- Single-payment payday loans are offered in 27 states (Rhode Island’s 36% cap starts January 1, 2027).
- 12 states and DC prohibit payday lending; 8 states cap rates near 36% APR; Ohio, Virginia and Hawaii allow only installment-style small loans.
- Laws change often. Always confirm with your state regulator. See the state-by-state pages.
States where payday loans are prohibited
These states and DC do not allow traditional payday lending, either through usury limits or laws that ended it:
Arizona, Arkansas, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Vermont, West Virginia and the District of Columbia.
States with rate caps around 36%
These states cap the cost of small loans at or near 36% APR, which payday lenders say they cannot operate under:
Colorado, Illinois (2021), Minnesota (2024), Montana, Nebraska (2020), New Hampshire, New Mexico (2023) and South Dakota (2016). Rhode Island joins them on January 1, 2027.
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States that allow only installment-style small loans
Ohio (2019), Virginia (2020 law) and Hawaii (2021 law) replaced two-week payday loans with longer, lower-cost installment loans.
States where payday loans are legal
In the remaining 27 states, payday loans are legal with state-specific limits on the maximum loan, fees, term, rollovers and the number of loans at once. The Center for Responsible Lending found typical APRs on a $400 loan ranging from 140% in Oregon to 662% in Texas (June 2023, state regulator data). For example, California caps a payday check at $300 with a 15% fee, which is why $255 payday loans are common there. Recent changes include Louisiana (maximum raised to $700 in 2025) and Kentucky (raised to $600 in 2026).
Pick your state on our payday loans by state page for the full rules, typical costs and city guides.
| Rule | Why it matters |
|---|---|
| Maximum loan amount | Often $500 or less for single-payment payday loans |
| Maximum fee or APR | Sets the price per $100 borrowed |
| Minimum and maximum term | How long you have to repay |
| Rollover limits | Whether you can renew and pay another fee |
| Cooling-off periods and databases | Limits on borrowing again right away |
| Extended payment plans | Whether lenders must let you repay in installments |
How to check a lender in your state
- Look up the lender on NMLS Consumer Access, which lists licenses for many state-licensed lenders.
- Check your state financial regulator’s website for licensed payday or small-loan lenders.
- Be cautious with online lenders that say your state’s law does not apply because they are tribal or offshore.
We review this page regularly, but state laws change. Confirm current rules with your state regulator before you borrow.
Need cash before payday?Send one free request to our lender network. We are not a lender; offers and rates come from lenders.
Request a loanFrequently asked questions
In which states are payday loans illegal?
Arizona, Arkansas, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Vermont, West Virginia and DC prohibit traditional payday lending. Colorado, Illinois, Minnesota, Montana, Nebraska, New Hampshire, New Mexico and South Dakota cap rates at about 36% APR, and Rhode Island’s cap starts January 1, 2027.
Which state has the most expensive payday loans?
In the Center for Responsible Lending’s June 2023 data, Texas had the highest typical APR on a $400 payday loan at 662%, followed by Missouri at 652% and Delaware at 639%.
Why can’t I get a payday loan in my state?
Your state may ban payday loans or cap rates so low that lenders do not offer them. Lenders can only make loans where they are licensed and where the product is legal.
How do I check if a lender is licensed?
Search the lender on NMLS Consumer Access and your state financial regulator’s website.
Sources
- Center for Responsible Lending — Red Alert Rates: APRs on $400 single-payment payday loans (June 2023)
- Center for Responsible Lending — Rhode Island caps payday loans at 36%
- NMLS Consumer Access — check a lender’s license
- California DFPI — California Deferred Deposit Transaction Law report
- CFPB — What is a payday loan?