CLEARBORROW · PUBLISHED NOVEMBER 12, 2026
Payday loan laws by state
States, not federal law, set most payday loan rules, and they differ widely. California caps a payday check at $300 with a $45 fee; Florida allows $500 at 10% plus $5; Michigan allows $600 with a sliding fee; Ohio limits loans to $1,000 with a 28% interest cap and a 60% total-cost ceiling; Illinois caps most consumer loans at 36% APR; Texas sets no cap on the fees charged by the brokers that arrange payday loans. Georgia, Pennsylvania, New York and Arizona do not allow payday loans at all.
On this page
14 states compared
| State | Maximum amount | Cost limit and term | Regulator |
|---|---|---|---|
| Texas | Through credit access businesses (brokers) | No state cap on broker fees | OCCC |
| California | $300 check ($255 cash) | 15% of the check (max $45); 31 days | DFPI |
| Florida | $500 (single-payment) | 10% + $5 verification; 7–31 days | OFR |
| Ohio | $1,000 | 28% interest + capped fees; total ≤ 60% of principal | Division of Financial Institutions |
| Illinois | — | 36% APR cap on most consumer loans since 2021 | IDFPR |
| Michigan | $600 per loan, two loans max | 15% → 11% sliding fee ($76 on $600); 31 days | DIFS |
| Georgia | Not allowed | Payday lending is illegal; small installment lenders need a license | Dept. of Banking and Finance |
| Pennsylvania | Not allowed | Licensed lenders up to 24% a year on loans of $25,000 or less | Dept. of Banking and Securities |
| New York | Not allowed | Civil usury limit 16%, criminal usury 25% | DFS |
| Virginia | $2,500, one loan at a time | 36% interest + monthly fee (lesser of $25 or 8%); up to 24 months | SCC |
| Tennessee | $500 in checks held | 15% of the check; 31 days | Dept. of Financial Institutions |
| Missouri | $500 | Interest and fees ≤ 75% of the loan incl. up to 6 renewals; 14–31 days | Division of Finance |
| Arizona | Not allowed since 2010 | Consumer lenders must be licensed; 36% consumer rate cap | DIFI |
| Nevada | 25% of gross monthly income | No fee cap; 35-day term, extensions ≤ 90 days | Financial Institutions Division |
Summaries of the state pages linked in each row; read the full page and its sources before relying on a figure.
What federal law adds
Federal law requires lenders to disclose the cost of a payday or title loan in writing, including the APR, before you sign, and limits the Military APR to 36% for active-duty servicemembers and dependents (FTC ↗). Most other limits — maximum amounts, fees, rollovers, payment plans — come from the state where you live.
Online lenders and your state
An online lender lending to you is generally expected to follow the rules of your state and hold the license your state requires. Before applying, look up the lender on your state regulator’s license search and compare the offer with the limits on your state’s page.
How to check a lender
- Find your state regulator (listed in the table) and search its license database.
- Compare the fee in the offer with your state’s cap.
- Ask whether your state requires an extended payment plan if you cannot repay.
- Report unlicensed lenders or illegal fees to the regulator and to the CFPB.
Cheaper options to compare
- A payday alternative loan from a federal credit union (APR capped at 28%).
- A cash advance app — compare costs with our fee calculator.
- Asking the company you owe for more time or a payment plan.
- If you already owe a payday loan: extended payment plans and getting out of payday debt.
Questions
Are payday loans legal in every state?
No. Some states ban them or cap rates so low that payday lenders do not operate; others allow them under specific limits. Check your state regulator.
Which of these states do not allow payday loans?
Georgia, Pennsylvania, New York and Arizona do not allow them, and Illinois caps most consumer loans at 36% APR. California has the smallest maximum payday check ($300).
My state isn’t listed — where do I look?
Your state’s financial regulator or attorney general publishes its payday or small-loan rules and license lookup.
Sources and limits
- FTC: payday and car title loans, and less expensive options ↗
- Texas OCCC: credit access businesses (payday and title loans) ↗
- California DFPI: payday lending consumer advisory ↗
- Florida Statutes §560.404: deferred presentment transactions ↗
- Ohio Legislative Service Commission: HB 123 final analysis ↗
- Illinois IDFPR: consumer credit brochure (PLPA 36% cap) ↗
- Michigan DIFS: deferred presentment FAQ ↗
Sources checked November 12, 2026. Laws change; confirm with your state regulator before borrowing. This is general information, not legal advice. Worked examples are our own arithmetic. How we use sources.