Late fee laws by state

Most states let businesses charge a late fee or interest on an unpaid invoice if the client agreed to it in advance. Some states limit the rate, especially for invoices to individuals. Pick your state to see its rules.

This is general information, not legal advice. Laws change and can apply differently to your situation, so check your state's current law or ask a lawyer before you charge a late fee, interest or a deposit. Last reviewed October 21, 2026.

Late fee wording to copy

Put the late fee in your contract or estimate and on every invoice before the due date.

Payment is due within 30 days of the invoice date. Balances unpaid after the due date are charged interest of [rate]% per month.
A late fee of $[amount] applies to any balance not paid by the due date.
Past due balances accrue interest at [rate]% per year, or the highest rate allowed by law, whichever is lower.

Keep going

Late fee calculatorWork out the fee or interest on an overdue invoice.How to charge late feesHow to set a late fee and put it on your invoices.

Let reminders do the chasing.

Invoicefy emails your client 2 days before the due date and 3 and 7 days after, and stops when the invoice is paid.

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