Utah is one of the most freelancer-friendly states in this series on late fees, and it's unusually explicit about it: since 2019 the interest statute names contracts for services directly. There's no usury ceiling on a rate you agree to, a 10% default if you didn't, and one of the higher small claims limits in the country — on a schedule that rises again in 2030. Here's what Utah freelancers need to know.
Utah Late Fee Calculator
Quick estimate at the standard 1.5%/month rate. For grace periods, flat fees, and a PDF invoice, use the full late fee calculator.
Utah Lets You Agree Any Rate — and Says So for Service Contracts
Under Utah Code § 15-1-1(1), the parties to a lawful contract may agree on any rate of interest. What makes Utah distinctive is the wording added in the 2019 amendment: the statute now expressly covers written, verbal, or implied contracts, including a contract for services, as well as claims for breach of contract. Many states leave freelancers to argue by analogy from loan-focused usury statutes. Utah removes the question.
So the national-standard 1.5% per month (18% a year) is on solid ground in Utah if it's in your agreement. "Any rate" isn't a licence for anything, though. A charge large enough to read as punishment rather than compensation can still be struck down as an unenforceable penalty — which is where very aggressive clauses, particularly fees stated per day, run into trouble. See is a daily late fee legal on an invoice for how that test works.
No Rate in the Contract? The Default Is 10% a Year — Not a Month
If your contract doesn't specify a rate, § 15-1-1(2) sets the legal rate at 10% per annum, and the 2019 language makes clear that applies to service contracts and breach-of-contract claims too. That's more generous than the 5–8% default many states use.
Per annum means per year. It sounds obvious, but the confusion shows up in real disputes — for example, a contractor claiming "10% monthly" on a lien where the contract named no rate at all. Ten percent a month is 120% a year, twelve times what the statute allows as a default.
If you're on the receiving end of that kind of claim, the statute is your answer. If you're the one billing, and you want more than 10%, write the rate into the contract — Utah will enforce it.
Utah's Small Claims Limit Is $20,000 — and Rising
Utah is on a statutory escalator. Under Utah Code § 78A-8-102, the small claims ceiling is $20,000 for cases filed from January 1, 2025 through December 31, 2029, and it rises automatically to $25,000 on January 1, 2030. The limit includes attorney fees but excludes court costs and interest.
Watch for stale figures: some older sources and city court websites still show $15,000, which only applied through the end of 2024. Small claims cases are heard in Justice Court in the city or county where the defendant lives or where the claim arose, and — unlike several states — Utah allows attorneys to appear in small claims.
At $20,000, most individual freelance invoices fit comfortably inside small claims in Utah. That changes the arithmetic on whether chasing an unpaid invoice is worth it; is it worth suing a client over an unpaid invoice works through it against your own time.
How Utah Compares to Nearby States
Scroll sideways to see all columns
| State | Default rate (no contract rate) | Written B2B ceiling | Small claims limit |
|---|---|---|---|
| Utah | 10%/year (§ 15-1-1) | None — any agreed rate, services named | $20,000 (to $25,000 in 2030) |
| Colorado | 8%/year | No commercial ceiling once written | $7,500 |
| Arizona | 10%/year | No statutory cap on a written rate | $3,500 |
| Nevada | Prime + 2% (floating) | No commercial ceiling once written | $10,000 |
| New Mexico | 15%/year | No commercial ceiling once written | $10,000 |
Across the Mountain West, the rate rules are broadly similar — none of these states caps a written commercial rate. Where Utah separates itself is small claims: its $20,000 ceiling is double Nevada's and New Mexico's, well over twice Colorado's $7,500, and nearly six times Arizona's $3,500. A $9,000 unpaid invoice is a self-filed small claims case in Utah but would exceed the limit in Arizona and Colorado. For freelancers working across state lines, see Colorado and Arizona.
Setting Up Enforceable Late Fees in Utah
- Write your rate into the contract if you want more than the 10% default. Utah will enforce an agreed rate on a services contract.
- State the rate as monthly or annual, not daily. An agreed rate still has to survive the penalty test.
- Put the rate on each invoice, not just in the original agreement.
- File within 6 years for written contracts (Utah Code § 78B-2-309) — or 4 years for oral contracts (§ 78B-2-307), another reason to get the engagement in writing.
Collecting in Utah
- Small claims (Justice Court): up to $20,000 through 2029, $25,000 from January 1, 2030 (§ 78A-8-102)
- Written contract statute of limitations: 6 years (§ 78B-2-309); oral contracts: 4 years (§ 78B-2-307)
- Default interest with no agreed rate: 10% a year (§ 15-1-1(2))
- Post-judgment interest: the federal post-judgment rate as of January 1 plus 2% (§ 15-1-4), or the contract rate where the judgment is based on a contract that fixes one
Need to calculate exactly what your Utah client owes with late fees included? Get the updated total instantly.
Calculate Late Fees →Utah gives freelancers about as much room as any state: the statute names service contracts, lets you agree your own rate, supplies a 10% default when you didn't, and lets you pursue most invoices yourself in small claims. The main thing to get right is writing the rate down — as a monthly or annual figure, never a daily one.
Frequently Asked Questions
Is there a free Utah late fee calculator? +
Yes — use the quick calculator above for an instant estimate at the standard 1.5% monthly rate. For grace periods, flat fees and a downloadable PDF, use GetSoloTools' full late fee calculator.
What late fee rate is enforceable in Utah? +
Utah Code § 15-1-1 lets the parties to a lawful contract agree on any rate of interest, and since the 2019 amendment it expressly covers contracts for services and written, verbal or implied contracts. So a rate you and your client agree to in writing, including the common 1.5% per month, is not capped by a Utah usury ceiling. That does not make any number enforceable: a charge large enough to read as punishment rather than compensation can still fail as an unenforceable penalty, which is the practical limit on very aggressive rates.
What interest applies in Utah if my contract doesn't state a rate? +
10% a year under Utah Code § 15-1-1(2), which since 2019 expressly applies to contracts for services and to claims for breach of contract. Note that it is 10% per annum, not per month. A contractor who claims 10% monthly on an invoice or lien where the contract named no rate is overstating the amount owed twelve-fold, since that works out to 120% a year.
What is the small claims limit in Utah? +
$20,000 for claims filed from January 1, 2025 through December 31, 2029, under Utah Code § 78A-8-102, including attorney fees but excluding court costs and interest. It rises to $25,000 on January 1, 2030. Older sources, including some city court websites, still show the previous $15,000 figure, which applied only through the end of 2024. Small claims cases are heard in Justice Court, and unlike some states Utah permits attorneys in small claims.