Interest on unpaid invoices in Texas: 6% a year if no rate was agreed; the most you can set depends on the deal

Texas's rate when no rate was agreed

6% a year. If no interest was agreed, the creditor may charge 6% a year legal interest beginning on the 30th day after the amount is due. (Court judgments use a separate floating postjudgment rate — prime, 5% floor, set monthly by the Consumer Credit Commissioner; 7.00% for November 2026.)

• “If a creditor has not agreed with an obligor to charge the obligor any interest, the creditor may charge and receive from the obligor legal interest at the rate of six percent a year on the principal amount of the credit extended beginning on the 30th day after the date on which the amount is due.” — Tex. Fin. Code § 302.002, read November 6, 2026
• “(b) On the 15th day of each month, the consumer credit commissioner shall determine the postjudgment interest rate to be applied to a money judgment rendered during the succeeding calendar month. (c) The postjudgment interest rate is: (1) the prime rate as published by the Board of Governors of the Federal Reserve System on the date of computation; (2) five percent a year if the prime rate as published by the Board of Governors of the Federal Reserve System described by Subdivision (1) is less than five percent; or” — Tex. Fin. Code § 304.003(b)-(c), read November 6, 2026
• “Postjudgment Interest Rate: 7.00% November 2026 Weekly Ceiling: 18.00% 11/2/26-11/8/26 Monthly Ceiling: 18.00% for the month of November” — Texas Office of Consumer Credit Commissioner — Current Rates (Tex. Fin. Code §§ 303.003, 303.009, 304.003), read November 6, 2026

The most you can set in Texas

For a homeowner: 10% a year unless other law allows more; 21% for a chapter-345 retail charge agreement without a merchant discount. It depends: see Tex. Fin. Code §§ 302.001, 303.001–303.009. And ch. 345 for retail installment sales of consumer goods/services.

For a business customer: Same base (10% unless other law allows), but the chapter-303 ceilings top out at 28% a year for credit extended for a business, commercial, investment, or similar purpose. Tex. Fin. Code § 303.009(c). It depends: see §§ 302.001, 303.002, 303.009.

How the most you can set moves: Ch. 303 weekly ceiling (floor 18%, cap 24%; 28% business): 18.00% for 11/2/26–11/8/26 and monthly ceiling 18.00% for November 2026 (OCCC).

• “The maximum rate or amount of interest is 10 percent a year except as otherwise provided by law. A greater rate of interest than 10 percent a year is usurious unless otherwise provided by law.” — Tex. Fin. Code § 302.001(b), read November 6, 2026
• “The use of a ceiling provided by this chapter for any contract is optional, and a contract may provide for a rate or amount allowed by other applicable law.” — Tex. Fin. Code § 303.001(a), read November 6, 2026
• “The parties to a written agreement may agree to an interest rate, or in an agreement described by Chapter 345 , 347 , 348 , or 353 , an amount of time price differential producing a rate, that does not exceed the applicable weekly ceiling.” — Tex. Fin. Code § 303.002, read November 6, 2026
• “(a) If the rate computed for the weekly, monthly, quarterly, or annualized ceiling is less than 18 percent a year, the ceiling is 18 percent a year. (b) Except as provided by Subsection (c), if the rate computed for the weekly, monthly, quarterly, or annualized ceiling is more than 24 percent a year, the ceiling is 24 percent a year.” — Tex. Fin. Code § 303.009(a)-(b), read November 6, 2026
• “(d) For an open-end account credit agreement that provides for credit card transactions on which a merchant discount is not imposed or received by the creditor or a retail charge agreement under Chapter 345 without a merchant discount, the ceiling is 21 percent a year.” — Tex. Fin. Code § 303.009(d), read November 6, 2026
• “Postjudgment Interest Rate: 7.00% November 2026 Weekly Ceiling: 18.00% 11/2/26-11/8/26 Monthly Ceiling: 18.00% for the month of November” — Texas Office of Consumer Credit Commissioner — Current Rates (Tex. Fin. Code §§ 303.003, 303.009, 304.003), read November 6, 2026
• “(c) For a contract made, extended, or renewed under which credit is extended for a business, commercial, investment, or similar purpose, the limitation on the ceilings determined by those computations is 28 percent a year.” — Tex. Fin. Code § 303.009(c), read November 6, 2026

Late fees in Texas

What the text says: Consumer retail installment contracts (ch. 345): after an installment is more than 10 days late, either a delinquency charge of the lesser of 5% or $5, or interest at the contract's maximum rate. Retail charge agreements (revolving accounts): one delinquency charge of up to $15 per installment more than 21 days late. Loans at 10% or less: greater of 5% or $7.50 after 10 days. Consumer retail installment contracts and retail charge agreements (Tex. Fin. Code ch. 345); loans at 10% or less (§ 302.001(d)).

