Reference · Texas · 2026
Texas late payment interest rate
When your contract sets no rate, the Texas figure for interest on an overdue B2B invoice is 6%, under Tex. Fin. Code § 302.002.
On open accounts with no agreed rate — accruing from the 30th day after the amount becomes due. An agreed rate on business-purpose credit is capped at 28% a year (Tex. Fin. Code § 303.009(c)).
- Rate
- 6%
- Statute
- Tex. Fin. Code § 302.002
- Type
- Fixed by statute.
- Source
- codes.findlaw.com · verified July 9, 2026
Statute text read on codes.findlaw.com, a legal mirror, because the official Texas site blocks automated access. Confirm it against the official code before relying on it in a dispute.
What 6% comes to on an unpaid invoice
Simple interest at 6% a year on a 365-day year. Count the days from when interest starts to run in Texas, which is not always the due date.
| Invoice | 30 days | 60 days | 90 days |
|---|---|---|---|
| $5,000 | $24.66 | $49.32 | $73.97 |
| $10,000 | $49.32 | $98.63 | $147.95 |
| $50,000 | $246.58 | $493.15 | $739.73 |
Work out the interest on your invoice
Prefilled with Texas's legal rate of 6%. If your contract sets a rate, use that instead.
Interest you can claim
$98.63
$10,098.63 with the invoice · $1.64 a day
The ceiling
How high can a late fee go in Texas?
Your contract decides. The rate above only applies when your terms are silent. Between businesses, an agreed late-interest rate or late fee replaces it, within two limits: the state's ceiling on agreed rates, and the rule that a late fee must compensate you rather than punish the customer.
Texas's ceiling: 28% a year on credit extended for a business or commercial purpose (Tex. Fin. Code § 303.009(c)).
The common US convention of 1.5% a month (18% a year) sits inside that ceiling.
Ceiling checked September 12, 2026.
Late payment wording for a Texas invoice
On your invoice
Payment is due by the date shown on this invoice. Late payments are subject to interest at 6% a year, the legal rate under Tex. Fin. Code § 302.002.
This restates what Texas law applies when your contract is silent. If your contract sets a rate, quote that instead. The wording doesn't say when interest starts, because that differs by state; the note at the top of this page covers it where Texas law sets it.
How Texas compares
Of the 46 states with a rate that applies on its own, 32 set a higher one and 5 a lower one. The middle of the range is 8%.
Same 6% figure: Alabama, Arkansas, Maryland, Minnesota, North Dakota, Oklahoma, Pennsylvania and Virginia.
Interest is the fallback. Getting paid on time is the plan.
DueTrail turns overdue invoices into managed cases with reviewable reminders and recorded promises to pay, so invoices get settled before anyone reaches for Tex. Fin. Code § 302.002.