Payday loan laws by state

Payday loan laws by state vary widely, and where you live decides which rules cover you. Some states let these loans operate with a fee ceiling, while others prohibit them or set rates so low that lenders do not bother. If you cannot tell whether an offer is legal in your state, call now and we will look at it with you.

Payday loans allowed: 27 states
Installment loans only: 5 states
Not allowed: 19 states
Download: state-lending-laws.csv

Payday loans allowedInstallment only, or not allowed

Payday and installment loan laws by state

		Fee or rate cap, as written		Law
Alabama	Allowed	17.5 percent of the amount advanced is the highest fee allowed	$500	Ala. Code 5-18A-1 through 5-18A-22
Alaska	Allowed	an origination fee that is nonrefundable and capped at $5, plus the smaller of a fee up to $15 for every $100 advanced or 15 percent of the advance	At any one point, the outstanding amount is limited to $500	Alaska Stat. 06.50.010 through 06.50.900
Arizona	Not allowed	For consumer loans of three thousand dollars or less, the rate is thirty-six per cent.	None	A.R.S. 6-632
Arkansas	Not allowed	The rate shall stay at or below seventeen percent (17%) per annum.	None	Ark. Const. amend. 89, §§ 3, 6
California	Allowed	For a deferred deposit transaction, 15 percent of the check face amount is the maximum fee allowed.	The check itself can be written for no more than $300.	Cal. Fin. Code 23000 through 23106 (fee caps and limits: 23035 through 23037)
Colorado	Installment loans only	thirty-six percent is the maximum annual percentage rate for a finance charge.	At any time, no single lender may provide more than $500.	C.R.S. 5-3.1-101 through 5-3.1-123
Connecticut	Not allowed	An APR over thirty-six per cent, or over the maximum annual percentage rate allowed by the Military Lending Act if that is lower, for a small loan below five thousand dollars	None	Conn. Gen. Stat. 36a-555 through 36a-573
Delaware	Allowed	A licensee may collect and charge interest at daily, weekly, monthly, annual, or other periodic rates that the loan agreement provides.	$1,000 (a loan of $1,000 or less qualifies as a short-term consumer loan)	5 Del. C. 2227, 2229, 2235A to 2235C
Washington DC	Not allowed	in a written agreement to pay money later, the parties may agree on interest up to 24% a year	None	Sections 26-319(b), 26-901, 28-3301 and 28-3303 of the D.C. Code
Florida	Allowed	single-payment loans: fees over 10 percent of the provided currency or payment instrument; installment loans: 8 percent of the outstanding balance every two weeks; plus a verification fee	Both figures exclude fees: $500 is the face amount for single-payment loans, and $1,000 is for deferred presentment installment transactions.	Fla. Stat. 560.402 through 560.408
Georgia	Not allowed	Payday fees are not permitted; installment licensees may set interest no higher than 10 percent per annum of the contract’s face amount, and may add a loan fee plus a $3.00 monthly maintenance charge	None	O.C.G.A. 16-17-1 through 16-17-10
Hawaii	Installment loans only	total loan charges limited to half the principal; yearly interest no higher than thirty-six per cent; the monthly maintenance fee is $25, $30 or $35, varying with the original principal	$1,500	Haw. Rev. Stat. 480J-1 through 480J-45
Idaho	Allowed	The statute allows a licensee to charge a fee for each payday loan but sets no maximum amount.	No more than 25% of your gross monthly income may be borrowed, with a principal limit of $1,000.	Idaho Code 28-46-401 through 28-46-415
Illinois	Not allowed	charges above an annual percentage rate of 36% on whatever financed amount remains unpaid	None	815 ILCS 123 (Predatory Loan Prevention Act); 815 ILCS 122 (Payday Loan Reform Act)
Indiana	Allowed	On the first $250, the fee is 15%, then 13% on amounts over $250 up to $400, and 10% on amounts over $400 up to $550 (the $550 cap adjusts for inflation).	The statute sets $550 as the base, which the DFI rule lifts to $825, with a rise to $880 from January 1, 2027.	Ind. Code 37-3 (moved from Ind. Code 24-4.5-7 as of July 1, 2026)
Iowa	Allowed	Ten dollars applies to each subsequent one hundred dollar increment, while fifteen dollars applies to the first one hundred dollars of the check face amount.	Across the checks held from one borrower, the total cannot exceed $500.	Iowa Code chapter 533D
Kansas	Allowed	The charge must stay at or below 15% of the cash advance amount.	$500	K.S.A. 16a-2-404 (military borrowers: 16a-2-405)
Kentucky	Allowed	For a deferred deposit check, the fee is $15 per $100 of the face amount	All open deferred deposit transactions together may not exceed $600 in total proceeds (the figure moves with CPI each year and can never pass $850).	KRS 286.9-100, 286.9-140, 286.9-071
