Everything freelancers and small businesses need to know about charging late fees, interest rates, and collecting overdue invoices in Mississippi.
This information is provided for general educational purposes only and does not constitute legal advice. Laws change frequently. Consult a licensed attorney in Mississippi for advice on your specific situation. Last reviewed: 2026.
Usury laws cap the maximum interest rate that can be charged on overdue payments in Mississippi.
10% general; no cap for business >$5k
Mississippi's general max is 10% (Miss. Code § 75-17-1). No cap for written business contracts over $5,000.
Written business contracts of $5,000+ are exempt from the 10% cap. Banks and licensed lenders also exempt.
Understanding what you can and cannot charge for late payments in Mississippi.
Late fees are allowed when contractually agreed. Business invoices over $5,000 have no rate cap.
No cap for business contracts over $5,000. Otherwise limited to 10%.
Standard contract law. Business exemption provides significant flexibility.
Mississippi Prompt Payment Act sets deadlines and penalties for late payments in Mississippi.
30 days for state contracts.
Interest on late government payments.
Mississippi requires state agencies to pay within 30 days. Construction has specific lien and payment protections.
Certain industries in Mississippi have additional rules around payment timelines, liens, and collection procedures.
Construction: Miss. Code § 85-7-131 requires mechanics' lien filing within 12 months.
Government contracts: 30-day payment with interest penalties.
Agriculture: Mississippi's farming industry follows standard commercial terms.
Use this compliant wording on your invoices to clearly communicate your late fee policy in accordance with Mississippi law.
Payment is due within 30 days. A late fee of 1.5% per month (18% per annum) will be assessed on unpaid invoices. Per Miss. Code § 75-17-1, written business agreements over $5,000 are exempt from the 10% cap.
This wording works because it clearly states the rate, when it applies, and references Mississippi legal standards. Always ensure your stated rate complies with Mississippi's usury limits.
Practical tips for invoicing within Mississippi's legal framework.
Before you can charge a late fee in Mississippi, your client needs to have agreed to the terms. Include your late fee clause directly on your invoice and in your contract.
Mississippi caps interest rates at 10% general / no cap business >$5k. Charging above this limit can void your right to collect interest entirely and may expose you to penalties.
A reminder 3 days before the due date and a follow-up the day after dramatically reduces late payments. Automated reminders ensure nothing slips through the cracks.
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Compare Mississippi's rules with neighboring and commonly referenced states.
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