Primary Statutory Authority50-State Comparative ResearchUpdated September 2026
State Usury Laws & Legal Maximum Interest Rates (2026)
Usury laws establish the maximum interest rate that lenders can legally charge on personal loans, promissory notes, and private transactions. Charging interest in excess of state ceilings results in forfeiture of interest or principal, and can constitute criminal usury.
50 States IncludedPrimary Code CitationsFree Document Templates Available
Interactive Research Table
State-by-State Statutory Breakdown
Tip: Use the search bar below to filter instantly by state
50 of 50 states
| State | Legal Rate (No Agreement) | Maximum Contract Rate | Penalties for Usury | Governing Usury Law | Statute Citation | Free Template |
|---|---|---|---|---|---|---|
ALAlabama | 6% per year | 8% per year (loans <= $2k) / unconstrained above | Forfeiture of all interest; principal only recoverable | Ala. Code § 8-8-1 | Ala. Code § 8-8-1 | Free Form |
AKAlaska | 10.5% per year | 5% above Fed Reserve discount rate (loans < $25k) | Forfeiture of all interest + 2x interest paid recoverable | Alaska Stat. § 45.45.010 | Alaska Stat. § 45.45.010 | Free Form |
AZArizona | 10% per year | Any rate agreed in writing (unlimited) | Interest above legal default void without contract | Ariz. Rev. Stat. § 44-1201 | Ariz. Rev. Stat. § 44-1201 | Free Form |
ARArkansas | 6% per year | 17% per year (Constitutional Amendment 89) | Contract void as to all unpaid interest; twice interest paid recoverable | Ark. Const. amend. 89 § 3 | Ark. Const. amend. 89 § 3 | Free Form |
| 7% per year | 10% per year (personal/consumer loans) / 5% + Fed rate (business) | Treble damages (3x interest paid) + forfeiture of all interest | Cal. Const. art. XV § 1 | Cal. Const. art. XV § 1 | Free Form | |
COColorado | 8% per year | 12% per year (Consumer Credit Code) / 45% criminal ceiling | Refund of excess interest + civil penalties | Colo. Rev. Stat. § 5-12-101 | Colo. Rev. Stat. § 5-12-101 | Free Form |
| 8% per year | 12% per year (strict civil cap) | Total contract unenforceable (forfeiture of principal and interest) | Conn. Gen. Stat. § 37-1 | Conn. Gen. Stat. § 37-1 | Free Form | |
DEDelaware | 5% over Fed discount rate | Unlimited (any rate agreed in writing for loans > $100k) | Borrower recovers greater of 3x excess interest or $500 | Del. Code tit. 6 § 2301 | Del. Code tit. 6 § 2301 | Free Form |
FLFlorida | Floating statutory rate (approx 9.09%) | 18% per year (loans <= $500k) / 25% (over $500k) | Forfeiture of all interest; criminal usury above 25% | Fla. Stat. § 687.03 | Fla. Stat. § 687.03 | Free Form |
GAGeorgia | 7% per year | 16% per year (loans <= $3k) / unlimited above $250k | Forfeiture of all interest; criminal usury above 5% per month (§ 7-4-18) | Ga. Code § 7-4-2 | Ga. Code § 7-4-2 | Free Form |
HIHawaii | 10% per year | 12% per year (written consumer contracts) | Forfeiture of all interest; civil damages | Haw. Rev. Stat. § 478-4 | Haw. Rev. Stat. § 478-4 | Free Form |
IDIdaho | 12% per year | Any rate agreed in writing (unlimited for non-consumer) | Excess interest credited against principal | Idaho Code § 28-22-104 | Idaho Code § 28-22-104 | Free Form |
ILIllinois | 5% per year | 9% per year (unlimited for corporate/business/bank loans) | Forfeiture of all interest + twice total interest paid | 815 ILCS 205/4 | 815 ILCS 205/4 | Free Form |
INIndiana | 8% per year | 21% per year (supervised loan cap / UCCC) | Forfeiture of excess charges + statutory damages | Ind. Code § 24-4.6-1-102 | Ind. Code § 24-4.6-1-102 | Free Form |
IAIowa | Floating statutory rate (typically 5–8%) | Floating rate set monthly by Superintendent of Banking | Forfeiture of all interest + 8% statutory penalty to state fund | Iowa Code § 535.2 | Iowa Code § 535.2 | Free Form |
KSKansas | 10% per year | 15% per year (or UCCC consumer cap) | Forfeiture of excess interest + attorney fees | Kan. Stat. § 16-207 | Kan. Stat. § 16-207 | Free Form |
KYKentucky | 8% per year | 8% per year (loans <= $15k) or 4% over discount rate | Forfeiture of all interest; borrower recovers excess interest paid | Ky. Rev. Stat. § 360.010 | Ky. Rev. Stat. § 360.010 | Free Form |
| Floating judicial rate | 12% per year (conventional interest rate cap) | Forfeiture of all interest | La. Civ. Code art. 2924 | La. Civ. Code art. 2924 | Free Form | |
