Understanding payday loan regulations in your state is crucial before borrowing. Each state has different laws governing interest rates, loan amounts, rollover restrictions, and consumer protections. Explore comprehensive guides for all 50 states, learn how payday loans work, and compare safer alternatives before you sign anything.
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Maximum APR limits that vary widely by state, from 36% caps to unlimited rates in some states.
State-mandated maximum loan amounts, typically ranging from $300 to $1,500.
Rules about renewing or extending payday loans, with many states limiting or banning rollovers.
State-specific regulations including cooling-off periods, database requirements, and collection limits.
Payday loan laws vary dramatically by state. Some states have banned payday loans entirely, while others allow triple-digit APRs. Knowing your state's laws helps you:
How short-term, small-dollar loans are regulated in each US state and territory — legal status, rate limits, maximum amount, and the agency that oversees lenders. Select a state for the full breakdown, your rights, and lower-cost alternatives.
| State | Status | Rate / APR limit | Max amount | Regulator |
|---|---|---|---|---|
| Alabama | Permitted | 17.5% of amount advanced (~456% APR on 14-day loan) | $500 | Alabama State Banking Department |
| Alaska | Permitted | No APR cap; fees noted below (~520% APR typical on 14-day loan) | $500 | Alaska Division of Banking and Securities |
| Arizona | Effectively prohibited - 36% APR cap | 36% APR cap on consumer loans of $3,000 or less (24% on amounts above $3,000) | N/A (payday product banned) | Arizona Department of Insurance and Financial Institutions (DIFI) |
| Arkansas | Prohibited | 17% constitutional usury cap (Arkansas Constitution, Amendment 89) | N/A | Arkansas Securities Department / Attorney General |
| California | Permitted | Fee capped at 15% of check face amount (~460% APR typical on 14-day loan) | $300 (check face amount) | California Department of Financial Protection and Innovation (DFPI) |
| Colorado | Effectively prohibited - 36% APR cap | 36% APR cap (Proposition 111, 2018; effective Feb 1, 2019) | $500 (legacy deferred-deposit cap) | Colorado Department of Law, Administrator of the Uniform Consumer Credit Code |
| Connecticut | Effectively prohibited - small-loan APR cap | 36% APR cap on small loans under $5,000 (Small Loan Act) | N/A (payday product not permitted) | Connecticut Department of Banking |
| Delaware | Permitted | No APR or rate cap (rate set by loan agreement) | $1,000 | Delaware Office of the State Bank Commissioner |
| District of Columbia | Prohibited | 24% APR cap on consumer loans (D.C. Code 28-3301) | N/A | DC Department of Insurance, Securities and Banking (DISB) |
| Florida | Permitted | 10% fee + $5 verification (single-payment); 8% of outstanding balance biweekly (installment) - no APR cap stated | $500 (single-payment); $1,000 (installment) | Florida Office of Financial Regulation (OFR), Division of Consumer Finance |
| Georgia | Prohibited | Capped under Industrial Loan Act (~60% APR / 5% per month on loans of $3,000 or less); payday product banned | N/A | Georgia Department of Banking and Finance / Attorney General Consumer Protection Division |
| Hawaii | Payday loans (deferred deposit) prohibited since Jan 1, 2022; replaced by 36% APR installment loans | 36% APR plus monthly maintenance fee up to $35 | $1,500 (installment loan; no payday product) | Hawaii Department of Commerce and Consumer Affairs, Division of Financial Institutions |
| Idaho | Permitted | No rate cap (fees set by lender; APR can be very high) | $1,000 principal; cannot exceed 25% of gross monthly income | Idaho Department of Finance |
| Illinois | Effectively prohibited - 36% APR cap (Predatory Loan Prevention Act, 815 ILCS 123); zero payday stores remain | 36% APR (all-in Military APR / MAPR methodology) - PLPA | Lesser of $1,000 or 25% of gross monthly income (Payday Loan Reform Act) | Illinois Department of Financial and Professional Regulation (IDFPR) |
| Indiana | Permitted | No APR cap; tiered fee structure (effective APR can exceed 300%) | $50 minimum; $605 maximum (and not more than 20% of monthly gross income) | Indiana Department of Financial Institutions (DFI) |
| Iowa | Permitted | No APR cap; fee-based (effective APR can exceed 300%) | $500 aggregate per borrower | Iowa Division of Banking |
| Kansas | Permitted | No APR cap; fee-based (effective APR can exceed 300%) | $500 or less | Office of the State Bank Commissioner (OSBC) |
| Kentucky | Permitted | No APR cap; fee-based (effective APR can exceed 400%) | $500 total outstanding; maximum two loans per customer at a time | Kentucky Department of Financial Institutions (DFI) |