Louisiana	Allowed	Issued checks carry a fee cap of sixteen and seventy-five one hundredths percent based on their face amount.	$700 is the deferred presentment amount paid to the borrower, and $350 is the small loan amount. For September 1, 2026 to August 31, 2027, OFI's CPI-adjusted maximum for outstanding principal is $740 and $370 respectively.	La. R.S. 9:3578.1 through 9:3578.8
Maine	Allowed	Thirty percent a year on unpaid balances of the financed amount, counting only the part up to $2,000, or a minimum charge of $5 when up to $75 is financed, $15 when over $75 but under $250, or $25 when $250 or more	no cap aimed specifically at payday loans	32 M.R.S.A. 6138; 9-A M.R.S.A. sections 2-301, 2-401, 2-702 and 5-118
Maryland	Not allowed	When a loan's original principal balance is $2,000 or less, monthly interest runs 2.75 percent on the first $1,000 of unpaid principal balance and 2 percent on any unpaid principal balance over $1,000	None	Md. Code, Com. Law §§ 12-306, 12-314
Massachusetts	Not allowed	Calculated by the actuarial method, the charge is 23% per annum on unpaid balances of the amount financed, along with a $20 administrative fee.	None	Mass. Gen. Laws ch. 140, sections 96 through 114A; 209 CMR 26.01 (Small Loan Rate Order)
Michigan	Allowed	Fifteen percent applies to the first $100.00, fourteen percent to the second $100.00, thirteen percent to the third $100.00, twelve percent to the fourth $100.00, and eleven percent to the fifth and sixth $100.00, with any database verification fee added.	Each transaction allows a maximum of $600.	Mich. Comp. Laws 487.2121 through 487.2173 (fee and amount: 487.2153)
Minnesota	Allowed	The annual percentage rate can be as high as 50 percent. Section 47.603 must be followed for loans above 36 percent, and no other payments or charges are allowed.	Consumer small loans with one payment are limited to $350; consumer short-term loans are limited to $1,300.	Minn. Stat. 47.60 on consumer small loans, 47.601 on consumer short-term loans, 47.603 on ability to repay
Mississippi	Allowed	Checks of $250 or less carry Twenty Dollars ($20.00) for every One Hundred Dollars ($100.00) advanced. Checks over $250, up to $500, carry Twenty-one Dollars and Ninety-five Cents ($21.95) for every One Hundred Dollars ($100.00) advanced.	Per customer at any time, the most you can get is $500 including fees.	Miss. Code Ann. 75-67-501 through 75-67-539 (fee caps and limits: 75-67-519)
Missouri	Allowed	No borrower can be made to pay accumulated interest and fees totaling more than seventy-five percent of the original loan amount. That holds for any one loan over its entire term and all renewals.	You may owe no more than $500 at once to one lender and its affiliates.	Mo. Rev. Stat. §§ 408.500, 408.505, 408.506
Montana	Not allowed	For each deferred deposit loan made or carried, the fee may not exceed 36% per annum, not counting insufficient funds fees.	$300 (not including the fee)	Mont. Code Ann. 31-1-701 through 31-1-729
Nebraska	Not allowed	For a delayed deposit transaction, thirty-six percent is the highest annual percentage rate a licensee may impose.	A total of $500 across all checks held from a single borrower	Neb. Rev. Stat. 45-901 through 45-931
Nevada	Allowed	none: no usury law exists in Nevada, and these loans have no statutory cap on interest rates.	The customer's expected gross monthly income sets a ceiling: the loan and any other outstanding loans combined must not go over 25 percent of it.	Nev. Rev. Stat. Chapter 604A (NRS 604A.501 through 604A.5027 cover deferred deposit loans)
New Hampshire	Not allowed	Payday loans shall incur interest only, with no other fees or charges. The annual percentage rate for these loans must not exceed 36 percent.	The most principal a borrower can owe one lender is $500.	RSA 399-A:17 for payday lenders, within RSA 399-A:1 to 399-A:23 (N.H. Rev. Stat. Ann.)
New Jersey	Not allowed	The law permits no loan or forbearance with an interest rate above 30% per annum (50% for corporations).	None	N.J.S.A. 17:15A-47 (what check cashers may not do) and N.J.S.A. 2C:21-19, the criminal usury law
New Mexico	Not allowed	Permitted annual percentage rate above thirty-six percent, calculated under 12 CFR Part 1026 (Regulation Z), with ancillary product charges included	None	NMSA 1978, §§ 58-15-3, 58-15-17
New York	Not allowed	Sixteen per centum per annum shall be the maximum interest rate that section 5-501 in the general obligations law provides for.	None	N.Y. Gen. Oblig. Law 5-501, 5-511; N.Y. Banking Law 14-a, 340; N.Y. Penal Law 190.40
North Carolina	Not allowed	Licensed installment loans carry thirty-three percent (33%) a year on the part of the unpaid principal balance up to four thousand dollars ($4,000). No payday product is authorised.	None	N.C. Gen. Stat. 24-1.1, 53-166, 53-176, 53-190, 53-283 and the expired 53-281
