Pawn Shop Interest Rates and Fees by State

Two Ways Pawn Interest Is Stated

Pawn shops in the United States quote their charges the way state statutes tell them to. Most statutes cap what a pawnbroker can charge either as a percentage of the loan amount per 30-day term or as a per-dollar dollar amount by tier of loan size. That percentage is the monthly rate.

Federal law adds a second required disclosure. Because a pawn loan is consumer credit, the pawnbroker must disclose the annual percentage rate on the pawn ticket under the Truth in Lending Act and Regulation Z (12 CFR Part 1026). The APR combines every finance charge (interest, service charge, storage fee, ticket fee, insurance if imposed) into one annualized number. That is the number to compare across shops and across states, because a 5 percent monthly rate and a 15 percent monthly rate look similar in small numbers but land on very different APRs.

The APR translation matters because the state cap is usually written per month, and a customer reading the pawn ticket sees the monthly number. Twenty percent per month compounds to an APR well above 240 percent once all federal-disclosure fees are included. Federal rules require that annualized figure on the ticket, but many customers ignore it in favor of the smaller monthly number.

The Four Fee Components on a Pawn Ticket

State pawnbroker statutes rarely allow just one line item. Most permit a combination of the following four charges, each of which has its own rule in the statute.

1. Interest or service charge

This is the headline fee, expressed as a percentage of the loan principal per 30-day term. In some states it is called interest; in others it is called a service charge or a pawn service charge in lieu of interest. The label matters legally because it determines whether general state usury caps apply on top or whether the pawnbroker statute is the exclusive rate ceiling. In Florida, for example, the statute says the pawnbroker charge is “in lieu of interest or other charges,” which shuts out separate state usury limits.

2. Storage fee

Many statutes let the pawnbroker charge a separate monthly storage fee to cover the cost of holding the pledged item in a secured location. Storage fees are typically capped at a fraction of the loan principal per month. When present, the storage fee is added to the interest or service charge to get the total monthly cost. On a 90-day term, a 2 percent monthly storage fee alone adds 6 percent to the redemption cost.

3. Ticket fee

A ticket fee is a one-time origination charge for drafting the pawn ticket itself. It covers the paperwork, the required disclosures, and often the shop’s own reporting obligations to law enforcement. Some states cap it as a flat dollar amount ($2 to $5 is common where allowed), and some fold it into the overall pawn service charge without a separate line.

4. Lost ticket fee

If you lose the pawn ticket, most shops require a notarized lost-ticket affidavit before releasing the item. Some states permit an additional lost-ticket fee on top of the redemption cost to cover the shop’s administrative burden and the added risk that someone else might present the original ticket later. Lost-ticket fees are usually modest (often $5 to $25 where allowed) but they add up on a small loan.

Why a 20 Percent Monthly Rate Is Not a Small Number

The gap between the monthly quote and the annualized cost is the most misunderstood part of pawn pricing. Consider a $300 loan on a 30-day term.

• Monthly service charge at 20 percent of principal: $60.
• Storage fee at 2 percent: $6.
• Total 30-day finance charge: $66.
• Amount owed to redeem: $366.
• Annualized cost (finance charge as a percentage of amount financed, annualized): roughly 264 percent APR.

That 264 percent APR is what federal law requires the pawn ticket to display. It is not a rhetorical device; it is the honest annualized cost of the borrowed money if the fee structure were held constant over 12 months. In most states, an unsecured consumer loan at that APR would be illegal under general usury law. Pawn is legal at that rate because the pawnbroker statute exempts it from ordinary usury caps.

The takeaway is not that pawn loans are wrong for every borrower. It is that the short-term cost of a pawn loan is high in APR terms, and any customer who plans on extending the loan month after month will pay a very large multiple of the original principal within a year. The Consumer Financial Protection Bureau covers this trade-off directly in its plain-language pawn loan explainer.

State-by-State Statutory Framework Reference

The table below lists the pawnbroker statute for each of a representative set of large states, the regulator that administers it, and a short summary of how the state structures the maximum charge. Where a specific numeric cap is widely and reliably documented in the current statute, it appears in the summary. Where the cap depends on loan tier, product type, or a formula that is best read in the statute itself, the summary points you to the statute directly. Every citation links to an official source or a public codified version.

This table is a starting map, not legal advice. Statutes are amended. Always confirm the current text at the linked source and check any municipal ordinance layered on top before you rely on a rate.

States not shown in the table (including Alaska, Delaware, Massachusetts, New Jersey, Wisconsin, and others) each have their own pawnbroker code or an analogous consumer credit provision. Every state either caps pawn charges directly in a pawnbroker statute or ties them to a general small-loan act. When in doubt, start at your state legislature’s official website and search for “pawnbroker” in the code index.