| Louisiana | Permitted | No APR cap; fee-based (effective APR can exceed 300%) | $350 | Louisiana Office of Financial Institutions (OFI) |
| Maine | Effectively prohibited - APR caps (30% on first $2,000) make payday loans unviable; no payday license issued | 30% APR on first $2,000; 24% on $2,000.01-$4,000; 18% over $4,000 | No specific payday product; supervised consumer loans only | Maine Bureau of Consumer Credit Protection |
| Maryland | Prohibited - 33% APR cap (and lower tiers) on small consumer loans bans payday lending | 33% APR (2.75%/month) on first $1,000 of loans $2,000 or less; 24% above | No payday product; consumer loan caps apply | Maryland Office of Financial Regulation (Commissioner of Financial Regulation) |
| Massachusetts | Prohibited - 23% APR small-loan cap makes payday loans illegal | 23% APR (plus a $20 administrative fee) under Small Loan Act | No payday product; Small Loan Act applies to loans of $6,000 or less | Massachusetts Division of Banks |
| Michigan | Legal (regulated) | No APR cap; tiered service fee only (effective ~369% APR on 14-day $100 loan) | $600 per lender; max 2 outstanding loans statewide | Michigan Department of Insurance and Financial Services (DIFS) |
| Minnesota | Legal (regulated; tightened 2024) | 50% all-in APR cap (effective Jan 1, 2024); ability-to-repay required above 36% | $350 (consumer small loan) | Minnesota Department of Commerce |
| Mississippi | Legal (regulated) | No APR cap; fee-based (effective ~520% APR on short-term $100 loan) | $500 including fees | Mississippi Department of Banking and Consumer Finance (DBCF) |
| Missouri | Legal (regulated) | No APR cap; total interest+fees capped at 75% of initial principal over life of loan + renewals | $500 | Missouri Division of Finance |
| Montana | Effectively prohibited (36% APR cap) | 36% APR cap (all fees included) | $300 (excluding fees) under former deferred-deposit law | Montana Division of Banking and Financial Institutions |
| Nebraska | Effectively prohibited (36% APR cap, 2020 voter cap) | 36% APR cap (Initiative 428, 2020) | $500 (former Delayed Deposit Services limit) | Nebraska Department of Banking and Finance (NDBF) |
| Nevada | Legal (regulated) | No APR cap on amount; lender must not exceed ability-to-repay limits (no statutory rate ceiling) | Deferred deposit loan may not exceed 25% of borrower's expected gross monthly income | Nevada Financial Institutions Division (Dept. of Business and Industry) |
| New Hampshire | Legal but rate-capped at 36% (effectively limits payday) | 36% APR cap | $500 | New Hampshire Banking Department |
| New Jersey | Prohibited | Criminal usury cap ~30% APR (N.J.S.A. 2C:21-19); 16% general civil usury | N/A (payday lending not permitted) | New Jersey Department of Banking and Insurance |
| New Mexico | Prohibited (payday); 36% APR cap on small loans | 36% APR cap (HB 132, effective Jan 1, 2023) | N/A for payday; 36% cap applies to loans up to $10,000 | New Mexico Financial Institutions Division (Regulation & Licensing Dept.) |
| New York | Prohibited. Payday lending is illegal; rates above the criminal usury cap are barred and no payday-specific statute authorizes such loans. | 25% APR (criminal usury cap); 16% APR civil usury cap on most consumer loans | N/A (payday loans not permitted) | New York State Department of Financial Services (DFS) |
| North Carolina | Prohibited. Payday lending banned; the authorizing statute sunset in 2001 and remaining operations were shut down by 2006. | Effective ~30% APR cap on small consumer loans under the NC Consumer Finance Act (tiered: 30% to $5,000, 24% next tier, 18% balance) | N/A (payday loans not permitted) | North Carolina Office of the Commissioner of Banks (NCCOB) |
| North Dakota | Allowed (regulated). Deferred presentment service providers (payday lenders) licensed by the state. | No APR cap stated in statute; fee is 20% of amount advanced | $500 (with a $600 combined outstanding-balance limit per customer) | North Dakota Department of Financial Institutions (DFI) |
| Ohio | Allowed (reformed). Governed by the 2018 Fairness in Lending Act (HB 123) / Short-Term Loan Act. | 28% per annum interest | $1,000 (aggregate outstanding short-term loans per borrower capped at $2,500) | Ohio Department of Commerce, Division of Financial Institutions |
| Oklahoma | Allowed (reformed). The Deferred Deposit Lending Act was replaced by the Oklahoma Small Lenders Act effective Aug 1, 2020. | Up to 17% per month periodic interest (no separate APR cap stated) | $1,500 aggregate outstanding per borrower (CPI-adjusted) | Oklahoma Department of Consumer Credit (ODCC) |
