Usury Laws by State
Usury is charging more interest on a loan than the law allows. Each state sets its own usury rules, and they matter most for loans between private people, such as a loan to a friend or family member written up in a promissory note. A rate above the limit can make part or all of the interest unenforceable, and in serious cases the lender can face penalties.
50 states and DC compared. Last checked .
At a glance
- Maximum agreed rate: range
- 6% to 45%
- Across the 34 jurisdictions with a single statewide figure.
- Legal rate (no rate agreed): range
- 5% to 15%
- Across the 45 jurisdictions with a single statewide figure.
Compare usury laws
This guide compares three rules for each state: the general maximum rate that private parties can agree to, the legal rate that applies when a debt carries interest but no rate was agreed, and whether the state treats very high rates as a crime. Banks, licensed lenders and some business loans often follow different rules, so this guide focuses on loans between individuals. Each rule links to the statute it comes from.
51 of 51 shown
| Criminal usury | Sources | |||
|---|---|---|---|---|
| ALAlabama | 8% (written contract) | 6% | Not listed | |
| AKAlaska | Greater of 10% or Fed rate plus 5 points | 10.5% | Not listed | |
| AZArizona | No cap (any rate agreed in writing) | 10% | Not listed | |
| ARArkansas | 17% | 6% | Not listed | |
| CACalifornia | 10% (personal, family or household loans) | 7% | Not listed | |
| COColorado | 45% | 8% | Over 45% a year: class 6 felonyKnowingly charging a loan finance charge above 45% APR is criminal usury, subject to listed defenses and exemptions. | |
| CTConnecticut | 12% | 8% | Over 12%: fine up to $1,000, jail up to 6 monthsApplies to violations of the 12% cap and related rules; no action may be brought to recover principal or interest on a prohibited loan. | |
| DEDelaware | Fed discount rate plus 5 points | Fed discount rate plus 5 points | Not listed | |
| DCDistrict of Columbia | 24% (written agreement) | 6% | Willful violation: up to 1 year in jail and a fineApplies to any lender who wilfully violates the interest and usury chapter. | |
| FLFlorida | 18% | Quarterly rate set by the CFO | Over 25%: misdemeanor; over 45%: felonyWillfully and knowingly charging over 25% up to 45% is a second degree misdemeanor; over 45% is a third degree felony. | |
| GAGeorgia | 16% (loans of $3,000 or less) | 7% | Over 5% a month: misdemeanorApplies to any loan or advance of money; licensed pawnbrokers follow their own limits. | |
| HIHawaii | 12% (consumer loans) | 10% | Any usurious rate: fine up to $250, jail up to 1 yearApplies to anyone who receives interest above the rate permitted by law on any credit transaction. | |
| IDIdaho | Not listed | 12% | Not listed | |
| ILIllinois | 9% (written contract) | 5% | Over 20% a year: Class 4 felonyDoes not apply to licensed consumer installment lenders or loans permitted by the Interest Act or other Illinois law. | |
| INIndiana | Not listed | 8% | Over twice the 36% rate (72%): Level 6 felonyLoansharking is a Level 5 felony if force or the threat of force is used to collect. | |
| IAIowa | 10-year Treasury average plus 2 points | 5% | Not listed | |
| KSKansas | 15% | 10% | Not listed | |
| KYKentucky | Lesser of 19% or Fed discount rate plus 4 points | 8% | Not listed | |
| LALouisiana | 12% | 7.5% (2026 judicial rate) | Not listed | |
| MEMaine | Not listed | 1-year T-bill rate plus 3 points (prejudgment) | Not listed | |
| MDMaryland | 8% (written agreement) | 6% | Not listed | |
| MAMassachusetts | No civil cap (over 20% is criminal) | 6% | Over 20% a year: up to 10 years and $10,000 fineCounts interest and expenses together. A court may declare the loan void. Lenders who notify the Attorney General and keep records are exempt. | |
| MIMichigan | 7% | 5% | Over 25% simple interest: up to 5 years and $10,000 fineApplies to a person who knowingly charges the rate without legal authorization. | |
| MNMinnesota | 8% | 6% | Not listed | |
| MSMississippi | 10% (or discount rate plus 5 points, if higher) | 8% | Not listed | |
| MOMissouri | 10% (or market rate, if higher) | 9% | Not listed | |
| MTMontana | 15% (or prime plus 6 points, if higher) | 10% | Not listed | |
| NENebraska | 16% | 6% | Not listed | |
| NVNevada | No cap (any rate agreed in writing) | Prime rate plus 2 points | Not listed | |
| NHNew Hampshire | Not listed | 10% | Not listed | |
| NJNew Jersey | 16% (written contract) | 6% | Over 30% a year (50% for corporations, LLCs, LLPs)Second degree crime above 50%. Third degree for loans over $1,000 to non-business borrowers at up to 50%. Otherwise a disorderly persons offense. | |
| NMNew Mexico | Not listed | Up to 15% (no written rate) | Over the legal limits: misdemeanor, $25 to $100 fineApplies to charging interest above the rates permitted by NMSA 56-8-1 to 56-8-21 (NMSA 56-8-9, 56-8-14). | |
| NYNew York | 16% | 9% | Over 25% a year: class E felonyCriminal usury in the second degree under Penal Law 190.40. | |
| NCNorth Carolina | 16% (loans of $25,000 or less) | 8% | Not listed | |
| NDNorth Dakota | 9.293% (October 2026, floating) | 6% | Any usurious rate: class B misdemeanorCharging, taking or receiving a usurious rate is a class B misdemeanor, on top of forfeiting all interest and 25% of the principal. | |
