Invoice Late Fee Calculator by State

Calculate legal, APR-based late fees on overdue business (B2B) invoices — with the legal default rate preloaded for any of the 50 states + DC. All math runs locally in your browser — the amounts, rates and dates you enter are never transmitted.

Common: 12–18% APR (1–1.5% per month). Check your state usury cap.

How to use this calculator

  1. Enter the original invoice amount (principal).
  2. Enter the annual late fee rate you disclosed on your invoice (APR). If you use a monthly rate, multiply it by 12.
  3. Enter the number of days past the due date.
  4. Choose simple (default) or compound daily interest.

Legal note: Always verify your state or country usury laws before charging. Caps vary enormously in the US: 27 of 51 jurisdictions place no ceiling on a written B2B rate, 11 cap it with business exemptions, and 13 impose a hard ceiling — check your state's row in the table below. In the UK, the statutory rate is 8% plus the Bank of England base rate.

Formula

Simple interest: fee = principal × (APR ÷ 365) × days

Compound daily: fee = principal × ((1 + APR÷365)^days − 1)

Late Payment Interest Rates by State (2026)

Two numbers matter when a US invoice goes unpaid. The legal (default) rate is what state law supplies when your contract or invoice never mentioned interest. The maximum written rate is the ceiling — if any — that two businesses may agree to in writing. In most states a written B2B contract can charge far more than the default, which is why stating a late-fee clause on every invoice matters.

The table covers all 50 states and the District of Columbia, with a link to the controlling statute for each row. Rates marked Variable are reset by a state officer or formula — the row shows the currently published figure with its effective period, and links the official page that resets it; click through before relying on the printed figure. Every row has its own anchor, so you can link straight to one state — for example #texas or #new-york.

Scope: everything on this page covers commercial (B2B) invoices between businesses. Residential rent late fees, consumer credit, and government-contract interest follow entirely different statutes in every state and are not what this table shows.

Can a written B2B contract charge any late-fee rate? — all 50 states + DC

Each square is a state, colored by what a written business-to-business contract may charge in late-fee interest. It is a visual read of the max-written-rate column below — select a state to jump to its exact cap and the controlling statute.

  • No statutory cap — any written rate is lawful (27)
  • Conditional — capped, but exemptions usually apply (11)
  • Hard cap — a firm statutory ceiling (13)

Color shows the written-contract regime (the max-written column), not the legal default rate. Full detail — default rate, exact cap, and statute citation — is in the table below.

Late payment interest by US state: the default rate when the contract is silent, and the maximum rate a written B2B contract may charge, with statute citations
State If the contract is silent Max written B2B rate Statute
Alabama verified 2026-08-19 6% Default when there is no written rate; runs from the day payment was due. 8% written-contract cap — but any agreed rate is allowed when the deal is $2,000 or more (covers most B2B invoices). Ala. Code §§ 8-8-1, 8-8-5
Statute text

“Except as otherwise provided by law, the maximum rate of interest upon the loan or forbearance of money, goods, or things in action, except by written contract is $6 upon $100 for one year, and the rate of interest by written contract is not to exceed $8 upon $100 for one year [...]”

— Ala. Code § 8-8-1 (Code of Alabama 1975, Title 8, Ch. 8, Section 8-8-1 "Maximum Rates of Interest - Generally.") · official source
Alaska verified 2026-08-19 10.5% Statutory legal rate on money after it is due when no written rate is set. Greater of 10% or Fed 12th District rate +5 pts — but contracts over $25,000 are exempt (any agreed rate). AS 45.45.010
Statute text

“(a) The rate of interest in the state is 10.5 percent a year and no more on money after it is due [...] (b) Interest may not be charged [...] more than the greater of 10 percent or five percentage points above the annual rate charged member banks for advances by the 12th Federal Reserve District [...] A contract or loan commitment in which the principal amount exceeds $25,000 is exempt from the limitation of this subsection.”

Arizona verified 2026-08-19 10% Legal rate when no rate is agreed in writing. No cap — any rate agreed in writing is lawful. A.R.S. §§ 44-1201, 44-1202
Statute text

“For any loan, indebtedness or obligation other than medical debt, interest shall be at the rate of ten percent a year, unless a different rate is contracted for in writing, in which event any rate of interest may be agreed to.”

Arkansas verified 2026-08-19 6% Default when the contract is silent; in litigation, court-awarded interest follows the contract rate or Fed primary credit rate +2%, whichever is greater. 17% per year — constitutional cap (amend. 89, § 3); no business exemption. Usurious contracts are void as to principal and interest. Ark. Const. amend. 89; Ark. Code Ann. § 4-57-101(d)
Statute 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”

California verified 2026-08-19 10% Default on contract debts after breach when the contract is silent; runs from the date a fixed sum became due. Usury law reaches only loans/forbearance — not bona fide trade-credit terms. For true business loans: higher of 10% or FRBSF discount rate +5 pts, with broad exemptions (e.g. $300,000+ entity credit, licensed lenders). Cal. Civ. Code § 3289(b); Cal. Const. art. XV, § 1
Statute text

“(b) If a contract entered into after January 1, 1986, does not stipulate a legal rate of interest, the obligation shall bear interest at a rate of 10 percent per annum after a breach.”

