Laws: Maximum Late Fees by State (2024)

Jeanne Sanford | July 26, 2024 | 10 min read

Last updated July 26th, 2024

Navigating through the multitude of rental laws can be a daunting task for landlords and tenants alike, particularly when it comes to understanding the specifics of late fees. Late fees are penalties charged when rent is not paid on time, and these fees are subject to both state legislation and individual lease agreements.

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Alabama

Late Rent Fees (Maximum Allowed): Not defined
Laws: No Statute

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Alaska

Late Rent Fees (Maximum Allowed): Not defined
Laws: No Statute

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Arizona

Late Rent Fees (Maximum Allowed): Not to exceed $5 per day from the due date
Laws: ARS 33–1414

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Arkansas

Late Rent Fees (Maximum Allowed): Not defined
Laws: No Statute

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California

Late Rent Fees (Maximum Allowed): Must be a “good faith estimate of the damages likely to be suffered by the landlord in the case of a late payment.” Also, the late fee must be written in the lease.
Laws: Orozco v. Casimiro, 121 Cal. App.4th Supp. 7 (2004), CIV Code 1962

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Colorado

Late Rent Fees (Maximum Allowed): $50.00 or 5% of past due rent
Laws: C.R.S. § 38–12–105

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Connecticut

Late Rent Fees (Maximum Allowed): The lesser of $5 per day, up to a maximum of $50, or 5% of the delinquent rent payment.
Laws: CT Statute Section 41a-15a

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Delaware

Late Rent Fees (Maximum Allowed): 5% of the monthly rent amount
Laws: Title 25, § 5501(d)

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Florida

Late Rent Fees (Maximum Allowed): $20 or 20% of the rent, whichever is greater
Laws: FL statute Title VI, Chapter 83.808

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Georgia

Late Rent Fees (Maximum Allowed): $20 per month for each month there is a late payment of rent or 20% of the monthly rent, whichever is greater.
Laws: Ga. Code § 10-44217

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Hawaii

Late Rent Fees (Maximum Allowed): 8% of the monthly rent amount
Laws: § 521–21(f)

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Idaho

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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Illinois

Late Rent Fees (Maximum Allowed): State of Illinois: $20 or 20% of rent, whichever is higher; Chicago only – $10.00 per month for the first $500.00 in monthly rent plus five percent per month for any amount in excess of $500.00 in monthly rent for the late payment of rent.
770 ILCS 95/7.10
Laws: Municipal Code Sect. 5–12–140(h)

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Indiana

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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Iowa

Late Rent Fees (Maximum Allowed): If the rent does not exceed $700/month, the late fee cannot exceed more than $12/day per day or $60/month. If the rent is greater than $700/month, the late fee cannot exceed more than $20/day or $100/month.
Laws: 562A.9(4)

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Kansas

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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Kentucky

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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Louisiana

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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Maine

Late Rent Fees (Maximum Allowed): 4% of the monthly rent amount
Laws: Chapter 710, §6028(2)

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Maryland

Late Rent Fees (Maximum Allowed): 5% of the monthly rent amount
Laws: Md. Code, Real. Prop. § 8–208(d)(3)

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Massachusetts

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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Michigan

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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Minnesota

Late Rent Fees (Maximum Allowed): 8% of the monthly rent amount
Laws: 504B.177(a)

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Mississippi

Late Rent Fees (Maximum Allowed): Limit of 10%
Laws: Rule 5-3-6-6.8(2)

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Missouri

Late Rent Fees (Maximum Allowed): Reasonable late fee which has been defined as $20 or 20%, whichever is greater
Laws: Title XXVI, 415.417

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Montana

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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Nebraska

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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Nevada

Late Rent Fees (Maximum Allowed): 5% of the monthly rent amount
Laws: NRS 118A.210(4)(a)

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New Hampshire

Late Rent Fees (Maximum Allowed): No defined
Laws: No statute

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New Jersey

Late Rent Fees (Maximum Allowed): Outside Jersey City – Not defined; Jersey City only – $35
Laws: Ord. 20–036
NJSA 2A-42-6.1 to 6.3

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New Mexico

Late Rent Fees (Maximum Allowed): 10% of the monthly rent amount
Laws: § 47–8–15(B)

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New York

Late Rent Fees (Maximum Allowed): $50 or 5% of the monthly rent amount, whichever is less
Laws: Housing Stability and Tenant Protection act of 2019

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North Carolina

Late Rent Fees (Maximum Allowed): $15 or 5% of the monthly rent amount, whichever is greater.
Laws: § 42–46(a)(1)

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North Dakota

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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Ohio

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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Oklahoma

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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Oregon

Late Rent Fees (Maximum Allowed): 5% of the monthly rent amount, charged once for each succeeding 5-day period
Laws: ORS 90.260(2)(c)

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Pennsylvania

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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Rhode Island

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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South Carolina

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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South Dakota

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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Tennessee

Late Rent Fees (Maximum Allowed): 10% of the monthly rent amount
Laws: § 66–28–201(d)

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Texas

Late Rent Fees (Maximum Allowed): 12% of the monthly rent amount if located in a building with 4 units or under or 10% of the monthly rent amount if located in a building with more than 4 units
Laws: Sec. 92.019(1)

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Utah

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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Vermont

Late Rent Fees (Maximum Allowed): Late fees are generally not allowed. You may charge a reasonable late fee that is tied to an actual expense and this language must be in the lease agreement.
Laws: Vermont Residential Rental Agreements Act (RRAA)

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Virginia

Late Rent Fees (Maximum Allowed): the lesser of 10% of the monthly rent amount or 10% of the remaining balance due.
Laws: § 55.1–1204(E)

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Washington

Late Rent Fees (Maximum Allowed): The greater of $20.00 or 20% of the rent due.
Laws: RCW 19.150.150

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West Virginia

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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Wisconsin

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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Wyoming

Late Rent Fees (Maximum Allowed): Not defined
Laws: No statute

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How much can you charge for a rental late fee?

The amount you can charge for a rental late fee varies by state and local laws, as well as what is outlined in the lease agreement. Some states cap the late fee at a certain percentage of the rent amount or set a maximum dollar amount. Others do not specify a limit, leaving it to the discretion of the landlord and tenant to agree upon a reasonable fee. It’s essential for landlords to ensure their late fees are compliant with state regulations and clearly defined in the lease agreement to avoid any legal complications.

What is a typical rental late fee?

A typical rental late fee is often a set dollar amount or a percentage of the monthly rent that is charged when rent is not paid by the specified due date in the lease. Commonly, late fees range from $25 to $50 or 5% to 10% of the rent for each occurrence. However, the “typical” late fee can be influenced by the rental market, the property’s location, and legal limits set by state law.

Are late fees tax deductible?

For landlords, late fees collected from tenants are generally considered taxable income and must be reported on their tax returns. Therefore, late fees are not tax-deductible for landlords; they are part of the gross rental income. For tenants, late fees are not tax-deductible as personal expenses. However, if a tenant is renting the property for business purposes, the late fee may be considered a deductible business expense. It is always recommended to consult with a tax professional for advice on specific tax situations and to ensure compliance with tax laws and regulations.