Interest on unpaid invoices in Ohio: a floating rate if no rate was agreed; at most 8% by agreement for homeowners

Ohio's rate when no rate was agreed

See the state's words below. Applies to money due on a book account, a settlement, or a verbal contract, unless a written contract sets a different rate.

How the rate moves: The interest rate prescribed by R.C. 5703.47 is seven percent (7%) for calendar year 2026 and seven percent (7%) for calendar year 2027.

• “when money becomes due and payable upon any bond, bill, note, or other instrument of writing, upon any book account, upon any settlement between parties, upon all verbal contracts entered into, and upon all judgments, decrees, and orders of any judicial tribunal for the payment of money arising out of tortious conduct or a contract or other transaction, the creditor is entitled to interest at the rate per annum determined pursuant to section 5703.47 of the Revised Code, unless a written contract provides a different rate of interest in relation to the money that becomes due and payable, in which case the creditor is entitled to interest at the rate provided in that contract.” — Ohio Rev. Code § 1343.03(A), read November 6, 2026
• “Therefore, the Tax Commissioner hereby determines that the interest rate prescribed by R.C. 5703.47 for calendar year 2026 is seven percent (7%).” — Ohio Dept. of Taxation, Administrative Journal Entry, Oct. 15, 2025 (Ohio Rev. Code § 5703.47), read November 6, 2026
• “Therefore, the Tax Commissioner hereby determines that the interest rate prescribed by R.C. 5703.47 for calendar year 2027 is seven percent (7%).” — Ohio Dept. of Taxation, Administrative Journal Entry, Oct. 15, 2026 (Ohio Rev. Code § 5703.47), read November 6, 2026

The most you can set in Ohio

For a homeowner: 8% a year. 8% a year by a written instrument for the forbearance or payment of money, unless a division (B) exception applies — e.g. an instrument 'payable on demand or in one installment' not secured by household goods. It depends: see Ohio Rev. Code § 1343.01(B).

For a business customer: It depends: see Ohio Rev. Code § 1343.01(B). Business loans to a business association, partnership, or sole proprietor operating a business may carry a rate above 8% (1343.01(B)(6)).

• “The parties to a bond, bill, promissory note, or other instrument of writing for the forbearance or payment of money at any future time, may stipulate therein for the payment of interest upon the amount thereof at any rate not exceeding eight per cent per annum payable annually, except as authorized in division (B) of this section.” — Ohio Rev. Code § 1343.01(A), read November 6, 2026
• “The original amount of the principal indebtedness stipulated in the bond, bill, promissory note, or other instrument of writing exceeds one hundred thousand dollars;” — Ohio Rev. Code § 1343.01(B)(1), read November 6, 2026
• “The instrument is payable on demand or in one installment and is not secured by household furnishings or other goods used for personal, family, or household purposes.” — Ohio Rev. Code § 1343.01(B)(5), read November 6, 2026
• “The loan is a business loan to a business association or partnership, a person owning and operating a business as a sole proprietor;” — Ohio Rev. Code § 1343.01(B)(6)(a), read November 6, 2026

Late fees in Ohio

What the text says: Retail installment sales: no delinquent charge before 10 days late; then 5 cents per dollar of the late installment, max $3 per installment; interest on a late installment up to 1.5% a month is separately allowed. Retail installment sales, including consumer transactions (goods or services to an individual for personal, family or household use) payable in installments. Chapter 1317 reaches services only when sold to an individual for personal/family/household use with the price payable in installments.

• “No charges shall be made for delinquent payments less than ten days late. (2) Five cents for each dollar for a delinquent payment that is more than ten days late may be charged, but in no event shall a delinquent charge for any one installment exceed three dollars.” — Ohio Rev. Code § 1317.06(B), read November 6, 2026
• “A provision for the payment of interest on any installment not paid in full on or before its scheduled due date at a rate not to exceed one and one-half per cent interest per month is not a delinquent charge and is expressly authorized.” — Ohio Rev. Code § 1317.06(B), read November 6, 2026
• “every consumer transaction in which the cash price may be paid in installments over a period of time” — Ohio Rev. Code § 1317.01, read November 6, 2026
• “"Consumer transaction" means a sale, lease, assignment, or other transfer of an item of goods, or a service, except those transactions between persons, defined in sections 4905.03 and 5725.01 of the Revised Code, and their customers, or between attorneys or physicians and their clients or patients, to an individual for purposes that are primarily personal, family, or household.” — Ohio Rev. Code § 1317.01(P), read November 6, 2026

Does Ohio want it agreed in advance?

