Late fee laws by state

If your contract is silent: 6% per annum (fixed) (Ala. Code § 8-8-1)

Written-contract maximum: 8% by written contract generally, but no cap when the original principal balance is $2,000 or more — effectively no cap for business transactions (Ala. Code §§ 8-8-1, 8-8-5)

The § 8-8-5 exemption covers loans, forbearances, and credit sales of $2,000+, so most B2B invoice arrangements may carry any rate agreed in writing.

If your contract is silent: 10.5% per year on money after it is due (fixed) (Alaska Stat. § 45.45.010(a))

Written-contract maximum: 5 percentage points above the 12th Federal Reserve District discount rate on the day of contract; no limit where principal exceeds $25,000 (Alaska Stat. § 45.45.010(b))

If your contract is silent: 10% per annum unless a different rate is contracted for in writing (fixed) (Ariz. Rev. Stat. § 44-1201(A))

Written-contract maximum: No cap — any rate may be agreed to in writing (Arizona has no general usury ceiling) (Ariz. Rev. Stat. § 44-1201(A))

Judgment interest is the lesser of 10% or prime + 1% unless a written contract rate applies (§ 44-1201(B)).

If your contract is silent: 6% per annum when the contract does not specify a rate (fixed) (Ark. Code Ann. § 4-57-101(d))

Written-contract maximum: 17% per annum constitutional maximum on loans and contracts; no business exemption (Ark. Const. amend. 89, § 3)

Contracts exceeding 17% are void as to both principal and interest (Ark. Const. amend. 89, § 6(b)).

If your contract is silent: 10% per annum after breach of a contract that does not stipulate a rate (fixed); the general legal rate for other obligations is 7% (Cal. Const. art. XV, § 1) (Cal. Civ. Code § 3289(b))

Written-contract maximum: For non-consumer transactions, the higher of 10% or 5% + the Federal Reserve Bank of San Francisco discount rate; many lender-based exemptions (Cal. Const. art. XV, § 1)

Usury applies only to loans/forbearances — late charges on bona fide trade credit (unpaid invoices) are not usury under the time-price doctrine (Southwest Concrete Prods. v. Gosh Constr. Corp., 51 Cal. 3d 701 (1990)).

If your contract is silent: 8% per annum, compounded annually, absent agreement (fixed) (Colo. Rev. Stat. § 5-12-101)

Written-contract maximum: 45% per annum by written stipulation (lower caps apply to consumer credit under the UCCC) (Colo. Rev. Stat. § 5-12-103)

If your contract is silent: 8% per year absent agreement; accrues from maturity of the debt (fixed) (Conn. Gen. Stat. § 37-1)

Written-contract maximum: 12% general usury cap on loans, but business-purpose loans over $10,000 are exempt (capped at deposit index + 17% for $10,000–$250,000; no cap above $250,000) (Conn. Gen. Stat. §§ 37-4, 37-9(4))

The § 37-4 cap applies to loans of money; trade credit on invoices is generally outside it.

If your contract is silent: Federal Reserve discount rate + 5% as of the time interest is due (floating formula) (Del. Code Ann. tit. 6, § 2301(a))

Written-contract maximum: Same formula cap (Fed discount rate + 5%) generally, but no limit where the amount loaned exceeds $100,000 and is not secured by a mortgage on the borrower's principal residence (Del. Code Ann. tit. 6, § 2301(a), (c))

If your contract is silent: Floating: set quarterly by the CFO as the average Federal Reserve Bank of New York discount rate for the preceding 12 months + 400 basis points (8.25% in Q2 2026) (Fla. Stat. §§ 687.01, 55.03)

Written-contract maximum: 18% simple interest for obligations of $500,000 or less; 25% for obligations over $500,000 (25%+ is criminal usury) (Fla. Stat. §§ 687.02, 687.03, 687.071)

Florida's usury statute expressly reaches 'forbearance to enforce the collection' of money, so agreed late-payment interest on invoices should observe the caps.

