Payday Loan Laws by State
Payday loan rules vary enormously by state, from an outright ban to fee structures that annualize to 600%+ APR. This page tracks the current rate caps, loan limits, and legal status for all 50 states plus DC, with a calculator to check your own loan's effective APR.
tl;dr
- No US federal rate cap exists for civilian borrowers. Regulation happens entirely at the state level, which is why the rules below vary so much.
- Roughly a third of states effectively prohibit payday lending through a low APR cap (often 36%) or an outright ban, while the rest permit it with a flat per-$100 fee that can annualize to 300-600%+ APR.
- The "fee" is not the same as the APR. A $15-per-$100 fee sounds like 15%, but over a typical 14-day term it works out to roughly 390% APR! Use the calculator below to check your own numbers.
- This data is dated and evaluated per state below. Laws change; always verify current rules with your state's financial regulator before borrowing.
Table of Contents
Payday Loan APR Calculator
Enter your state and loan terms to see the effective APR and compare it against your state's payday lending rules. This is a math tool, not legal advice — see the full state table below for sourced details.
State-by-State Table
The data in this table reflects our best research as of the "retrieved" date shown per state, taken primarily from the National Conference of State Legislatures (NCSL) and, where accessible, each state's own statutes or banking regulator. Rows marked with a lower confidence level have a gap in the source material. Treat those numbers as a starting point, not a final answer, and confirm with your state regulator.
| State | Status | Rate Cap | Max Loan | Max Term | Confidence |
|---|---|---|---|---|---|
| Alabama | permitted | $17.50 per $100 (~456% APR on 14-day loan; varies 10-31 day terms) | 500 | 31 | high |
| Alaska | permitted | $5 origination fee + $15 per $100 (or 15% of total, whichever is less) (~390-435% APR on 14-day loan) | 500 | unknown | high |
| Arizona | prohibited | N/A - prohibited via 36% APR consumer loan cap (ARS § 6-632) | N/A | N/A | high |
| Arkansas | prohibited | N/A - prohibited via constitutional 17% APR interest rate cap | N/A | N/A | high |
| California | permitted | $15 per $100 (~460% APR on 14-day loan; ~208% APR on 31-day loan) | 300 | 31 | high |
| Colorado | restricted | 36% APR | 500 | no specified maximum | high |
| Connecticut | prohibited | 12% APR cap (usury law); 19.8% for licensed small loan lenders | N/A | N/A | high |
| Delaware | permitted | $15 per $100 borrowed (~391% APR on 60-day short-term loan); delinquency charges capped at 5% of installment | 1000 | less than 60 days (upper limit unclear from statute) | high |
| District of Columbia | prohibited | 24% APR cap (D.C. Code § 28-3301) | N/A | N/A | high |
| Florida | permitted | 10% of loan amount + $5 verification fee (~304% APR on 14-day loan); Installment loans: 8% of outstanding transaction balance on biweekly basis | 500 (traditional payday); 1,000 (installment loans 60-90 days) | 31 (traditional payday loans); 90 (installment loans) | high |
| Georgia | prohibited | N/A - payday lending prohibited under O.C.G.A. § 16-17-2. Licensed installment lenders limited to 10% APR for loans under $3,000. | N/A - payday lending prohibited | N/A - payday lending prohibited | high |
| Hawaii | prohibited | 36% APR plus monthly maintenance fee up to $35 (depending on loan principal). Total charges capped at 50% of principal loan amount. | 1500 | 365 (12 months maximum) | high |
| Idaho | permitted | $15 per $100 borrowed (~408% APR for 14-day $1000 loan, but varies by term since APR is unregulated) | 1000 | unknown | high |
| Illinois | restricted | 36% APR cap | 1000 | 45 | high |
| Indiana | permitted | 15% of first $250; 13% of $250-$400; 10% of $400-$550; plus $33.50 database verification fee (total ~391% APR for 2-week $605 loan) | 605 | 120 | medium |
| Iowa | permitted | $15 maximum on first $100 of check face amount, then $10 per each subsequent $100 increment | $500 | 31 | high |
| Kansas | permitted | 15% of cash advance amount + 3% per month of loan proceeds after maturity date | 500 | 30 | high |
| Kentucky | permitted | $15 per $100 on face amount of deferred deposit check (15% equivalent) | 500 | 60 | high |
| Louisiana | permitted | Fee not to exceed 16.75% of face amount or $45 (whichever is lower) + 36% annual rate for up to one year after maturity, then 18% annual rate thereafter | 350 | 30 | high |
| Maine | permitted | 30% APR on balances ≤$2,000; 24% APR on $2,000-$4,000; 18% APR on >$4,000 | unknown | unknown | medium |
| Maryland | prohibited | 24%/yr with signed written agreement (unsecured/personal property loans); 6%/yr default without one | unknown | unknown | high |
