Maryland late fee and interest rules for invoices

Here is what Maryland law says about late fees and interest on unpaid invoices, for business clients and consumers, with the statute and a link to the official source.

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.

Maryland late fee and interest limits

Rule	Maryland
Business-to-business late fee or interest cap	Business contracts may set a late fee in writing. The state's set late fee limits apply only to individuals.
Consumer cap	A late fee may be the greater of $5 a month or 10% a month of the past-due amount, no more than 3 times, or up to 1.5% a month instead. No fee until 15 days after the bill is sent, and the fee must be shown in 10-point bold type.
Legal interest rate when no rate was agreed	6% a year. Judgments carry 10% a year.
Statute	Md. Const. art. III § 57; Md. Code, Com. Law § 14-1315; Md. Code, Cts. & Jud. Proc. § 11-107
Last reviewed	October 21, 2026

Late fee wording to copy

Agree on the fee before the work starts and show it on every invoice.

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.Late fee laws by stateEvery state in one table.