Interest on unpaid invoices in New Jersey: no single rate if none was agreed; at most 16% by agreement for homeowners

New Jersey's rate when no rate was agreed

It depends: see N.J.S.A. 31:1-1 and R. 4:42-11. The Judiciary's rate table applies the R. 4:42-11 rate to pre-judgment interest in TORT actions only.

• “the post-judgment annual rate of interest for judgments not exceeding the monetary limit of the Special Civil Part at the time of entry for calendar year 2026 (commencing January 1, 2026) will be 4.5%.” — N.J. Ct. R. 4:42-11 — Notice, Post-Judgment Interest Rate for Calendar Year 2026, read November 6, 2026
• “the post-judgment annual rate of interest for judgments exceeding the monetary limit of the Special Civil Part at the time of entry for calendar year 2026 (commencing January 1, 2026) will be 6.5%.” — N.J. Ct. R. 4:42-11 — Notice, Post-Judgment Interest Rate for Calendar Year 2026, read November 6, 2026
• “Pursuant to R. 4:42-11(b), interest rates in tort actions after January 1, 1988 are the same as the post-judgment interest rates.” — N.J. Ct. R. 4:42-11(b) — Post-Judgment and Pre-Judgment Interest Rates (revised July 22, 2026), read November 6, 2026

The most you can set in New Jersey

For a homeowner: 16% a year. N.J.S.A. 31:1-1(a): no more than 6% a year without a written rate, 16% a year when a written contract specifies the rate (civil usury), 'except as herein and otherwise provided by law'. The text speaks of a loan of 'money, wares, merchandise, goods and chattels'. Criminal usury per DOBI: 30% non-corporate / 50% corporate.

For a business customer: It depends: see N.J.S.A. 31:1-1(e),(g) and 31:1-6. Same 6%/16% civil limits on an ordinary account, but: loans of $50,000 or more may carry any agreed rate (31:1-1(e)(1)); and a corporation, LLC or LLP cannot plead usury as a defense (31:1-6). Criminal usury limit 50% for corporations (DOBI).

• “no person shall, upon contract, take, directly or indirectly for loan of any money, wares, merchandise, goods and chattels, above the value of $6.00 for the forbearance of $100.00 for a year, or when there is a written contract specifying a rate of interest, no person shall take above the value of $16.00 for the forbearance of $100.00 for a year.” — N.J.S.A. 31:1-1(a) (NJ Legislature statutes database), read November 6, 2026
• “The civil usury rates are governed by N.J.S.A. 31:1-1 et. Seq. (Title 31 - Interest and Usury).” — NJ Dept. of Banking & Insurance FAQ — N.J.S.A. 31:1-1 et seq.; criminal usury, read November 6, 2026
• “The maximum permissible rate is 50% for corporations and 30% for non-corporate borrowers.” — NJ Dept. of Banking & Insurance FAQ — criminal usury, read November 6, 2026
• “No corporation, limited liability company or limited liability partnership shall plead or set up the defense of usury to any action brought against it to recover damages or enforce a remedy on any obligation executed by said corporation, limited liability company or limited liability partnership.” — N.J.S.A. 31:1-6 (NJ Legislature statutes database), read November 6, 2026
• “contracts for the following classes or types of loans may provide for any rate of interest which the parties agree upon, and interest at any such rate may be taken, notwithstanding that it exceeds a rate limited by paragraph (a) or (b) of this section: (1) Loans in the amount of $50,000.00 or more” — N.J.S.A. 31:1-1(e)(1) (NJ Legislature statutes database), read November 6, 2026

Late fees in New Jersey

What the text says: Retail installment contracts and retail charge accounts: a delinquency/collection charge of up to $10, only if the contract provides for it and only after the default has lasted 10 days; once per payment due. Retail installment contracts and retail charge accounts (Retail Installment Sales Act, N.J.S.A. 17:16C).

• “The holder of any retail installment contract may collect a delinquency or collection charge for default in the payment of any such contract or any installment thereof, if provided for in the contract when such default shall have continued for a period of 10 days, such charge not to exceed $10.” — N.J.S.A. 17:16C-42(a) (NJ Legislature statutes database), read November 6, 2026
• “A delinquency or collection charge under this section may be collected only once on each minimum payment due however long it remains in default.” — N.J.S.A. 17:16C-42(c) (NJ Legislature statutes database), read November 6, 2026

Does New Jersey want it agreed in advance?

Agreed in advance: yes, in the cases below. Retail installment contracts/charge accounts: the $10 charge only 'if provided for in the contract'. Interest above 6% needs a written contract specifying the rate (31:1-1(a)).