Colorado verified 2026-08-19 8% Compounded annually; runs from when the money became due on instruments, settled accounts, and money due on account. Up to 45% per year may be stipulated in writing — the cap applies to business deals too. C.R.S. §§ 5-12-101 to -103
Statute 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) · official source
Connecticut verified 2026-08-21 10% Court-awarded (discretionary) on money wrongfully withheld, from when it became payable; absent any agreement to the contrary the legal rate is 8% a year, and interest at the legal rate accrues as an addition to the debt from the date the debt matures. 12% general cap — but commercial loans are largely exempt under § 37-9 tiers (e.g. $10k–$250k: deposit index +17%). Conn. Gen. Stat. §§ 37-1, 37-3a, 37-4, 37-9
Statute text

“Except as provided in sections 37-3b, 37-3c and 52-192a, interest at the rate of ten per cent a year, and no more, may be recovered and allowed in civil actions or arbitration proceedings under chapter 909, including actions to recover money loaned at a greater rate, as damages for the detention of money after it becomes payable.”

— Conn. Gen. Stat. § 37-3a(a) (Gen. Stat. of Conn., rev. to Jan. 1, 2025; no 2025- or 2026-session amendment to Title 37) · official source
Delaware verified 2026-08-19 Variable 8.75% (since Dec 11, 2025) Fed discount rate +5 pts, fixed as of when interest became due; simple interest on invoice debts. 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. §§ 2301, 2306
Statute text

“Any lender may charge and collect from a borrower interest at any rate agreed upon in writing not in excess of 5% over the Federal Reserve discount rate including any surcharge thereon. Where there is no expressed contract rate, the legal rate of interest shall be 5% over the Federal Reserve discount rate [...] as of the time from which interest is due”

District of Columbia verified 2026-08-19 6% Default absent an expressed rate; on liquidated debts interest runs from the due date. 24% written cap — but business-purpose loans over $2,500 are fully exempt (any agreed rate). D.C. Code §§ 28-3301, 28-3302, 15-108
Statute text

“The rate of interest in the District upon the loan or forbearance of money, goods, or things in action in the absence of expressed contract, is 6% per annum.”

Florida verified 2026-08-19 Variable 8.06% (Jul–Sep 2026) Set quarterly by the state CFO (NY Fed discount 12-month average +400 bps); applies when the contract is silent. 18% for obligations of $500,000 or less; above $500,000 the bound is the 25% criminal-usury line. No general business exemption. Fla. Stat. §§ 687.01, 55.03, 687.02–.03
Statute 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) · official source
Georgia verified 2026-08-21 7% Legal rate on liquidated demands when no written rate; on commercial accounts a creditor may charge up to 1.5%/month (18%/yr) on amounts 30+ days past due even without a written rate. $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. O.C.G.A. §§ 7-4-2, 7-4-16
Statute text

“(a)(1)(A) The legal rate of interest shall be 7 percent per annum simple interest where the rate percent is not established by written contract. Notwithstanding the provisions of other laws to the contrary . . . the parties may establish by written contract any rate of interest, expressed in simple interest terms . . . where the principal amount involved is more than $3,000.00 but less than $250,000.00 . . . . (B) Where the principal amount is $250,000.00 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.”

— O.C.G.A. § 7-4-2(a)(1)(A)-(B), quoted verbatim in Caradigm USA LLC v. PruittHealth, Inc., No. 19-11648, slip op. at 37 (11th Cir. July 10, 2020) (govinfo.gov, U.S. Government Publishing Office) · official source
Hawaii verified 2026-08-19 10% Legal rate when there is no express written contract fixing a different rate. No cap for non-consumer transactions — any rate may be stipulated by written contract. HRS §§ 478-2, 478-4(c)
Statute text

“When there is no express written contract fixing a different rate of interest, interest shall be allowed at the rate of ten per cent a year [...] With respect to any transaction other than a consumer credit transaction, a home business loan, or a credit card agreement, it shall be lawful to stipulate by written contract for any rate of interest not otherwise prohibited by law.”

Idaho verified 2026-08-19 12% Legal rate absent a written rate; fixed-sum invoices accrue from the due date; open accounts start 3 months after the last item. No cap — the finance-charge rate is whatever the parties agree (Idaho Credit Code consumer rules don't reach business credit). Idaho Code §§ 28-22-104, 28-42-201
Statute text

“(1) When there is no express contract in writing fixing a different rate of interest, interest is allowed at the rate of twelve cents (12¢) on the hundred by the year on: [...] 2. Money after the same becomes due. [...] 6. Money due upon open accounts after three (3) months from the date of the last item.”

Illinois verified 2026-08-19 5% Statutory legal rate on written instruments and money wrongfully withheld when no rate is agreed. 9% nominal written-contract ceiling — but business/commercial credit is broadly exempt (any agreed rate). 815 ILCS 205/2, 205/4
Statute text

“Creditors shall be allowed to receive at the rate of five (5) per centum per annum for all moneys after they become due on any bond, bill, promissory note, or other instrument of writing; on money lent or advanced for the use of another; [...] and on money withheld by an unreasonable and vexatious delay of payment.”

— 815 ILCS 205/2 (Interest Act, Sec. 2) (Source: P.A. 90-417, eff. 1-1-98) · official source
Indiana verified 2026-08-19 8% Legal rate on overdue contract debts when the contract specifies no rate. No general civil cap for written B2B contracts — consumer-credit caps don't apply to business-purpose debts. Ind. Code §§ 24-4.6-1-102, -103
Statute text

“Sec. 102. When the parties do not agree on the rate, interest on loans or forbearances of money, goods or things in action shall be at the rate of eight percent (8%) per annum until payment of judgment.”