| OHOhio | 8% | Yearly rate set by the tax commissioner | Over 25% a year: fourth degree felonyKnowingly charging over 25% a year is criminal usury unless the rate is authorized by law or the parties are immediate family. | |
| OKOklahoma | 45% | 6% | Not listed | |
| OROregon | 12% (or discount rate plus 5 points, if higher) | 9% | Not listed | |
| PAPennsylvania | 6% | 6% | Knowing violation: third degree misdemeanorThe Department of Banking can also fine $10,000 per offense. | |
| RIRhode Island | 21% (or prime plus 9 points, if higher) | 12% | Willful violation of the cap: up to 5 years in prisonAny willful and knowing violation of the maximum rate is criminal usury. | |
| SCSouth Carolina | No cap (loans other than consumer loans) | 8.75% | Not listed | |
| SDSouth Dakota | No cap (any rate agreed in writing) | Up to 12% (Category C rate) | Licensed lender over 36%: Class 1 misdemeanorApplies to licensees; such loans are also void and uncollectible. | |
| TNTennessee | 11% (formula rate, October 2026) | Up to 10% (court decides) | Willful collection of usury: Class A misdemeanor | |
| TXTexas | 18% (written contract, October 2026 ceiling) | 6% (from day 30 after due) | Not listed | |
| UTUtah | No cap (any agreed rate) | 10% | Not listed | |
| VTVermont | 12% general; higher for some loan types | 12% | Knowingly over the legal rate: up to $500 or 6 monthsA second offense carries up to $1,000 or 1 year. The lender also loses all interest and half the principal. | |
| VAVirginia | 12% | 6% | Not listed | |
| WAWashington | 12% (or T-bill rate plus 4 points, if higher) | 12% | Extortionate extension of credit: class B felonyA rate over 45% is one of the factors that together are prima facie evidence of an extortionate loan. | |
| WVWest Virginia | 8% (written contract) | 6% | Not listed | |
| WIWisconsin | 12% | 5% | Violating the cap: $25 to $500 fine, up to 6 months | |
| WYWyoming | Not listed | 7% | Willful overcharge on a consumer loan: misdemeanorUp to $1,000 fine, 6 months in jail, or both. Consumer loans are those made by people regularly in the lending business. |
General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.
What this means in practice
Put the interest rate in writing. Many usury statutes set one limit for written agreements and a different, often lower, rate when nothing was agreed in writing. A signed promissory note or loan agreement that states the rate, the payment schedule and what happens on late payment avoids most disputes.
Count every charge, not only the stated rate. Courts may treat fees, points, required extras or a discount taken from the amount lent as interest when deciding whether a loan is usurious. A loan with a modest rate and large fees can still cross the limit.
Check who the lender is and what the loan is for. Usury limits often do not apply, or apply differently, to banks, licensed consumer lenders, credit card issuers, larger loans and loans to businesses or corporations. A rule written for loans between individuals may not cover your situation, so read the statute and its exceptions.
Usury Laws: state by state
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Frequently asked questions
What is usury?
Usury is charging interest above the maximum rate that state law allows. The consequences depend on the state and can include losing the excess interest, losing all interest, paying a penalty to the borrower or, for very high rates, criminal charges.
What is the legal rate of interest?
The legal rate is the interest rate state law applies when a debt is owed with interest but the parties never agreed on a rate. It is set by statute and is separate from the maximum rate that parties can agree to. Courts often use a separate rule for interest on judgments.
Do usury laws apply to loans between family members?
Usury laws generally apply to private loans, including loans between relatives or friends, when interest is charged. A loan with no interest does not raise a usury issue, although it can have tax consequences under federal rules.
Do usury limits apply to credit cards and bank loans?
Often not in the same way. Federal law lets national banks and many other lenders charge the rate allowed in their home state, and states have separate licensing laws for consumer lenders. State usury limits matter most for loans made by private individuals.
What happens if a loan charges more than the usury limit?
It depends on the state. A borrower may be able to refuse the excess interest, recover interest already paid or, in some states, recover a multiple of it. The principal is usually still owed. Some states also make knowingly charging very high rates a crime.
Which states have the highest and lowest maximum agreed rate?
Among the 34 jurisdictions with a single statewide figure, maximum agreed rate ranges from 6% (Pennsylvania) to 45% (Colorado and Oklahoma). The most common figure is 12% (7 jurisdictions). Check each state's page for exceptions.
Which states have the highest and lowest legal rate (no rate agreed)?
Among the 45 jurisdictions with a single statewide figure, legal rate (no rate agreed) ranges from 5% (Illinois, Iowa, Michigan and Wisconsin) to 15% (New Mexico). The most common figure is 6% (14 jurisdictions). Check each state's page for exceptions.