, 6(b) · source · verified 2026-08-19
California California cap section → Conditional cap higher of 10% or FRBSF rate +5 pts (if a 'loan or forbearance') Cal. Const. art. XV, § 1 limits the rate on a 'loan or forbearance' of money, goods, or things in action: for a use other than personal, family or household purposes, a written rate may not exceed the higher of 10% or the Federal Reserve Bank of San Francisco advance rate +5 pts, and many classes of lenders are exempt. In Southwest Concrete Products v. Gosh Construction Corp. (1990) 51 Cal.3d 701 the California Supreme Court held that interest on an overdue commercial account was not subject to the usury law, because it was not a payment for a loan or forbearance; a deal that is in substance a loan or forbearance is still covered. The constitutional cap applies to a 'loan or forbearance of any money, goods, or things in action'. For non-household use the written-contract ceiling is the higher of 10% per annum or 5% plus the Federal Reserve Bank of San Francisco advance rate, and the section exempts several classes of lenders. A late charge on an overdue commercial account is treated differently: in Southwest Concrete Products v. Gosh Construction Corp. (1990) 51 Cal.3d 701 the California Supreme Court held such interest not subject to the usury law, because it was not a payment for a loan or forbearance. The courts draw the line between a loan or forbearance (for example, giving further time for the payment of a debt) and a sale of goods or property. Cal. Const. art. XV, § 1; Southwest Concrete Products v. Gosh Construction Corp. (1990) 51 Cal.3d 701; Civ. Code § 3289(b) verified
Cap text

“The rate of interest upon the loan or forbearance of any money, goods, or things in action, or on accounts after demand, shall be 7 percent per annum but it shall be competent for the parties to any loan or forbearance of any money, goods or things in action to contract in writing for a rate of interest: [...] (2) For any loan or forbearance of any money, goods, or things in action for any use other than specified in paragraph (1), at a rate not exceeding the higher of (a) 10 percent per annum or (b) 5 percent per annum plus the rate prevailing on the 25th day of the month preceding the earlier of (i) the date of execution of the contract to make the loan or forbearance, or (ii) the date of making the loan or forbearance established by the Federal Reserve Bank of San Francisco on advances to member banks [...]”

Cal. Const. art. XV, § 1 · source · verified 2026-09-25
Colorado Colorado cap section → Hard cap 45% Up to 45% per year may be stipulated in writing — the cap applies to business deals too. Up to 45%/yr may be stipulated in writing; the cap binds business deals too and 45% is also the criminal-usury line. Narrow 'commercial credit plan' carve-out exists. C.R.S. §§ 5-12-103, 18-15-104 verified
Cap text

“When there is no agreement as to the rate thereof, creditors shall be allowed to receive interest at the rate of eight percent per annum compounded annually for all moneys after they become due on any bill, bond, promissory note, or other instrument of writing [...] but not exceeding forty-five percent per annum”

C.R.S. §§ 5-12-102(2), 5-12-103(1) (Colorado Revised Statutes 2024, Title 5, official OLLS printout, pp. 121-122) · source · verified 2026-08-19
Connecticut Connecticut cap section → Conditional cap 12% (debt $10k or less) 12% general cap — but commercial loans are largely exempt under § 37-9 tiers (e.g. $10k–$250k: deposit index +17%). 12% cap; commercial LOAN tiers lift it ($10k-$250k: deposit index+17%; over $250k: none). Small invoices and the trade-invoice (not a 'loan') case stay at 12%. Conn. Gen. Stat. §§ 37-4, 37-9 verified
Delaware Delaware cap section → No rate ceiling Business entities cannot plead usury at all (§ 2306 bars any corporation, LLC, LP, statutory trust or business trust from interposing the defense), and loans over $100,000 not secured by a mortgage on a principal residence are expressly uncapped (§ 2301(c)); the discount rate +5 pts written ceiling in § 2301(a) reaches only deals outside those two carve-outs. 6 Del. C. § 2306 bars any corporation, limited partnership, statutory trust, business trust or LLC from interposing the defense of usury in any action, so an entity debtor has no usury argument to make. Separately, § 2301(c) removes any rate limitation where the amount loaned or used exceeds $100,000 and repayment is not secured by a mortgage against a borrower's principal residence — that exemption turns on amount and collateral only, not on entity type. Note that § 2306's list does not name individuals or general partnerships; the section itself contrasts entities having 'powers and privileges of corporations not possessed by individuals or partnerships', so a sole-proprietor customer is not covered by that bar. 6 Del. C. §§ 2301(c), 2306 verified
District of Columbia District of Columbia cap section → Conditional cap 24% (deals $2,500 or less) 24% written cap — but business-purpose loans over $2,500 are fully exempt (any agreed rate). 24% written cap, but a business-purpose loan OVER $2,500 (not home-secured) may carry any rate. At/under $2,500 the 24% cap applies. D.C. Code § 28-3301(a),(d)(1)(B) verified
Cap text

“(a) Except as otherwise provided in this section, section 28-3308, and chapter 36 of this subtitle, the parties to an instrument in writing for the payment of money at a future time may contract therein for the payment of interest on the principal amount thereof at a rate not exceeding 24% per annum. [...] (d) Notwithstanding any other provision of this chapter: (1) any loan, except a loan which is secured directly or indirectly by a mortgage or deed of trust on residential real property [...] where the borrower receives the use of an amount in excess of $2,500 shall not be subject to the provisions of this chapter and it shall be lawful to contract for, or receive, any rate of interest thereon if any of the following conditions are satisfied: [...] (B) the borrower is an individual, group of individuals, corporation, unincorporated association, partnership, or other entity, and the loan is made for the purpose of acquiring or carrying on a business, professional, or commercial activity”

D.C. Code § 28-3301(a), (d)(1)(B) · source · verified 2026-09-25
Florida Florida cap section → Hard cap 18% 18% for obligations of $500,000 or less; above $500,000 the bound is the 25% criminal-usury line. No general business exemption. 18%/yr cap on obligations of $500,000 or less (the ordinary case); no general business exemption. Only deals over $500k rise to the 25% criminal-usury line. Fla. Stat. §§ 687.02-.03, 687.071 verified
Cap text

“All contracts for the payment of interest [...] at a higher rate of interest than the equivalent of 18 percent per annum simple interest are hereby declared usurious. However, if such loan [...] or obligation exceeds $500,000 in amount or value, then no contract to pay interest thereon is usurious unless the rate of interest exceeds the rate prescribed in s. 687.071.”