| Massachusetts | prohibited | 12%/yr on loans <=$6,000 (interest+fees combined) unless lender holds a Small Loan license | unknown | unknown | high |
| Michigan | permitted | 15% on first $100, 14% on second $100, 13% on third $100, declining to 11% on amounts over $500, plus database verification fees allowed | 600 | 31 | high |
| Minnesota | permitted | $5.50 on amounts up to $50, increasing to 6% of loan proceeds on amounts $250-$350, 50% APR cap for consumer small loans, post-maturity rate capped at 2.75% monthly. Short-term loans up to $1,300 at 50% APR with 36% APR requiring additional compliance. | 350 | 30 | high |
| Mississippi | permitted | $20 per $100 advanced for delayed deposit checks under $250; $21.95 per $100 advanced for checks $250-$500 (inclusive of all fees) | 500 | 30 | high |
| Missouri | permitted | 75% of initial loan amount in accumulated interest and fees across entire loan term and all renewals | 500 | 31 | high |
| Montana | permitted | 36% per annum, exclusive of insufficient funds fees | 300 | 31 | high |
| Nebraska | permitted | 36% maximum annual percentage rate (violations void and uncollectible) | 500 | 34 | high |
| Nevada | permitted | No APR cap specified in statute | 25% of expected gross monthly income (income-based, not fixed dollar amount) | 35 | high |
| New Hampshire | restricted | 36% APR cap (interest only, no other fees permitted); max loan principal $500 | 500 | 30 | high |
| New Jersey | prohibited | 16%/yr with signed written contract; 6%/yr default without one | unknown | unknown | high |
| New Mexico | prohibited | N/A - payday lending prohibited | unknown | unknown | high |
| New York | prohibited | unknown - general usury limits apply to consumer loans | unknown | unknown | high |
| North Carolina | prohibited | N/A - payday lending prohibited | unknown | unknown | high |
| North Dakota | permitted | 20% of the amount paid to the customer by the licensee | 500 | 60 | high |
| Ohio | permitted | 28% annual interest rate; monthly maintenance fee capped at the lesser of 10% of original loan amount or $30 | 1000 | 365 | high |
| Oklahoma | permitted | $15 per $100 for first $300 of loan; $10 per $100 for loan amounts exceeding $300 | 500 | 45 | high |
| Oregon | permitted | 36% per annum (excluding one-time origination fee) | 50000 | 60 | high |
| Pennsylvania | prohibited | unknown | unknown | unknown | high |
| Rhode Island | permitted | 10% of funds advanced for deferred deposit fee; 3-10% for check-cashing fees depending on check type (personal checks capped at 10% or $5, whichever is greater) | 500 | unknown | high |
| South Carolina | permitted | 15% of the face amount of check | 550 | 31 | high |
| South Dakota | permitted | 36%% APR cap on total interest, fees, and charges (S.D. Codified Laws Ch. 54-4, per Initiated Measure 21) | 500 | unknown | high |
| Tennessee | permitted | 15% of the face amount of check (to defray operational costs) | 500 | 31 | high |
| Texas | permitted (via CSO/CAB licensing model) | No statutory cap on CSO broker fee -- fee-based, market-set. Direct lending is capped at 10%/yr under Fin. Code Ch. 342, but Credit Access Businesses operate as fee-charging brokers under Ch. 393, not direct lenders, and are exempt from the direct-loan rate cap. | depends on structure; reference base amounts of $100-$200 mentioned | 180_days_approximately—For loans ≤$100: lesser of 1 month per $10 advance or 6 months; for loans >$100: 1 month per $20 advance | high |
| Utah | permitted | unknown—NCSL source explicitly states 'No specific percentage cap'; fee-based structure likely but not detailed in accessible sources | unknown | 70_days_maximum—Rollover restrictions limit total duration to 10 weeks (70 days) from initial loan execution | medium |
| Vermont | prohibited | unknown—Vermont has no specific payday lending statutes; general consumer loan interest rate caps apply but specific percentage not detailed in NCSL payday source | N/A | N/A | high |
| Virginia | permitted | not to exceed 36% APR | 2500 | 720 | medium |
| Washington | permitted | 15% of first $500 principal + 10% of amounts exceeding $500 | 700 | 45 | high |
| West Virginia | prohibited | unknown - falls under general consumer loan rates, not payday-specific statutes | unknown | unknown | medium |
| Wisconsin | permitted | No limit before maturity; 2.75% per month maximum after maturity date | unknown | 90 | high |
| Wyoming | permitted | Greater of $30 or 20% per month on principal balance | unknown | 30 | high |
Full sourcing (exact statute citations, source URLs, and notes) for each state is available in our underlying dataset. Contact us via the About page if you need a specific citation.
