Maximum Interest Rate by State 2024

Interest rates across the United States vary significantly due to diverse legal frameworks and economic conditions. These rates play a crucial role in shaping borrowing and lending activities, influencing everything from personal loans to mortgages and business financing. Understanding the maximum interest rates allowed by each state is essential for individuals and businesses alike, as it helps navigate the borrowing landscape and ensures compliance with local regulations.

Florida: With a maximum rate of 12%, Florida allows a higher maximum rate of 25% on loans exceeding $500,000.
Rhode Island: In Rhode Island, the usury rate stands at 21%, or the interest rate charged for T-Bills plus 9%. Moreover, judgment rates are fixed at 12%.
Louisiana: Louisiana boasts a maximum interest rate of 14%, with judgments accruing interest at 12%.
Vermont: Notably, Vermont permits retail installment contracts with a maximum rate of 18% on the initial $500 and 15% thereafter.

These variations underscore the importance of comprehending local laws and regulations when engaging in borrowing or lending activities. Moreover, the diversity in maximum interest rates across states reflects the multifaceted nature of economic conditions and legal frameworks nationwide. For businesses and individuals alike, awareness of these intricacies can inform strategic financial decisions, enhance risk management practices, and foster a more nuanced understanding of regional economic dynamics.

State	Maximum Interest Rate	Other Rates and Exceptions	Usury Limit
New Mexico	15%	Judgment rate is fixed by the court.
South Dakota	15%	Judgments bear interest at the rate of 12%.
Louisiana	14%		12
Florida	12%	On loans above $500,000, the maximum rate is 25%.	18
Idaho	12%	Judgments bear interest at the rate of 5% above the U.S. Treasury securities rate.
Nevada	12%
Rhode Island	12%	Usury rate is 21% or the interest rate charged for T- Bills plus 9%. Judgment rate is 12%.	Variable
Vermont	12%	On retail installment contracts, the maximum rate is 18% on the first $500, 15% above $500.	12
Washington	12%	Usury rate is 12%, or four points above the average T-Bill rate. Judgments bear interest at the rate of 12% or the lawful contract rate, whichever is higher.	Variable
Alaska	10.5%	Usury rate is 5% above the Federal Reserve interest rate on the day loan is made.	Variable
Arizona	10%
California	10%	Usury rate is 5% greater than the Federal Reserve Bank of San Francisco's rate.	Variable
Hawaii	10%		12
Indiana	10%	The judgment rate is also 10%.
Iowa	10%	Consumer transactions are governed at a maximum rate of 12%.
Kansas	10%	Judgments bear interest at 4% above the federal discount rate. On consumer transactions, the maximum rate of interest for the first $1,000 is 18%, above $1,000 is 14.45%.	15
Montana	10%	Usury rate is 6% greater than New York City banks' prime rate. Judgments bear interest at the rate of 10% per annum.	Variable
New Hampshire	10%
Tennessee	10%	Usury rate is 24%, or four points above the average prime loan rate, whichever is less.	Variable
Utah	10%	Judgments bear interest at the rate of 12% or a lawfully agreed upon rate.
Wyoming	10%	The judgment rate is 10%.
Mississippi	9%	Usury rate is 10% or more than 5% above the federal reserve rate. There is no usury limit on commercial loans above $5,000. The judgment rate is 9% or a rate legally agreed upon in the underlying obligation.	Variable
Missouri	9%	The judgment rate of interest is 9%.
New York	9%		16
Oregon	9%	The judgment rate is 9% or the contract rate, if lawful, whichever is higher. The general usury rate for loans below $50,000 is 12% or 5% above the discount rate for commercial paper.	12
South Carolina	8.75%	Judgments bear interest at the rate of 14%.
Colorado	8%	The maximum rate to consumers is 12% per annum.	45
Connecticut	8%	In civil suits where interest is allowed, it is allowed at 10%.	12
Kentucky	8%	Usury rate is 4% greater than the Federal Reserve rate or 19%, whichever is less. On loans above $15,000, there is no limit. Judgments bear interest at the rate of 12% compounded yearly, or at such rate as is set by the Court.	Variable
North Carolina	8%	There is a provision for a variable rate, which is 16% or the T-Bill rate for non-competitive T-Bills.	8
Ohio	8%
Virginia	8%	Judgments bear interest at the rate of 8% or the lawful contract rate.
Georgia	7%	On loans below $ 3,000, the usury limit is 16%. On loans above $ 3,000, the limit appears to be 5% per month. As to loans below $250,000, the interest rate must be specified in simple interest and in writing.	16
Alabama	6%	The judgment rate is 12%.	8
Arkansas	6%	Usury rate is 5 to 17%. Judgments bear interest at the rate of 10% per annum, or the lawful agreed-upon rate, whichever is greater.	Variable
Maine	6%	Judgments below $30,000 bear 15%; otherwise, they bear interest at the 52-week average discount rate for T-Bills, plus 4%.
Maryland	6%	Judgments bear interest at the rate of 10%.	24
Massachusetts	6%	Judgments bear interest at either 12% or 18%, depending on whether the court finds that a defense was frivolous.	20
Minnesota	6%	The judgment rate is the "secondary market yield" for one-year T-Bills.	8
Nebraska	6%	Accounts bear interest at the rate of 12%. Judgments bear interest at the rate of 1% above a bond yield equivalent to T-bill auction price.	16
New Jersey	6%	Usury rate is 30% for individuals and 50% for corporations.	Variable
North Dakota	6%	The judgment rate is the contract rate or 12%, whichever is less.	5.5
Oklahoma	6%	Consumer loans may not exceed 10% unless the person is licensed to make consumer loans. Maximum rate on non-consumer loans is 45%. The judgment rate is the T-Bill rate plus 4%.
Pennsylvania	6%		25
Texas	6%	The judgment rate of interest is 18% or the rate in the contract, whichever is less.
West Virginia	6%
Delaware	5%	Usury rate is 5% over the Federal Reserve rate.	Variable
Illinois	5%	The judgment rate is 9%.	9
Michigan	5%	Judgments bear interest at the rate of 1% above the five-year T-note rate.	7
Wisconsin	5%	The judgment rate of interest is 12%, except for mortgage foreclosures, where the rate will be the lawful contract rate.