Fla. Stat. § 687.02(1) (2025 Florida Statutes, flsenate.gov) · source · verified 2026-09-25

“Unless otherwise specifically allowed by law, any person making an extension of credit to any person, who shall willfully and knowingly charge, take, or receive interest thereon at a rate exceeding 25 percent per annum but not in excess of 45 percent per annum, or the equivalent rate for a longer or shorter period of time, whether directly or indirectly, or conspires so to do, commits a misdemeanor of the second degree [...]”

Fla. Stat. § 687.071(2) (2025 Florida Statutes, flsenate.gov) · source · verified 2026-09-25
Georgia Georgia cap section → Conditional cap 16% (principal $3,000 or less) $3,000 or less: 16% cap. More than $3,000 and under $250,000: any rate by written contract, stated in simple interest terms. $250,000 or more: any rate by written contract, simple interest or otherwise. Three bands under § 7-4-2: $3,000 or less — 16% cap, but only 'unless ... made pursuant to another law'; more than $3,000 and under $250,000 — any rate by written contract, stated in simple interest terms; $250,000 or more — any rate by written contract, simple interest or otherwise. Separately, § 7-4-16 lets the owner of a commercial account charge up to 1 1/2 percent per month on the portion that has been due and payable for 30 days or more; the statute's text does not require a written contract rate, but Georgia courts look for the rate to be stated in the contract, agreement or invoice, or invoked before trial. O.C.G.A. §§ 7-4-2, 7-4-16 verified
Cap text

“[W]here the principal involved is $3,000.00 or less, such rate shall not exceed 16 percent per annum simple interest on any loan, advance, or forbearance to enforce the collection of any sum of money . . . .”

O.C.G.A. § 7-4-2(a)(2), quoted verbatim in Clark v. Aaron's, Inc., No. 1:11-CV-04283-RWS, slip op. at 20 (N.D. Ga. Sept. 26, 2012) (govinfo.gov, U.S. Government Publishing Office) · source · verified 2026-09-25
Hawaii Hawaii cap section → No rate ceiling No cap for non-consumer transactions — any rate may be stipulated by written contract. No ceiling for non-consumer deals: any rate may be set by written contract. A B2B invoice is neither consumer credit nor a home loan, so it is uncapped. HRS §§ 478-4(c), 478-8 verified
Idaho Idaho cap section → No rate ceiling No cap — the finance-charge rate is whatever the parties agree (Idaho Credit Code consumer rules don't reach business credit). No usury cap; the finance-charge rate is whatever the parties agree. Idaho Credit Code rate limits reach only consumer credit, not business debts. Idaho Code §§ 28-42-201, 28-41-301 verified
Illinois Illinois cap section → No rate ceiling 9% nominal written-contract ceiling — but business/commercial credit is broadly exempt (any agreed rate). 9% nominal cap, but any loan to a corporation and any business-purpose loan may bear any agreed rate. Ordinary B2B credit is effectively uncapped. 815 ILCS 205/4(1)(a),(c) verified
Indiana Indiana cap section → No rate ceiling No general civil cap for written B2B contracts — consumer-credit caps don't apply to business-purpose debts. No civil usury cap on written B2B contracts; consumer caps don't reach business debts. Only outer bound is the 72%/yr criminal loansharking line — far above any trade late fee. Ind. Code §§ 24-4.5-3; 35-45-7-2 verified
Iowa Iowa cap section → No rate ceiling Floating cap for ordinary written agreements (10-yr Treasury monthly average +2 pts, set monthly by the Superintendent of Banking) — business credit is exempt. Business or agricultural credit is exempt: parties may agree in writing to any rate, with no usury defense or penalty. The floating cap binds only consumer deals. Iowa Code § 535.2(2)(a)(5) verified
Kansas Kansas cap section → No rate ceiling 15% written cap — but business and agricultural transactions are exempt (any agreed rate). 15% written cap does NOT apply to business or agricultural transactions (purposes other than personal/family/household) — those may carry any agreed rate. K.S.A. 16-207(a),(e)(5) verified
Kentucky Kentucky cap section → Conditional cap 19% (non-entity, $15,000 or less) Principal of $15,000 or less: lesser of Fed 90-day commercial-paper discount +4 pts or 19%. Over $15,000: any agreed rate. Over $15,000: any rate. At/under $15,000: lesser of Fed 90-day CP discount+4 pts or 19%. Corp/LLC debtors can't plead usury, so the cap really bites only small sole-prop debts. KRS 360.010(1) verified
Louisiana Louisiana cap section → No rate ceiling 12% maximum conventional rate fixed in writing — but commercial/business obligations are exempt. 12% conventional cap does NOT apply to commercial/business-purpose obligations; B2B parties may agree to any rate in writing. La. R.S. 9:3500(D), 9:3509 verified
Cap text

“[La. R.S. 9:3500(D): the 12% ceiling of 9:3500(C)(1) does not apply to] "a loan made for commercial or business purposes or deferring payment of an obligation for commercial or business purposes." [La. R.S. 9:3509(A):] Notwithstanding any other provisions of the law of this state to the contrary, any debtor that is . . . a limited liability company formed pursuant to the laws of this state . . . borrowing funds for commercial, business, or agricultural purposes . . . may agree to pay interest in excess of the maximum rate of conventional interest authorized by the laws of this state . . . and as to any such agreement such debtor shall be prohibited from asserting a claim or defense of usury or the taking of interest in excess of the maximum rate of conventional interest, and any person whatsoever signing as co-maker, guarantor, or endorser for such debtor shall also be prohibited from asserting any such claim or defense.”