— Ind. Code § 24-4.6-1-102 (Sec. 102), "Rate in absence of agreement" — Indiana Code, Office of Code Revision, Indiana Legislative Services Agency · official source
Iowa verified 2026-08-19 5% Legal rate absent a written agreement; open accounts start 6 months after the last item. A separate variable rate governs once suit is filed. Floating cap for ordinary written agreements (10-yr Treasury monthly average +2 pts, set monthly by the Superintendent of Banking) — business credit is exempt. Iowa Code § 535.2
Statute text

“Except as provided in subsection 2, the rate of interest shall be five cents on the hundred by the year in the following cases, unless the parties shall agree in writing [...] The following persons may agree in writing to pay any rate of interest [...] (5) A person borrowing money or obtaining credit for business or agricultural purposes”

— Iowa Code § 535.2(1), (2)(a), (2)(a)(5) (Iowa Code 2026) · official source
Kansas verified 2026-08-19 10% Legal rate for money after it becomes due when no other rate is agreed; no waiting period or demand requirement. 15% written cap — but business and agricultural transactions are exempt (any agreed rate). K.S.A. 16-201, 16-207
Statute text

“Except as provided in subsection (b), creditors shall be allowed to receive interest at the rate of 10% per annum when no other rate of interest is agreed upon, for any money after it becomes due; for money lent or money due on settlement of account, from the day of liquidating the account and ascertaining the balance [...]”

Kentucky verified 2026-08-19 8% Legal rate, recoverable after default until judgment when the contract names no rate. Principal of $15,000 or less: lesser of Fed 90-day commercial-paper discount +4 pts or 19%. Over $15,000: any agreed rate. KRS 360.010
Statute text

“the legal rate of interest is eight percent (8%) per annum, but any party or parties may agree, in writing, for the payment of interest in excess of that rate as follows: (a) At a per annum rate not to exceed four percent (4%) in excess of the discount rate on ninety (90) day commercial paper [...] or nineteen percent (19%), whichever is less, [...] where the original principal amount is fifteen thousand dollars ($15,000) or less; and (b) At any rate [...]”

Louisiana verified 2026-08-19 Variable 7.50% (2026) Judicial interest, reset each calendar year by the Commissioner of Financial Institutions (Fed discount rate on first business day of October +3.25 pts); runs from the time the sum was due. 12% maximum conventional rate fixed in writing — but commercial/business obligations are exempt. La. R.S. 9:3500, 13:4202; Civ. Code art. 2000
Statute text

“[...] The commissioner of financial institutions shall ascertain, on the first business day of October of each year, the Federal Reserve Board of Governors approved "discount rate" published daily in the Wall Street Journal. The effective judicial interest rate for the calendar year following the calculation date shall be three and one-quarter percentage points above the discount rate as ascertained by the commissioner.”

Maine verified 2026-08-19 Variable 6.51% (2026) When the contract is silent: 1-year U.S. Treasury bill rate +3 pts (prejudgment; T-bill +6 pts after judgment). The rate is fixed for the whole year at the Fed's weekly average 1-year constant maturity Treasury yield for the last full week of the PRIOR calendar year (not the current week's H.15 figure). For 2026 the anchor is the week ending December 26, 2025, whose weekly average was 3.51%, so the 2026 figures are 6.51% before judgment and 9.51% after. No general cap for business/commercial credit — Maine's Consumer Credit Code excludes business-purpose extensions of credit. 14 M.R.S. §§ 1602-B, 1602-C; 9-A M.R.S. § 1-202(1)
Statute text

“prejudgment interest is allowed at the one-year United States Treasury bill rate plus 3%. [...] the weekly average one-year constant maturity Treasury yield, as published by the Board of Governors of the Federal Reserve System, for the last full week of the calendar year immediately prior to the year in which prejudgment interest begins to accrue.”

Maryland verified 2026-08-19 6% Constitutional legal rate; recoverable as of right on liquidated sums from the date payment was due. 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. Md. Const. art. III, § 57; Com. Law §§ 12-102, 12-103
Statute text

“The Legal Rate of Interest shall be Six per cent per annum, unless otherwise provided by the General Assembly.”

Massachusetts verified 2026-08-21 6% Default legal rate when there is no agreement or provision of law for a different rate; a higher rate is recoverable in a suit only if the agreement to pay it is in writing. Separately, in contract actions the clerk of the court adds prejudgment interest at the contract rate, if established, or at 12% from the date of breach or demand. 20% criminal-usury ceiling (all-in, including fees) unless the lender notifies the Attorney General; no blanket business exemption. MGL c.231 § 6C; c.107 § 3; c.271 § 49
Statute text

“If there is no agreement or provision of law for a different rate, the interest of money shall be at the rate of six dollars on each hundred for a year, but, except as provided in sections seventy-eight, ninety, ninety-two, ninety-six and one hundred of chapter one hundred and forty, it shall be lawful to pay, reserve or contract for any rate of interest or discount. No greater rate than that before mentioned shall be recovered in a suit unless the agreement to pay it is in writing.”