If your contract is silent: 7% per annum simple interest where the rate is not established by written contract (fixed) (O.C.G.A. § 7-4-2(a)(1)(A))

Written-contract maximum: Any rate by written contract where principal exceeds $3,000 (16% cap at $3,000 or less), subject to the 5%-per-month criminal usury ceiling for loans under $250,000; no ceiling at $250,000+ (O.C.G.A. §§ 7-4-2, 7-4-18)

Even without an agreed rate, a business may charge up to 1.5% per month on commercial accounts 30+ days past due (O.C.G.A. § 7-4-16).

If your contract is silent: 10% per year (fixed) when no written contract sets a rate; applies to money due on instruments, settled accounts, and open accounts after 60 days (Haw. Rev. Stat. § 478-2)

Written-contract maximum: No cap for ordinary business transactions — a written contract may stipulate any rate not otherwise prohibited; the 12%/yr cap applies only to consumer credit transactions and home business loans (24%/yr for regulated financial institutions) (Haw. Rev. Stat. § 478-4)

The usury ceiling covers only consumer credit and home business loans, so B2B written contracts are effectively uncapped.

If your contract is silent: 12% per year (fixed) when no express written contract fixes a different rate (Idaho Code § 28-22-104(1))

Written-contract maximum: No cap — the finance charge on a loan or credit sale is whatever the parties agree; Idaho has no general usury limit (Idaho Code § 28-42-201)

Judgments accrue at a different rate (5% plus the Idaho base rate, Idaho Code § 28-22-104(2)).

If your contract is silent: 5% per year (fixed) on money after it becomes due on written instruments, on settled accounts from the day the balance is ascertained, and on money withheld by unreasonable and vexatious delay (815 ILCS 205/2)

Written-contract maximum: 9% per year general cap for written contracts, but no cap for loans to corporations or business loans (business associations or loans for business purposes) (815 ILCS 205/4(1)(a), (c))

The 9% ceiling effectively never applies to B2B credit because of the corporate and business-loan exemptions.

If your contract is silent: 8% per year (fixed) on loans or forbearances when the parties do not agree on a rate (Ind. Code § 24-4.6-1-102)

Written-contract maximum: No cap for business-purpose transactions — Indiana's rate ceilings (Uniform Consumer Credit Code, Ind. Code § 24-4.5, and the 72% criminal loansharking limit, Ind. Code § 35-45-7-2) apply only to consumer credit (Ind. Code § 24-4.5 (scope limited to consumer credit); Ind. Code § 35-45-7-2)

Prejudgment interest on accounts and judgments also runs at 8% (Ind. Code § 24-4.6-1-103).

If your contract is silent: 5% per year (fixed) when no rate is agreed (Iowa Code § 535.2(1))

Written-contract maximum: No cap for business-purpose transactions — persons borrowing money or obtaining credit for business or agricultural purposes may agree in writing to any rate; the superintendent-of-banking published maximum applies only to non-exempt (chiefly consumer) written agreements (Iowa Code § 535.2(2)(a)(5))

"Business purpose" is defined broadly to include any commercial, service, or industrial enterprise carried on for profit.

If your contract is silent: 10% per year (fixed) when no other rate is agreed upon (Kan. Stat. Ann. § 16-201)

Written-contract maximum: 15% per year general written-contract cap, but the cap does not apply to business or agricultural transactions (loans/credit sales made primarily for other than personal, family or household purposes) (Kan. Stat. Ann. § 16-207(a); business/agricultural exclusion at § 16-207(e)(5))

A B2B credit sale made primarily for non-household purposes falls outside the 15% cap.

If your contract is silent: 8% per year (fixed) (Ky. Rev. Stat. § 360.010)

Written-contract maximum: For obligations of $15,000 or less, the lesser of 19% or 4% above the Federal Reserve discount rate by written agreement; for written contracts with original principal over $15,000, any rate (Ky. Rev. Stat. § 360.010(1))

A federal court applying Kentucky law has treated flat service charges on delinquent trade accounts as interest subject to these usury limits, so percentage caps can bite on smaller B2B invoices.