La. R.S. 9:3500(D) and 9:3509(A), as quoted in Royal Alice Properties, LLC v. AMAG, Inc., Adv. No. 19-01133, slip op. at 19 (Bankr. E.D. La. Nov. 25, 2020); the bracketed labels are ours, the ellipses the court's (govinfo.gov, U.S. Government Publishing Office) · source · verified 2026-09-25
Maine Maine cap section → No rate ceiling No general cap for business/commercial credit — Maine's Consumer Credit Code excludes business-purpose extensions of credit. No general cap on business/commercial credit; the Consumer Credit Code excludes business-purpose extensions and the old usury statute is repealed. Set the rate in writing. 9-A M.R.S. § 1-202(1) verified
Maryland Maryland cap section → Hard cap 6% (8% with signed agreement) 8% with a signed written agreement — but loans to corporations and commercial loans over $15,000 (unsecured by a residence) or $75,000 (secured) carry any agreed rate. 6% binds an ordinary unpaid invoice (8% only with a signed loan agreement). Corp-loan and $15,000+ commercial-loan exemptions apply only to actual loans — a trade invoice is not a loan. Md. Const. art. III §57; Com. Law §12-103(e) verified
Cap text

“(a) (1) Except as provided in subsections (b), (c), (d), (e), and (f) of this section, a lender may charge interest at an effective rate of simple interest not in excess of 8 percent per year on the unpaid principal balance of a loan if there is a written agreement signed by the borrower which sets forth the stated rate of interest charged by the lender. [...] (e) (1) A lender may charge interest at any rate if the loan is: (i) A loan made to a corporation; (ii) A commercial loan in excess of $15,000 not secured by residential real property; or (iii) A commercial loan in excess of $75,000 secured by residential real property.”

Md. Code, Com. Law § 12-103(a)(1), (e)(1) · source · verified 2026-09-25
Massachusetts Massachusetts cap section → Hard cap 20% criminal (all-in) 20% criminal-usury ceiling (all-in, including fees) unless the lender notifies the Attorney General; no blanket business exemption. 20%/yr criminal-usury ceiling, counting all fees and charges; no blanket business exemption. Exceeding it is lawful only if the lender files notice with the Attorney General. MGL c.271 §49; c.107 §3 verified
Cap text

“(a) Whoever in exchange for either a loan of money or other property knowingly contracts for, charges, takes or receives, directly or indirectly, interest and expenses the aggregate of which exceeds an amount greater than twenty per centum per annum upon the sum loaned or the equivalent rate for a longer or shorter period, shall be guilty of criminal usury and shall be punished by imprisonment in the state prison for not more than ten years or by a fine of not more than ten thousand dollars, or by both such fine and imprisonment. [...] (d) The provisions of paragraph (a) to (c), inclusive, shall not apply to any person who notifies the attorney general of his intent to engage in a transaction or transactions which, but for the provisions of this paragraph, would be proscribed under the provisions of paragraph (a) providing any such person maintains records of any such transaction.”

Mass. Gen. Laws ch. 271, § 49(a), (d), quoted verbatim in Duggan v. Martorello, No. 1:18-cv-12277-JGD, slip op. at 37–38 (D. Mass. Mar. 30, 2022) (govinfo.gov, U.S. Government Publishing Office) · source · verified 2026-09-25
Michigan Michigan cap section → Hard cap 25% criminal 7% nominal cap — but corporations and business entities may agree in writing to any rate (usury defense barred); outer criminal line is 25%. Corporations/business entities may agree to any rate (civil usury defense barred), but the 25%/yr criminal-usury cap still binds them — that is the real B2B ceiling. MCL 450.1275, 438.61, 438.41 verified
Cap text

“knowingly charge[], take[], or receive[] any money or other property as interest on the loan . . . at a rate exceeding 25% at simple interest per annum or the equivalent rate for a longer or shorter period”

Mich. Comp. Laws § 438.41 (criminal usury), as quoted in Private Financing Alternatives, LLC v. Walloon Lake Holdings, LLC, No. 1:25-cv-165, slip op. at 4 (W.D. Mich. Sept. 11, 2026); the brackets and ellipsis are the court's (govinfo.gov, U.S. Government Publishing Office) · source · verified 2026-09-25
Minnesota Minnesota cap section → Conditional cap Fed 90-day CP discount +4.5% (under $100k) 8% general cap — but written credit of $100,000+ is uncapped, and smaller business loans may charge Fed 90-day commercial-paper discount +4.5 pts. Credit of $100,000+ is uncapped. Business loans under $100k get a higher floating ceiling (Fed 90-day CP discount +4.5 pts), so an ordinary smaller invoice is still capped. Minn. Stat. §§ 334.01 subd.2, 334.011 verified
Cap text

“Subd. 2. Contracts of $100,000 or more. Notwithstanding any law to the contrary, except as stated in section 58.137, and with respect to a conventional loan or contract for deed, section 47.20, subdivision 4a, no limitation on the rate or amount of interest, points, finance charges, fees, or other charges applies to a loan, mortgage, credit sale, or advance made under a written contract, signed by the debtor, for the extension of credit to the debtor in the amount of $100,000 or more [...] 334.011 Subdivision 1. Permitted rate. Notwithstanding the provisions of any law to the contrary a person may, in the case of a contract for the loan or forbearance of money, goods, or other things in action in an amount of less than $100,000 for business or agricultural purposes, charge interest at a rate of not more than 4-1/2 percent in excess of the discount rate on 90-day commercial paper in effect at the Federal Reserve Bank in the Federal Reserve District encompassing Minnesota.”

