Indiana: Late Rent Fee Limits
The short answer
Indiana's landlord-tenant statutes set no statewide dollar or percentage cap, fee-specific grace period, accrual formula, or special remedy for an ordinary residential late fee. State law also generally bars cities and counties from regulating fees charged by a landlord. The 10-day nonpayment notice in IC 32-31-1-6 is a lease-termination cure period, not a waiting period before a late fee may attach.
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This is the general rule in Indiana. Ezel applies current Indiana law to your specific facts and answers with citations to the statutes.
| Governing law | No late-fee-specific state section in IC 32-31; IC 32-31-1-20 generally preempts local regulation of landlord fees |
|---|---|
| Maximum late fee | No statewide dollar or percentage cap stated |
| Grace period | None stated for a late fee; IC 32-31-1-6's 10 days govern termination for unpaid rent, not fee attachment |
| Lease or notice requirement | No late-fee-specific writing or separate assessment-notice requirement stated |
| One-time or recurring | Not specified; no statutory one-time, daily, or stacking rule |
| Calculated on | No statutory rent percentage, unpaid-balance base, or other formula |
| Related fees & carve-outs | Local units generally may not regulate any landlord fee; § 32-31-1-20 does not apply to specified government-supported reduced-rent property |
| If the fee is unlawful | No late-fee-specific statutory remedy; a local fee ordinance that violates § 32-31-1-20 is void and unenforceable |
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Requirements one by one
Indiana supplies no statewide late-fee formula
The official 2026 Indiana Code places landlord-tenant relations in IC 32-31. Its
Article 31 index and Chapter 1 contain no section setting a dollar or percentage
late-fee ceiling, a fee grace period, a one-time or daily structure, a
calculation base, or a late-fee-specific remedy. Those terms therefore are not
supplied by the cited landlord-tenant statutes.
Indiana also limits local regulation. IC § 32-31-1-20(c) says a city, county, or
town may not regulate listed parts of a private landlord-tenant relationship
unless the General Assembly authorizes it. The list includes leasing terms,
disclosures, the parties' rights, and "any fees charged by a landlord." A local
ordinance that violates the subsection is "void and unenforceable."
The preemption section itself has a coverage exception. Subsection (a) says it
does not apply to privately owned property receiving government funds or
benefits expressly intended to provide reduced rents to low- or moderate-income
tenants.
What trips people up
The 10-day notice is not a late-fee grace period. IC § 32-31-1-6 permits a
landlord to terminate for unpaid rent with at least 10 days' notice unless the
parties agreed otherwise or the tenant pays in full before the notice expires.
That section governs termination and cure; it does not say a landlord must wait
10 days before assessing a fee.
Indiana generally blocks local fee regulation. A city ordinance is not an
automatic source of a lower late-fee ceiling because § 32-31-1-20(c)(7)
preempts local regulation of landlord fees unless an act of the General Assembly
authorizes it. The subsidized-property exception in subsection (a) still needs
separate attention.
Common questions
Does Indiana cap a late fee at 5% or 10%? No such percentage appears in the
fetched landlord-tenant chapter. A percentage in a lease or form is not an
Indiana statutory ceiling.
Must a landlord wait 10 days before charging the fee? Section 32-31-1-6 does
not create that rule. Its 10 days concern termination for unpaid rent and the
tenant's chance to pay before the notice period expires.
Can an Indiana city set its own cap? Generally not for privately owned
property. Section 32-31-1-20 bars local regulation of landlord fees unless the
General Assembly authorizes it, subject to the section's government-supported
reduced-rent-property exception.
Statutes and sources
- IC § 32-31-1-20(a)-(c) — local preemption of rental-rate and landlord-fee
regulation, the reduced-rent-property exception, and voidness of conflicting
ordinances.Sec. 20. (a) Subject to IC 36-1-3-8.5, this section does not apply to
privately owned real property for which government funds or benefits have
been allocated from the United States government, the state, or a political
subdivision for the express purpose of providing reduced rents to low or
moderate income tenants. ... (c) A unit ... may not regulate ... (7) Any
fees charged by a landlord. Any ordinance or regulation that violates this
subsection is void and unenforceable.
Official source:
https://iga.in.gov/ic/2026/Title_32/Article_31/Chapter_1.pdf (accessed
2026-07-20)
- IC § 32-31-1-6 — nonpayment termination notice and cure, not a fee grace
period.Sec. 6. If a tenant refuses or neglects to pay rent when due, a landlord may
terminate the lease with not less than ten (10) days notice to the tenant
unless: (1) the parties otherwise agreed; or (2) the tenant pays the rent in
full before the notice period expires.
Official source:
https://iga.in.gov/ic/2026/Title_32/Article_31/Chapter_1.pdf (accessed
2026-07-20)
Source links
Every statute quoted above, linked, with the date we checked it.
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