Maximum Late Fee by State: What's Allowed in 2025? (Complete Guide)

Common Questions

What is the most common maximum rent late fee allowed?

The most common maximum is 10% of monthly rent, used by 12 states including Hawaii, Kansas, Kentucky, Louisiana, Massachusetts. The second most common is 5%, used by 10 states including Colorado, Connecticut, Delaware, District of Columbia, Illinois. Use our calculator to find your state's specific maximum.

Are there states with no maximum rent late fee cap?

Yes, 24 states have no statutory maximum and instead require late fees be 'reasonable': California, Florida, Arizona, Alabama, Georgia, Michigan, Indiana, Pennsylvania, Washington, and others. In these states, courts assess reasonableness based on proportionality to rent (typically 5-10% accepted, 15%+ deemed excessive), actual landlord costs, and industry standards.

Can local laws set stricter maximum late fees than state law?

Yes. Municipal ordinances can impose lower maximums than state law, and the more tenant-friendly limit always applies. For example, Seattle imposes a 10% cap and 14-day grace period despite Washington state having no statutory cap. Always check both state and local regulations using our calculator.

What is the lowest maximum rent late fee in any state?

Maine has the strictest limits with a 4% maximum (the lowest percentage cap in the nation) plus a mandatory 15-day grace period. This means on a $1,000/month rent, the maximum late fee is only $40 and can't be charged until day 16. These protective limits ensure fees remain affordable for all tenants.

Can landlords charge above the maximum if tenants agree?

No. State statutory maximums cannot be waived by agreement. Any lease clause exceeding state limits is void and unenforceable, even with tenant signature. Courts will reduce excessive fees to lawful maximums. Landlords who knowingly charge illegal fees may face penalties including 2-3x damages in many states.

Do maximum late fees apply to HUD-subsidized housing?

Yes, but federal HUD rules are stricter than most state laws. HUD-subsidized housing (Section 8, public housing) caps late fees at $50 or 5% of monthly rent (whichever is less) and requires mandatory 5-day grace periods. Subsidized properties must comply with whichever limit is more restrictive—federal or state.

How do daily late fees affect the maximum allowed?

Several states allow initial late fees plus daily charges but cap total maximums. For example, Texas allows 12% initial fee plus daily charges up to 20% total. Always verify if daily accumulation is legal in your state and check total caps using our calculator—many states prohibit compounding daily fees entirely.

What happens if my landlord charges more than the maximum allowed?

You have several remedies: (1) pay only the legal maximum and withhold excess, (2) pay under protest and sue in small claims court for refund, (3) file a complaint with your state housing authority, (4) use the violation as an eviction defense, or (5) pursue statutory penalties—many states award 2-3x damages plus attorney fees for willful violations.

Are there different maximums for month-to-month vs. lease tenants?

Generally no—maximum late fee caps apply equally to month-to-month and fixed-term leases. However, some states have different caps for weekly rentals versus monthly rentals. The rental frequency matters more than lease type. Use our calculator to verify your specific situation.

How often do states update their maximum late fee limits?

Most states review landlord-tenant laws every 1-3 years. Major updates typically follow housing crises or tenant advocacy campaigns. Our calculator reflects the latest statutory changes, updated quarterly to ensure accuracy.