Agreed in advance: yes, in the cases below. A rate other than the statutory rate applies only if a written contract provides it (1343.03(A)); a retail installment seller may 'contract for' delinquent charges at the time of the sale (1317.06(B)).

• “when money becomes due and payable upon any bond, bill, note, or other instrument of writing, upon any book account, upon any settlement between parties, upon all verbal contracts entered into, and upon all judgments, decrees, and orders of any judicial tribunal for the payment of money arising out of tortious conduct or a contract or other transaction, the creditor is entitled to interest at the rate per annum determined pursuant to section 5703.47 of the Revised Code, unless a written contract provides a different rate of interest in relation to the money that becomes due and payable, in which case the creditor is entitled to interest at the rate provided in that contract.” — Ohio Rev. Code § 1343.03(A), read November 6, 2026
• “Every retail seller may, at the time of making any retail installment sale, contract for the payment by the retail buyer of lawful delinquent charges as follows:” — Ohio Rev. Code § 1317.06(B), read November 6, 2026

Homeowners and businesses in Ohio

Ohio's retail installment rules (late charge cap) reach services only in 'consumer transactions' — to an individual for primarily personal, family or household purposes — paid in installments; business loans may exceed the 8% cap.

• “"Consumer transaction" means a sale, lease, assignment, or other transfer of an item of goods, or a service, except those transactions between persons, defined in sections 4905.03 and 5725.01 of the Revised Code, and their customers, or between attorneys or physicians and their clients or patients, to an individual for purposes that are primarily personal, family, or household.” — Ohio Rev. Code § 1317.01(P), read November 6, 2026
• “The loan is a business loan to a business association or partnership, a person owning and operating a business as a sole proprietor;” — Ohio Rev. Code § 1343.01(B)(6)(a), read November 6, 2026

Prompt payment on private construction in Ohio

What the text says: 18% a year on payments a contractor owes subcontractors/materialmen not paid within 10 calendar days after the contractor is paid by the owner. Excludes construction or improvement of single-, two-, or three-family detached dwellings — so most homeowner jobs are outside it.

• “within ten calendar days after receipt of payment from the owner for improvements to property” — Ohio Rev. Code § 4113.61(A)(1), read November 6, 2026
• “interest in the amount of eighteen per cent per annum of the payment due, beginning on the eleventh day following the receipt of payment from the owner” — Ohio Rev. Code § 4113.61(A)(1), read November 6, 2026
• “This section does not apply to any construction or improvement of any single-, two-, or three-family detached dwelling houses.” — Ohio Rev. Code § 4113.61, read November 6, 2026

Work out a late charge in Ohio

Set your own rate.

What was not checked for Ohio

• Ohio's text does not say plainly whether its 8% cap (Ohio Rev. Code § 1343.01) covers a single past-due service invoice; division (B)(5) leaves out instruments payable in one installment not secured by household goods.

Check Ohio's own text

Before you charge: read Ohio Rev. Code § 1343.03(A) and the other Ohio 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 Ohio with every state's answer, or with its neighbours just below.

Next door to Ohio

• Indiana: 8% if none agreed, depends by agreement
• Kentucky: 8% if none agreed, depends by agreement
• Michigan: 5% if none agreed, depends by agreement
• Pennsylvania: 6% if none agreed, depends by agreement
• West Virginia: 6% if none agreed, depends by agreement

Official sources for Ohio

• Ohio Rev. Code § 1343.03(A) — read November 6, 2026
• Ohio Dept. of Taxation, Administrative Journal Entry, Oct. 15, 2025 (Ohio Rev. Code § 5703.47) — read November 6, 2026
• Ohio Dept. of Taxation, Administrative Journal Entry, Oct. 15, 2026 (Ohio Rev. Code § 5703.47) — read November 6, 2026
• Ohio Rev. Code § 1343.01(A) — read November 6, 2026
• Ohio Rev. Code § 1317.06(B) — read November 6, 2026
• Ohio Rev. Code § 1317.01 — read November 6, 2026
• Ohio Rev. Code § 4113.61(A)(1) — read November 6, 2026

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