North Dakota	Allowed	Licensees may charge for deferred presentment service, but only up to twenty percent of what the customer receives.	At most $500 may be disbursed in one transaction; a single customer's total outstanding obligations may not exceed $600 in all.	N.D. Cent. Code 13-08-01 through 13-08-14.1 (main rules: 13-08-02, 13-08-12)
Ohio	Installment loans only	The law sets interest at twenty-eight per cent per annum maximum, plus a monthly maintenance fee not exceeding thirty dollars or ten per cent of the original loan, whichever is less.	Each loan is limited to $1,000, and the total outstanding short-term principal for one borrower cannot exceed $2,500.	Ohio Rev. Code 1321.35 through 1321.48 (main rules: 1321.36, 1321.39, 1321.40, 1321.403, 1321.41)
Oklahoma	Installment loans only	seventeen percent (17%) per month is the maximum periodic interest rate allowed	Across all licensees, one borrower’s outstanding principal from small loans is limited to $1,500 and moves with CPI every other year. Payments due each month may not exceed 20% of monthly income before deductions.	59 O.S. 3150 through 3150.27
Oregon	Allowed	Yearly interest over 36 percent, leaving aside the one-time origination fee. That origination fee is limited to one: $10 for every $100 financed or $30, whichever is lower.	The payday loan definition sets a $50,000 ceiling and no other dollar limit; rules also cap lending at 25% of monthly net income when a borrower's yearly earnings are $60,000 or under.	ORS 725A.010 through 725A.995 (payday rules: ORS 725A.064)
Pennsylvania	Not allowed	on a loan or use of money of $50,000 or less, the law sets the maximum lawful interest rate at six per cent a year	None	41 P.S. 201 (Act 6, enacted January 30, 1974, P.L. 13); 7 P.S. 6201 et seq. (enacted April 8, 1937, P.L. 262)
Rhode Island	Allowed	Ten percent (10%) of advanced funds is the highest allowed for deferred deposit transaction fees.	$500	§§ 19-14.4-4 and 19-14.4-5.1 of the R.I. General Laws
South Carolina	Allowed	a charge or other payment that does not exceed fifteen percent of the transaction principal, applied just once per written contract	$550	S.C. Code 34-39-110 through 34-39-280
South Dakota	Not allowed	A licensee may not contract for or receive any finance charges above a yearly rate of thirty-six percent. That limit includes all charges on any ancillary product or service.	None	SDCL 54-4-44
Tennessee	Allowed	must stay at or below 15% of the check's face amount	The total face value for outstanding checks is $500.	Title 45, Chapter 17 of the Tennessee Code (45-17-101 and following; fee caps and limits in 45-17-112)
Texas	Allowed	Fees for services may be assessed by a credit access business as the parties agree.	State law sets no limit, though city rules can (Houston: 20% of gross monthly income per loan).	Tex. Fin. Code 393.601 through 393.628
Utah	Allowed	There is no cap: any rate of interest may be agreed upon by parties (Utah Code 15-1-1).	no limit in state law	Utah Code 7-23-101 et seq. (operating rules: 7-23-401, 7-23-403)
Vermont	Not allowed	For single-payment loans from federal savings and loan associations or lenders under Title 8, the finance charge must stay at or below 18 percent per year.	None	8 V.S.A. 2201, with 9 V.S.A. 41a and 2481w
Virginia	Installment loans only	Simple annual interest cannot go above 36 percent; the monthly maintenance fee must stay at or below the lower of eight percent of the original loan amount or $25.	$2,500	Va. Code 6.2-1800 through 6.2-1829
Washington	Allowed	The total interest or fees may not go above fifteen percent on the first five hundred dollars of principal, plus ten percent on what exceeds that.	The lower figure applies to combined small loans owed at once: $700, or 30% of that borrower's gross income for the month.	RCW 31.45.073, 31.45.084, 31.45.105
West Virginia	Not allowed	To provide a loan, merchants and licensees must not hold checks for future deposit; regulated consumer loans not exceeding $3,500 carry a maximum yearly rate of 31 percent on unpaid principal.	None	W. Va. Code 46A-4-107, 46A-4-101 and 32A-3-1
Wisconsin	Allowed	a licensee may charge interest with no cap under this section before a payday loan matures; a limit of 2.75 percent per month applies to interest after maturity	interest and fees count toward the combined total due to all payday licensees, capped at whichever is smaller: 35% of gross monthly income or $1,500	Wis. Stat. 138.14
Wyoming	Allowed	monthly charges on the principal balance equal twenty percent (20%) or thirty dollars ($30.00), whichever is greater	W.S. contains no set limit. 40-14-363	Wyo. Stat. 40-14-363 through 40-14-366

