Maximum interest rate by state means two numbers for each state: the legal rate that applies when no rate was written down, and the most a lender and borrower may agree to in a written contract. This page puts both numbers for all 50 states in one place, so you can check what your state allows after a collection letter, a court summons, a frozen-account notice or a loan offer.
The answer is different in each state because each legislature wrote its own law. Some states use a fixed percentage, some tie the cap to a Federal Reserve or Treasury rate, and some do not set one number at all. Every row in this guide to the maximum interest rate by state comes from that state’s own verified guide on this site.
Click any state below for its full maximum interest rate by state guide, with the statute citation, the sources and the figures behind each row.
Quick Facts — Maximum interest rate by state (2026)
- Lowest legal rate: Illinois, Iowa, Michigan and Wisconsin each set the legal rate at 5% per year when no rate is written. In Michigan, a written agreement can raise it to 7% per year.
- Highest figures in the table: Florida’s legal rate is 18% per year on obligations up to $500,000. Colorado’s written-contract cap is 45% per year, the most that may be agreed there.
- Most common legal rate: 13 states set the legal rate at 6% per year: Alabama, Maine, Maryland, Massachusetts, Minnesota, Nebraska, New Jersey, North Dakota, Oklahoma, Pennsylvania, Texas, Virginia and West Virginia. In 19 states the written-contract cap is not set as one number.
- The notable outlier: Arkansas sets its 17% per year limit in the state constitution, not just in a statute. At the other end, South Dakota has no maximum when a rate is agreed in writing, and Nevada has no general limit on rates agreed in a contract.
- What changes your answer: Whether the rate was put in writing matters most. Illinois goes from 5% to 9% per year with a written contract. Loan size also matters: Florida allows 25% on loans over $500,000, and Georgia sets 16% per year on loans of $3,000 or less.
- True in every state: The maximum interest rate by state is set by each state’s own law. The number in this table is only the headline, and the state guide explains when it applies and when it does not.
- Free help: Your local legal aid office, your state attorney general’s consumer protection office and your state banking regulator can explain how the rule applies to your own paperwork, at no cost.
Maximum interest rate by state — All 50 States Compared
The maximum interest rate by state table below shows the two figures that frame the question in every state. Here is what each column means:
Legal Rate (No Rate Written) = the interest a court applies to a debt when the parties never agreed a rate in writing.
Written-Contract Cap = the most a lender and borrower can agree to in writing under the state’s general usury statute; licensed lenders and out-of-state card issuers follow other rules.
| State | Legal Rate (No Rate Written) | Written-Contract Cap |
|---|---|---|
| Alabama | 6% per year | 8% if agreed in writing |
| Alaska | 10.5% per year | by express contract, up to 5 points over the Federal Reserve rate set in the statute |
| Arizona | 10% per year | not set as one number; see guide |
| Arkansas | 17% per year — a cap set in the state constitution | 17% per year |
| California | 7% per year | not set as one number; see guide |
| Colorado | 8% per year when no rate is agreed | 45% per year is the most that may be agreed |
| Connecticut | 8% legal rate | 12% per year |
| Delaware | 5 points over the Federal Reserve discount rate | 5 points over the Federal Reserve discount rate |
| Florida | 18% per year on obligations up to $500,000 | 18% per year (25% on loans over $500,000) |
| Georgia | 7% per year when the agreement is not in writing | 16% per year on loans of $3,000 or less; for $3,000 to $250,000 the parties may set any… |
| Hawaii | 10% per year when not in writing | 12% per year in a written contract |
| Idaho | 12% per year when there is no written contract | not set as one number; see guide |
| Illinois | 5% per year without a written contract | 9% per year in a written contract |
| Indiana | see guide | not set as one number; see guide |
| Iowa | 5% per year when not in writing | set each month by the Superintendent of Banking at 2 points above the average 10-year… |
| Kansas | 10% per year | 15% for a bond, bill or promissory note |
| Kentucky | 8% per year absent an agreement | in writing, up to 4 points over the Federal Reserve discount rate on 90-day commercial… |
| Louisiana | 12% per year | not set as one number; see guide |
| Maine | 6% per year unless otherwise agreed | not set as one number; see guide |
| Maryland | 6% per year | 8% per year in a written agreement |
| Massachusetts | 6% per year when no rate is agreed | not set as one number; see guide |
| Michigan | 5% per year | 7% per year with a written agreement |
| Minnesota | 6% per year | up to 8% per year in a written contract |
| Mississippi | 8% per year | not set as one number; see guide |
| Missouri | 9% per year absent an agreement | 10% per year in writing, or the published market rate if higher |
| Montana | 10% per year | 15% per year in a written agreement |
| Nebraska | 6% per year | 16% per year in a written contract |
| Nevada | the prime rate at the largest bank in Nevada plus 2 points when there… | no general limit on rates agreed in a contract |
| New Hampshire | 10% per year | written contracts may set other rates |
| New Jersey | 6% per year without a contract | 16% per year with a contract |
| New Mexico | 15% per year without a written contract | not set as one number; see guide |
| New York | 16% per year | 16% per year |
| North Carolina | 8% per year | higher rates may be contracted on loans under $25,000 within limits set by statute; above… |
| North Dakota | 6% per year | in writing, up to 5.5 points above the average 6-month Treasury bill rate, never less… |
| Ohio | 8% per year | not set as one number; see guide |
| Oklahoma | 6% per year in the absence of a contract | not set as one number; see guide |
| Oregon | 9% per year unless otherwise agreed | not set as one number; see guide |
| Pennsylvania | 6% per year on amounts of $50,000 or less | not set as one number; see guide |
| Rhode Island | 12% per year unless a different rate is stipulated | 21% per year |
| South Carolina | 8.75% per year | not set as one number; see guide |
| South Dakota | 12% per year absent an agreement | no maximum when agreed in writing |
| Tennessee | 10% per year unless otherwise provided by contract | not set as one number; see guide |
| Texas | 6% per year when no rate is specified | 10% per year |
| Utah | 10% per year when no rate is agreed | the parties to a written, verbal or implied contract may agree on any rate |
| Vermont | 12% per year | not set as one number; see guide |
| Virginia | 6% per year | 12% per year |
| Washington | 12% per year in the absence of a written agreement | the higher of 12% or 4 points above the 26-week Treasury bill yield published by the… |
| West Virginia | 6% per year unless the parties contract otherwise in writing | not set as one number; see guide |
| Wisconsin | 5% per year unless agreed in writing | not set as one number; see guide |
| Wyoming | 7% per year | not set as one number; see guide |
Each maximum interest rate by state cell comes from the verified data behind that state’s own guide on this site, which prints the figure with the statute and the date it was read. Where a cell says “see guide,” the state’s rule needs more than one line, and the guide covers it in full.
