State rankings

Maximum Interest Rate by State

New Mexico has the highest Maximum Interest Rate (15.0%), followed by South Dakota (15.0%) and Louisiana (14.0%). Delaware has the lowest (5%).

Economics50 states · 3 metricsUpdated Jul 5, 2023Original page
2 sources
Maximum Interest RateBetter directionWhether a higher or a lower value is better. A green arrow means higher is better, a red arrow means lower is better, and no arrow means neither.More in the glossary →
50 of 51 states
Compare this metricAdd to combined rankingOpen full map

Maximum Interest Rate

Darker means higher. Click a place to highlight it.

Loading map…

All 50 ranked

Highest first.

Distribution Median and middle halfThe median is the middle value: half of places are above it, half below. The middle half is the range holding the central 50% of places.More in the glossary →

Each dot is one state; the lines mark the median and the middle half.

Median
8.88%
Middle half 6% – 10.0%
Average
8.69%
50 states
Highest
15.0%
New Mexico
Lowest
5%
Delaware

Data

Click a column to sort, a row to highlight that place on the charts.

50 states · # = rank by Maximum Interest Rate
#
1New Mexico15.0%Judgment rate is fixed by the court.—
1South Dakota15.0%Judgments bear interest at the rate of 12%.—
3Louisiana14.0%—12
4Florida12.0%On loans above $500,000, the maximum rate is 25%.18
4Washington12.0%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
4Nevada12.0%——
4Idaho12.0%Judgments bear interest at the rate of 5% above the U.S. Treasury securities rate.—
4Rhode Island12.0%Usury rate is 21% or the interest rate charged for T- Bills plus 9%. Judgment rate is 12%.Variable
4Vermont12.0%On retail installment contracts, the maximum rate is 18% on the first $500, 15% above $500.12
10Alaska10.5%Usury rate is 5% above the Federal Reserve interest rate on the day loan is made.Variable
11California10.0%Usury rate is 5% greater than the Federal Reserve Bank of San Francisco's rate.Variable
11Arizona10.0%——
11Tennessee10.0%Usury rate is 24%, or four points above the average prime loan rate, whichever is less.Variable
11Indiana10.0%The judgment rate is also 10%.—
11Utah10.0%Judgments bear interest at the rate of 12% or a lawfully agreed upon rate.—
11Iowa10.0%Consumer transactions are governed at a maximum rate of 12%.—
11Kansas10.0%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
11Hawaii10.0%—12
11New Hampshire10.0%——
11Montana10.0%Usury rate is 6% greater than New York City banks' prime rate. Judgments bear interest at the rate of 10% per annum.Variable
11Wyoming10.0%The judgment rate is 10%.—
22New York9%—16
22Missouri9%The judgment rate of interest is 9%.—
22Oregon9%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
22Mississippi9%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
26South Carolina8.75%Judgments bear interest at the rate of 14%.—
27Ohio8%——
27North Carolina8%There is a provision for a variable rate, which is 16% or the T-Bill rate for non-competitive T-Bills.8
27Virginia8%Judgments bear interest at the rate of 8% or the lawful contract rate.—
27Colorado8%The maximum rate to consumers is 12% per annum.45
27Kentucky8%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
27Connecticut8%In civil suits where interest is allowed, it is allowed at 10%.12
33Georgia7%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
34Texas6%The judgment rate of interest is 18% or the rate in the contract, whichever is less.—
34Pennsylvania6%—25
34New Jersey6%Usury rate is 30% for individuals and 50% for corporations.Variable
34Massachusetts6%Judgments bear interest at either 12% or 18%, depending on whether the court finds that a defense was frivolous.20
34Maryland6%Judgments bear interest at the rate of 10%.24
34Minnesota6%The judgment rate is the "secondary market yield" for one-year T-Bills.8
34Alabama6%The judgment rate is 12%.8
34Oklahoma6%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%.—
34Arkansas6%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
34Nebraska6%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
34West Virginia6%——
34Maine6%Judgments below $30,000 bear 15%; otherwise, they bear interest at the 52-week average discount rate for T-Bills, plus 4%.—
34North Dakota6%The judgment rate is the contract rate or 12%, whichever is less.5.5
47Illinois5%The judgment rate is 9%.9
47Michigan5%Judgments bear interest at the rate of 1% above the five-year T-note rate.7
47Wisconsin5%The judgment rate of interest is 12%, except for mortgage foreclosures, where the rate will be the lawful contract rate.—
47Delaware5%Usury rate is 5% over the Federal Reserve rate.Variable

What correlates with Maximum Interest Rate?

Pearson r against 2,116 other state metrics sharing at least 30 states. Ranks are read by standing: a better rank counts as higher, whether rank 1 is the best place on a list or the worst. Correlation is not causation.

Higher together

Places that have a higher Maximum Interest Rate tend to score higher on these (or rank better)

  1. Legal Interest RateUsury Laws by State
    r = +0.93 · very strong · n = 48
    Plot
  2. Syphilis Congenital Case RateSTD Rates by State
    r = +0.49 · moderate · n = 48
    Plot
  3. Fatality RateFloods by State
    r = +0.44 · moderate · n = 47
    Plot
  4. VC 2023Safest Cities by State
    r = +0.44 · moderate · n = 35
    Plot
  5. % of State Area Owned by Fed GovtPublic Land by State
    r = +0.43 · moderate · n = 50
    Plot
  6. Public Land % of StatePublic Land by State
    r = +0.42 · moderate · n = 50
    Plot

Opposite directions

Places that have a higher Maximum Interest Rate tend to score lower on these (or rank worse)

  1. Residents With HighBest States for Education
    r = −0.48 · moderate · n = 50
    Plot
  2. MaximumState Unemployment Insurance (SUI) Rates by State
    r = −0.46 · moderate · n = 49
    Plot
  3. Shelters and Housing Support RankBest States to Be HomelessA rank: rank 1 is the best
    r = −0.44 · moderate · n = 50
    Plot
  4. Graduation DebtBest States for Education
    r = −0.44 · moderate · n = 50
    Plot
  5. Tax as % of IncomeLeast Taxed States
    r = −0.42 · moderate · n = 50
    Plot
  6. Estimated TaxesLeast Taxed States
    r = −0.42 · moderate · n = 50
    Plot

Quick answers

Which state has the highest Maximum Interest Rate?
New Mexico has the highest Maximum Interest Rate, at 15.0%, followed by South Dakota (15.0%) and Louisiana (14.0%).
Which state has the lowest Maximum Interest Rate?
Delaware has the lowest Maximum Interest Rate, at 5%.
What is the median Maximum Interest Rate across US states?
The median is 8.88% across the 50 US states with data.
Where does this maximum interest rate by state data come from?
Rankodex compiles it from World Population Review and the primary sources it cites: State Interest Rates and Usury Limits: What You Need to Know - UpCounsel; Arizona Interest Rates Laws - FindLaw.

Keep exploring