Payday Loan Interest Rates by State – Full 2025 Guide
Last updated: May 8, 2026
Payday loan costs vary dramatically across the United States. In states with no APR caps, borrowers can pay effective annual interest rates exceeding 600%. In states that have enacted rate-cap legislation, the same loan might cost 90% less. This guide documents current payday loan rates, fee structures, and maximum loan amounts for every state that permits payday lending, along with a list of states where payday loans are banned outright.
Key finding: The median payday loan APR in unrestricted states is 391%—but 13 states have eliminated or severely restricted payday lending, protecting their residents from the debt trap cycle.
Payday Loan Rates by State (2025)
Data sourced from state regulatory agencies, NCSL, and CFPB disclosures. Updated quarterly.
| State | Max Loan | Max Fee | Typical APR | Status |
|---|---|---|---|---|
| Alabama | $500 | $17.50 per $100 | 456% | Permitted |
| Alaska | $500 | $15 per $100 | 390% | Permitted |
| Arizona | N/A | N/A | N/A | Banned |
| Arkansas | N/A | N/A | N/A | Banned |
| California | $300 | $15 per $100 | 460% | Permitted |
| Colorado | $500 | 45% APR cap | 45% | Rate-Capped |
| Connecticut | N/A | N/A | N/A | Banned |
| Delaware | $1000 | No cap | 521%+ | Permitted |
| Florida | $500 | $10 per $100 + 5% | 304% | Permitted |
| Georgia | N/A | N/A | N/A | Banned |
| Illinois | $1000 | 36% APR cap | 36% | Rate-Capped |
| Indiana | $605 | $15 per $100 | 390% | Permitted |
| Kansas | $500 | $15 per $100 | 391% | Permitted |
| Kentucky | $500 | $15 per $100 | 460% | Permitted |
| Louisiana | $350 | $20 per $100 | 780% | Permitted |
| Michigan | $600 | $15 first $100 | 369% | Permitted |
| Minnesota | $350 | $5.50 per $50 | 200% | Permitted |
| Mississippi | $500 | $20 per $100 | 520% | Permitted |
| Missouri | $500 | 75% of loan | 1950% | Permitted |
| Montana | $300 | 36% APR cap | 36% | Rate-Capped |
| Nebraska | $500 | $15 per $100 | 460% | Permitted |
| Nevada | 25% gross income | No cap | 625%+ | Permitted |
| New Hampshire | $500 | 36% APR cap | 36% | Rate-Capped |
| New Mexico | $2500 | 36% APR cap | 36% | Rate-Capped |
| North Dakota | $600 | $20 per $100 | 520% | Permitted |
| Ohio | $1000 | 28% APR cap | 28% | Rate-Capped |
| Oklahoma | $500 | $15 per $100 | 390% | Permitted |
| Oregon | $50000 | 36% APR cap | 36% | Rate-Capped |
| South Carolina | $550 | 15% of loan | 390% | Permitted |
| South Dakota | No limit | 36% APR cap | 36% | Rate-Capped |
| Tennessee | $500 | 15% of loan | 390% | Permitted |
| Texas | No limit | No cap | 664%+ | Permitted |
| Utah | No limit | No cap | 658%+ | Permitted |
| Virginia | $2500 | 36% APR cap | 36% | Rate-Capped |
| Washington | $700 | 15% of loan | 390% | Permitted |
| Wisconsin | No limit | No cap | 574%+ | Permitted |
| Wyoming | No limit | No cap | 780%+ | Permitted |
How Payday Loan Rates Are Set
Payday lenders charge a flat fee rather than an interest rate—typically $10 to $30 per $100 borrowed. Federal law (Truth in Lending Act) requires lenders to disclose this as an Annual Percentage Rate (APR). Because payday loans are typically 14-day products, even a "modest" $15 fee translates to a 391% APR when annualized.
State legislatures set the rules. Some states (like Texas) allow lenders to operate through credit service organization (CSO) loopholes, avoiding fee caps entirely. Others (like Ohio since 2019 and Illinois since 2021) have enacted hard 28-36% APR caps, effectively ending traditional payday lending in those markets.
States With the Lowest Payday Loan Costs
Seven states plus D.C. have capped payday loan APRs at 36% or below: Colorado, Illinois, Montana, New Hampshire, New Mexico, Ohio, Oregon, South Dakota, and Virginia. In these states, a $500 payday loan for 14 days costs roughly $7 in fees—compared to $75 or more in high-rate states.
If you live in a rate-capped state, you still have access to payday loans but at a fraction of the national average cost. Use our rate comparison tool to find regulated lenders in your state.
The True Cost of Rollovers
When borrowers cannot repay a payday loan on the due date, many states allow (or don't prohibit) loan rollovers—extending the loan for another fee. A $300 loan in Mississippi with a $60 fee, rolled over four times, turns a $60 charge into $300 in fees alone—a 100% return of the original principal in fees.
Use our payday loan debt calculator to model the exact cost of rollovers for your specific loan amount and state.
Frequently Asked Questions
Which state has the highest payday loan interest rates?
Missouri, Texas, Utah, Wyoming, and Nevada consistently have the highest payday loan APRs, often exceeding 600% annually, because they impose no statutory rate caps on payday lenders.
Which states have banned payday loans entirely?
Arizona, Arkansas, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Vermont, West Virginia, and the District of Columbia have effectively banned payday loans through interest rate caps or explicit legislation.
What is the average APR for a payday loan in the United States?
The average payday loan APR in states where payday lending is permitted is approximately 391%, though rates range from 28% in rate-capped states like Ohio to over 1,000% in states without limits.
Why do payday loan APRs look so high?
APR (Annual Percentage Rate) annualizes the cost of a short-term loan. A $15 fee on a $100 two-week loan equals a 391% APR when expressed annually, even though the borrower only pays $15 for the two-week term.
Can I get a payday loan from an online lender if my state bans them?
Attempting to bypass state law through online tribal or out-of-state lenders is risky and often illegal. State bans generally apply regardless of where the lender is physically located. You should consult your state attorney general's office before using such lenders.