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Usury Laws in Texas

Texas sets a 10% base usury limit, lets written contracts use a floating ceiling that is 18% in October 2026, and applies 6% legal interest from the 30th day after a debt is due when no interest was agreed.

Last checked . General information, not legal advice.

Texas at a glance

Maximum agreed rate
18% (written contract, October 2026 ceiling)
Base limit is 10% unless a law allows more. Written contracts may use the Finance Code ch. 303 ceiling, which floats between 18% and 24% (28% for business credit).
Legal rate (no rate agreed)
6% (from day 30 after due)

Sources

Last checked

The rules in Texas

What is the maximum interest rate on a private loan in Texas?

Maximum agreed rate in Texas: 18% (written contract, October 2026 ceiling). Base limit is 10% unless a law allows more. Written contracts may use the Finance Code ch. 303 ceiling, which floats between 18% and 24% (28% for business credit).

What interest rate applies in Texas when no rate was agreed?

Legal rate (no rate agreed) in Texas: 6% (from day 30 after due).

Where do the Texas usury laws come from?

The rules above come from Tex. Fin. Code 302.001, Tex. Fin. Code 302.002, Tex. Fin. Code 303.002 and Tex. Fin. Code 303.009. Each source is linked on this page. We last checked them in October 2026.

Good to know

Contracts for usurious interest are subject to the penalties in Finance Code chapter 305.

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.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.