Source: each state's statute as linked in the table, read in full on the state's page. Free to reuse with a link to lenderlegit.com/payday-loans: download the CSV.

State fee caps: $10 to $30 for every $100 borrowed
States that allow single-payment payday loans (2022 count): 26
What a two-week loan costs at $15 per $100: About 391% APR
Military borrowers: Protected by a 36% MAPR cap

Payday Loans by State

The CFPB says a payday loan is a loan of $500 or less that comes due on your next payday. Its 2022 count found 26 states allowing single-payment payday lending. The rest of the states and DC either prohibit it or hold it down with rate caps.

In places that permit it, state law fixes the top fee, commonly from $10 to $30 for each $100 borrowed. APR means annual percentage rate, the loan cost shown as a yearly figure so different loans are easier to compare.

Here is how that fee plays out for a fictional borrower, Dana, in a state that permits payday loans at $15 per $100:

Dana takes out $300 for two weeks and pays back $345.
That comes to roughly 391% APR.
Rolling the loan over once adds another $45, so after one month Dana has paid $90 in fees and still owes the $300.

Rollovers are important because CFPB research found that four in five payday loans get extended or renewed within 14 days. A rollover is paying another fee to move the due date later.

If a lender's terms do not match what your state permits, call now and we can read the paperwork together.

States Where Payday Loans Are Illegal

A number of states do not allow payday lending in any form. Georgia, for instance, does not permit payday lending at all. Elsewhere, lenders may simply choose not to operate.

A low cap can act like a prohibition. The CFPB treats states that limit single-payment payday loans to roughly 45% APR or less as effective bans, since lenders seldom do business there. By that count, the remaining states and DC ban payday lending outright or with rate caps.

Checking Whether a Lender Is Licensed

To find out whether a payday lender is licensed, ask your state regulator or attorney general. In certain states, a loan from an unlicensed payday lender may be void, which means you might not owe it. New York, for instance, caps what unlicensed lenders can charge at 16% interest.

Federal Protections That Apply Everywhere

The payment protections in the federal payday rule took effect on 30 March 2025. Once two withdrawal attempts fail, a lender has to stop trying to pull money from your account unless you approve it again.

The rule no longer makes lenders verify that you can afford to repay. The CFPB also announced on 28 March 2025 that it would not make penalties under the payment provisions a priority, so a lender might not follow them very closely.

Military Borrowers

The Military Lending Act limits the cost of a covered loan to 36% MAPR, the military form of APR. It covers active duty members of the Army, Navy, Air Force, Marine Corps, Coast Guard, and Space Force.

If you are not sure which protections apply to you, call now and we can walk through how your state's rules and federal law affect your loan.