New York Late Fee Calculator
Calculate late fees for New York invoices using state-specific rules, maximum rates, and grace periods.
NY Quick Facts
Applicable Statutes
- N.Y. Gen. Oblig. Law § 5-501 (usury)
- N.Y. Banking Law § 14-a (legal rate)
- N.Y. Penal Law § 190.40 (criminal usury)
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New York Late Fee Rules
New York governs late charges through a structured usury framework rather than a flat cap. Civil usury sits at 16%/year and criminal usury at 25%, with higher thresholds for large commercial loans.
Civil usury cap is 16% per year; criminal usury at 25%.
For loans over $250K, up to 25% is permitted; over $2.5M, no cap.
Default legal rate (no contract) is 9% per year.
Late fees must be agreed in writing before the obligation is incurred.
Worked Example: New York Late Fee
On a $2,000 invoice 30 days late at 1.5%/month, the late fee is $30. Annualized that is 18% — above the 16% civil usury rate — so for smaller B2B balances many New York businesses keep the rate at or under 16%/year to stay clearly compliant.
Important Note
New York has a structured usury framework. For larger commercial transactions ($250K+), limits are relaxed or eliminated.
This information is for general educational purposes only and does not constitute legal advice. New York laws may change. Consult a licensed attorney in your state for advice specific to your situation.
New York Late Fee FAQs
What is the maximum late fee allowed in New York?
In New York (NY), the maximum late fee is: Must be contractually agreed; $50 or 5% of payment (whichever is lower) in some contexts. The maximum interest rate is 16% per year (civil usury); 25% criminal usury threshold. Always include late fee terms in your contracts before invoicing.
Is there a grace period for late fees in New York?
New York grace period: 5-day grace period commonly referenced. Check your specific contract terms and applicable NY statutes for details.
What is the most common late fee rate used in New York?
The most common late fee rate for commercial invoices in New York is 1.5% per month. New York has a structured usury framework. For larger commercial transactions ($250K+), limits are relaxed or eliminated.
Which New York statutes govern late fees on invoices?
The key New York statutes governing late fees and interest on invoices are:
- N.Y. Gen. Oblig. Law § 5-501 (usury)
- N.Y. Banking Law § 14-a (legal rate)
- N.Y. Penal Law § 190.40 (criminal usury)
Consult a NY attorney for advice specific to your situation.
Can I charge interest on overdue invoices in New York?
Yes, but mind the 16%/year civil usury cap for ordinary commercial balances. For transactions above $250K the ceiling relaxes, and the late-fee terms must be agreed in writing before the obligation arises.
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