Michigan verified 2026-08-19 No automatic rate 4.959% (Jul–Dec 2026) If the contract is silent, no contractual interest accrues before suit; once a complaint is filed, the judgment-interest formula applies (5-yr Treasury auction average +1 pt, reset semi-annually, compounded annually). 7% nominal cap — but corporations and business entities may agree in writing to any rate (usury defense barred); outer criminal line is 25%. MCL 438.31, 438.61, 450.1275; MCL 600.6013
Statute text

“The interest of money shall be at the rate of $5.00 upon $100.00 for a year, [...] except that in all cases it shall be lawful for the parties to stipulate in writing for the payment of any rate of interest, not exceeding 7% per annum.”

— Mich. Comp. Laws § 438.31 (Act 326 of 1966, Sec. 1; Am. 1970, Act 227) · official source
Minnesota verified 2026-08-19 6% Legal rate when no rate is contracted in writing. Once a claim/suit is noticed, a separate court-set rate applies (2026: 4% up to $50,000; 10% above). 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. Minn. Stat. §§ 334.01, 334.011; § 549.09
Statute text

“The interest for any legal indebtedness shall be at the rate of $6 upon $100 for a year, unless a different rate is contracted for in writing. No person shall directly or indirectly take or receive [...] any greater sum, or any greater value, for the loan or forbearance of money, goods, or things in action, than $8 on $100 for one year.”

Mississippi verified 2026-08-19 8% Legal rate on notes, accounts and contracts when no rate is agreed. 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. Miss. Code Ann. § 75-17-1
Statute text

“(1) The legal rate of interest on all notes, accounts and contracts shall be eight percent (8%) per annum [...] (5) [...] any borrower or debtor may contract for and agree to pay [...] any finance charge agreed to in writing by the parties [...] under which the principal balance to be repaid originally exceeds Two Thousand Dollars ($2,000.00)”

— Miss. Code Ann. § 75-17-1(1), (5) (text as amended by 2001 Miss. Laws ch. 317, S.B. 2172, eff. July 1, 2001; enrolled bill text published by the Mississippi Legislature; no amendment to § 75-17-1 in any regular session through 2026 per the Legislature's code-section index) · official source
Missouri verified 2026-08-19 9% On written contracts, from the due date; on open accounts, after the debt is due AND payment has been demanded. 10% cap (or the state-published market rate if higher — Q3 2026 market rate is 7.99%, so 10% governs). 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 408.020, 408.030, 408.035
Statute text

“Notwithstanding the provisions of any other law to the contrary, it is lawful for the parties to agree in writing to any rate of interest, fees, and other terms and conditions in connection with any: (1) Loan to a corporation, general partnership, limited partnership or limited liability company; (2) Extension of credit primarily for agricultural, business, or commercial purposes;”

— RSMo § 408.035(1)-(2) — "Unlimited interest, when allowed." (version effective Aug. 28, 2024; A.L. 2024 S.B. 1359) · official source
Montana verified 2026-08-19 10% Legal rate after the money becomes due (instruments, accounts stated, settled accounts) when no written rate is fixed. 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. MCA 31-1-106, 31-1-107
Statute text

“Parties may agree in writing to the payment of any rate of interest that does not exceed the greater of 15% or an amount that is 6 percentage points per year above the prime rate published by the federal reserve system in its statistical release H.15 [...] dated 3 business days prior to the execution of the agreement.”

Nebraska verified 2026-08-19 12% On written instruments and settled accounts; on unsettled accounts each charge bears interest from the billing date unless paid within 30 days. 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. Neb. Rev. Stat. §§ 45-104, 45-101.03, 45-101.04
Statute text

“Unless otherwise agreed, interest shall be allowed at the rate of twelve percent per annum on money due on any instrument in writing, or on settlement of the account [...] Unless otherwise agreed or provided by law, each charge with respect to unsettled accounts between parties shall bear interest from the date of billing unless paid within thirty days from the date of billing.”

Nevada verified 2026-08-19 Variable 8.75% (Jul–Dec 2026) Prime rate at Nevada's largest bank +2 pts, fixed semi-annually (Jan 1 / Jul 1) for money from the time it becomes due. No cap — any rate agreed in writing is lawful. NRS 99.040, 99.050
Statute text

“[...] interest must be allowed at a rate equal to the prime rate at the largest bank in Nevada [...] plus 2 percent, upon all money from the time it becomes due [...] parties may agree for the payment of any rate of interest on money due or to become due on any contract [...]”

— Nev. Rev. Stat. §§ 99.040(1), 99.050(1) (NRS Chapter 99, Rev. 4/15/2026--2025) · official source
New Hampshire verified 2026-08-21 10% Rate recovered in litigation (pre- and post-judgment): 26-week T-bill discount rate +2 pts, set annually by the State Treasurer. A fixed 10% residual default applies to business transactions outside that context. No cap for business transactions agreed in writing (consumer credit is the only carve-out). RSA 336:1
Statute text

“I. The annual rate of interest in all business transactions in which interest is paid or secured, unless otherwise agreed upon in writing, shall equal 10 percent. No consumer credit transaction, as defined in RSA 358-K:1, V, shall be subject to this paragraph. If agreed upon in writing, interest on business transactions may include charging other than simple interest.”