If your contract is silent: Judicial interest rate, set annually at 3.25 percentage points above the Federal Reserve discount rate (7.5% for calendar 2026) (La. R.S. 9:3500; La. R.S. 13:4202)

Written-contract maximum: 12% per year conventional-interest cap, but no cap for obligations for commercial, business, or agricultural purposes — such borrowers may agree to any rate (La. R.S. 9:3500(C)(1); commercial/business exemption at La. R.S. 9:3509)

Conventional interest must be fixed in writing; testimonial proof of an oral rate is not admitted.

If your contract is silent: No general fixed legal rate for trade debts; prejudgment interest accrues at the 1-year U.S. Treasury bill rate plus 3% (the oft-cited 6% default in 9-B M.R.S. § 432 applies only to loans made by financial institutions) (14 M.R.S. § 1602-B)

Written-contract maximum: No cap for business-purpose transactions — Maine's rate regulation (Consumer Credit Code, Title 9-A) excludes extensions of credit primarily for business, commercial, or agricultural purposes (9-A M.R.S. § 1-202)

If the contract states a rate, that contract rate also controls prejudgment interest (14 M.R.S. § 1602-B).

If your contract is silent: 6% per year (fixed) (Md. Const. art. III, § 57; Md. Code, Com. Law § 12-102)

Written-contract maximum: 8% per year with a signed written agreement generally, but any rate is permitted for loans to corporations, commercial loans over $15,000 not secured by residential real property, and commercial loans over $75,000 secured by residential real property (Md. Code, Com. Law § 12-103(a)(1), (e))

Maryland's caps are framed around loans; most B2B credit fits the corporate or commercial-loan any-rate exceptions.

If your contract is silent: 6% per annum (fixed) when no rate is agreed (Mass. Gen. Laws ch. 107, § 3)

Written-contract maximum: No civil usury cap — parties may contract for any rate (agreement above 6% must be in writing), but interest plus expenses exceeding 20%/yr is criminal usury unless the creditor first notifies the Attorney General (Mass. Gen. Laws ch. 107, § 3; ch. 271, § 49)

The 20% criminal-usury ceiling (c. 271, § 49) applies to loans of money or property, and the AG-notification exemption is valid for two years per filing.

If your contract is silent: 5% per annum (fixed) when no rate is agreed (Mich. Comp. Laws § 438.31)

Written-contract maximum: 7% by written agreement generally; extensions of credit to business entities may be at any rate agreed in writing with regulated lenders (banks, etc.), or up to the 25% criminal-usury ceiling when the creditor is not a regulated lender (Mich. Comp. Laws §§ 438.31, 438.61, 438.41)

So an ordinary (non-bank) business extending trade credit to another business entity can agree in writing up to 25%.

If your contract is silent: 6% per annum (fixed) for any legal indebtedness when no rate is contracted in writing (Minn. Stat. § 334.01, subd. 1)

Written-contract maximum: 8% by written contract generally, but no cap for extensions of credit to organizations (corporations, LLCs, partnerships, cooperatives, etc.) or for contracts of $100,000 or more (Minn. Stat. §§ 334.01, 334.022)

Most B2B trade credit is uncapped because business-entity debtors fall under the § 334.022 organization exemption.

If your contract is silent: 8% per annum (fixed) on all notes, accounts and contracts when no rate is agreed (Miss. Code Ann. § 75-17-1(1))

Written-contract maximum: Greater of 10% or 5% above the Federal Reserve discount rate generally; business entities may agree to the greater of 15% or discount rate + 5%; effectively no cap where agreed in writing and original principal exceeds $2,000 (Miss. Code Ann. § 75-17-1(2), (3), (5))

Business entities (and parties to over-$2,000 written agreements) are barred from raising a usury defense.

If your contract is silent: 9% per annum (fixed) when no rate is agreed (Mo. Rev. Stat. § 408.020)

Written-contract maximum: 10% by written agreement, or the statutory 'market rate' if higher; no cap at all for credit to corporations, partnerships, or LLCs, or business-purpose loans of $5,000 or more (Mo. Rev. Stat. §§ 408.030, 408.035)

The § 408.035 exemption removes any rate limit for most B2B credit.