Minn. Stat. § 334.01, subd. 2; § 334.011, subd. 1 · source · verified 2026-09-25
Mississippi Mississippi cap section → Conditional cap any written rate over $2,000 Any rate agreed in writing when the principal exceeds $2,000. Otherwise tiered caps: greater of 10% or Fed discount +5 pts (general); greater of 15% or discount +5 pts for business entities on deals over $2,500. Any obligation OVER $2,000 may carry any finance charge agreed in writing (no ceiling) — covers most invoices. At/under $2,000: cap of greater of 10% or Fed discount +5 pts. Miss. Code Ann. § 75-17-1(5),(2) verified
Missouri Missouri cap section → No rate ceiling 10% cap (or the market rate the Division of Finance publishes each quarter under RSMo 408.030, if higher). Exempt: loans to corporations/partnerships/LLCs and any extension of credit primarily for agricultural, business, or commercial purposes (no dollar minimum) — any agreed written rate. RSMo 408.035 lets parties agree in writing to any rate of interest and fees on a loan to a corporation, general partnership, limited partnership or LLC (1) and on any extension of credit primarily for agricultural, business or commercial purposes (2) — no dollar minimum, so B2B trade credit is outside the 10% ceiling regardless of amount or of whether the debtor is an entity or a sole proprietor. The exemption requires a written agreement; with no writing, the 9% default under 408.020 applies. RSMo 408.035(1)-(2) verified
Montana Montana cap section → Hard cap 15% (floor) Greater of 15% or Fed H.15 prime +6 pts (dated 3 business days before signing) — prime +6 is currently below the 15% floor, so 15% governs. Cap = greater of 15% or Fed H.15 prime +6 pts; no broad business exemption (only regulated lenders escape). Prime+6 is below 15% now, so 15%/yr binds ordinary B2B. Mont. Code Ann. § 31-1-107 verified
Nebraska Nebraska cap section → No rate ceiling 16% general cap — but exempt: entity borrowers, business/agricultural-purpose loans, and deals at or above $100,000 (raised from $25,000 by Laws 2026, LB717, § 27, operative July 18, 2026) — any agreed rate. 16% cap does not apply to entity borrowers OR business/agricultural-purpose loans, so ordinary B2B is effectively uncapped (dollar threshold is a separate, additional exemption). Neb. Rev. Stat. § 45-101.04 verified
Nevada Nevada cap section → No rate ceiling No cap — any rate agreed in writing is lawful. No general usury cap; parties to a written contract may agree to any rate. The only ceiling (36% APR) applies solely to military consumer credit, not B2B. NRS 99.050(1) verified
New Hampshire New Hampshire cap section → No rate ceiling No cap for business transactions agreed in writing (consumer credit is the only carve-out). No numeric usury cap on business transactions agreed in writing; rate limits are reserved for consumer credit. Set the B2B rate in writing. RSA 336:1, I verified
New Jersey New Jersey cap section → Hard cap 50% criminal (entity) 16% written civil cap on paper — but corporate borrowers cannot plead usury and deals of $50,000+ are exempt; criminal ceiling 50% (entities) / 30% (individuals). 16% civil cap is unenforceable vs corporations/LLCs/LLPs, and deals $50k+ escape it, but criminal usury still caps B2B: 50%/yr to an entity, 30%/yr to an individual. N.J.S.A. 31:1-1(e), 31:1-6, 2C:21-19 verified
New Mexico New Mexico cap section → No rate ceiling No cap when the debtor is a business entity (express statutory exclusion); no ceiling for other debtors either — 15% is only a default and on open accounts the parties may set a higher rate by agreement. The 36% APR cap binds only licensed small-loan / bank-installment lenders. No maximum-rate law applies at all when the debtor is a corporation, LLC or other business entity; and on an open account the parties may agree to a rate above the 15% default, so B2B trade credit has no ceiling. The 36% APR cap reaches only licensed small-loan/bank-installment lenders. NMSA 1978 §§ 56-8-9(B), 56-8-5, 56-8-21 verified
New York New York cap section → Hard cap 25% criminal (effective) 16% civil / 25% criminal usury caps — loans of $250,000+ escape the civil cap, $2.5M+ escape both; corporations cannot plead civil usury (effective B2B ceiling 25%). Corporations can't raise the 16% civil cap but CAN raise the 25% criminal cap, so 25%/yr is the effective B2B ceiling (loans $250k+ escape civil; $2.5M+ escape all). GOL 5-501, 5-521; Penal Law 190.40 verified
Cap text

“The rate of interest, as computed pursuant to this title, upon the loan or forbearance of any money, goods, or things in action, except as provided in subdivisions five and six of this section or as otherwise provided by law, shall be six per centum per annum unless a different rate is prescribed in section fourteen-a of the banking law. [...] 6. a. No law regulating the maximum rate of interest which may be charged, taken or received, except section 190.40 and section 190.42 of the penal law, shall apply to any loan or forbearance in the amount of two hundred fifty thousand dollars or more, other than a loan or a forbearance secured primarily by an interest in real property improved by a one or two family residence. b. No law regulating the maximum rate of interest which may be charged, taken or received, including section 190.40 and section 190.42 of the penal law, shall apply to any loan or forbearance in the amount of two million five hundred thousand dollars or more. [...] No corporation shall hereafter interpose the defense of usury in any action. [...] The provisions of subdivision one of this section shall not apply to any action in which a corporation interposes a defense of criminal usury as described in section 190.40 of the penal law. [...] A person is guilty of criminal usury in the second degree when, not being authorized or permitted by law to do so, he knowingly charges, takes or receives any money or other property as interest on the loan or forebearance of any money or other property, at a rate exceeding twenty-five per centum per annum or the equivalent rate for a longer or shorter period.”

