Texas Late Fees: The 2-Day Grace Period and 10–12% Caps
Updated 2026-07-01 · Reflects SB 38 (eff. Jan 1, 2026)Texas law (Prop. Code §92.019) lets you charge a late fee only if the lease discloses it, and only after rent has remained unpaid for at least two full days past the due date. The fee is presumed reasonable if it's no more than 12% of monthly rent for a dwelling in a building with 4 or fewer units, or 10% for a building with more than 4 units.
The three requirements
(1) The late fee must be in the written lease. (2) It can't kick in until rent is two full days late — a fee charged the day after rent is due is illegal. (3) The amount must be reasonable: within the 12%/10% safe harbors, or a reasonable estimate of your actual damages from late payment. Daily fees are allowed if the total stays reasonable.
What violating §92.019 costs
A landlord who charges an illegal late fee owes the tenant $100 + three times the improper fee + attorney's fees. The statute is also a defense in your own eviction: rent demands that bundle illegal fees give the tenant ammunition at the hearing.
Late fees and eviction notices
Keep late fees out of the pay-or-vacate amount. The eviction notice should demand rent; late fees are collectible under the lease or in the judgment, but padding the notice amount with fees is a classic way to lose an otherwise clean case.
SB 38-current lease with every required disclosure built in.
Frequently asked questions
Can I charge a late fee on the 2nd of the month?
Only if rent was due on or before the last day of the prior month. Rent due the 1st means the earliest lawful late fee is when it remains unpaid two full days after the due date.
Is $50 + $10/day legal?
It can be, if disclosed in the lease and the accumulated total stays within a reasonable range for your building size (12% or 10% of monthly rent is the safe harbor).
Does the 2-day grace period apply to leases signed before 2026?
Yes — §92.019 has required the two-full-day grace since 2021's HB 1082 amendments; it applies to current leases.
More Texas guides
- How to Evict a Tenant in Texas (2026 Rules)
- Texas 3-Day Notice to Vacate & Pay-or-Vacate Notice (2026)
- How Much Does an Eviction Cost in Texas? (Verified 2026 County Fees)
- Texas Eviction Timeline: How Long It Takes in 2026
- SB 38: What Changed in Texas Eviction Law on January 1, 2026
- Texas Security Deposit Rules: The 30-Day Return Deadline