If your contract is silent: 10% per annum (fixed) when no written contract fixes a different rate (Mont. Code Ann. § 31-1-106)

Written-contract maximum: Greater of 15% or 6 percentage points above the Federal Reserve's published bank prime rate (H.15), by written agreement (Mont. Code Ann. § 31-1-107)

Charging above the cap forfeits double the interest; the cap applies to ordinary (non-regulated-lender) creditors.

If your contract is silent: 6% general legal rate on loans/forbearance; 12% default rate on money due on written instruments, settled accounts, and unsettled account billings unpaid within 30 days of billing (the rate usually applicable to overdue invoices) (Neb. Rev. Stat. §§ 45-102, 45-104)

Written-contract maximum: 16% by agreement generally; no cap on credit to corporations, partnerships, LLCs, or trusts and other exempt transactions (Neb. Rev. Stat. §§ 45-101.03, 45-101.04)

§ 45-104's 12% applies 'unless otherwise agreed,' so a written late-interest clause can displace it.

If your contract is silent: Prime rate at Nevada's largest bank plus 2%, as ascertained by the Commissioner of Financial Institutions on the Jan. 1 or July 1 preceding the transaction (adjusted semiannually) (Nev. Rev. Stat. § 99.040)

Written-contract maximum: No cap for business-purpose transactions — parties may agree to any rate (36% MAPR ceiling only for covered military servicemembers/dependents) (Nev. Rev. Stat. § 99.050)

Nevada has no general usury statute; construction-related receivables are governed separately by NRS ch. 624.

If your contract is silent: 10% per annum in business transactions in which interest is paid or secured, unless otherwise agreed in writing; judgment/prejudgment interest instead accrues at a rate set annually by the state treasurer (26-week T-bill rate + 2 points) (N.H. Rev. Stat. Ann. § 336:1, I–II)

Written-contract maximum: No general cap — any rate agreed upon in writing is permitted (New Hampshire has no general usury statute; separate caps apply only to licensed consumer small loans, RSA 399-A) (N.H. Rev. Stat. Ann. § 336:1)

With a written agreement, business transactions may also use other-than-simple (i.e., compound) interest.

If your contract is silent: 6% per annum (fixed) when there is no written contract rate (N.J. Stat. Ann. § 31:1-1)

Written-contract maximum: 16% by written contract generally, but corporations, LLCs, and LLPs may not plead the civil usury defense — corporate borrowers are effectively limited only by the 50% criminal-usury ceiling; loans over $50,000 (not secured by residential first liens) are also exempt from the civil cap (N.J. Stat. Ann. §§ 31:1-1, 31:1-6; N.J. Stat. Ann. § 2C:21-19)

Criminal usury is 30% for individual borrowers versus 50% for corporate borrowers.

If your contract is silent: 15% (fixed) — the default rate when no written contract fixes a rate, applied to money due by contract and matured accounts (NMSA 1978 § 56-8-3)

Written-contract maximum: No cap for business-purpose transactions — maximum-rate laws do not apply where the debtor is a corporation, LLC, or other business entity, and such debtors cannot assert usury (NMSA 1978 § 56-8-9(B))

§ 56-8-3 phrases the default as 'not more than' 15%; New Mexico courts apply 15% as the prejudgment rate on contract debts.

If your contract is silent: 9% (fixed) — statutory interest rate; a 2022 amendment lowered it to 2% only for consumer-debt judgments (N.Y. CPLR 5004(a))

Written-contract maximum: 16% civil usury cap (25% criminal usury cap); corporate/business borrowers are barred from asserting civil usury, so 25% is the practical ceiling for B2B loans (N.Y. Gen. Oblig. Law § 5-501 & Banking Law § 14-a (16%); Penal Law § 190.40 (25%); Gen. Oblig. Law § 5-521 (corporations))

NY usury caps apply only to loans or forbearance of money, not to trade-credit late fees on invoices.