N.Y. Gen. Oblig. Law § 5-501(1), (6)(a)-(b); § 5-521(1), (3); N.Y. Penal Law § 190.40 · source · verified 2026-09-25
North Carolina North Carolina cap section → No rate ceiling No cap on an 'exempt loan' under § 24-9 — loan amount $300,000 or more, a borrower that is not a natural person, or a natural person borrowing primarily for a non-consumer purpose — and there a usury claim or defense is barred. Outside § 24-9, any rate may still be agreed in writing where principal exceeds $25,000 (§ 24-1.1(a)(2)); only principal of $25,000 or less is capped, at the greater of 16% or the six-month T-bill noncompetitive rate + 6%, announced monthly by the Commissioner of Banks (§ 24-1.1(c)). Any loan to a business entity OR for a business/commercial purpose is an 'exempt loan transaction' — any rate, usury defense barred. The floating cap hits only small consumer-type loans. N.C.G.S. §§ 24-9, 24-1.1(a) verified
North Dakota North Dakota cap section → Conditional cap 6-month T-bill average +5.5 pts, 7% floor (non-entity, $35k or less) Floating cap: 6-month T-bill average +5.5 pts, published monthly by the banking commissioner (September 2026: 9.204%; floor 7%); most genuine business transactions are exempt. Loans to a corp/LLC/partnership, and any deal over $35,000, are exempt. A sub-$35k debt owed by a sole prop stays under the floating cap (T-bill+5.5%, 7% floor; 9.204% as published for September 2026). N.D.C.C. § 47-14-09 verified
Ohio Ohio cap section → No rate ceiling 8% written cap — lifted for any "business loan" (no dollar floor) and for principal over $100,000: any agreed rate. 8% written cap is lifted for any 'business loan' with NO dollar floor (and for principal over $100k), so genuine B2B credit may bear any agreed rate. ORC 1343.01(B)(6),(B)(1) verified
Oklahoma Oklahoma cap section → Hard cap 10% (constitutional) 10% constitutional ceiling as the residual rule; statutes authorize higher rates for various licensed/consumer lending regimes. 10%/yr constitutional ceiling is the residual rule for ordinary B2B contracts; no blanket business exemption. Higher rates need a specific statute (licensed/consumer regimes). Okla. Const. art. XIV §2; 15 O.S. §266 verified
Cap text

“[...] in the absence of legislation fixing maximum rates of interest, all contracts for a greater rate of interest than ten percent(10%) per annum shall be deemed usurious; provided, further, that in contracts where no rate of interest is agreed upon, the rate shall not exceed six percent (6%) per annum.”

Okla. Const. art. XIV, § 2 · source · verified 2026-08-21
Oregon Oregon cap section → No rate ceiling No cap on trade credit/invoices — the usury cap reaches only money loans of $50,000 or less; larger loans are uncapped. The usury cap reaches only money LOANS of $50,000 or less. Ordinary trade credit / unpaid invoices aren't loans, so they're uncapped; larger loans are uncapped too. ORS 82.010(3) verified
Pennsylvania Pennsylvania cap section → No rate ceiling 6% cap applies only to loans of $50,000 or less — business loans of any amount are exempt (any agreed rate). 'Business loans of any principal amount' are excluded from the 6% cap, so B2B credit has no usury ceiling; corporations also cannot plead usury. 41 P.S. § 201(b)(3) verified
Rhode Island Rhode Island cap section → Hard cap 21% (or prime+9%) Greater of 21% or the domestic prime rate +9 pts — and this cap applies to ordinary B2B deals too (no business exemption). Cap = greater of 21% or prime +9 pts, and it DOES apply to ordinary B2B (no business exemption). Only a commercial loan over $1,000,000 with a CPA analysis escapes. R.I. Gen. Laws § 6-26-2 verified
Cap text

“Notwithstanding the provisions of subsection (a) of this section and/or any other provision in this chapter to the contrary, there is no limitation on the rate of interest which may be legally charged for the loan to, or use of money by, a commercial entity, where the amount of money loaned exceeds the sum of one million dollars ($1,000,000) and where repayment of the loan is not secured by a mortgage against the principal resident of any borrower; provided, that the commercial entity has first obtained a pro forma methods analysis performed by a certified public accountant licensed in the state of Rhode Island indicating that the loan is capable of being repaid.”

R.I. Gen. Laws § 6-26-2(e), quoted verbatim in Commerce Park Realty, LLC v. HR2-A Corp., No. 1:11-cv-00156, slip op. at 4 (D.R.I. Oct. 11, 2012) (govinfo.gov, U.S. Government Publishing Office); the 21% / prime + 9 points ceiling of § 6-26-2(a) is summarised above, not quoted · source · verified 2026-09-25
South Carolina South Carolina cap section → No rate ceiling No cap on written non-consumer contracts — parties may agree to any rate. No cap on written non-consumer contracts: by express written agreement any rate may be charged. B2B trade credit falls outside the consumer-credit rate limits. S.C. Code Ann. § 37-10-106(1) verified
South Dakota South Dakota cap section → Conditional cap 18% if the rate only appears on the bill, statement, or invoice; no cap if fixed by written agreement No cap on a rate fixed by written agreement (SDCL 54-3-1.1) — unless a maximum is set elsewhere in the code, and one is: a rate that only appears on a bill, statement, or invoice may not exceed 18%. A rate fixed by written agreement — a document in physical or electronic form in which the parties have demonstrated their agreement to the rate — has no statutory maximum under SDCL 54-3-1.1. But that section applies only 'unless a maximum interest rate or charge is specifically established elsewhere in the code,' and SDCL 54-3-5 establishes one: a rate that merely appears on a bill, statement, or invoice may not exceed eighteen percent. Unilaterally printing 1.5%/month on an invoice is therefore the capped path, not the uncapped one. SDCL 54-3-1.1; 54-3-5 verified
Cap text

“Unless there is an express contract in writing fixing a different rate or the interest rate clearly appears on the bill, statement, or invoice, interest is payable on all moneys at the Category F rate of interest as established in § 54-3-16 after they become due [...] Any interest rate appearing on a bill, statement, or invoice may not exceed eighteen percent.”

