Tasmania's libraries are scrapping the dreaded late fee in an effort to get more people borrowing books.

Tasmania is one of the first states to adopt the change, which is hoped will also help boost the state's status as one of the lowest ranking states in Australia when it comes to literacy, with nearly half the state's population functionally illiterate.

The executive director of Libraries Tasmania, Elizabeth Jack, said late fees were putting people off going to the library, and this is a step toward the library being an accessible and welcoming place.