If your contract is silent: 8% (fixed) (N.C. Gen. Stat. § 24-1)

Written-contract maximum: No cap for business-purpose transactions — 'exempt loans' (borrower is not a natural person, loan is for non-personal purposes, or principal is $300,000+) may bear any agreed rate, and usury may not be claimed (N.C. Gen. Stat. § 24-9)

If your contract is silent: 6% (fixed) — applies to any legal indebtedness unless a different written rate is contracted (N.D. Cent. Code § 47-14-05)

Written-contract maximum: General usury ceiling is 5.5 percentage points above the average 6-month U.S. Treasury bill rate (never below 7%), but the ceiling does not apply to corporations, LLCs, partnerships, or amounts over $35,000 — effectively no cap for B2B (N.D. Cent. Code § 47-14-09)

If your contract is silent: Formula: federal short-term rate (rounded) + 3%, set each October by the Tax Commissioner for the following year (7% for 2026); applies to book accounts, instruments, and settlements when no written contract sets a rate (Ohio Rev. Code § 1343.03(A) (rate per § 5703.47))

Written-contract maximum: 8% for written contracts, except no cap when the original principal exceeds $100,000 (plus other exceptions, e.g. certain demand/single-installment notes) (Ohio Rev. Code § 1343.01)

Ohio courts hold a rate printed on an invoice or account statement is not a 'written contract' — a signed agreement is required to charge more than the statutory rate.

If your contract is silent: 6% (fixed) — legal rate in the absence of any contract on interest (15 Okla. Stat. § 266)

Written-contract maximum: 45% per annum on non-consumer (business) loans; consumer credit is capped separately under the Oklahoma UCCC (14A Okla. Stat. §§ 3-605, 5-107)

The UCCC caps apply to loans/finance charges; B2B trade-credit late fees are generally analyzed as contract charges rather than consumer credit.

If your contract is silent: 9% (fixed) — default rate on money after it becomes due when the parties have not agreed to a rate (ORS 82.010(1))

Written-contract maximum: No cap for business loans over $50,000; business or agricultural loans of $50,000 or less are capped at the greater of 12% or 5 points over the 90-day commercial-paper discount rate (ORS 82.010(3))

Oregon's cap applies to loans; ordinary trade credit on invoices is generally outside it.

If your contract is silent: 6% (fixed) — the 'legal rate' applied when a document says 'with interest' or no rate is specified (41 P.S. § 202)

Written-contract maximum: No cap for business-purpose transactions — the 6% maximum applies only to loans of $50,000 or less, and business loans over $10,000, unsecured loans over $35,000, and obligations over $50,000 are excluded (41 P.S. § 201 (exclusions in § 201(b)))

If your contract is silent: 12% (fixed) — applies to judgments and business transactions where interest is due unless a different rate is expressly stipulated (R.I. Gen. Laws § 6-26-1)

Written-contract maximum: Greater of 21% per annum or 9 percentage points over the WSJ domestic prime rate; commercial loans over $1,000,000 (not secured by a principal residence, with CPA pro-forma) are exempt (R.I. Gen. Laws § 6-26-2)

Rhode Island's cap reaches commercial transactions under $1M, making it one of the stricter states for B2B rates.

If your contract is silent: 8.75% (fixed) — legal rate on accounts stated and ascertained sums due (S.C. Code § 34-31-20(A))

Written-contract maximum: No cap for written contracts — any rate may be charged by express written agreement (the general usury statute, former § 34-31-30, was repealed in 1982; consumer credit is regulated separately under Title 37) (S.C. Code § 37-10-106(1))

Without a written agreement, non-loan interest defaults to 8.75% under § 34-31-20; § 37-10-106 sets 6% for lending/use-of-money contracts lacking a written rate.

If your contract is silent: 12% per year (the fixed 'Category C' official state rate) — applies when an obligation to pay interest exists but no rate is specified (S.D. Codified Laws §§ 54-3-4, 54-3-16(3))

Written-contract maximum: No cap — no maximum interest rate or usury restriction when the rate is agreed to in writing (S.D. Codified Laws § 54-3-1.1)

Judgments and statutory liens instead accrue at the 10% Category B rate.

