The short version
Every state sets a time limit for suing over an unpaid invoice, and the limit is often longer for a written agreement than for an oral one. This page lists the period for nine states with the statute linked for each row, as checked 3 November 2026, and the interest rate those states apply when no rate was agreed. For any state not in the tables, check your state's law. This is general information, not legal advice.
Time limits to sue over an unpaid invoice
Each row was read from the statute on the date above. Some states set a different period for particular claims, such as sales of goods, so confirm the one that fits yours.
| State | Written contract | Oral contract or open account | Statute |
|---|---|---|---|
| California | 4 years | 2 years | Code of Civil Procedure 337(a) and 339(1) |
| Texas | 4 years | 4 years (the same) | Civ. Prac. & Rem. Code 16.004, 16.051: debt, open or stated accounts, and claims with no express period |
| Florida | 5 years (action on a written instrument) | 4 years (contract not founded on a written instrument) | Fla. Stat. 95.11 |
| New York | 6 years | 6 years (the same) | CPLR 213(2): a contractual obligation, express or implied |
| Pennsylvania | 4 years | 4 years (the same) | 42 Pa.C.S. 5525 |
| Illinois | 10 years | 5 years | 735 ILCS 5/13-206 and 13-205 |
| Ohio | 6 years | 4 years | ORC 2305.06 and 2305.07 |
| North Carolina | 3 years | 3 years (the same) | G.S. 1-52(1): a contract, express or implied |
| Michigan | 6 years | 6 years (the same) | MCL 600.5807: breach of contract |
| Georgia | Check your state's law | Check your state's law | O.C.G.A. 9-3-24, 9-3-25 (official text not checked) |
| Other states | Check your state's law | Check your state's law | Not covered yet |
Interest when no rate was agreed
If neither the contract nor the invoice sets a rate, these states apply a default rate. A rate or late fee agreed in writing is a different matter: other statutes, including usury limits, can apply, and whether they cover a late fee on a business invoice is a legal question this page does not answer.
| State | Rate when no rate was agreed | Statute |
|---|---|---|
| California | 7% a year | Cal. Const. art. XV, section 1 |
| Texas | 6% a year, beginning on the 30th day after the amount is due | Fin. Code 302.002 |
| Florida | A rate set each quarter. The Chief Financial Officer set 7.87% a year for the quarter beginning 1 October 2026. | Fla. Stat. 687.01 and CFO memo AAM 07 |
| New York | 6% a year | General Obligations Law 5-501(1) |
| Pennsylvania | 6% a year | 41 P.S. 201, 202 |
| Illinois | 5% a year | 815 ILCS 205/1, 205/2 |
| Ohio | Set each year by the tax commissioner under a formula in the statute (check the current figure) | ORC 1343.03 and 5703.47 |
| North Carolina | 8% a year | G.S. 24-1 |
| Michigan | 5% a year | MCL 438.31 |
| Georgia | Check your state's law | O.C.G.A. 7-4-2 (official text not checked) |
| Other states | Check your state's law | Not covered yet |
What to do with this
- Put the due date, the terms and any agreed late fee on the quote and the invoice before the work starts. See late fee laws and payment terms.
- Chase in a fixed order and keep every message. The steps are in how to chase an unpaid invoice and late invoice payments.
- On construction work, a lien has far shorter deadlines than a lawsuit. See mechanic's lien deadlines by state.
- Work out how overdue a debt is with the days past due calculator and what it costs you with the late payment cost calculator.
What these tables do not cover
Georgia and every other state not listed. Claims on sealed or negotiable instruments, consumer rules, and anything that pauses or restarts the clock. The Ohio interest rate, which changes each year. Later amendments to any statute. Florida was read from the statute page summary, so confirm the subsection before you cite it. If the amount is large, speak to a lawyer in your state.
Common questions
How long do I have to sue over an unpaid invoice?
It depends on the state and on whether the agreement was in writing. In the nine states in the table, the period for a written contract runs from 3 years in North Carolina to 10 years in Illinois, and the period for an oral agreement or open account runs from 2 years in California to 6 years in New York and Michigan. Check the row for your state and the statute it links to.
Does a signed quote make the agreement written?
Often it helps, because it puts the terms in writing, and in some states the written period is longer. Whether your documents count as a written contract is a legal question, so keep the accepted quote, the work order and the invoice together and ask a lawyer if the amount is large.
Does the clock start on the invoice date or the due date?
Several of these statutes count from the day the cause of action accrues, and the date that is for an unpaid invoice is a legal question. Sue well inside the period instead of near the end of it, and do not rely on the invoice date alone.
Can I charge interest while I wait?
Only on the basis the agreement or the law allows. The second table shows the rate the law sets in nine states when no rate was agreed. A rate or late fee you agreed in writing is a separate question, and usury limits can apply, so see our late fee laws guide and check your state's law.
Should I wait until near the deadline to take action?
No. Evidence and memories fade, and clients who intend to pay usually do so after a firm written demand. Start with the steps in our unpaid invoice guide and keep the limitation date in your calendar.
What this is. A reference written by InvoiceTools. It is general information, not legal advice, and it is not a substitute for a lawyer who knows your facts. Each figure was read from the linked official source on 3 November 2026, and laws change, so confirm the current text before you rely on it.
Last reviewed by InvoiceTools, Houston, Texas, on 3 November 2026.