SDCL 54-3-5 · source · verified 2026-08-21
Tennessee Tennessee cap section → Hard cap formula rate (10.85% on Sep 22, 2026; max 24%) Formula rate: lesser of Fed prime +4 pts or 24%, announced weekly by the TN Dept. of Financial Institutions (Sep 22, 2026: 10.85%). Floating 'formula rate' caps written contracts (incl. commercial): lesser of Fed prime +4 pts or 24%, published weekly (10.85% as announced Sep 22, 2026). No general business exemption. Tenn. Code Ann. §§ 47-14-102, -103 verified Dated figure: TDFI weekly formula rate announcement (10.85%, Sep 22, 2026)
Texas Texas cap section → Hard cap 18% for Sep 28–Oct 4, 2026 (28% statutory max) Weekly ceiling (26-week T-bill x2), floor 18% / cap 24% — 28% for business credit. The computed rate is below the floor, so the published ceiling is 18% for the week of Sep 28–Oct 4, 2026 (OCCC). No exemption lets a commercial loan exceed the applicable ceiling. Business/commercial credit is bound by the Ch. 303 ceiling: 26-week T-bill x2, floor 18%, max 24% — lifted to 28% only if the computed rate would exceed 24%. OCCC publishes an 18.00% weekly ceiling for Sep 28–Oct 4, 2026, so 18%/yr is the published B2B ceiling for that week. Even a 'qualified commercial loan' may not exceed the applicable ceiling. Tex. Fin. Code §§ 303.002, 303.009(a),(c) verified Dated figure: 18.00% weekly ceiling (Sep 28–Oct 4, 2026)
Cap text

“Sec. 303.002. WEEKLY CEILING. The parties to a written agreement may agree to an interest rate [...] that does not exceed the applicable weekly ceiling. [...] Sec. 303.009. [...] (a) If the rate computed for the weekly, monthly, quarterly, or annualized ceiling is less than 18 percent a year, the ceiling is 18 percent a year. [...] (c) For a contract made, extended, or renewed under which credit is extended for a business, commercial, investment, or similar purpose, the limitation on the ceilings determined by those computations is 28 percent a year.”

Tex. Fin. Code §§ 303.002, 303.009(a), (c) · source · verified 2026-09-25
Utah Utah cap section → No rate ceiling No cap — parties to a lawful contract may agree on any rate. No usury ceiling: parties to a lawful contract may agree on any rate. The 10% figure is only a default when no rate is set. Utah Code § 15-1-1(1) verified
Vermont Vermont cap section → No rate ceiling 12% general cap — but corporate obligations and business/income-producing financing are exempt (any agreed rate). 12% cap does not apply to obligations of corporations or financing of an income-producing business/activity — true B2B may carry any agreed rate. 9 V.S.A. § 46 verified
Virginia Virginia cap section → Conditional cap 12% (deals under $5,000) 12% general cap — but business/investment loans of $5,000+ are exempt (any agreed rate). Business/investment loans of $5,000+ are exempt (any rate; usury defense barred). Below $5,000, or for non-business purposes, the 12% cap applies. Va. Code § 6.2-317, 6.2-303 verified
Washington Washington cap section → No rate ceiling Floating cap: higher of 12% or 26-week T-bill average +4 pts — business transactions are exempt (any agreed rate). Business entities can't plead usury, and no one may plead it for a commercial/business/investment/agricultural-purpose deal — so B2B may exceed the 12% floating cap freely. RCW 19.52.080 verified
Cap text

“Profit and nonprofit corporations, Massachusetts trusts, associations, trusts, general partnerships, joint ventures, limited partnerships, and governments and governmental subdivisions, agencies, or instrumentalities may not plead the defense of usury nor maintain any action thereon or therefor, and persons may not plead the defense of usury nor maintain any action thereon or therefor if the transaction was primarily for agricultural, commercial, investment, or business purposes: PROVIDED, HOWEVER, That this section shall not apply to a consumer transaction of any amount.”

RCW 19.52.080 · source · verified 2026-09-25
West Virginia West Virginia cap section → No rate ceiling 8% written cap — but business-purpose debts are exempt (entities: any amount; individuals: $20,000+). 8% cap is removed for business-purpose debts: entity debtors have NO dollar threshold. (A natural-person/sole-prop debtor is exempt only at $20,000+.) W. Va. Code § 47-6-11 verified
Wisconsin Wisconsin cap section → No rate ceiling 12% nominal cap — but s. 138.05 does not apply to any loan or forbearance made on or after Nov. 1, 1981, except a consumer forbearance whose only charge is a late fee; loans to corporations/LLCs and deals of $150,000+ are separately exempt. No ceiling on B2B. Wis. Stat. s. 138.05 does not reach any loan or forbearance made on or after Nov. 1, 1981; the only carve-back is a consumer (personal, family or household) forbearance whose only charge is a penalty or late charge for nonpayment when due. A business late fee is therefore uncapped. The corporation/LLC exemption (sub. (5)) and the $150,000+ exemption (sub. (7)) are additional, older layers. Wis. Stat. s. 138.05(8)(c), (5), (7) verified
Wyoming Wyoming cap section → No rate ceiling No cap for business credit — Wyoming's rate caps live in its consumer-credit code and don't reach commercial transactions. Rate caps live only in the consumer-credit code (organization debtors and business purposes are excluded); no general usury statute reaches commercial deals. Any agreed B2B rate is fine. Wyo. Stat. §§ 40-14-204, 40-14-304 verified

“[...]” in a quote marks text we left out; the linked source has the full section. A verification date shows when we last checked the row against its source, not that the law is unchanged today.