MEMaine | 15% per year | Any rate agreed in writing (unless regulated consumer credit) | Forfeiture of excess interest | Me. Rev. Stat. tit. 9-A § 2-201 | Me. Rev. Stat. tit. 9-A § 2-201 | Free Form |
MDMaryland | 6% per year | 8% (oral) / 24% (written contract for unsecured loan) | Forfeiture of 3x excess interest paid or $500 | Md. Code Com. Law § 12-102 | Md. Code Com. Law § 12-102 | Free Form |
| 6% per year | 20% per year (criminal usury ceiling unless registered with AG) | Contract unenforceable; criminal usury felony | Mass. Gen. Laws ch. 271 § 49 | Mass. Gen. Laws ch. 271 § 49 | Free Form | |
MIMichigan | 5% per year | 7% per year (individual loans) / 25% criminal usury cap | Forfeiture of all interest; borrower pays principal only | Mich. Comp. Laws § 438.31 | Mich. Comp. Laws § 438.31 | Free Form |
| 6% per year | 8% per year (contracts under $100k) | Contract void; forfeiture of principal and interest | Minn. Stat. § 334.01 | Minn. Stat. § 334.01 | Free Form | |
| 8% per year | 10% per year or 5% over Fed discount rate | Forfeiture of all interest (and principal if interest > 100%) | Miss. Code § 75-17-1 | Miss. Code § 75-17-1 | Free Form | |
MOMissouri | 9% per year | 10% per year or market rate (unlimited for corporate loans) | Forfeiture of all interest + twice excess interest paid | Mo. Rev. Stat. § 408.030 | Mo. Rev. Stat. § 408.030 | Free Form |
MTMontana | 10% per year | 15% per year (or 6% over NY Fed discount rate) | Forfeiture of all interest + twice all interest paid | Mont. Code § 31-1-107 | Mont. Code § 31-1-107 | Free Form |
NENebraska | 6% per year | 16% per year | Forfeiture of all interest | Neb. Rev. Stat. § 45-101.03 | Neb. Rev. Stat. § 45-101.03 | Free Form |
NVNevada | Prime rate + 2% | Any rate agreed upon in writing (no statutory cap) | Rate defaults to statutory prime + 2% if unwritten | Nev. Rev. Stat. § 99.040 | Nev. Rev. Stat. § 99.040 | Free Form |
| 10% per year | Unlimited (any rate agreed upon in writing) | Statutory default rate applies if not documented | N.H. Rev. Stat. § 336:1 | N.H. Rev. Stat. § 336:1 | Free Form | |
| 6% per year | 16% per year (civil cap) / 30% individual criminal cap / 50% corporate | Forfeiture of all interest; criminal penalties above 30% | N.J. Stat. § 31:1-1 | N.J. Stat. § 31:1-1 | Free Form | |
| 15% per year | Unlimited for commercial / small loan caps apply | Forfeiture of all interest | N.M. Stat. § 56-8-3 | N.M. Stat. § 56-8-3 | Free Form | |
NYNew York | 16% per year (Civil Usury Cap) | 16% civil usury / 25% criminal usury felony threshold | Note void; lender forfeits both principal and interest | N.Y. Gen. Oblig. Law § 5-501 | N.Y. Gen. Oblig. Law § 5-501 | Free Form |
| 8% per year | 16% per year (loans <= $25k) / floating market index | Forfeiture of all interest + twice interest paid recoverable | N.C. Gen. Stat. § 24-1 | N.C. Gen. Stat. § 24-1 | Free Form | |
| 6% per year | 5.5% over Fed discount rate | Forfeiture of all interest + 25% of principal | N.D. Cent. Code § 47-14-09 | N.D. Cent. Code § 47-14-09 | Free Form | |
OHOhio | Floating rate set annually by tax commissioner | 8% per year (contracts under $100k; exceptions apply) | Excess interest credited against principal | Ohio Rev. Code § 1343.01 | Ohio Rev. Code § 1343.01 | Free Form |
OKOklahoma | 6% per year | 10% per year (non-consumer) / UCCC schedules for consumer | Borrower recovers up to twice the loan charges | Okla. Stat. tit. 15 § 266 | Okla. Stat. tit. 15 § 266 | Free Form |
OROregon | 9% per year | 12% per year or 5% over Fed discount rate (loans < $50k) | Forfeiture of all interest to state school fund | Or. Rev. Stat. § 82.010 | Or. Rev. Stat. § 82.010 | Free Form |
| 6% per year | 6% per year (loans <= $50k; real estate loans exempt) | Treble excess interest damages + forfeiture of excess | 41 Pa. Stat. § 201 | 41 Pa. Stat. § 201 | Free Form | |
| 12% per year | 21% per year (or 9% over domestic index) | Contract void; forfeiture of principal and interest | R.I. Gen. Laws § 6-26-2 | R.I. Gen. Laws § 6-26-2 | Free Form | |
| 8.75% per year | Any rate agreed in writing (unless restricted by consumer code) | Forfeiture of all interest + twice interest paid | S.C. Code § 34-31-20 | S.C. Code § 34-31-20 | Free Form | |
| 10% per year | Any rate agreed upon in writing (no usury limit on written loans) | Default rate applies if no written agreement | S.D. Codified Laws § 54-3-1.1 | S.D. Codified Laws § 54-3-1.1 | Free Form | |