New Jersey verified 2026-08-21 Variable 4.5% / 6.5% (2026) Post-judgment interest under Court Rule 4:42-11(a): the annual rate equals the average rate of return of the State of New Jersey Cash Management Fund (State accounts) for the preceding fiscal year, to the nearest whole or one-half percent, but not less than 0.25%; judgments exceeding the Special Civil Part monetary limit ($20,000) bear that rate plus 2% per annum. Set annually by AOC notice. 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). N.J. Ct. R. 4:42-11; N.J.S.A. 31:1-1, 31:1-6; 2C:21-19
Statute text

“(a) Post Judgment Interest. Except as otherwise ordered by the court or provided by law, judgments, awards and orders for the payment of money, taxed costs and attorney's fees shall bear simple interest as follows: [...] (ii) For judgments not exceeding the monetary limit of the Special Civil Part at the time of entry, regardless of the court in which the action was filed: commencing January 2, 1986 and for each calendar year thereafter, the annual rate of interest shall equal the average rate of return, to the nearest whole or one-half percent, for the corresponding preceding fiscal year terminating on June 30, of the State of New Jersey Cash Management Fund (State accounts) as reported by the Division of Investment in the Department of the Treasury, but the rate shall be not less than 0.25%. (iii) For judgments exceeding the monetary limit of the Special Civil Part at the time of entry: in the manner provided for in subparagraph (a)(ii) of this Rule until September 1, 1996; thereafter, at the rate provided in subparagraph (a)(ii) plus 2% per annum.”

— N.J. Ct. R. 4:42-11(a), (a)(ii), (a)(iii) (Rules Governing the Courts of the State of New Jersey, Rule 4:42-11 "Interest; Rate on Judgments; in Tort Actions"; paragraph (a)(ii) amended July 22, 2014 to be effective September 1, 2014) · official source
New Mexico verified 2026-08-19 Up to 15% When no written rate is fixed; courts typically award the full 15% on matured sums from the day the balance is ascertained. 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. NMSA 1978 §§ 56-8-3, 56-8-5, 56-8-9
Statute text

“No provision of law prescribing maximum rates of interest that may be charged in any transaction shall apply to a transaction in which a corporation, limited liability corporation or other business entity is a debtor, regardless of the purpose for which the corporation was formed [...]”

New York verified 2026-08-19 9% Statutory prejudgment rate on contract debts (simple), from the earliest date the claim existed. The 2% consumer-debt rate does not apply to B2B. 16% civil / 25% criminal usury caps — loans of $250,000+ escape the civil cap, $2.5M+ escape both; corporations cannot plead civil usury (effective ceiling ≈25%). CPLR 5004; GOL 5-501; Penal Law 190.40
Statute text

“Interest shall be at the rate of nine per centum per annum, except where otherwise provided by statute; provided the annual rate of interest to be paid in an action arising out of a consumer debt where a natural person is a defendant shall be two per centum per annum [...]”

North Carolina verified 2026-08-19 8% Legal rate; on contract claims the awarded amount bears interest from the date of breach. 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)). N.C.G.S. §§ 24-1, 24-5, 24-1.1, 24-9
Statute text

“§ 24-1: [...] the legal rate of interest shall be eight percent (8%) per annum [...] and no more. § 24-9(b): [...] any borrower in an exempt loan transaction may agree to pay, and any lender [...] may charge and collect [...] interest at any rate [...]. A claim or defense of usury is prohibited in an exempt loan transaction.”

North Dakota verified 2026-08-19 6% Legal rate for any legal indebtedness unless a different written rate (continues after maturity). Floating cap: 6-month T-bill average +5.5 pts, published monthly by the banking commissioner (August 2026: 9.154%; floor 7%); most genuine business transactions are exempt. N.D.C.C. 47-14-05, 47-14-09
Statute text

“Interest for any legal indebtedness must be at the rate of six percent per annum unless a different rate not to exceed the rate specified in section 47-14-09 is contracted for in writing. Unless otherwise agreed by the parties in writing, all contracts must bear the same rate of interest after maturity as they bear before maturity.”

— N.D.C.C. § 47-14-05 (Legal rate of interest - Interest after maturity) · official source
Ohio verified 2026-08-19 Variable 7% (2026) Set annually by the Tax Commissioner (federal short-term rate rounded +3 pts); runs from when the money became due and payable. 8% written cap — lifted for any "business loan" (no dollar floor) and for principal over $100,000: any agreed rate. ORC 1343.03, 5703.47, 1343.01
Statute text

“when money becomes due and payable upon any bond, bill, note, or other instrument of writing, upon any book account, [...] the creditor is entitled to interest at the rate per annum determined pursuant to section 5703.47 of the Revised Code, unless a written contract provides a different rate of interest”

Oklahoma verified 2026-08-21 6% Legal rate absent a contract rate; liquidated sums earn interest from the day the right to recover vested. 10% constitutional ceiling as the residual rule; statutes authorize higher rates for various licensed/consumer lending regimes. 15 O.S. § 266; Okla. Const. art. XIV, § 2
Statute 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.”

Oregon verified 2026-08-19 9% Legal rate on moneys after they become due; open accounts bear interest from the date of the last item. No cap on trade credit/invoices — the usury cap reaches only money loans of $50,000 or less; larger loans are uncapped. ORS 82.010
Statute text

“[...] is nine percent per annum and is payable on: (a) All moneys after they become due; but open accounts bear interest from the date of the last item thereof. [...] no person shall: (a) Make a business or agricultural loan of $50,000 or less at an annual rate of interest exceeding the greater of 12 percent [...]”