• “A retail installment contract may provide that if an installment remains unpaid after the 10th day after the maturity of the installment the retail seller may collect: (1) a delinquency charge that is not more than five percent of an installment or $5, whichever is less; or (2) interest on the amount of the installment accruing after the maturity of the installment at a rate that does not exceed the maximum rate authorized for the contract.” — Tex. Fin. Code § 345.060(a), read November 6, 2026
• “(1) a delinquency charge on each installment that is in default for a period that is longer than 21 days;” — Tex. Fin. Code § 345.157(a)-(b), read November 6, 2026
• “(b) The amount of a delinquency charge may not exceed $15.” — Tex. Fin. Code § 345.157(b), read November 6, 2026
• “services include work, labor, and other services, other than services described by Subsection (c), that are: (1) purchased primarily for personal, family, or household use; and (2) not purchased for commercial or business use.” — Tex. Fin. Code § 345.003(a), read November 6, 2026
• “a loan providing for a rate of interest that is 10 percent a year or less may provide for a delinquency charge on the amount of any payment in default for a period of not less than 10 days in an amount not to exceed the greater of five percent of the amount of the payment or $7.50.” — Tex. Fin. Code § 302.001(d), read November 6, 2026

Does Texas want it agreed in advance?

Agreed in advance: yes, in the cases below. Without agreement only the 6% legal interest from day 30 applies (§ 302.002); the chapter-303 ceilings require a written agreement (§ 303.002); ch. 345 delinquency charges apply only where the contract or charge agreement 'may provide' for them.

• “If a creditor has not agreed with an obligor to charge the obligor any interest, the creditor may charge and receive from the obligor legal interest at the rate of six percent a year on the principal amount of the credit extended beginning on the 30th day after the date on which the amount is due.” — Tex. Fin. Code § 302.002, read November 6, 2026
• “The parties to a written agreement may agree to an interest rate, or in an agreement described by Chapter 345 , 347 , 348 , or 353 , an amount of time price differential producing a rate, that does not exceed the applicable weekly ceiling.” — Tex. Fin. Code § 303.002, read November 6, 2026
• “A retail installment contract may provide that if an installment remains unpaid after the 10th day after the maturity of the installment the retail seller may collect: (1) a delinquency charge that is not more than five percent of an installment or $5, whichever is less; or (2) interest on the amount of the installment accruing after the maturity of the installment at a rate that does not exceed the maximum rate authorized for the contract.” — Tex. Fin. Code § 345.060(a), read November 6, 2026

Homeowners and businesses in Texas

Business-purpose credit may go to a 28% chapter-303 ceiling vs 24% otherwise; the ch. 345 delinquency-charge limits apply only to consumer goods/services (personal, family, or household use).

• “(c) For a contract made, extended, or renewed under which credit is extended for a business, commercial, investment, or similar purpose, the limitation on the ceilings determined by those computations is 28 percent a year.” — Tex. Fin. Code § 303.009(c), read November 6, 2026
• “services include work, labor, and other services, other than services described by Subsection (c), that are: (1) purchased primarily for personal, family, or household use; and (2) not purchased for commercial or business use.” — Tex. Fin. Code § 345.003(a), read November 6, 2026

Prompt payment on private construction in Texas

See the state's words below. Tex. Prop. Code ch. 28 — private owners (anyone other than a governmental entity) who order an improvement to real property.

• “the owner shall pay the amount to the contractor, less any amount withheld as authorized by statute, not later than the 35th day after the date the owner receives the request.” — Tex. Prop. Code § 28.002(a), read November 6, 2026
• “The payment required by this subsection must be made not later than the seventh day after the date the contractor receives the owner's payment.” — Tex. Prop. Code § 28.002(b), read November 6, 2026
• “(a) An unpaid amount required under this chapter begins to accrue interest on the day after the date on which the payment becomes due. (b) An unpaid amount bears interest at the rate of 1-1/2 percent each month.” — Tex. Prop. Code § 28.004(a)-(b), read November 6, 2026
• “(4) "Owner" means a person or entity, other than a governmental entity, with an interest in real property that is improved, for whom an improvement is made, and who ordered the improvement to be made.” — Tex. Prop. Code § 28.001(4), read November 6, 2026

Work out a late charge in Texas

Starts at Texas's 6%, the rate when none was agreed, not a maximum.

Check Texas's own text

Before you charge: read Tex. Fin. Code § 302.002 and the other Texas 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 Texas with every state's answer, or with its neighbours just below.

Next door to Texas

• Arkansas: depends if none agreed, 17% by agreement (not fully confirmed)
• Louisiana: floats if none agreed, depends by agreement
• New Mexico: up to 15% if none agreed, depends by agreement
• Oklahoma: 6% if none agreed, depends by agreement

Official sources for Texas

• Tex. Fin. Code § 302.002 — read November 6, 2026
• Tex. Fin. Code § 304.003(b)-(c) — read November 6, 2026
• Texas Office of Consumer Credit Commissioner — Current Rates (Tex. Fin. Code §§ 303.003, 303.009, 304.003) — read November 6, 2026
• Tex. Fin. Code § 303.001(a) — read November 6, 2026
• Tex. Fin. Code § 345.060(a) — read November 6, 2026
• Tex. Prop. Code § 28.002(a) — read November 6, 2026

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