Texas Late Fee Calculator
Work out interest on an overdue B2B invoice under Texas law. The legal default rate — what applies when the contract is silent — is 6%, and the statute is quoted verbatim below. All math runs locally in your browser.
Begins accruing on the 30th day after the amount is due when the contract specifies no rate.
Late fee breakdown
- Interest owed
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- Daily rate
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- Total (invoice + interest)
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Still unpaid? Generate a formal demand letter — it computes the interest and cites Texas's statute (Tex. Fin. Code §§ 302.002, 303.002, 303.009) for you.
What Texas law actually says
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.
Quoted verbatim from the linked official source — not our paraphrase. How we source and re-check every row is documented in the data methodology.
Maximum late fee in Texas — written B2B contracts
Hard cap 18% as of Aug 17–23, 2026 (28% statutory max).
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%. The computed rate is below the floor as of the week of Aug 17–23, 2026, so 18%/yr is the live B2B ceiling. Even a 'qualified commercial loan' may not exceed the applicable ceiling.
Basis: Tex. Fin. Code §§ 303.002, 303.009(a),(c). Compare all 51 jurisdictions on the full state table and the cap-regime map.
B2B invoices only — not rent, not consumer debt
Everything on this page is about business-to-business invoices. Residential rent late fees live in Texas's landlord-tenant law and consumer credit has separate, stricter rules — two different bodies of law. The distinction is explained in B2B invoice late fees vs. residential rent.
Use this data
Texas's row — rate, cap, citation, verbatim quote, verification date — is part of our open 51-jurisdiction dataset: CSV · JSON (CC BY 4.0, cite myinvoicetemplate.com). Set late-fee terms on your next invoice with the free invoice generator, or state them clearly using the wording guidance in the payment terms guide.
Texas late fee FAQ
Can I charge late fees on overdue invoices in Texas?
Yes — on business-to-business invoices. If your contract or invoice states a late-fee rate, that rate governs (subject to the cap rules below). If nothing was agreed: 6%. Begins accruing on the 30th day after the amount is due when the contract specifies no rate. Statute: Tex. Fin. Code §§ 302.002, 303.002, 303.009, verified 2026-08-21. Consumer and rent debts follow separate laws.
What is the maximum late fee I can charge in Texas?
For a written B2B contract: 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. Basis: Tex. Fin. Code §§ 303.002, 303.009(a),(c). The full cap analysis is in the section above; this covers business-to-business deals only — consumer credit has stricter separate caps.
What interest applies if my contract doesn't mention late fees in Texas?
The statutory default rate of 6%. Begins accruing on the 30th day after the amount is due when the contract specifies no rate. Statute: Tex. Fin. Code §§ 302.002, 303.002, 303.009 (verbatim quote on this page, verified 2026-08-21).
Does this cover rent, apartment, or consumer late fees in Texas?
No. This page covers business-to-business invoices only. Residential rent late fees are governed by Texas's landlord-tenant law, and consumer credit for personal, family, or household purposes has its own stricter caps and disclosure rules. Those are different statutes than the commercial-interest law cited here.
Where does this data come from, and when was it verified?
Every figure on this page comes from our 51-jurisdiction dataset: each row researched against the controlling statute or the state's official current-rate page, independently re-checked, and stamped with its own verification date — Texas's row was last verified 2026-08-21. The operative legal text is quoted verbatim on this page with a link to the official source, the methodology is public, every verification pass is logged in the changelog, and the full dataset is downloadable (CC BY 4.0).
Not legal advice. This page summarizes Texas's commercial-interest statute for general information, with the verification date shown above — it tells you when we last confirmed the figures, not that they are still current today. Statutes change and courts interpret them; verify the cited statute at the official source, or ask a licensed attorney in your state, before charging or demanding interest.