— ORS 82.010(1), (3)(a) (ORS 2025 Edition, ch. 82 "Interest; Repayment Restrictions") · official source
Pennsylvania verified 2026-08-19 6% Legal rate; on a fixed-sum debt it runs as of right from the date payment was due. 6% cap applies only to loans of $50,000 or less — business loans of any amount are exempt (any agreed rate). 41 P.S. §§ 201, 202
Statute text

“the maximum lawful rate of interest for the loan or use of money in an amount of fifty thousand dollars ($50,000) or less in all cases where no express contract shall have been made for a less rate shall be six per cent per annum. [...] shall not apply to: [...] (3) business loans of any principal amount.”

— 41 P.S. § 201(a), (b)(3) (Loan Interest and Protection Law, Act of Jan. 30, 1974, P.L. 13, No. 6, § 201, as last amended July 8, 2008, P.L. 824, No. 57) · official source
Rhode Island verified 2026-08-19 12% Statutory legal rate when no rate is agreed. Greater of 21% or the domestic prime rate +9 pts — and this cap applies to ordinary B2B deals too (no business exemption). R.I. Gen. Laws §§ 6-26-1, 6-26-2
Statute text

“Post judgment interest on any judgment, and interest in all business transactions where interest is secured or paid, shall be computed at the rate of twelve dollars ($12.00) on one hundred dollars ($100) for one year, unless a different rate is expressly stipulated.”

— R.I. Gen. Laws § 6-26-1 (Legal rate of interest — Post judgment interest) · official source
South Carolina verified 2026-08-19 8.75% Legal rate on ascertained sums due when no rate is agreed (post-judgment rate is separate: prime +4 pts, 10.75% for 2026). No cap on written non-consumer contracts — parties may agree to any rate. S.C. Code Ann. §§ 34-31-20, 37-10-106
Statute text

“In all cases of accounts stated and in all cases wherein any sum or sums of money shall be ascertained and, being due, shall draw interest according to law, the legal interest shall be at the rate of eight and three-fourths percent per annum.”

South Dakota verified 2026-08-21 15% Category F default rate when no written rate is fixed, from the day the balance is due/ascertained. 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%. SDCL 54-3-5, 54-3-16, 54-3-1.1
Statute 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.”

Tennessee verified 2026-08-19 10% Maximum effective default for uncontracted transactions; courts award prejudgment interest in equity at up to 10%. Formula rate: lesser of Fed prime +4 pts or 24%, announced weekly by the TN Dept. of Financial Institutions (Aug 18, 2026: 10.75%). Tenn. Code Ann. §§ 47-14-102, -103, -123
Statute text

“Except as otherwise expressly provided by this chapter or by other statutes, the maximum effective rates of interest are as follows: [...] (2) For all written contracts [...] signed by the party to be charged, and not subject to subdivision (1), the applicable formula rate; and (3) For all other transactions, ten percent (10%) per annum.”

— Tenn. Code Ann. § 47-14-103 (text via FindLaw's Tennessee Code republication; the official Lexis portal is session-gated) · official source
Texas verified 2026-08-21 6% Begins accruing on the 30th day after the amount is due when the contract specifies no rate. Weekly ceiling (26-week T-bill x2), floor 18% / cap 24% — 28% for business credit. The computed rate is far below the floor, so the live ceiling is 18% as of the week of Aug 17–23, 2026 (OCCC). No exemption lets a commercial loan exceed the applicable ceiling. Tex. Fin. Code §§ 302.002, 303.002, 303.009
Statute text

“If a creditor has not agreed with an obligor to charge the obligor any interest, the creditor may charge and receive from the obligor legal interest at the rate of six percent a year on the principal amount of the credit extended beginning on the 30th day after the date on which the amount is due.”

Utah verified 2026-08-19 10% Legal rate for contracts (including services and breach claims) unless the parties specify otherwise. No cap — parties to a lawful contract may agree on any rate. Utah Code § 15-1-1
Statute text

“(1) The parties to a lawful written, verbal, or implied contract may agree upon any rate of interest for the contract [...] (2) Unless the parties to a lawful written, verbal, or implied contract expressly specify a different rate of interest, the legal rate of interest for the contract [...] is 10% per annum.”

Vermont verified 2026-08-19 12% Legal rate; awarded as of right on liquidated sums from the date the debt became due. 12% general cap — but corporate obligations and business/income-producing financing are exempt (any agreed rate). 9 V.S.A. §§ 41a, 46
Statute text

“Except as specifically provided by law, the rate of interest or the sum allowed for forbearance or use of money shall be 12 percent per annum computed by the actuarial method.”

Virginia verified 2026-08-19 6% On open accounts with no written credit agreement, interest accrues AUTOMATICALLY from day 61 after the invoice/billing statement is presented and unpaid — no demand needed. 12% general cap — but business/investment loans of $5,000+ are exempt (any agreed rate). Va. Code §§ 6.2-301, 6.2-303, 6.2-317
Statute text

“The legal rate of interest shall be an annual rate of six percent. [...] The seller or provider of goods sold or services provided on an open account shall be entitled to, and may collect, interest at the legal rate upon the unpaid balance if [...] the purchaser [...] fails to make payment in full within 60 days [...]. Such interest shall begin to accrue on the day following such 60-day period.”