State

Maximum Interest Rate

Other Rates and Exceptions

Usury Limit

New Mexico

15%

Judgment rate is fixed by the court.

South Dakota

15%

Judgments bear interest at the rate of 12%.

Louisiana

14%

Florida

12%

On loans above $500,000, the maximum rate is 25%.

Idaho

12%

Judgments bear interest at the rate of 5% above the U.S. Treasury securities rate.

Nevada

12%

Rhode Island

12%

Usury rate is 21% or the interest rate charged for T- Bills plus 9%. Judgment rate is 12%.

Variable

Vermont

12%

On retail installment contracts, the maximum rate is 18% on the first $500, 15% above $500.

Washington

12%

Usury rate is 12%, or four points above the average T-Bill rate. Judgments bear interest at the rate of 12% or the lawful contract rate, whichever is higher.

Variable

Alaska

10.5%

Usury rate is 5% above the Federal Reserve interest rate on the day loan is made.

Variable

Arizona

10%

California

10%

Usury rate is 5% greater than the Federal Reserve Bank of San Francisco's rate.

Variable

Hawaii

10%

Indiana

10%

The judgment rate is also 10%.

Iowa

10%

Consumer transactions are governed at a maximum rate of 12%.

Kansas

10%

Judgments bear interest at 4% above the federal discount rate. On consumer transactions, the maximum rate of interest for the first $1,000 is 18%, above $1,000 is 14.45%.

Montana

10%

Usury rate is 6% greater than New York City banks' prime rate. Judgments bear interest at the rate of 10% per annum.

Variable

New Hampshire

10%

Tennessee

10%

Usury rate is 24%, or four points above the average prime loan rate, whichever is less.

Variable

Utah

10%

Judgments bear interest at the rate of 12% or a lawfully agreed upon rate.

Wyoming

10%

The judgment rate is 10%.

Mississippi

Usury rate is 10% or more than 5% above the federal reserve rate. There is no usury limit on commercial loans above $5,000. The judgment rate is 9% or a rate legally agreed upon in the underlying obligation.

Variable

Missouri

The judgment rate of interest is 9%.

New York

Oregon

The judgment rate is 9% or the contract rate, if lawful, whichever is higher. The general usury rate for loans below $50,000 is 12% or 5% above the discount rate for commercial paper.

South Carolina

8.75%

Judgments bear interest at the rate of 14%.

Colorado

The maximum rate to consumers is 12% per annum.

Connecticut

In civil suits where interest is allowed, it is allowed at 10%.

Kentucky

Usury rate is 4% greater than the Federal Reserve rate or 19%, whichever is less. On loans above $15,000, there is no limit. Judgments bear interest at the rate of 12% compounded yearly, or at such rate as is set by the Court.

Variable

North Carolina

There is a provision for a variable rate, which is 16% or the T-Bill rate for non-competitive T-Bills.

Ohio

Virginia

Judgments bear interest at the rate of 8% or the lawful contract rate.

Georgia

On loans below $ 3,000, the usury limit is 16%. On loans above $ 3,000, the limit appears to be 5% per month. As to loans below $250,000, the interest rate must be specified in simple interest and in writing.

Alabama

The judgment rate is 12%.

Arkansas

Usury rate is 5 to 17%. Judgments bear interest at the rate of 10% per annum, or the lawful agreed-upon rate, whichever is greater.

Variable

Maine

Judgments below $30,000 bear 15%; otherwise, they bear interest at the 52-week average discount rate for T-Bills, plus 4%.

Maryland

Judgments bear interest at the rate of 10%.

Massachusetts

Judgments bear interest at either 12% or 18%, depending on whether the court finds that a defense was frivolous.

Minnesota

The judgment rate is the "secondary market yield" for one-year T-Bills.

Nebraska

Accounts bear interest at the rate of 12%. Judgments bear interest at the rate of 1% above a bond yield equivalent to T-bill auction price.

New Jersey

Usury rate is 30% for individuals and 50% for corporations.

Variable

North Dakota

The judgment rate is the contract rate or 12%, whichever is less.

5.5

Oklahoma

Consumer loans may not exceed 10% unless the person is licensed to make consumer loans. Maximum rate on non-consumer loans is 45%. The judgment rate is the T-Bill rate plus 4%.

Pennsylvania

Texas

The judgment rate of interest is 18% or the rate in the contract, whichever is less.

West Virginia

Delaware

Usury rate is 5% over the Federal Reserve rate.

Variable

Illinois

The judgment rate is 9%.

Michigan

Judgments bear interest at the rate of 1% above the five-year T-note rate.

Wisconsin

The judgment rate of interest is 12%, except for mortgage foreclosures, where the rate will be the lawful contract rate.