Texas Late Fee Law
Texas limits residential late fees by statute. Safe harbor: up to 12% of monthly rent for a dwelling in a structure with 4 or fewer units, up to 10% for a structure with more than 4 units; a higher fee is allowed only if it does not exceed the landlord's uncertain damages from late payment. Initial plus daily fees count together as one fee. State law requires a grace period of 2 days before a late fee can be charged.
Last verified: · Researched and cited by MakeLease · not yet attorney-reviewed
Texas late fee law at a glance
| Late-fee cap | Safe harbor: up to 12% of monthly rent for a dwelling in a structure with 4 or fewer units, up to 10% for a structure with more than 4 units; a higher fee is allowed only if it does not exceed the landlord's uncertain damages from late payment. Initial plus daily fees count together as one fee.Tex. Prop. Code § 92.019(a-1), (b) |
|---|---|
| Grace period | 2 daysTex. Prop. Code § 92.019(a)(3), S.B. 1414, 86th Leg., R.S. (2019), enrolled |
| Notice before filing for unpaid rent | 3 days (Notice to pay rent or vacate (a notice to vacate is allowed only if the tenant was late before the month of the notice))Tex. Prop. Code § 24.005(a), (f-3), Tex. Prop. Code § 24.0042 (computation of time), S.B. 38, 89th Leg., R.S. (2025), enrolled |
Late-fee cap
- In effect since .
- Before : A late fee had to be a reasonable estimate of uncertain damages; no percentage safe harbor (S.B. 1414 added the 12%/10% tests for leases entered or renewed on or after Sept. 1, 2019).
Grace period
- In effect since .
- Before : A late fee could be charged once rent remained unpaid one full day after the due date; S.B. 1414 changed this to two full days for leases entered or renewed on or after Sept. 1, 2019.
Notice before filing for unpaid rent
- In effect since .
- Before : For suits filed before Jan. 1, 2026, § 24.005(a) required a 3-day written notice to vacate (unless the lease set a different period) with no pay-or-vacate requirement; delivery was governed by former subsections (f)–(i), repealed by S.B. 38.
What Texas law says
Is there a limit on late fees in Texas?
A late fee must be in a written lease and reasonable, which the statute presumes for fees up to 12% of rent in buildings of 4 or fewer units or 10% in buildings of more than 4 units (Tex. Prop. Code § 92.019(a), (a-1)) (Tex. Prop. Code § 92.019(a-1), (b)).
Does Texas require a grace period before a late fee?
A landlord may not charge a late fee until rent has stayed unpaid two full days after the due date, so rent due on the 1st can be charged a late fee on the 4th at the earliest (Tex. Prop. Code § 92.019(a)(3)).
How much notice must a Texas landlord give for unpaid rent?
For nonpayment, a landlord must give at least 3 days' written notice before filing, and if the tenant was not late before that month the notice must be a notice to pay rent or vacate, unless the lease sets a different period (Tex. Prop. Code § 24.005(a)) (Tex. Prop. Code § 24.005(a), (f-3)).
How Texas compares
20 of 51 verified jurisdictions cap late fees by statute. 13 require a longer grace period than 2 days.
None of Texas's 4 neighbors follows the same rule.
| Late-fee cap · grace period | States |
|---|---|
| Statutory formula · 2 days | Texas |
| No state cap · none | Arkansas, Louisiana |
| Statutory formula · none | New Mexico |
| Reasonableness (case law) · none | Oklahoma |
Local rules in Texas
State law provides for city rent control only temporarily after a declared disaster with the governor's approval (Tex. Loc. Gov't Code § 214.902); no local rent-control ordinance was found. Since Sept. 1, 2023, cities and counties may not regulate in fields occupied by the Property Code, expressly including local rules that restrict or delay eviction notices or suits (Prop. Code § 1.004, H.B. 2127). Some cities have pre-2008 ordinances on 24-hour emergency phone numbers that are preserved if they conform to Prop. Code § 92.020, and cities may add enforcement of the ownership-disclosure rules (§ 92.208). Since Jan. 1, 2026, courts may not adopt local eviction rules that require extra petition content, pre-trial mediation or conferences, or dismissal of curable petitions (§ 24.00506).
Other Texas rules
| Security deposit limit | No state capTex. Prop. Code §§ 92.101–92.113 (no amount cap) |
|---|---|
| Deposit return deadline | 30 days after move-outTex. Prop. Code § 92.103(a), Tex. Prop. Code § 92.107, Tex. Prop. Code § 92.1041 (mailbox presumption) |
| Entry notice | No state ruleTex. Prop. Code ch. 92 (no entry-notice provision) |
| Rent-increase notice | No state ruleTex. Prop. Code chs. 91–92 (no rent-increase notice provision) |
| Month-to-month termination | 30 days (either side)Tex. Prop. Code § 91.001 |