Interest on unpaid invoices in Tennessee: up to 10% a year if no rate was agreed; the most you can set depends on the deal (not fully confirmed)

Tennessee's rate when no rate was agreed

Not fully confirmed. Tennessee's answers could not all be read on its own official pages: what was read is below, each answer marked, and what was not is listed under "What was not checked". Tennessee's free official code is hosted on LexisNexis, and its full sections sit behind a CAPTCHA, so some quotes here are the section text its search results show. Each answer resting only on such a quote says so.

Up to 10% (prejudgment interest, at the court's discretion) · not fully confirmed: from the official code site's search listing.

• “Prejudgment interest, i.e., interest as an element of, or in the nature of, damages, as permitted by the statutory and common laws of the state as of April 1, 1979, may be awarded by courts or juries in accordance with the principles of equity at any rate not in excess of a maximum effective rate of ten percent (10%) per annum; provided, that with respect to contracts subject to § 47-14-103 , the maximum effective rates of prejudgment interest so awarded shall be the same as set by that section for the particular category of transaction involved.” — Tenn. Code Ann. § 47-14-123 (Tennessee Code public access, search result text), read November 6, 2026, from the official code site's search listing

The most you can set in Tennessee

For homeowners and businesses alike · not fully confirmed: from the official code site's search listing: It depends: see Tenn. Code Ann. § 47-14-103(2). Applicable formula rate (written contract signed by the customer). § 47-14-103: written contracts signed by the party to be charged: the 'applicable formula rate' (4 percentage points above the average prime loan rate, published by the Commissioner of Financial Institutions).

• “signed by the party to be charged, and not subject to subdivision (1), the applicable formula rate; and (3) For all other transactions, ten percent (10%) per annum.” — Tenn. Code Ann. § 47-14-103(2)-(3) (Tennessee Code public access, search result text), read November 6, 2026, from the official code site's search listing
• “"Formula rate" means an annual rate of interest four (4) percentage points above the” — Tenn. Code Ann. § 47-14-102(7) (Tennessee Code public access, search result text), read November 6, 2026, from the official code site's search listing

Late fees in Tennessee

Not checked · not fully confirmed.

Does Tennessee want it agreed in advance?

Agreed in advance: not checked · not fully confirmed.

Homeowners and businesses in Tennessee

Tennessee's own words on it are below · not fully confirmed: from the official code site's search listing.

• “This chapter shall not apply to contracts for the construction of, or home improvement to, any land or building, or that portion thereof which is used or designed to be used as a residence or dwelling place for one (1), two (2), three (3) or four (4) single family units.” — Tenn. Code Ann. § 66-34-702 (Tennessee Code public access, search result text), read November 6, 2026, from the official code site's search listing

Prompt payment on private construction in Tennessee

What the text says · not fully confirmed: from the official code site's search listing: The contract's delinquent-payment rate, or 1.5% a month if the written contract sets none, from the due date until paid. Does NOT apply to construction of or home improvement to a residence of one to four single-family units.

• “Any payment not made in accordance with this chapter accrues interest, from the date due until the date paid, at the rate of interest for delinquent payments provided in written contract or, if no interest rate is specified in a written contract, then one and one-half percent (1.5%) per month.” — Tenn. Code Ann. § 66-34-601 (Tennessee Code public access, search result text), read November 6, 2026, from the official code site's search listing
• “This chapter shall not apply to contracts for the construction of, or home improvement to, any land or building, or that portion thereof which is used or designed to be used as a residence or dwelling place for one (1), two (2), three (3) or four (4) single family units.” — Tenn. Code Ann. § 66-34-702 (Tennessee Code public access, search result text), read November 6, 2026, from the official code site's search listing

Work out a late charge in Tennessee

Set your own rate.

What was not checked for Tennessee

• Tennessee's late-charge rules were not read: no late-charge text could be seen, and the full documents sit behind a CAPTCHA.
• Tennessee's current applicable formula rate, and any ceiling on it, were not read: the Department of Financial Institutions page refused automated reading.

Check Tennessee's own text

Before you charge: read Tennessee's free official code, Tennessee Code Unannotated, free public access, and the Tennessee 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 Tennessee with every state's answer, or with its neighbours just below.

Next door to Tennessee

• Alabama: 6% if none agreed, depends by agreement
• Arkansas: depends if none agreed, 17% by agreement (not fully confirmed)
• Georgia: 7% if none agreed, depends by agreement (not fully confirmed)
• Kentucky: 8% if none agreed, depends by agreement
• Mississippi: 8% if none agreed, depends by agreement (not fully confirmed)
• Missouri: 9% if none agreed, depends by agreement
• North Carolina: 8% if none agreed, depends by agreement
• Virginia: 6% if none agreed, depends by agreement

Official sources for Tennessee

• Tenn. Code Ann. § 47-14-123 (Tennessee Code public access, search result text) — read November 6, 2026 (search listing)
• Tenn. Code Ann. § 47-14-103(2)-(3) (Tennessee Code public access, search result text) — read November 6, 2026 (search listing)
• Tenn. Code Ann. § 47-14-102(7) (Tennessee Code public access, search result text) — read November 6, 2026 (search listing)
• Tenn. Code Ann. § 66-34-601 (Tennessee Code public access, search result text) — read November 6, 2026 (search listing)
• Tenn. Code Ann. § 66-34-702 (Tennessee Code public access, search result text) — read November 6, 2026 (search listing)

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