diff --git a/server/client.go b/server/client.go
index 8545fab6..f84f9c3e 100644
--- a/server/client.go
+++ b/server/client.go
@@ -588,6 +588,21 @@ func (c *client) subsAtLimit() bool {
 	return c.msubs != jwt.NoLimit && len(c.subs) >= int(c.msubs)
 }
 
+func minLimit(value *int32, limit int32) bool {
+	if *value != jwt.NoLimit {
+		if limit != jwt.NoLimit {
+			if limit < *value {
+				*value = limit
+				return true
+			}
+		}
+	} else if limit != jwt.NoLimit {
+		*value = limit
+		return true
+	}
+	return false
+}
+
 // Apply account limits
 // Lock is held on entry.
 // FIXME(dlc) - Should server be able to override here?
@@ -595,30 +610,35 @@ func (c *client) applyAccountLimits() {
 	if c.acc == nil || (c.kind != CLIENT && c.kind != LEAF) {
 		return
 	}
-
-	// Set here, will need to fo checks for NoLimit.
-	if c.acc.msubs != jwt.NoLimit {
-		c.msubs = c.acc.msubs
+	c.mpay = jwt.NoLimit
+	c.msubs = jwt.NoLimit
+	if c.opts.JWT != "" { // user jwt implies account
+		if uc, _ := jwt.DecodeUserClaims(c.opts.JWT); uc != nil {
+			c.mpay = int32(uc.Limits.Payload)
+			c.msubs = int32(uc.Limits.Subs)
+		}
 	}
-	if c.acc.mpay != jwt.NoLimit {
-		c.mpay = c.acc.mpay
-	}
-
+	minLimit(&c.mpay, c.acc.mpay)
+	minLimit(&c.msubs, c.acc.msubs)
 	s := c.srv
 	opts := s.getOpts()
-
-	// We check here if the server has an option set that is lower than the account limit.
-	if c.mpay != jwt.NoLimit && opts.MaxPayload != 0 && int32(opts.MaxPayload) < c.acc.mpay {
-		c.Errorf("Max Payload set to %d from server config which overrides %d from account claims", opts.MaxPayload, c.acc.mpay)
-		c.mpay = int32(opts.MaxPayload)
+	mPay := opts.MaxPayload
+	// options encode unlimited differently
+	if mPay == 0 {
+		mPay = jwt.NoLimit
 	}
-
-	// We check here if the server has an option set that is lower than the account limit.
-	if c.msubs != jwt.NoLimit && opts.MaxSubs != 0 && opts.MaxSubs < int(c.acc.msubs) {
-		c.Errorf("Max Subscriptions set to %d from server config which overrides %d from account claims", opts.MaxSubs, c.acc.msubs)
-		c.msubs = int32(opts.MaxSubs)
+	mSubs := int32(opts.MaxSubs)
+	if mSubs == 0 {
+		mSubs = jwt.NoLimit
+	}
+	wasUnlimited := c.mpay == jwt.NoLimit
+	if minLimit(&c.mpay, mPay) && !wasUnlimited {
+		c.Errorf("Max Payload set to %d from server overrides account or user config", opts.MaxPayload)
+	}
+	wasUnlimited = c.msubs == jwt.NoLimit
+	if minLimit(&c.msubs, mSubs) && !wasUnlimited {
+		c.Errorf("Max Subscriptions set to %d from server overrides account or user config", opts.MaxSubs)
 	}
-
 	if c.subsAtLimit() {
 		go func() {
 			c.maxSubsExceeded()
diff --git a/server/client_test.go b/server/client_test.go
index 39468c1a..99040f2d 100644
--- a/server/client_test.go
+++ b/server/client_test.go
@@ -33,7 +33,9 @@ import (
 	"crypto/rand"
 	"crypto/tls"
 
