Texas Late Fee Calculator
Based on Tex. Bus. & Com. Code §2.207 (commercial); Tex. Fin. Code §302.002
QuickBillMaker applies late fees automatically based on your configured policy. Set it once and stop chasing payments by hand.
How Texas late fees work
In Texas, late payment fees on commercial invoices are governed by Tex. Bus. & Com. Code §2.207 (commercial); Tex. Fin. Code §302.002. The legal maximum is 1.5% per month (18% annualized). Up to 18% per year (1.5%/mo) on commercial contracts when stated in writing. Default rate without written agreement is 6% per year.
The fee must be stated in a written agreement before the work is performed. Without a written rate, only the statutory default rate applies.
Texas prompt-pay law
Texas Prompt Payment Act (Gov. Code Ch. 2251) for state contracts; private construction Ch. 28 Owners must pay within 35 days of receipt of payment request; interest accrues at prime + 1% otherwise.
Stop calculating late fees by hand
QuickBillMaker applies your Texas late fee rate automatically when invoices go overdue.
Automate late fees free