Deep Dive: How Five Statutes Actually Work

Florida: One All-In Cap, No Add-Ons

Florida chose the cleanest structural approach in the country. Section 539.001(11)(a) of the Florida Statutes states that a pawnbroker may contract for and receive a pawn service charge “in lieu of interest or other charges” not to exceed 25 percent of the amount financed per 30-day period. There is no separate storage fee, no separate ticket fee, and no separate insurance fee under state law. Everything the pawnbroker is going to charge on the loan sits inside that single 25 percent per month cap.

The advantage for consumers is transparency. The disadvantage is that 25 percent per month sits close to the top of the national scale. On a $200 loan for 30 days, the maximum finance charge is $50, and the redemption cost is $250. The APR disclosure on the pawn ticket will show a number in the low 300 percent range once the initial-term costs are annualized. Full statute: Florida Statutes section 539.001.

California: Tiered by Loan Size, Long Redemption Window

California takes the opposite approach. Financial Code section 21200 sets a base monthly interest rate on pawn loans, then permits a series of separately capped setup, preparation, storage, and other allowable fees, each with its own percentage or dollar ceiling that depends on the loan amount. Small loans have relatively higher percentage caps; larger loans are capped at lower percentages that better resemble a general small-loan rate.

California is also the most borrower-friendly state on redemption timing. Section 21201 requires a minimum four-month contract period, which means the borrower has four months to redeem the pledge before any forfeiture can happen. Extension mechanics and post-maturity grace periods are also codified. Read the full statutory structure at the California Legislative Information portal.

Texas: Sliding Scale by Loan Amount Bracket

Texas prices pawn service charges on a sliding scale that changes as the loan amount rises. Small loans (roughly the two- and three-digit bracket) are permitted the highest per-month percentage; larger loans (four figures and up) fall into successively lower percentage caps. The statute is Finance Code Chapter 371, and the tier ceilings live in the Pawnshop Act section on maximum charges. The Office of Consumer Credit Commissioner publishes the Act along with implementing rules. Confirm the current text at Texas Finance Code Chapter 371.

Ohio: Interest Plus a Separately Capped Storage Fee

Ohio Revised Code section 4727.06 caps the monthly interest rate on the loan itself and, separately, allows a monthly storage fee expressed as a smaller percentage of the loan principal. Both caps together define the maximum a shop can charge on a 30-day term. The Ohio Division of Financial Institutions administers licensing and rate compliance. Full chapter: Ohio Revised Code Chapter 4727.

New York: A Statewide Frame With City-Set Rates

New York General Business Law Article 5, sections 40 through 50, licenses collateral loan brokers statewide and sets the framework for pawn contracts, including a four-month redemption period. The specific monthly interest cap is set by section 46 and, for the five boroughs of New York City, is tightened by local ordinance and administered by the Department of Consumer and Worker Protection. Rates that apply in Manhattan differ from rates that apply in upstate counties. Both the statewide code (GBL Article 5) and the applicable city or county code must be consulted before relying on a specific number.

Minimum Loan Terms and Redemption Windows

The redemption window matters as much as the interest cap because the length of the initial term determines how many finance-charge cycles a borrower will pay through before recovering the pledge. Most states set a floor of 30 days for the initial pawn contract, with an equivalent or shorter grace period after maturity during which the borrower can still redeem (usually by paying interest to date plus one additional cycle).

A few states are outliers. California and New York both require a minimum four-month redemption period, which materially lowers the effective annualized cost because the borrower is not being pushed through 30-day rollovers. Some states additionally require a mandatory grace period after the initial term expires before the item can be forfeited and moved to inventory.

Extensions and renewals are also state-regulated. Some statutes allow the parties to renew the pawn contract indefinitely by paying accrued charges; others cap the number of extensions or the total time an item can sit in pawn. Read your state’s statute for the renewal rules before assuming a pawn ticket can be extended forever.

Municipal Layers on Top of State Statute

The state cap is a ceiling, not the whole picture. Cities and counties across the country layer their own pawn ordinances on top of the state framework, most often to add licensing fees, hold periods, or record-keeping obligations. A shop operating in Los Angeles, Chicago, or Miami often has both a state license and a municipal permit, each with a different renewal cycle, background-check requirement, and reporting obligation.

Municipal codes rarely change the maximum interest rate, because the state statute usually preempts that field. But they can add fees on the license side (which the shop absorbs) and can extend hold periods on items purchased outright, which affects how quickly a customer can retrieve a piece if they later dispute the sale.