How to read this table
Late-payment interest is usually expressed as a fixed number of percentage points above a moving reference rate, for example a central bank base rate. That means the headline percentage moves whenever the reference rate moves, even though the formula stays the same. For each country the table gives the durable formula and the rate that formula produces as of 28 June 2026.
Three of the countries below do not set one national statutory rate for business-to-business debts. In the United States the figure shown is the federal Prompt Payment rate, which binds government agencies paying their own suppliers and serves as a benchmark. For Canada and Australia the figures are the court pre-judgment and post-judgment interest rates in a named province or state, since private commercial interest in those countries depends on the contract and on local law.
| Country or region | Legal basis | Rate or formula | Rate as of 28 June 2026 | Source |
|---|---|---|---|---|
| United Kingdom | Late Payment of Commercial Debts (Interest) Act 1998 | Bank of England base rate plus 8 percentage points, simple interest. A fixed recovery charge also applies: £40 for debts under £1,000, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more. | 11.75% (base rate 3.75%, held 17 June 2026) | GOV.UK, Bank of England |
| Ireland (EU framework) | EU Late Payment Directive 2011/7/EU, transposed by the European Communities (Late Payment in Commercial Transactions) Regulations 2012 | European Central Bank main refinancing rate plus 8 percentage points. The Directive sets this 8 point margin as a minimum, and individual member states may set more. | 10.15% (ECB rate 2.15% at 1 January 2026 plus 8 points) | gov.ie, EUR-Lex |
| Germany | § 288 BGB (German Civil Code) | Basiszinssatz plus 9 percentage points for transactions with no consumer party, plus a fixed lump sum of €40 for recovery costs. The Basiszinssatz is published twice a year by Deutsche Bundesbank. | 10.27% (Basiszinssatz 1.27% from 1 January 2026 plus 9 points) | § 288 BGB, Bundesbank |
| France | Code de commerce, Article L.441-10 | European Central Bank refinancing rate plus 10 percentage points, with a floor of three times the legal interest rate, plus a flat €40 recovery indemnity per unpaid invoice. | 12.15% (ECB rate 2.15% plus 10 points; floor 7.86%) | service-public.fr |
| United States (federal) | Prompt Payment Act. No general federal rate exists for private business debts; those depend on state law and the contract. | Set every six months by the Secretary of the Treasury. This rate binds federal agencies paying their suppliers and is widely used as a commercial benchmark. | 4.125% for 1 January to 30 June 2026 | US Treasury, Federal Register |
| India | Micro, Small and Medium Enterprises Development (MSMED) Act 2006, Section 16, for registered micro and small suppliers | Three times the Reserve Bank of India bank rate, compounded with monthly rests, on amounts paid late to a registered MSME. This overrides any contrary contract term. | 16.5% (RBI bank rate 5.50%, multiplied by three), compounded monthly | Reserve Bank of India |
| Canada (Ontario) | No single national B2B rate. Ontario Courts of Justice Act, sections 128 and 129, set court interest, published each quarter. | Pre-judgment and post-judgment interest rates set by the province. Private commercial interest otherwise depends on the contract and on provincial law. | 2.5% pre-judgment and 4.0% post-judgment (first quarter 2026) | Government of Ontario |
| Australia (New South Wales) | No single national B2B rate. New South Wales court practice notes and the Uniform Civil Procedure Rules 2005 set court interest. | Pre-judgment and post-judgment interest rates set each half year for NSW courts. Private commercial interest otherwise depends on the contract and on state law. | 7.60% pre-judgment and 9.60% post-judgment (1 January to 30 June 2026) | Local Court of NSW |
Work out what you are owed
To turn a rate into a figure, our late-payment interest calculator applies the formula for you and drafts a reminder you can copy and send. The calculator uses fixed fallback reference rates for simplicity, so treat this page as the authoritative reference for the current statutory position and the calculator as the quick arithmetic.
For the wider picture, see our freelance late-payment statistics and our invoice requirements by country reference. The complete invoice guide covers payment terms and how to chase an overdue invoice in practice.
A note on accuracy: we gather these figures from official sources and date them, but rates change and errors are possible. If you spot one that looks wrong, please tell us at feedback@invoiceno.com and check the linked official source, which always takes precedence over this page.