Which states are hardest to sell structured settlement payments in?

Maryland (99% reduction in approved transfers since 2016 reform), North Carolina (rate caps at prime + 5%), and New York (USPS-only communications, strict best-interest standard) are the most protective states.

What discount rate should I expect in 2026?

Average discount rates in June 2026 range from 7.5% (A++ rated carriers, competitive states) to 18% (subprime buyers, complex cases). The national average is approximately 11.1%, down from 13.2% in 2024.

Are structured settlement sales taxable?

No. IRS Revenue Ruling 2026-8 reaffirms that qualified structured settlement sales remain tax-free under IRC 104(a)(2) when the original settlement was for personal physical injury.

How long does court approval take by state?

Timelines vary: Florida 30 days, Texas 35-55 days, California 60-90 days, New York 45-75 days, Maryland (rarely approved). Most states fall within 45-60 days.

Structured Settlement State Laws 2026 | SettlementDecisions.com

Structured Settlement Laws by State: 2026 News, Court Rulings and Rate Trends for All 50 States

Q: What is a Structured Settlement Protection Act?

A state law requiring court approval before any structured settlement payment rights can be transferred to a factoring company. All 50 states and DC have one as of 2026.

Live ReportBy SettlementDecisions Editorial Team|June 4, 2026|14 min read| Live Data

10-Yr Treasury

...

Avg Discount

11.1%

Record low

High Protection

of 51 jurisdictions

WC Bans

states ban WC sales

Sources:U.S. Treasury APIFederal Reserve H.15FRED DGS10NAIC 2026IRS Rev. Ruling 2026-8

WASHINGTON, D.C., June 4, 2026 - The structured settlement landscape is shifting faster than at any point in its 40-year history. Maryland's landmark reform - spotlighted by John Oliver on June 2 - has become the national blueprint, with Ohio (HB 202) and Oregon (SB 914) enacting similar protections.

With the 10-year Treasury at ... and discount rates at 11.1% (down from 13.2% in 2024), sellers comparing 3+ offers earn 18.3% more. This live report covers every jurisdiction.

Breaking Headlines - June 2026

Maryland Blueprint Goes National

John Oliver June 2: HB 124 the 99% fix. OH and OR enacted.

NY Denies $145K Transfer

Lincoln and Brennan v. Prudential (March 2026): 19yo denied.

Discount Rates Record Low

National avg 11.1% (down from 13.2% in 2024).

Guaranty Funds $500K

Iowa, Nebraska, Vermont raise coverage.

IRS Ruling 2026-8

Sales remain tax-free under IRC 104(a)(2).

51 states

Deep Dives

Maryland Blueprint: 99% Reduction

Before 2016: ~1,800 transfers/yr. HB 124 introduced local-venue, enhanced scrutiny, mandatory independent advice. Result: just 6/yr. Ohio HB 202 + Oregon SB 914 followed. CA, VA, DC, Carolinas in progress.

NY Denies $145K Transfer (March 2026)

Lauren Brownlee, 19, offered $62,823 for $145K. Present value: $92,570. Court denied - age, no emergency, steep discount, unsolicited email. Courts are not rubber stamps.

Record-Low Rates: $17K More Per $200K

Treasury: .... Avg discount: 11.1% (lowest in 18 yrs). For $200K: was $154K at 13.2%, now ~$171K. Compare 3+ buyers for 18.3% more.

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FAQ

What is a Structured Settlement Protection Act?

A state law requiring court approval before payments transfer. All 50 states + DC have one.

Hardest states to sell?

Maryland (99% denial), North Carolina (prime+5% cap), New York (strict best-interest).

Expected discount rate 2026?

7.5% (A++ carriers) to 18% (subprime). National avg: 11.1%.

Are sales taxable?

No. IRS Ruling 2026-8 confirms tax-free under IRC 104(a)(2).

How long for court approval?

FL ~30d, TX 35-55d, CA 60-90d, NY 45-75d, MD rarely approves.