How to Read This Table
Status is one of: permitted (payday lending operates under a specific state statute), restricted (permitted in name but capped low enough that traditional payday lending is not commercially viable; often 36%), or prohibited (no payday-specific statute; general consumer loan usury caps apply instead, which are typically far below what a payday lender needs to operate).
Rate Cap shows the state's actual rule as written, which is either a flat fee per $100 borrowed, or a stated APR cap. These aren't directly comparable to each other at a glance, which is exactly why the calculator above converts a flat fee into an effective APR so you can compare it to the states using a straight percentage cap.
A handful of states have unusual structures worth calling out explicitly rather than flattening into the table. Some permit payday-style lending only through licensing workarounds (for example, a Credit Services Organization model that charges a broker fee on top of a third-party loan, rather than a direct payday-loan statute). We've noted this per state where we found this.
FAQs
Which states ban payday loans outright?
Roughly a dozen states plus DC either have no payday-lending-enabling statute (so general usury law applies) or cap rates low enough (often 36% APR) that traditional payday lending isn't commercially viable. See the status column in the table above for the current list. This changes periodically as state legislatures act, so always confirm current status for your specific state.
Why do payday loan fees look so much smaller than the APR?
Payday lenders in fee-based states charge a flat fee per $100 borrowed rather than a stated interest rate. A $15 fee on a $100 loan sounds like 15%, but that fee covers only a two-week term, not a year. Annualized (multiplied out to a 365-day basis), the same fee structure commonly works out to 300-500%+ APR. The calculator on this page does that conversion for you.
Is a 36% APR cap effectively a ban on payday loans?
In practice, yes, for most traditional payday lenders. Payday lending's business model generally depends on fees that annualize well above 36% because of the short loan term and higher default risk on small, uncollateralized loans. States that impose a 36% APR cap on small-dollar loans typically see traditional payday lenders exit the market, though some installment-loan or bank-partnership products may still operate within that cap.
How current is this data?
Each state row shows the date the data was retrieved and a confidence level. State legislatures change these rules periodically (sometimes via ballot initiative, sometimes via statute amendment), and our source material doesn't cover every field for every state. Treat this as a starting point and confirm current rules with your state's banking or financial regulator before making a borrowing decision.
What if my state isn't clearly permitted or prohibited?
A few states regulate small-dollar lending through general consumer loan law rather than a payday-specific statute, or use licensing structures (like Credit Services Organizations) that create an effective workaround to a nominal rate cap. Where we identified this, it's called out in that state's notes. When in doubt, contact your state's Department of Financial Institutions, Division of Banking, or Attorney General's consumer protection office directly.
Key Takeaways
- Regulation is entirely state-by-state: there's no federal APR cap for civilian borrowers, so your state of residence determines the rules that apply to you.
- Convert fees to APR before comparing: a flat per-$100 fee and a stated APR cap aren't directly comparable until you annualize the fee. Use the calculator above.
- "Restricted" often means "effectively prohibited": a 36% APR cap is usually enough to push traditional payday lenders out of a state entirely.
- Verify before you borrow: this table is a sourced starting point, not a substitute for checking with your state regulator, because laws and specific figures change.
- Cheaper alternatives usually exist: see our full guide to payday loan alternatives, including credit union PALs capped at 28% APR.
Sources and Further Reading
Related Reading
- The Usury of Payday Loans (full guide, APR math, and cheaper alternatives)
- Understanding Your Financial Statements
- What is Deficit Spending?
- About Outspeaking — our sourcing standards