What is the maximum late fee in Vermont?

There is no fixed statutory maximum in Vermont. The fee still has to be reasonable — courts can strike down fees that operate as penalties, so document how yours relates to your actual costs.

Is there a required grace period in Vermont?

No. Vermont's statute doesn't mandate a grace period, so the lease determines when a fee kicks in.

Where is this in Vermont law?

The controlling provision is 9 V.S.A. ch. 137; Highgate Assocs. v. Merryfield (Vt. 1991). Legislatures amend these rules, so always confirm the current text via the official source linked above.

Vermont Late Fee Laws

Last reviewed: July 10, 2026

Maximum late fee

No statutory cap

Grace period

None required

Statute

9 V.S.A. ch. 137; Highgate Assocs. v. Merryfield (Vt. 1991)

Vermont sets no statutory dollar cap on residential late fees — 9 V.S.A. ch. 137; Highgate Assocs. v. Merryfield (Vt. 1991) governs the landlord–tenant relationship, and courts still expect a late fee to be a reasonable estimate of actual damages rather than a penalty.

Vermont's statute doesn't impose a waiting period, so the lease controls when a late fee may be charged. Charging from day one is legal here only if the lease says so explicitly.

Vermont has no statutory cap; its supreme court instead applies a liquidated-damages test — the fee must address damages that are hard to calculate, reflect a reasonable estimate of them, and compensate rather than punish. Fees that fail the test are unenforceable penalties.

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Frequently asked questions

What is the maximum late fee in Vermont?: There is no fixed statutory maximum in Vermont. The fee still has to be reasonable — courts can strike down fees that operate as penalties, so document how yours relates to your actual costs.
Is there a required grace period in Vermont?: No. Vermont's statute doesn't mandate a grace period, so the lease determines when a fee kicks in.
Where is this in Vermont law?: The controlling provision is 9 V.S.A. ch. 137; Highgate Assocs. v. Merryfield (Vt. 1991). 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.

Vermont Late Fee Laws

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