States with a hard cap on late-payment interest (13)

In these states the ceiling reaches ordinary written B2B rates. Some are civil usury limits, some are criminal-usury lines, and some move with an official or market rate that changes over time.

States where the cap depends on the amount or on who the debtor is (12)

These states have a written-contract cap, but it applies only below an amount, only to some debtors (for example individuals rather than corporations), or only to a rate set in a particular way. The short form below names the case the cap covers; the row has the full conditions.

  • Alabama: 8% (deals under $2,000)
  • Alaska: greater of 10% or Fed 12th-District rate +5 pts (deals $25,000 or less)
  • California: higher of 10% or FRBSF rate +5 pts (if a 'loan or forbearance')
  • Connecticut: 12% (debt $10k or less)
  • District of Columbia: 24% (deals $2,500 or less)
  • Georgia: 16% (principal $3,000 or less)
  • Kentucky: 19% (non-entity, $15,000 or less)
  • Minnesota: Fed 90-day CP discount +4.5% (under $100k)
  • Mississippi: any written rate over $2,000
  • North Dakota: 6-month T-bill average +5.5 pts, 7% floor (non-entity, $35k or less)
  • South Dakota: 18% if the rate only appears on the bill, statement, or invoice; no cap if fixed by written agreement
  • Virginia: 12% (deals under $5,000)

States with no statutory interest-rate ceiling on a written B2B rate (26)

In these jurisdictions our dataset records no statutory ceiling on an interest rate that businesses agree in writing. In several of them a general cap exists on paper but the statute exempts business credit, business-purpose loans or entity borrowers; the row says which. “No ceiling” is about the rate only: the agreement still has to exist, and other law (for example on penalties or on consumer credit) can still apply.

Arizona · Delaware · Hawaii · Idaho · Illinois · Indiana · Iowa · Kansas · Louisiana · Maine · Missouri · Nebraska · Nevada · New Hampshire · New Mexico · North Carolina · Ohio · Oregon · Pennsylvania · South Carolina · Utah · Vermont · Washington · West Virginia · Wisconsin · Wyoming

Written-contract cap regime by state, all 50 states + DC

Each square is a state, coloured by the cap regime for a rate agreed in writing between businesses. Select a square to jump to its row.

  • No statutory interest-rate ceiling on a written B2B rate (26)
  • Conditional cap: applies only in some cases (12)
  • Hard cap: reaches written B2B rates (13)

Colour shows the written-contract regime, not the default rate that applies when the contract is silent. The default rates are on the late fee calculator page.

Check your rate against your state's cap

Enter your rate and the facts the statutes turn on. The checker shows the figure in the statute, its conditions and the citation. It compares numbers only where the figure is in statute text we have verified (14 jurisdictions: Alaska, Arkansas, California, Colorado, District of Columbia, Florida, Georgia, Maryland, Montana, New York, Oklahoma, South Dakota, Tennessee and Texas). For Minnesota and Mississippi it shows the quoted statute text that fits your amount and agreement, without comparing a number. For other states it shows the row's text. It never tells you whether a rate is lawful. The checker runs in your browser.

Who owes the money?
How was the rate agreed?

Not legal advice. A statute's figure is one input; courts also look at whether the charge is interest at all, what was agreed and which state's law governs.

Is there a “standard” late fee for invoices?

We found no government source that sets a standard or average late fee for business invoices. Figures described as “standard” are business practice, not law. What the statutes do provide are a few fixed reference points:

  • A default rate when nothing was agreed. Most states supply a legal rate for money that is overdue when the contract is silent; a few set none automatically or leave the rate to the court. Each state's position, with the statute text, is on the late fee calculator page and on that state's own page.
  • A limit for a rate printed on an invoice. South Dakota's SDCL 54-3-5 says: “Any interest rate appearing on a bill, statement, or invoice may not exceed eighteen percent.” It is the clearest statute in our dataset that speaks to invoices directly (see the South Dakota row).
  • A monthly figure for commercial accounts. Georgia's O.C.G.A. § 7-4-16: “The owner of a commercial account may charge interest on that portion of a commercial account which has been due and payable for 30 days or more at a rate not in excess of 1 1/2 percent per month calculated on the amount owed from the date upon which it became due and payable until paid.” (O.C.G.A. § 7-4-16 (in relevant part), quoted verbatim in Discrete Wireless, Inc. v. Coleman Technologies, Inc., No. 10-12495, slip op. at 5 (11th Cir. Apr. 5, 2011) (unpublished; govinfo.gov, U.S. Government Publishing Office); source, verified ). The Georgia late fee calculator applies it, and the Georgia row has the § 7-4-2 bands.
  • Monthly to annual arithmetic. A “1.5% per month” late fee is 1.5 × 12 = 18% a year as simple interest. Compare that annual figure, not the monthly one, with a cap written per year.
  • The cap in your state. Whatever figure you choose, check it against your state's row above. Several rows turn on a rate agreed in writing, so it helps to have the rate in the agreement with your customer, not only printed on the invoice.

To work out the fee itself (annual rate, monthly rate, daily rate, one-time percentage or flat fee), see how to calculate late fees on an invoice. Clause wording is in the payment terms guide.

Do flat late fees count toward the cap?