Washington verified 2026-08-19 12% Legal rate where no different rate is agreed in writing; applied as prejudgment interest on liquidated claims. Floating cap: higher of 12% or 26-week T-bill average +4 pts — business transactions are exempt (any agreed rate). RCW 19.52.010, 19.52.020
Statute text

“(1) Except as provided in subsection (2) of this section, every loan or forbearance of money, goods, or thing in action shall bear interest at the rate of twelve percent per annum where no different rate is agreed to in writing between the parties [...]”

West Virginia verified 2026-08-21 6% Legal rate absent a written rate; once litigated, a court-set rate applies (judgments/decrees entered in 2026: 6.25%; floor 4% / cap 9%). 8% written cap — but business-purpose debts are exempt (entities: any amount; individuals: $20,000+). W. Va. Code §§ 47-6-5, 47-6-11
Statute text

“Except in cases where it is otherwise specially provided by law, legal interest shall continue to be at the rate of $6 upon $100 for a year, and proportionately for a greater or less sum, or for a longer or shorter time, and no person upon any contract other than a contract in writing shall take for the loan or forbearance of money, or other thing, above the value of such rate [...] Parties may contract in writing for the payment of interest for the loan or forbearance of money at a rate not to exceed $8 upon $100 for a year, and proportionately for a greater or less sum, or for a longer or shorter time, including points expressed as a percentage of the loan divided by the number of years of the loan contract.”

Wisconsin verified 2026-08-19 5% Legal rate when the contract is silent; runs from the contractual due date (or from demand/suit if no time is set). 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. §§ 138.04, 138.05
Statute text

“The rate of interest upon the loan or forbearance of any money, goods or things in action shall be $5 upon the $100 for one year [...] This section does not apply to any loan or forbearance which is made on or after November 1, 1981 [...] except [...] forbearances occurring primarily for personal, family or household purposes [...]”

Wyoming verified 2026-08-19 7% Statutory default when no rate is agreed in writing. No cap for business credit — Wyoming's rate caps live in its consumer-credit code and don't reach commercial transactions. Wyo. Stat. § 40-14-106
Statute text

“(e) If there is no agreement or provision of law for a different rate, the interest of money shall be at the rate of seven percent (7%) per annum.”

Row-by-row verification: 51 of 51 rows were individually re-verified against the primary source on August 21, 2026, and 51 rows quote the operative legal text verbatim — the statute, constitutional provision or, where the rate is set by court rule, the rule itself (expand “Statute text” in any row). How we verify this data → · Changelog

B2B Invoice Late Fees vs. Residential Rent Late Fees — Two Different Bodies of Law

“Late fee” means two legally unrelated things in every US state, and mixing them up is the single most common error in late-fee content online:

  • Commercial (B2B) invoice interest lives in each state's interest and usury statutes — what this entire page covers. In Texas, for example, that is the Finance Code (see the Texas row above for the exact sections, verbatim text, and official link).
  • Residential rent late charges live in landlord–tenant law with their own notice rules, grace periods, and safe harbors. In Texas, that is Property Code § 92.019 — a section that sits inside the “Residential Tenancies” chapter (full text) and says nothing about invoices between businesses.

Why we point this out: summaries around the web sometimes answer the business-invoice question with citations drawn from the landlord–tenant chapter. Before relying on any late-fee table — including ours — open the cited statute and check which chapter it actually sits in. That is exactly why every row above quotes the operative legal text verbatim and links the official source: you can verify each claim in one click.

Searching for rent late-fee rules? This page deliberately does not cover residential tenancy — start from your state's landlord–tenant act instead.

Which States Cost the Most When an Invoice Goes Unpaid (2026)

The table above is an alphabetical lookup. This one answers a different question: if you did nothing — no late-fee clause on the invoice, no written rate — and a court applied your state's legal default rate, how much interest would pile up? States are ranked by the dollars owed on one worked example, highest first, so you can see where an unpaid invoice is most (and least) expensive. This ranks the statutory default (the "contract is silent" column), not the maximum a written contract may charge.

Worked example: a $10,000 B2B invoice paid 90 days late, simple interest at the state default rate. Re-derive any row yourself: owed = $10,000 × (rate ÷ 365) × 90. This is the same simple-interest formula used by the calculator at the top of this page.

Rows whose default is a statutory ceiling (shown as “Up to X%”) are ranked at that ceiling — a court may award less; see the state's row for the conditions.

US states ranked by the statutory default interest owed on a $10,000 B2B invoice paid 90 days late, highest cost first
Rank State Default rate applied Interest owed on the example
1 New Mexico Up to 15% $369.86
2 South Dakota 15% $369.86
3 Idaho 12% $295.89
4 Nebraska 12% $295.89
5 Rhode Island 12% $295.89
6 Vermont 12% $295.89
7 Washington 12% $295.89
8 Alaska 10.5% $258.90
9 Arizona 10% $246.58
10 California 10% $246.58
11 Connecticut 10% $246.58
12 Hawaii 10% $246.58
13 Kansas 10% $246.58
14 Montana 10% $246.58
15 New Hampshire 10% $246.58
16 Tennessee 10% $246.58
17 Utah 10% $246.58
18 Missouri 9% $221.92
19 New York 9% $221.92
20 Oregon 9% $221.92
21 South Carolina 8.75% $215.75
22 Colorado 8% $197.26
23 Indiana 8% $197.26
24 Kentucky 8% $197.26
25 Mississippi 8% $197.26
26 North Carolina 8% $197.26
27 Georgia 7% $172.60
28 Wyoming 7% $172.60
29 Alabama 6% $147.95
30 Arkansas 6% $147.95
31 District of Columbia 6% $147.95
32 Maryland 6% $147.95
33 Massachusetts 6% $147.95
34 Minnesota 6% $147.95
35 North Dakota 6% $147.95
36 Oklahoma 6% $147.95
37 Pennsylvania 6% $147.95
38 Texas 6% $147.95
39 Virginia 6% $147.95
40 West Virginia 6% $147.95
41 Illinois 5% $123.29
42 Iowa 5% $123.29
43 Wisconsin 5% $123.29