Maximum interest rate by state: What Every State Shares
Almost every state builds its rule the same way. First comes a default, often called the legal rate, which fills the gap when a debt exists but nobody wrote down an interest rate. Hawaii’s legal rate, for example, is 10% per year when the agreement is not in writing, and Kansas sets its legal rate at 10% per year.
Then comes a ceiling on what the parties may agree to in a written contract, which is the part most people mean when they search for the maximum interest rate by state. In Hawaii that ceiling is 12% per year in a written contract. In Montana the two figures are 10% and 15% per year.
The idea behind this two-part design is simple. When nothing was agreed, the state picks a fair middle rate so neither side has to argue. When something was agreed in writing, the state lets the parties go higher, up to a limit.
A few states, such as Delaware and New York, use the same figure for both numbers. Others leave the written cap open, either because the cap depends on the type of loan or because the parties may set any rate, as in Utah.
Maximum interest rate by state: What Makes It Different
The first thing that moves the maximum interest rate by state is the statute itself. Some states write a fixed figure, like Virginia’s 12% per year or Rhode Island’s 21% per year. Others link the cap to an outside benchmark, so the number changes over time. Delaware uses 5 points over the Federal Reserve discount rate, Kentucky uses up to 4 points over a Federal Reserve rate, Washington uses the higher of 12% or 4 points above the 26-week Treasury bill yield, and Iowa’s cap is set each month by the Superintendent of Banking.
If your state uses a moving benchmark, the cap on your contract may depend on the date it was signed.
The second thing is your own situation. A written contract can change the rate that applies to you, as it does in New Jersey, where the figure is 6% per year without a contract and 16% per year with one. The size of the debt can matter too: Pennsylvania’s 6% legal rate applies to amounts of $50,000 or less, and North Carolina treats loans under $25,000 differently.
Many specific products, such as credit cards, bank loans and payday loans, follow separate rules that the state guides cover, so the general maximum interest rate by state may not be the number on your bill.
Find the rate your paperwork actually shows before you compare it to any cap. Look for a written interest rate in the original agreement, the date it was signed and the amount borrowed, because those three facts decide which line of your state’s rule applies.
Maximum interest rate by state: What to Do Next
Start by finding your state in the table and noting both numbers. Then gather your documents: the original contract or loan offer, any letter or court papers you received, and anything that shows the interest rate being charged. If the rate was never written down, the legal rate is usually the starting point.
If it was written down, compare it with the written-contract cap, and remember that some states do not use one number. This page describes what the maximum interest rate by state allows each side to do. It does not tell you whether to pay, settle, dispute or ignore any particular debt.
Next, open your state’s own page. Each state page carries the statute citation, the sources used and the date each figure was verified, so you can read the law yourself or show it to someone helping you.
The site’s free tools apply your state’s rule to your own numbers, such as the balance, the rate and the dates, so you can see what the maximum interest rate by state means for your case.
If the question is about a court case or a frozen account, a legal aid office or your state attorney general’s consumer office can review your paperwork for free.
Look up the rate cap for your situation
Pick the state and whether a rate was written down; the lookup shows the legal rate, the contract cap and the criminal usury line.
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Official Sources
- Consumer Financial Protection Bureau, card interest rates: www.consumerfinance.gov — why an out-of-state card can charge more than the state cap
- Legal Information Institute, Cornell Law School: www.law.cornell.edu — what usury means in law
- State statutes and agency pages: linked inside each state guide, with the date each was read
Maximum interest rate by state data compiled from the verified figures behind each state’s guide on this site, which cites the statute and the source with the date each figure was read. Figures change by statute and by year, so each row links to the page that explains it. Last reviewed October 2026.
Disclaimer: This page is for general informational purposes only and is not legal advice. No attorney-client relationship is created by reading it. Rules, deadlines and figures vary by state and change over time. For advice about your specific situation, consult a licensed attorney in your state.