| 10% per year | Formula rate (prime + 4%, max 24% per year) | Forfeiture of all interest; borrower pays principal only | Tenn. Code § 47-14-103 | Tenn. Code § 47-14-103 | Free Form | |
TXTexas | 6% per year (starts 30 days after due date) | 18% per year (floating cap up to 28% for business/credit) | 3x excess interest paid (minimum $2,000); forfeiture of principal if interest > 2x max | Tex. Fin. Code § 302.001 | Tex. Fin. Code § 302.001 | Free Form |
UTUtah | 10% per year | Any rate agreed in writing (no cap on business/written contracts) | Statutory 10% rate applies if unwritten | Utah Code § 15-1-1 | Utah Code § 15-1-1 | Free Form |
VTVermont | 12% per year | 12% per year (single payment) / 24% per year (installment loans) | Forfeiture of all interest and 50% of principal | Vt. Stat. tit. 9 § 41a | Vt. Stat. tit. 9 § 41a | Free Form |
VAVirginia | 6% per year | 12% per year (loans under $5k or consumer; business exempt) | Lender forfeits all interest + twice excess interest paid | Va. Code § 6.2-303 | Va. Code § 6.2-303 | Free Form |
| 12% per year | 12% per year or 4% over treasury bill rate (whichever is higher) | Lender forfeits all interest + first principal deduction | Wash. Rev. Code § 19.52.020 | Wash. Rev. Code § 19.52.020 | Free Form | |
| 6% per year | 8% per year (or floating treasury index) | Forfeiture of all interest + 4x excess interest paid | W. Va. Code § 47-6-5 | W. Va. Code § 47-6-5 | Free Form | |
| 5% per year | Any rate agreed in writing (unlimited for non-consumer loans) | Forfeiture of all interest and up to $2,000 principal penalty | Wis. Stat. § 138.04 | Wis. Stat. § 138.04 | Free Form | |
WYWyoming | 7% per year | 10% per year (unless Uniform Consumer Credit Code applies) | Forfeiture of excess interest | Wyo. Stat. § 40-14-106 | Wyo. Stat. § 40-14-106 | Free Form |
Legal Context & Practical Analysis
Key Statutory Insights Across All 50 States
In the American federal system, state legislatures exercise broad police powers over private property, commercial contracting, and probate procedure. Consequently, uniform national legal templates almost never satisfy statutory prerequisites in all 50 jurisdictions.
When drafting agreements, landlords, business owners, and individuals must navigate three distinct layers of legal authority:
- State Statutes: Establish mandatory statutory ceilings, notice durations, and required disclosure language that parties cannot waive by private contract.
- Local Municipal Ordinances: Cities (such as San Francisco, New York City, or Chicago) frequently enact tenant protections and rent stabilization codes that are stricter than state minimums.
- Statutory Execution Formalities: Failure to comply with state-specific signing, notary, or attesting witness rules can render an instrument completely void in probate or civil court.
Questions & Answers
State Usury Laws — Frequently Asked Questions
What is the difference between the legal rate and the contract rate?
The legal rate is the statutory interest rate applied by law when an obligation or loan does not specify an interest rate in writing. The contract rate is the maximum interest rate parties can legally agree upon in a written promissory note.
What is the penalty for charging usurious interest?
In most states (such as Florida, California, and Texas), charging interest above the legal ceiling forfeits all interest, meaning the lender may only collect principal. In New York, usurious loans are completely void, forfeiting both principal and interest.
Do state usury laws apply to business loans?
Most states provide broad exemptions from civil usury caps for corporations, LLCs, business-purpose loans, and loan amounts exceeding statutory thresholds (often $100,000 or $250,000).
Explore More 50-State Studies
Related Statutory Comparison Guides
🏠 Real Estate
Security Deposit Limits
50-state statutory guide to security deposit limits, return deadlines, and banking escrow requirements for residential landlords and tenants.
View 50-state table →
🏠 Real Estate
Eviction Notice Timelines
Statutory 50-state table of eviction notice periods: nonpayment pay-or-quit days, lease violation cure periods, and unconditional quit requirements.
View 50-state table →
⚖️ Personal & Finance
POA Execution Rules
50-state statutory signing formalities for Financial Powers of Attorney: notary acknowledgment rules, witness counts, and statutory warnings.
View 50-state table →