Pennsylvania Late Fee Calculator
Calculate late fees for Pennsylvania invoices using state-specific rules, maximum rates, and grace periods.
PA Quick Facts
Applicable Statutes
- 41 P.S. § 201 (maximum lawful rate)
- 41 P.S. § 301 (Loan Interest and Protection Law)
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Pennsylvania Late Fee Rules
Default rate is 6%/year for loans of $50K or less.
Business loans over $10K and obligations over $50K are exempt from usury limits.
Courts routinely approve 18%/year on past-due commercial accounts.
Triple damages for usury violations — a meaningful deterrent.
Important Note
Pennsylvania has a low default rate (6%) but broad exemptions for commercial transactions. 18%/year is standard and upheld for B2B.
This information is for general educational purposes only and does not constitute legal advice. Pennsylvania laws may change. Consult a licensed attorney in your state for advice specific to your situation.
Pennsylvania Late Fee FAQs
What is the maximum late fee allowed in Pennsylvania?
In Pennsylvania (PA), the maximum late fee is: No statutory cap; courts have upheld 18% annually. The maximum interest rate is 6% per year (default for loans ≤50K); commercial exemptions for larger amounts. Always include late fee terms in your contracts before invoicing.
Is there a grace period for late fees in Pennsylvania?
Pennsylvania grace period: No statutory grace period (7 days in construction context). Check your specific contract terms and applicable PA statutes for details.
What is the most common late fee rate used in Pennsylvania?
The most common late fee rate for commercial invoices in Pennsylvania is 1.5% per month. Pennsylvania has a low default rate (6%) but broad exemptions for commercial transactions. 18%/year is standard and upheld for B2B.
Which Pennsylvania statutes govern late fees on invoices?
The key Pennsylvania statutes governing late fees and interest on invoices are:
- 41 P.S. § 201 (maximum lawful rate)
- 41 P.S. § 301 (Loan Interest and Protection Law)
Consult a PA attorney for advice specific to your situation.
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