Texas Maximum Interest Rate: Usury Laws and Legal Limits — Best Proven Guide (2026)

Texas maximum interest rate is the answer to “maximum interest rate allowed by law in Texas”. This guide gives the Texas figures in a dated table, explains in plain words what they mean, walks through the steps, and points to the official forms and free help.

The Texas maximum interest rate figures on this page were verified against a dated 50-state compilation and Texas sources as of October 2026; the statute named here is where to check them yourself.

What the Texas Maximum Interest Rate Means

In Texas, usury means a lender contracting for, charging or collecting more interest than the law allows. The legal rate is a fallback. It applies only when the parties never agreed on a rate, and in most cases it is applied to money past due. The contract cap is the highest rate a written agreement may set, unless another law allows a higher rate.

The Texas maximum interest rate Figures

The Texas maximum interest rate figures on this page were verified against a dated 50-state compilation and Texas sources as of October 2026; the statute named here is where to check them yourself.

Who the Texas Maximum Interest Rate Applies To

The general cap covers ordinary written loans and credit deals that no more specific Texas law governs, including many private and person-to-person loans. Banks chartered in other states or under federal law can generally charge the rate their home state allows (12 U.S.C. 85).

Lenders licensed by the Office of Consumer Credit Commissioner, such as installment, auto finance and pawn lenders, follow their own ceilings in Finance Code chapters 342, 345, 347, 348 and 371. Credit card and other open-end accounts follow separate rules, covered below.

Credit Cards and the Texas Maximum Interest Rate

Federal law lets a national bank charge the interest rate its home state allows to borrowers anywhere in the country. Many card issuers are based in states with high or no rate limits, so a card rate well above the Texas contract cap is usually legal. Texas-based card lenders generally fall under the separate open-end credit rules in Finance Code chapters 303 and 346.

What Happens When a Lender Breaks the Texas Maximum Interest Rate

On consumer (personal, family or household) loans, a lender that charges too much may owe the borrower three times the excess interest, or a smaller fixed amount set in Tex. Fin. Code 305.001, whichever is greater. The lender may also owe attorney’s fees (305.005).

If the lender charged more than twice the allowed amount, it may also lose the principal and all interest and fees charged (305.002), and it can face a misdemeanor charge carrying a fine of up to $1,000 per contract (305.008).

Before suing, the borrower generally must give the lender written notice at least 61 days ahead, and a lender that corrects the violation within 60 days is generally not liable (305.006). Confirm with the statute, the court clerk or an attorney.

How to Check a Loan Against the Texas Maximum Interest Rate

1) Find the annual percentage rate (APR) and the finance charge in the federal Truth in Lending disclosure on your contract. 2) Find out who the lender is: a bank, a lender licensed in Texas, or a private party. Then check which Finance Code chapter sets their ceiling. 3) Add up every fee that counts as interest, then compare the yearly rate with that chapter’s ceiling.

Use the general cap only if no other chapter applies. 4) If the numbers don’t add up, confirm with the OCCC or an attorney.

Where to Report a Loan Above the Texas Maximum Interest Rate

The Texas Office of Consumer Credit Commissioner licenses non-bank consumer lenders and takes complaints online at occc.texas.gov/file-a-complaint, by phone at 800-538-1579, or by email at [email protected]. You can also file a complaint with the federal Consumer Financial Protection Bureau at consumerfinance.gov/complaint. Generally the OCCC will not step in once a matter is in court.

Common Mistakes With Texas maximum interest rate

The most common mistake is missing a deadline: court and creditor deadlines run whether or not you have read the papers, and a missed one usually cannot be undone. The second is relying on an old article or a friend’s experience in another state — the rules on this page differ from state to state and change often, which is why every figure here is dated.

The third is not keeping copies: every letter, form, receipt and bank statement may matter later, so keep them together and note the date you received each one.

Free Help With Texas maximum interest rate in Texas

You do not have to handle this alone or pay to get answers. The Texas court self-help center explains the forms and the steps, and court clerks can tell you where and how to file, although they cannot give legal advice.

Legal aid organizations represent many people at no cost when income is limited, and the Texas bar’s lawyer referral service can connect you with a lawyer for a low-cost first consultation. The Consumer Financial Protection Bureau accepts complaints about lenders, banks and debt collectors nationwide.

How We Verify the Texas maximum interest rate Figures

Every figure in the table above comes from our 50-state data file, built by reading the Texas statute or an official compilation of it, and each one carries the month we last checked it. Our writers do not change those figures; they explain them. When the law changes, the figure is updated and the date moves.

If something on this page no longer matches the statute, the statute controls — and we want to hear about it.

Texas also has optional rate ceilings under Finance Code Chapter 303. The OCCC sets a weekly ceiling that takes effect each Monday, and lenders covered by chapters 342, 345, 347, 348 or 353 may use it in place of their usual ceiling. The current week’s figure is published on occc.texas.gov. On commercial loans, the triple-damages remedy applies, but the fixed-amount alternative and the double-rate forfeiture do not (305.001(a-1), 305.002).

Next rung: the Texas payday loan page covers the short-term loans that have their own caps.

Texas Maximum Interest Rate FAQ

What is the maximum interest rate allowed by law in Texas?

Without an agreement: 6% per year when no rate is specified. In a written contract: 10% per year.

Official Texas Sources & Resources

• Statute and the Conference of State Bank Supervisors 50-state usury survey (verified by each state regulator) — maximum legal interest rate: https://www.csbs.org/50-state-survey-consumer-finance-laws
• Statute and the Conference of State Bank Supervisors 50-state usury survey (verified by each state regulator) — maximum legal interest rate: https://facts.csbs.org/consumer-finance-law/dev
• Texas statute / opinion: https://statutes.capitol.texas.gov/Docs/FI/htm/FI.305.htm
• Texas Office of Consumer Credit Commissioner (OCCC) – File a Complaint: https://occc.texas.gov/file-a-complaint
• Consumer Financial Protection Bureau: consumerfinance.gov

This Texas maximum interest rate guide was last verified against official Texas sources in October 2026. Rules change — confirm the current rule with the statute or a licensed attorney.

More Texas Money Rights Guides

• Texas Payday Loan Laws
• Texas Judgment Expiration
• Money Rights Guides for All 50 States

Disclaimer: This guide is general information, not legal or financial advice. Bonus Bank Daily is an independent educational resource — not a law firm, not a bank, not a debt collector and not a government agency. Judgment, levy, interest-rate and debt rules change — every figure here carries the date we verified it.

Confirm the current rule with the statute, the court clerk or a licensed attorney in your state before you act.