2025 Usury Laws by State: Interactive Guide to Maximum Interest Rates

Usury Laws by State in 2025

Explore our interactive guide to legal maximum interest rates, general usury limits, and judgment rates across all 50 US States and D.C. Click on any state to view detailed information about its usury laws.

Legal Rate %:

15%+

12-15%

10-12%

8-10%

6-8%

Below 6%

Variable

Select a state to view usury law details

Click on any state tile to view its legal interest rate, general usury limit, judgment rate, and additional notes about exceptions and special provisions.

Understanding Usury Laws and Interest Rate Limits

Usury laws are state-specific regulations that establish the maximum interest rates lenders can legally charge borrowers. These laws have a long history, dating back to ancient civilizations, and are designed to protect consumers from predatory lending practices.

Each state sets its own usury limits, which can vary significantly. This creates a complex patchwork of regulations across the United States, with some states offering strong consumer protections and others providing more flexibility for lenders.

Types of Interest Rate Limits

When examining usury laws, it's important to understand the different types of interest rate limits:

Legal Interest Rate: This is the baseline interest rate set by state law, often used when no specific rate has been agreed upon in a contract or for calculating interest on court judgments.
General Usury Limit: This is the maximum interest rate a lender can charge on loans and other credit agreements under normal circumstances.
Judgment Rate: This is the interest rate applied to court judgments when collecting debts.

Federal Preemption and Exceptions

While state usury laws provide an important framework, there are significant exceptions and complications to be aware of:

National Banks: Thanks to the Marquette National Bank v. First of Omaha Service Corp. Supreme Court decision and subsequent legislation, national banks can often charge interest rates based on their home state's laws rather than the borrower's state.
Credit Card Companies: Most credit card issuers are exempt from state-imposed usury limits and can charge rates allowed in their home state.
Federal Preemption: The Monetary Control Act of 1980 allows certain lenders to charge interest rates higher than what would typically be allowed by a state's usury laws.
Business Loans: Many states have different rules for loans to businesses versus consumers, with business loans often subject to higher interest rate caps or even exemptions from usury limits altogether.

Variable Rate Formulas

Many states have moved away from fixed percentage limits and instead use variable formulas tied to economic indicators like the Federal Reserve discount rate or Treasury bill rates. This approach allows interest rate caps to adjust with broader economic conditions.

For example, Alaska's general usury limit is set at 5% above the Federal Reserve discount rate on the day the loan was made. This type of formula ensures that usury limits remain relevant in different interest rate environments.

Complete Usury Laws Data by State

The table below provides comprehensive information on usury laws for all 50 states and the District of Columbia. You can sort the data by clicking on any column header or search for specific states or values using the search box.

State	Legal Interest Rate (%)	General Usury Limit	Judgment Rate	Additional Notes

Frequently Asked Questions about Usury Laws

What is the highest interest rate you can legally charge?

The maximum legal interest rate varies significantly by state, with some states like New Mexico and South Dakota having high limits of 15%, while others use variable formulas tied to economic indicators. Additionally, many exceptions exist for specific lender types and loan categories.

National banks and credit card companies often follow their home state's usury laws rather than the borrower's state, which creates significant additional complexity. This "exportation" of interest rates has led to many credit card issuers being headquartered in states with high or no usury caps.

Do usury laws apply to all types of loans?

No, many states have exceptions for specific types of loans. Common exceptions include:

Credit cards: Often subject to the issuing bank's home state laws rather than the borrower's state
Mortgage loans: Frequently exempted from state usury limits
Auto loans: May have higher permissible interest rates than unsecured personal loans
Business/commercial loans: Often subject to different (higher) limits than consumer loans
Payday loans: Some states have specific regulations for short-term, high-interest loans

How do federal regulations affect state usury laws?

Federal regulations can supersede state usury laws in several important ways:

National Banking Act: Allows nationally chartered banks to charge interest rates permitted in their home states, regardless of borrower location
Depository Institutions Deregulation and Monetary Control Act of 1980: Preempts state usury caps for many types of federally related loans
Federal credit union laws: Set specific rate limits for federal credit unions that can override state limits
Military Lending Act: Caps rates for active-duty service members and dependents at 36% APR regardless of state law

These federal preemptions can create situations where lenders may legally charge rates that exceed state usury caps.

What's the difference between the legal interest rate and the general usury limit?

The legal interest rate is a baseline figure set by state law that typically applies in situations where no specific interest rate has been agreed upon in a contract, or for certain court judgments. It serves as a default rate.

The general usury limit refers to the maximum interest rate a lender can charge on loans and other credit agreements under normal circumstances. This is the main ceiling that prohibits excessive interest rates.

For example, in Alabama, the legal interest rate is 6%, while the general usury limit is 8%. This means that when no rate is specified, 6% applies, but lenders can generally charge up to 8% without violating usury laws.

Can I form a corporation to avoid usury limits?

No, this strategy generally won't work. While many states do have higher usury limits or exemptions for loans to businesses or corporations, courts look at the substance of transactions rather than just their form.

If a court determines that a corporation was formed solely to evade usury laws for what is effectively a personal loan, the usury laws will still apply. This is sometimes referred to as looking at the "true purpose" of the loan.

Several states, including Louisiana, Missouri, and Wisconsin, explicitly warn in their statutes that forming a corporation specifically to circumvent usury laws will not protect the lender from usury violations.