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Promissory Note by State (2026): Interest Limits, Defaults, Time to Sue

Updated October 11, 2026. Quick answer: The first table covers 17 states and a second table adds 28 more, 45 states in all. Each row gives the state’s limit on interest for a private written note, the rate that applies when a note names none, and the time limit to sue on it, taken from the state’s own statutes. Open a state’s page for the quoted text and a worked example.

How the first 17 states compare

StateInterest limit on a private written loanRate if none is agreedTime to sue on a written note
ArizonaNo cap when the rate is in writing10% on a non-medical loan6 years
California10% (personal, family or household loan)7%4 years
Colorado45% by written stipulation (criminal above 45%)8% compounded annually, on a note for money after it is due6 years
Florida18% simple interest (above 25% is criminal)Set under s. 55.035 years
Maryland8% simple interest in writing; 24% on qualifying loans; any rate on some loans, such as a loan to a corporationNot stated in the documents read (6% is the cap)6 years (UCC note)
MassachusettsAny written rate; criminal above 20%6%6 years
Michigan7% by written agreement (criminal above 25%)5%6 years
Minnesota8% (written contracts of $100,000+ exempt)6%6 years
Missouri10%, or the quarterly market rate if higher9% on money once due10 years (UCC note)
New York16% (above 25% is criminal usury)Not establishedNot established
North CarolinaLoans up to $25,000 capped by formula; above that any agreed rate8%6 years (UCC note)
Ohio8% (exemptions above $100,000 and for demand notes)Set under ORC 5703.47 on money once due and payable6 years
Pennsylvania6% on loans of $50,000 or less6% when a note says with interest but names no rate4 years (6 for a negotiable note)
Texas10% by default; up to 18% to 24% by written agreement6% from the 30th day after the amount is due6 years (4 years for a debt)
Virginia12% a year (a contract above it is void)6% when interest is owed and no rate is stated6 years
Washington12% or 4 points above the 26-week T-bill yield, if higher12%6 years
WisconsinNo ceiling under s. 138.05 after Nov. 1, 1981; rates above 5% must be in writing5%6 years

28 more states

These states are covered on their own pages, each from the state’s own documents, in the same columns as the first table. Where a cell says that no maximum was stated in the sections read, that is a statement about the sections read and not a statement that the state has no rule. Open a state’s page for the quoted text and a worked example.

StateInterest limit on a private written loanRate if none is agreedTime to sue on a written note
AlaskaThe greater of 10 percent or 5 points over the Fed advance rate; loans over $25,000 exempt10.5% on money after it is due6 years (note); 3 years (contract)
Arkansas17% a yearNot established5 years
Connecticut12% a year (a violation is a crime)8%6 years
DelawareUp to 5% over the Fed discount rate in writing; no limit on loans above $100,000 not secured by a mortgage on the borrower’s principal residence5% over the Fed discount rate6 years on a promissory note
District of Columbia24% a year; a loan over $2,500 for a business, professional, commercial or investment purpose, or to a not-for-profit corporation, is outside6%6 years (note); 3 years (simple contract)
Hawaii12% on consumer credit and home business loans; any lawful written rate otherwise10% on money due after it becomes due6 years
IdahoNo maximum stated in the section read; a written rate controls12%6 years (note); 5 years (written contract)
Illinois9% by written agreement (exemptions for corporations and business loans)5% on money after it becomes due10 years
Indiana25% a year on a consumer related loan by someone not regularly engaged in lending8%6 years
IowaNo fixed percentage: 2 points above a monthly ten-year Treasury average5%10 years
Kansas15% (business and agricultural loans outside)10% on money after it becomes due6 years (note); 5 years (other written contract)
Kentucky19% on $15,000 or less; no cap above $15,0008% after default on a written obligation that names no rate6 years (note); 10 years (other written contract)
Louisiana12% (fixed in writing; business loans outside)Not established (judicial interest applies to sums in a judicial demand)5 years
MaineAny finance charge by agreement outside consumer lending, unless other law provides otherwiseNo rate before suit; court prejudgment rate is the one-year Treasury bill rate plus 3%6 years
MontanaThe greater of 15% or 6 points over prime, by written agreement10% a year on overdue money6 years
Nebraska16% (loans to corporations, partnerships, LLCs and trusts outside)6%5 years
NevadaAny rate agreed in writingPrime rate plus 2 points on money from the time it is due6 years
New Jersey16% in writing (6% otherwise); loans of $50,000 or more exempt, except first-lien loans on one-to-six-unit dwellingsNot established6 years
North DakotaFive and one-half points over the 6-month Treasury bill average, never below seven percent; loans over $35,000 exempt6%6 years
Oklahoma10% where no statute sets other rates6%6 years (note); 5 years (other written contract)
OregonThe greater of 12% or 5 points over the Fed commercial paper rate ($50,000 or less)9% on money after it becomes due6 years
Rhode IslandThe greater of 21% or prime plus 9 points12% in business transactions where interest is secured or paid6 years (note); 10 years (general civil)
South CarolinaAny rate by express written agreement; 6% otherwiseEight and three-fourths percent on sums ascertained and due6 years (note); 3 years (contract)
South DakotaAny rate set by written agreement, unless another code section sets a maximumA maximum of 12% a year; 15% after the due date on an instrument of writing6 years
UtahAny rate the parties agree10%6 years
Vermont12 percent a year (higher rates for listed loan types)12 percent6 years
West Virginia8% by written contract6%5 years (note); 10 years (signed written contract)
WyomingNo ceiling found for a one-off private note in the sections read7%6 years (note); 10 years (other written contract)

If you’re ready to put it in writing

This is free to browse and there is no obligation to buy anything. LawDepot builds a state-specific promissory note through a question-and-answer form.

Build a promissory note at LawDepot

LawDepot pays us a commission if you buy through this link. It costs you nothing extra. We are not a law firm and this is not legal advice. Affiliate Disclosure.

How to read the table

These rows describe a private loan between individuals, not a loan from a bank or a licensed lender, which other statutes govern. A cap can have exemptions by loan size, by purpose or by whether the rate is in writing, so open the state’s page before relying on a row. Where a state’s documents did not settle a cell, the table says so rather than guessing.

States not yet covered

A state is added only when its own statutes can be read and quoted. States whose statutes could not be read from an official source are left out until they can.

Related: promissory note requirements, and family loan minimum interest rate.

Sources

Sources: the primary documents linked above, read on October 11, 2026. General information, not legal or tax advice. Statutes change and courts read them, so confirm anything consequential with a lawyer licensed in your state.

See the document option on this page