Mississippi is one of the stricter states in this series on how much you can charge for late payment — the national-standard 1.5% a month doesn't fit here. But it also has one of the most useful collection rules anywhere: a properly written 30-day demand on an open account can make the client pay your attorney's fees. Here's what Mississippi freelancers and small businesses need to know.
Mississippi Late Fee Calculator
Quick estimate at 0.8%/month — just under Mississippi's 10% a year contract ceiling. For grace periods, flat fees, and a PDF invoice, use the full late fee calculator.
The Default Rate Names Invoices Directly: 8% a Year
Miss. Code § 75-17-1(1) sets the legal rate of interest at 8% per annum on all notes, accounts and contracts. Most states' default-rate statutes talk about loans and judgments and leave freelancers to argue that an invoice qualifies. Mississippi's says "accounts" in the first sentence. If your contract is silent, 8% a year is the number to cite in a demand letter.
What You Can Put in the Contract
Mississippi gives you two defensible ways to charge for late payment. Pick one and write it into the agreement:
- A one-time late charge: § 75-17-27 allows a late payment charge of up to $5 or 4% of the overdue amount, whichever is greater, if it is contracted for in writing — but only once the payment is more than 15 days past due, and only once per payment. On a $2,000 invoice that's an $80 charge on day 16.
- Ongoing interest: § 75-17-1(2) caps a contract rate at the greater of 10% a year or 5 points above the Federal Reserve discount rate. At 10%, that's about 0.83% a month.
Don't paste in the national 1.5% a month. That's 18% a year — well above Mississippi's 10% contract ceiling for individuals. Higher ceilings in § 75-17-1(3) are written for loans over $2,500 to business entities, and a service invoice is not clearly one of those.
The clean Mississippi clause: "A late charge of 4% of the overdue amount applies to any payment more than 15 days past due. Overdue balances also accrue interest at 0.8% per month." Both halves sit inside the statutes.
The same logic applies to fees written per day, which compound far past 10% a year — see is a daily late fee legal on an invoice.
The 30-Day Demand Letter That Can Shift Your Legal Fees
This is the Mississippi rule most freelancers don't know about. Under Miss. Code § 11-53-81, when a debtor fails to pay an open account within 30 days after receiving a written demand, and you later win a judgment, the court sets reasonable attorney's fees for you to recover. An unpaid invoice for ongoing or completed work is the textbook open account.
The demand has to meet the statute's requirements:
- In writing, delivered to the client.
- Correctly states the amount owed. Don't inflate it with a late fee your contract never mentioned.
- Includes an itemized statement of the account — every invoice, date, amount and payment received.
- Then wait the full 30 days before filing.
There's a catch that keeps this honest: if the client wins, the client can recover attorney's fees from you. An accurate, itemized demand protects you on both sides. In practice, a demand letter that cites § 11-53-81 and shows the client they'll be paying two lawyers instead of one is often what gets the check written.
Small Claims in Mississippi Is $3,500 — Plan Around It
Mississippi's Justice Court hears civil cases of $3,500 or less, one of the lower ceilings in this series. A single mid-sized project invoice can exceed it. You can sue for $3,500 and waive the rest, or file in county or circuit court — and above small claims is exactly where the attorney's fee statute changes the economics, because the lawyer you'd need is no longer money you can't recover. Is it worth suing a client over an unpaid invoice runs that trade-off against your own time.
How Mississippi Compares to Its Neighbors
Scroll sideways to see all columns
| State | Rate rule | Small claims limit |
|---|---|---|
| Mississippi | 8%/yr default; 10% contract ceiling; one-time 4% late charge after 15 days | $3,500 |
| Alabama | 6% default / 8% written | $6,000 |
| Louisiana | 12% cap (written only) | $5,000 |
| Tennessee | 10% default (or formula rate) | $25,000 |
| Arkansas | 6% default, 17% cap if written | $5,000 |
Mississippi's small claims ceiling is the lowest of its neighbors, and its three-year filing window is shorter than most. What it has that they don't is a statute that puts attorney's fees on the table for an ordinary unpaid account. For clients across the line, see the Tennessee, Alabama and Louisiana guides.
Setting Up Enforceable Late Fees in Mississippi
- Choose 4%-after-15-days, 0.8% a month, or both — not 1.5% a month.
- Put the late charge in writing before the work starts; § 75-17-27 only applies if it was contracted for in writing.
- Keep a running statement of account for each client. You'll need it itemized for the § 11-53-81 demand.
- Watch the calendar. Three years from the missed payment is not long.
Collecting in Mississippi
- Small claims (Justice Court): $3,500 or less
- Attorney's fees on an open account: after a written, itemized demand and 30 days without payment (§ 11-53-81)
- Default interest with no agreed rate: 8% a year on notes, accounts and contracts (§ 75-17-1(1))
- Statute of limitations: 3 years for open accounts and unwritten contracts (§ 15-1-29), and generally 3 years for written contracts
Need to calculate exactly what your Mississippi client owes with late fees included? Get the updated total instantly.
Calculate Late Fees →Mississippi is stricter than most states on how much you can charge, but it gives you a stronger lever on collection. Keep the late fee to 4% after 15 days or about 0.8% a month, keep an itemized statement for every client, and send a proper 30-day demand before you file anything.
Frequently Asked Questions
Is there a free Mississippi late fee calculator? +
Yes. The quick calculator above estimates monthly interest at 0.8% a month, which keeps you under Mississippi's 10% a year contract ceiling. For grace periods, flat fees and a downloadable PDF, use GetSoloTools' full late fee calculator.
What late fee can I legally charge in Mississippi? +
Two routes are defensible. Miss. Code § 75-17-27 allows a late payment charge of up to $5 or 4% of the overdue amount, whichever is greater, if it is agreed in writing, and only after the payment is more than 15 days past due, once per payment. Alternatively you can charge interest, and § 75-17-1(2) sets the contract ceiling at the greater of 10% a year or 5 points above the Federal Reserve discount rate. A recurring 1.5% a month (18% a year) is above that ceiling, so it is the wrong default for Mississippi.
What interest applies in Mississippi if the contract doesn't state a rate? +
8% a year. Miss. Code § 75-17-1(1) sets the legal rate at 8% per annum on all notes, accounts and contracts. The statute names accounts directly, which is what an unpaid invoice is.
Can I make a client pay my attorney's fees in Mississippi? +
Often, yes, on an open account. Under Miss. Code § 11-53-81, if a client does not pay within 30 days after receiving a written demand that correctly states the amount owed and includes an itemized statement of the account, the court can award you reasonable attorney's fees when you win. The demand has to be accurate: if the defendant wins, the defendant can recover attorney's fees too.
What is the small claims limit in Mississippi? +
$3,500. Small claims are heard in Justice Court, which handles civil cases of $3,500 or less. Larger invoices go to county or circuit court, which is where the open-account attorney's fee statute becomes especially useful.
How long do I have to sue for an unpaid invoice in Mississippi? +
Three years. Miss. Code § 15-1-29 gives three years for actions on an open account or account stated and on unwritten contracts, and Mississippi's general three-year statute covers most written contracts as well. That is shorter than most states, so don't let an overdue invoice sit.