| Oregon | Allowed (rate-capped). Payday loans permitted but tightly limited by a 36% APR cap plus fee restrictions. | 36% per annum | Statute defines payday loan as up to $50,000; practical amounts far lower due to rate cap | Oregon Division of Financial Regulation (DFR) |
| Pennsylvania | Effectively prohibited. No payday-specific authorization; rate caps make storefront payday lending unviable. | Approx. 24% APR for licensed consumer discount companies (CDCA); 6% APR for unlicensed lenders (Loan Interest and Protection Law) | N/A (payday loans not permitted); licensed consumer loans up to $25,000 under the CDCA | Pennsylvania Department of Banking and Securities |
| Puerto Rico | Effectively prohibited / heavily restricted. Small personal loans are rate-capped; no authorized payday product. (US territory) | Small-loan interest historically capped (reported ~25%); general usury / max rate set by regulation | Small Personal Loan Act governs small loans; no payday-specific maximum authorized | Office of the Commissioner of Financial Institutions (OCIF) of Puerto Rico |
| Rhode Island | Allowed (regulated). Deferred deposit transactions permitted under the Check Cashers Act. | No APR cap stated; ~260% APR results from the 10% fee on a 13-day term | $500 (max 3 concurrent checks, $500 aggregate per customer) | Rhode Island Department of Business Regulation (DBR) |
| South Carolina | Allowed (regulated). Deferred presentment (payday) loans permitted under the Deferred Presentment Services Act with a statewide database. | No APR cap stated; ~390% APR results from the 15% fee on a short term | $550 (exclusive of fees); 1 loan at a time per borrower | South Carolina Board of Financial Institutions / Office of the Commissioner of Consumer Finance |
| South Dakota | Effectively prohibited (36% APR all-in cap kills payday model) | 36% APR hard cap (incl. all fees/charges) | $500 (per NCSL); no separate cap, but 36% APR makes payday loans uneconomical | South Dakota Division of Banking |
| Tennessee | Legal (Deferred Presentment Services Act) | Fee capped at 15% of the face amount of the check (no APR cap) | $500 aggregate outstanding to any one customer | Tennessee Department of Financial Institutions |
| Texas | Legal via CAB/CSO model (no direct state rate cap) | No state cap on CAB fees; lender interest tied to Fin. Code 342 but CAB fees uncapped | No statutory cap (set by lender/CAB; local city ordinances may limit) | Texas Office of Consumer Credit Commissioner (OCCC) |
| Utah | Legal (Check Cashing and Deferred Deposit Lending Registration Act) | No interest rate cap (Utah abolished usury cap in 1981) | No statutory cap | Utah Department of Financial Institutions |
| Vermont | Prohibited (rate caps make payday lending unviable) | 18% APR cap on small consumer loans (9 V.S.A. 41a); no payday carve-out | Not applicable (payday loans not permitted) | Vermont Department of Financial Regulation |
| Virginia | Legal but reformed (2020 Fairness in Lending Act, 36% + capped fee) | 36% simple annual rate, plus a capped monthly maintenance fee | $2,500 (raised from $500 by 2020 reform) | Virginia State Corporation Commission - Bureau of Financial Institutions |
| Washington | Legal with strict limits (Check Cashers and Sellers Act) | Tiered fee: 15% on first $500 + 10% on amount above $500 (no APR cap) | $700 or 30% of gross monthly income, whichever is less | Washington State Department of Financial Institutions |
| West Virginia | Prohibited (no deferred presentment; usury caps ban payday model) | 31% APR cap on loans up to $3,500; 27% on $3,500-$15,000 (no payday carve-out) | Not applicable (payday/deferred deposit loans not permitted) | West Virginia Division of Financial Institutions |
| Wisconsin | Legal (no rate cap before maturity) | No cap on interest before maturity; 2.75% per month after maturity | Aggregate liability not to exceed $1,500 or 35% of gross monthly income, whichever is less | Wisconsin Department of Financial Institutions |
| Wyoming | Legal (post-dated check cashing under UCCC) | Greater of $30 or 20% per month on the principal balance (no APR cap) | No statutory maximum on the check/loan amount | Wyoming Division of Banking (Dept. of Audit) |
Reviewed June 2026. State laws change; figures are a general guide compiled from the National Conference of State Legislatures and each state's financial regulator — confirm current rules with the regulator linked above before borrowing. “Effectively prohibited” means a rate cap (often 36% APR) makes a traditional payday product unavailable even where not banned by name.
Click on your state to view detailed payday loan laws, regulations, interest rate caps, and safer borrowing alternatives.
Before taking out a payday loan, explore these safer, more affordable options that can save you money and protect you from debt cycles.