Rent late fee law in North Carolina

The rule in North Carolina

North Carolina caps a residential late fee at $15 or 5% of the monthly rent, whichever is greater (N.C. Gen. Stat. § 42-46(a)): “Is due in monthly installments, a landlord may charge a late fee not to exceed fifteen dollars ($15.00) or five percent (5%) of the monthly rent, whichever is greater.”

On timing: “to be chargeable only if any rental payment is five calendar days or more late, with the first day being the day after the rent was due.” In short, only once rent is five calendar days or more late.

In dollars: $1,000 rent allows up to $50, $1,500 rent allows up to $75 and $2,000 rent allows up to $100. The $15 floor matters only below $300 a month in rent; above it 5% is the larger figure.

At $1,500 a month, North Carolina's ceiling of $75 is 5% of the rent and ranks 5th highest of the 10 verified states that set a dollar or percentage limit; Virginia allows the most ($150) and New York the least ($50). Late in every month of a year, the ceiling adds up to $900.

Dated example: with rent due on December 1, 2026, the 5-day window counts from the day after the due date, so the fee becomes chargeable on December 6, 2026.

Neighbouring states with a verified rule: Virginia (10% of the periodic rent or 10% of the balance owed, whichever is less).

Weekly rent: $4 or 5% of the weekly rent, whichever is greater. Only one late fee may be charged for each late payment (§ 42-46(b)).

Related North Carolina rules: ending a month-to-month tenancy takes 7 days (notice rules); a security deposit is due back within 30 days of the end (deposit rules); disputes over fees go to small claims up to $10,000 (small claims).

Source: North Carolina General Assembly, G.S. 42-46 · last checked October 21, 2026.

Reading a lease against the statute

A late fee needs a basis in the rental agreement, and the statute sets the outer limit. The guide on rent late-fee limits works the verified caps through the same rents side by side.