• “The holder of any retail charge account may collect a delinquency or collection charge in an amount not to exceed $10, if provided for in the retail charge account agreement, on any minimum payment which has not been paid in full for a period of 10 days after its due date, as originally scheduled.” — N.J.S.A. 17:16C-42(b) (NJ Legislature statutes database), read November 6, 2026

Homeowners and businesses in New Jersey

Consumer installment sales: $10 delinquency-charge cap (17:16C-42). Usury: a corporation/LLC/LLP cannot plead usury (31:1-6), so the 6%/16% civil limit protects individuals in practice; criminal usury 30% non-corporate vs 50% corporate (DOBI). Prompt-pay interest preserves a resident homeowner's other rights.

• “The maximum permissible rate is 50% for corporations and 30% for non-corporate borrowers.” — NJ Dept. of Banking & Insurance FAQ — criminal usury, read November 6, 2026

Prompt payment on private construction in New Jersey

What the text says: Prime rate + 1% on late payments; owner must pay the prime contractor within 30 calendar days after the billing date once the billing is approved and certified. Prompt Payment Act, N.J.S.A. 2A:30A-1 et seq. as amended by P.L.2006, c.96: contracts for the improvement of structures between owners (any person, including public entities, with an interest in the real property who contracted with a prime contractor), prime contractors, subcontractors and subsubcontractors. 'Prime rate' = the base rate on corporate loans at large U.S. money center commercial banks.

• “If a payment due pursuant to the provisions of this section is not made in a timely manner, the delinquent party shall be liable for the amount of money owed under the contract, plus interest at a rate equal to the prime rate plus 1%.” — N.J.S.A. 2A:30A-2 (P.L.2006, c.96), read November 6, 2026
• “the owner shall pay the amount due to the prime contractor for each periodic payment, final payment or retainage monies not more than 30 calendar days after the billing date” — N.J.S.A. 2A:30A-2 (P.L.2006, c.96), read November 6, 2026
• “"Prime rate" means the base rate on corporate loans at large United States money center commercial banks.” — N.J.S.A. 2A:30A-2 (P.L.2006, c.96) — definitions, read November 6, 2026
• “"Owner" means any person, including any public or governmental entity, who has an interest in the real property to be improved and who has contracted with a prime contractor for such improvement to be made.” — N.J.S.A. 2A:30A-2 (P.L.2006, c.96) — definitions, read November 6, 2026
• “No provision of this section shall be construed as restricting in any way the rights or remedies provided by any other applicable State or federal law to an owner who is a resident homeowner or purchaser” — N.J.S.A. 2A:30A-2e.(2) (P.L.2006, c.96), read November 6, 2026
• “If a payment due pursuant to the provisions of this section is not made in a timely manner, the delinquent party shall be liable for the amount of money owed under the contract, plus interest at a rate equal to the prime rate plus 1%.” — N.J.S.A. 2A:30A-2c. (current codified text; NJ Legislature statutes database, search "2A:30A-2") (NJ Legislature statutes database), read November 6, 2026

Work out a late charge in New Jersey

Set your own rate.

What was not checked for New Jersey

• No New Jersey statute setting a rate for an unpaid contract debt with no agreed rate was found: N.J.S.A. 31:1-1 sets maximums, and the Judiciary pages read do not address interest before judgment on a contract claim.

Check New Jersey's own text

Before you charge: read N.J. Ct. R. 4:42-11 — Notice, Post-Judgment Interest Rate for Calendar Year 2026 and the other New Jersey texts quoted on this page, or ask a lawyer. As of November 6, 2026.

This is a plain-words summary of each state's own laws as of November 6, 2026, not legal advice. Rules have exceptions. Check the state's own text, linked on every state's page, or a lawyer before you charge a late fee or interest.

Compare New Jersey with every state's answer, or with its neighbours just below.

Next door to New Jersey

• Delaware: floats if none agreed, depends by agreement
• New York: depends if none agreed, 16% for homes
• Pennsylvania: 6% if none agreed, depends by agreement

Official sources for New Jersey

• N.J. Ct. R. 4:42-11 — Notice, Post-Judgment Interest Rate for Calendar Year 2026 — read November 6, 2026
• N.J. Ct. R. 4:42-11(b) — Post-Judgment and Pre-Judgment Interest Rates (revised July 22, 2026) — read November 6, 2026
• N.J.S.A. 31:1-1(a) (NJ Legislature statutes database) — read November 6, 2026
• NJ Dept. of Banking & Insurance FAQ — N.J.S.A. 31:1-1 et seq.; criminal usury — read November 6, 2026
• N.J.S.A. 31:1-6 (NJ Legislature statutes database) — read November 6, 2026
• N.J.S.A. 17:16C-42(a) (NJ Legislature statutes database) — read November 6, 2026
• N.J.S.A. 2A:30A-2 (P.L.2006, c.96) — read November 6, 2026
• N.J.S.A. 2A:30A-2c. (current codified text; NJ Legislature statutes database, search "2A:30A-2") (NJ Legislature statutes database) — read November 6, 2026

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