Ranking covers the 43 states with a fixed statutory default. The 8 states below set their default by a formula or an officer's periodic order, so there is no single printed number to rank — follow each link for the live figure and enter it in the calculator.

Variable / formula-set states (not ranked)

Last reviewed: August 19, 2026. Every figure is computed at build time from the statutory default rate in the table above — see each state's row and cited statute.

Cite this data. Derived from the on-page state late-payment table (legal default rates, B2B). Last reviewed: August 19, 2026. Licensed CC BY 4.0. Copy-ready citation:

MyInvoiceTemplate, US State Late-Payment Interest Rates (2026), myinvoicetemplate.com/tools/late-fee-calculator/#ranked

Download the dataset

Both reference tables on this page are available as open data, regenerated from the verified source at every build.

State late-payment interest (51 jurisdictions): CSV · JSON

VAT / GST standard rates by country: CSV · JSON

Plain-text mirror of the ranked list (easy to cite or paste): TXT

Every verification pass and correction is logged publicly: data changelog

Cite this dataset. MyInvoiceTemplate, US State Late-Payment Interest Rates (2026). Last verified August 19, 2026. Licensed CC BY 4.0. Copy-ready citation:

MyInvoiceTemplate, US State Late-Payment Interest Rates (2026), CC BY 4.0, myinvoicetemplate.com/data/late-payment-interest-by-state-2026.json (verified 2026-08-19)

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Free under CC BY 4.0 — the only condition is that the attribution line inside the widget stays visible. The embed is a compact, self-updating version of the 51-row table above:

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Prefer raw data instead? Use the JSON / CSV downloads above.

Late Fee Calculators by State

Same calculator, preloaded with your state's numbers. Each block below shows the legal default rate (what applies when the contract is silent), the written-contract cap regime, and the controlling statute for that state — one click loads the rate into the calculator at the top of this page. Variable-rate states show the currently published figure with its effective period, linked to the official page that resets it — click through before relying on it. Every state also has a dedicated page with the verbatim statute, the cap analysis, and its own calculator — follow the “full page” link in its block.

Late Fee FAQ

How is invoice late fee calculated?

Multiply the overdue balance by the daily interest rate, then multiply by the number of days overdue. Daily rate equals annual rate divided by 365. Example: $1,000 at 18% APR overdue 45 days = 1000 × (0.18/365) × 45 = $22.19.

What is a reasonable late fee for invoices?

Common practice in the US is 1.5% per month (18% APR) on overdue balances. Whether that rate is lawful depends on your state: 27 of the 51 US jurisdictions in the table on this page place no cap on a written B2B rate, 11 cap it with business exemptions, and 13 impose a hard ceiling — check your state's row and the cited statute. In the UK, statutory interest is 8% plus the Bank of England base rate under the Late Payment of Commercial Debts Act.

Can I charge late fees without a written contract?

Enforceability varies by jurisdiction. Best practice is to disclose late fees on the invoice itself and in any engagement agreement before services begin. Without clear disclosure, courts may refuse to enforce the fee.

Are late fees tax deductible as business expense?

Late fees paid by your business are generally deductible as ordinary business expense. Late fees you charge clients are ordinary income. Consult a tax professional for jurisdiction-specific guidance.

What interest rate applies if my contract doesn't mention late fees?

Your state's legal (default) rate applies — see the state-by-state table on this page. Examples: New York 9%, California 10%, Texas 6% starting 30 days after the due date, Virginia 6% starting automatically 61 days after an unpaid invoice. In a few states the default is variable and reset periodically (e.g. Florida, Ohio, Louisiana).

What is the maximum late fee allowed by state law?

There is no single nationwide maximum. Most states let two businesses agree to any rate in a written contract, or exempt business deals above a dollar threshold, while some keep hard caps — for example Arkansas's constitutional 17% limit or Colorado's 45% ceiling. Check the max-written-rate column and the cited statute for your state in the table on this page.

Do these state interest rules apply to consumer invoices?

No. The reference table on this page covers B2B (business-to-business) invoices. Credit extended to consumers for personal, family, or household purposes is governed by separate consumer-credit laws with stricter caps and disclosure rules in every state.

Does this page cover rent or apartment late fees?

No. Residential rent late fees are governed by state landlord-tenant law — in Texas, for example, Property Code § 92.019 inside the Residential Tenancies chapter — which is entirely separate from the commercial interest statutes on this page. This table covers business-to-business invoices only. See the 'B2B invoice late fees vs. residential rent' section on this page for how to tell the two bodies of law apart.

Does this calculator store my invoice data?

No. All calculations run locally in your browser using JavaScript. No amounts, dates, or client details are transmitted to any server or stored anywhere.