If your contract is silent: 10% per year — the statutory maximum effective rate for transactions not governed by a written contract; courts may award prejudgment interest on unpaid accounts up to 10% (Tenn. Code Ann. §§ 47-14-103(3), 47-14-123)

Written-contract maximum: The 'applicable formula rate' for written contracts: 4 percentage points above the Federal Reserve average prime loan rate, capped at 24% per year (rate announced by the TN Dept. of Financial Institutions) (Tenn. Code Ann. §§ 47-14-103(2), 47-14-102 (definition of 'formula rate'), 47-14-105)

No general business/corporate exemption — the formula-rate cap applies to written B2B contracts.

If your contract is silent: 6% per year (fixed), beginning on the 30th day after the amount is due, when no interest rate was agreed (Tex. Fin. Code § 302.002)

Written-contract maximum: Chapter 303 rate ceilings: market-based weekly ceiling with an 18% floor and 24% cap; 28% cap for credit extended for a business, commercial, investment, or similar purpose (Tex. Fin. Code §§ 303.002, 303.009)

Texas usury law reaches trade credit — late charges on invoices can count as interest, so exceeding the ceiling risks usury penalties.

If your contract is silent: 10% per year (fixed), unless the parties expressly specify a different rate (Utah Code § 15-1-1(2))

Written-contract maximum: No cap — parties to a lawful written, verbal, or implied contract may agree upon any rate of interest (Utah Code § 15-1-1(1))

Statute expressly covers contracts for services and claims for breach of contract, not just loans.

If your contract is silent: 12% per year (fixed), computed by the actuarial method (9 V.S.A. § 41a(a))

Written-contract maximum: 12% general usury cap; higher rates allowed only for specific enumerated transaction types (e.g., certain regulated loans, retail installment contracts, retail charge agreements) (9 V.S.A. § 41a(a)-(b))

No general business/corporate exemption — Vermont's 12% cap can genuinely limit agreed B2B late-interest rates.

If your contract is silent: 6% per year (fixed); the legal rate is implied whenever there is an obligation to pay interest with no express rate (Va. Code § 6.2-301)

Written-contract maximum: 12% cap on interest on loans, but corporations, LLCs, most partnerships, and business trusts may not raise usury as a defense — effectively no cap for contracts between such entities (Va. Code §§ 6.2-303(A), 6.2-308)

The 12% cap by its terms applies to 'loans'; trade credit/invoice late charges generally fall outside it.

If your contract is silent: 12% per year (fixed) in the absence of a written agreement fixing a different rate (RCW 19.52.010)

Written-contract maximum: Higher of 12% or 4 percentage points above the average 26-week T-bill yield; but the usury defense is unavailable for transactions primarily for agricultural, commercial, investment, or business purposes — effectively no cap for B2B (RCW 19.52.020(1); RCW 19.52.080)

The business-purpose exemption never applies to consumer transactions.

If your contract is silent: 6% per year (fixed) (W. Va. Code § 47-6-5(a))

Written-contract maximum: 8% by written contract as the general rule, but business-purpose debts are exempt from usury limits and corporations/partnerships cannot plead usury — effectively no cap for B2B transactions (W. Va. Code §§ 47-6-5(b), 47-6-10, 47-6-11)

For debts of natural persons, the business-purpose usury exemption requires a principal amount of $20,000 or more.

If your contract is silent: 5% per year (fixed) (Wis. Stat. § 138.04)

Written-contract maximum: 12% general cap on loans/forbearances, but the cap does not apply to loans to corporations or limited liability companies (Wis. Stat. § 138.05(1)(a), (5))

Forbearance on trade credit extended to an unincorporated business (sole proprietor/partnership) may still be subject to the 12% cap.

If your contract is silent: 7% per year (fixed), if there is no agreement or provision of law for a different rate (Wyo. Stat. § 40-14-106(e))

Written-contract maximum: No cap for business-purpose/non-consumer transactions — the agreed written rate controls; Wyoming's UCCC rate limits apply only to consumer credit (Wyo. Stat. § 40-14-106(e) (agreed rate controls); no general usury statute for non-consumer credit)

B2B trade credit is outside the Wyoming UCCC's consumer-credit caps.