What is the maximum late fee in Texas?

There's no hard maximum. State law treats a fee up to 12% of the monthly rent for buildings with four or fewer units, or 10% for larger buildings as presumed reasonable (Tex. Prop. Code § 92.019); a higher fee is allowed only if it reflects your actual costs from the late payment.

Is there a required grace period in Texas?

Yes — rent must be at least 2 days past due before a late fee can be charged under Tex. Prop. Code § 92.019.

Where is this in Texas law?

The controlling provision is Tex. Prop. Code § 92.019. Legislatures amend these rules, so always confirm the current text via the official source linked above.

Texas Late Fee Laws

Last reviewed: July 10, 2026

Maximum late fee

Up to 12% of the monthly rent for buildings with four or fewer units, or 10% for larger buildings

Grace period

2 days

Statute

Tex. Prop. Code § 92.019

Texas treats a late fee as presumed reasonable up to 12% of the monthly rent for buildings with four or fewer units, or 10% for larger buildings under Tex. Prop. Code § 92.019. That figure is a safe harbor rather than a hard ceiling: a higher fee can stand only if it reflects the landlord's actual damages from the late payment.

Timing matters as much as the amount: rent must be at least 2 days past due before a late fee can be assessed. A fee charged inside that window isn't collectible in Texas, even when the lease provides for it.

Texas deems a fee reasonable up to 12% of the rent for structures with four or fewer dwelling units, or 10% for larger structures — a safe harbor, since a higher fee can stand if tied to the landlord's uncertain damages from late payment. The fee must be in a written lease, can't be charged until rent has remained unpaid two full days after the due date, and an initial-plus-daily structure counts as a single fee against the limit.

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StackRent tracks every due date, waits out the 2-day grace period and keeps every charge within 12% of the monthly rent for buildings with four or fewer units, or 10% for larger buildings, and posts the fee to the ledger — automatically, across your whole portfolio.

Frequently asked questions

What is the maximum late fee in Texas?: There's no hard maximum. State law treats a fee up to 12% of the monthly rent for buildings with four or fewer units, or 10% for larger buildings as presumed reasonable (Tex. Prop. Code § 92.019); a higher fee is allowed only if it reflects your actual costs from the late payment.
Is there a required grace period in Texas?: Yes — rent must be at least 2 days past due before a late fee can be charged under Tex. Prop. Code § 92.019.
Where is this in Texas law?: The controlling provision is Tex. Prop. Code § 92.019. Legislatures amend these rules, so always confirm the current text via the official source linked above.

This tool is for informational purposes only and is not legal advice. Rules vary by state and locality and change over time — confirm current requirements for your jurisdiction before acting.

Texas Late Fee Laws

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