The interest statutes in our table mostly limit a rate of interest. The quoted texts do not say whether a flat or one-time late charge (for example “$50 if paid late”) is interest that counts toward that rate. We do not decide that question for any state. The quoted texts that do speak beyond the interest rate are these:

  • Minnesota, § 334.01 subd. 2: for credit of $100,000 or more under a written contract signed by the debtor, “no limitation on the rate or amount of interest, points, finance charges, fees, or other charges applies”. (Row)
  • Georgia, O.C.G.A. § 7-4-2(a)(1)(B): where the principal is $250,000 or more, the parties “may establish by written contract any rate of interest, expressed in simple interest terms or otherwise, and charges to be paid by the borrower or debtor”. (Row)
  • South Dakota, SDCL 54-3-5: limits “any interest rate appearing on a bill, statement, or invoice” to 18%. The text speaks of a rate, not of a flat charge. (Row)

For every other state, the interest statutes cited in the table do not settle whether a flat fee counts. If you want to see a flat fee as a rate anyway, the arithmetic is (fee ÷ amount) × (365 ÷ days late): a $50 fee on a $1,000.00 invoice paid 30 days late works out at 60.83% a year. That is arithmetic, not a legal test.

Figures other tables show that come from rent law

Lists of “maximum late fees by state” often mix in figures from landlord–tenant statutes. Those limit what a landlord may charge a residential tenant for late rent; they are not limits on interest between businesses. The rows below are quoted from each state's official site. We publish only rows we could verify there.

State and statuteWhat it limitsStatute text
New YorkN.Y. Real Prop. Law § 238-a(2) Late fee on rent: only after 5 days; no more than $50 or 5% of the monthly rent, whichever is less
“No landlord, lessor, sub-lessor or grantor may demand any payment, fee, or charge for the late payment of rent unless the payment of rent has not been made within five days of the date it was due, and such payment, fee, or charge shall not exceed fifty dollars or five percent of the monthly rent, whichever is less [...]”
nysenate.gov · verified
HawaiiHaw. Rev. Stat. § 521-21(f)Hawaii rent late fee page → Late charge on rent: no more than 8% of the rent due, where the rental agreement provides for one
“(f) Where the rental agreement provides for a late charge payable to the landlord for rent not paid when due, the late charge shall not exceed eight per cent of the amount of rent due.”
capitol.hawaii.gov · verified
Delaware25 Del. C. § 5501(d) Late charge on rent: no more than 5% of the monthly rent, and not within 5 days of the agreed payment time
“Where the rental agreement provides for a late charge payable to the landlord for rent not paid at the agreed time, such late charge shall not exceed 5 percent of the monthly rent. A late charge is considered as additional rent for the purposes of this Code. The late charge shall not be imposed within 5 days of the agreed time for payment of rent. [...]”
delcode.delaware.gov · verified

Rent late fee pages on this site: Massachusetts · Hawaii · New Mexico.

Frequently asked questions

What is the maximum late fee a business can charge on an invoice?

There is no single nationwide maximum; it depends on the state whose law governs the contract. Of the 51 jurisdictions in our table, 26 set no statutory interest-rate ceiling on a rate two businesses agree in writing, 12 cap it only in some cases (depending on the amount, the debtor or how the rate was agreed), and 13 have a hard cap, for example 17% a year in Arkansas's constitution and 45% a year in Colorado. Each state's row gives the figure, its conditions and the statute.

What is a standard late fee for invoices?

We found no government source that sets a standard or average late fee for business invoices. What the law does set is a default rate for when the contract says nothing (listed for every state on our late fee calculator page) and, in some states, a ceiling. South Dakota's statute speaks to invoices directly: a rate that appears on a bill, statement or invoice may not exceed 18%. Any figure you choose should be agreed with the customer and checked against your state's row below.

Is 1.5% per month allowed on an invoice?

1.5% per month is 18% a year as simple interest (1.5 × 12), which is the figure to compare with a cap written as an annual rate. The answer depends on the state. It is above the 17% figure in Arkansas's constitution and the 10% figure in Oklahoma's. It equals South Dakota's 18% limit for a rate that appears on an invoice. Georgia's O.C.G.A. § 7-4-16 names this figure for commercial accounts: up to 1.5 percent per month on the part that has been due and payable for 30 days or more. In the 26 jurisdictions with no statutory interest-rate ceiling on a written B2B rate there is no figure to compare it with. The rate checker on this page compares the numbers for your state and shows the statute and its conditions.

Do flat late fees count toward the interest-rate cap?

The interest statutes in our table mostly speak of a "rate of interest" and do not say whether a flat or one-time late charge counts as interest. A few quoted texts reach fees or charges directly, for example Minnesota § 334.01 subd. 2 for credit of $100,000 or more. For every other state the table does not settle the question; check the statute or ask a lawyer.

Are rent late fee limits the same as invoice late fee limits?

No. Limits on residential rent late fees come from landlord–tenant statutes, such as New York Real Property Law § 238-a or 25 Del. C. § 5501(d), and they speak of rent. They are not caps on interest between businesses. Our rent late fee pages cover Massachusetts, Hawaii and New Mexico.

Do these caps apply to consumer invoices?

Not necessarily. The table is written for business-to-business invoices, and many rows turn on business-purpose or entity-debtor exemptions that do not reach a consumer. Credit for personal, family or household purposes, including credit-card late fees, is often governed by separate consumer-credit rules that this page does not cover.

Sources, verification dates and data downloads

  • Every state row cites its statute or constitutional provision and links the official source; its verification date is shown in the row. Rows with a dated official figure (for example Texas and Tennessee) name the date the figure applies to.
  • The full dataset (default rates, caps, citations, verification dates): CSV · JSON, licensed CC BY 4.0.
  • How rows are sourced and re-checked: data methodology. Every correction is logged in the data changelog.

Not legal advice. This page is a general reference for business-to-business invoices. Statutes change, and courts apply them to specific facts. Check the linked official source, or ask a licensed attorney in your state, before charging or disputing a late fee.