+	"github.com/nats-io/jwt/v2"
 	"github.com/nats-io/nats.go"
+	"github.com/nats-io/nkeys"
 )
 
 type serverInfo struct {
@@ -2460,3 +2462,65 @@ func TestClientConnectionName(t *testing.T) {
 		})
 	}
 }
+
+func TestClientLimits(t *testing.T) {
+	accKp, err := nkeys.CreateAccount()
+	if err != nil {
+		t.Fatalf("Error creating account key: %v", err)
+	}
+	uKp, err := nkeys.CreateUser()
+	if err != nil {
+		t.Fatalf("Error creating user key: %v", err)
+	}
+	uPub, err := uKp.PublicKey()
+	if err != nil {
+		t.Fatalf("Error obtaining publicKey: %v", err)
+	}
+	s, err := NewServer(DefaultOptions())
+	if err != nil {
+		t.Fatalf("Error creating server: %v", err)
+	}
+	for _, test := range []struct {
+		client int32
+		acc    int32
+		srv    int32
+		expect int32
+	}{
+		// all identical
+		{1, 1, 1, 1},
+		{-1, -1, 0, -1},
+		// only one value unlimited
+		{1, -1, 0, 1},
+		{-1, 1, 0, 1},
+		{-1, -1, 1, 1},
+		// all combinations of distinct values
+		{1, 2, 3, 1},
+		{1, 3, 2, 1},
+		{2, 1, 3, 1},
+		{2, 3, 1, 1},
+		{3, 1, 2, 1},
+		{3, 2, 1, 1},
+	} {
+		t.Run("", func(t *testing.T) {
+			s.opts.MaxPayload = test.srv
+			s.opts.MaxSubs = int(test.srv)
+			c := &client{srv: s, acc: &Account{
+				limits: limits{mpay: test.acc, msubs: test.acc},
+			}}
+			uc := jwt.NewUserClaims(uPub)
+			uc.Limits.Subs = int64(test.client)
+			uc.Limits.Payload = int64(test.client)
+			c.opts.JWT, err = uc.Encode(accKp)
+			if err != nil {
+				t.Fatalf("Error encoding jwt: %v", err)
+			}
+			c.applyAccountLimits()
+			if c.mpay != test.expect {
+				t.Fatalf("payload %d not as ecpected %d", c.mpay, test.expect)
+			}
+			if c.msubs != test.expect {
+				t.Fatalf("subscriber %d not as ecpected %d", c.msubs, test.expect)
+			}
+		})
+	}
+}
diff --git a/server/jwt_test.go b/server/jwt_test.go
index b0f104c7..51157174 100644
--- a/server/jwt_test.go
+++ b/server/jwt_test.go
@@ -3438,3 +3438,64 @@ func TestJWTTimeExpiration(t *testing.T) {
 		c.Close()
 	})
 }
+
+func TestJWTSubLimits(t *testing.T) {
+	doNotExpire := time.Now().AddDate(1, 0, 0)
+	// create account
+	kp, _ := nkeys.CreateAccount()
+	aPub, _ := kp.PublicKey()
+	claim := jwt.NewAccountClaims(aPub)
+	aJwt, err := claim.Encode(oKp)
+	require_NoError(t, err)
+	conf := createConfFile(t, []byte(fmt.Sprintf(`
+		listen: -1
+		operator: %s
+		resolver: MEM
+		resolver_preload: {
+			%s: %s
+		}
+    `, ojwt, aPub, aJwt)))
+	defer os.Remove(conf)
+	sA, _ := RunServerWithConfig(conf)
+	defer sA.Shutdown()
+	errChan := make(chan struct{})
+	defer close(errChan)
+	t.Run("subs", func(t *testing.T) {
+		creds := createUserWithLimit(t, kp, doNotExpire, func(j *jwt.Limits) { j.Subs = 1 })
+		defer os.Remove(creds)
+		c := natsConnect(t, sA.ClientURL(), nats.UserCredentials(creds),
+			nats.DisconnectErrHandler(func(conn *nats.Conn, err error) {
+				if e := conn.LastError(); e != nil && strings.Contains(e.Error(), "maximum subscriptions exceeded") {
+					errChan <- struct{}{}
+				}
+			}),
+		)
+		if _, err := c.Subscribe("foo", func(msg *nats.Msg) {}); err != nil {
+			t.Fatalf("couldn't subscribe: %v", err)
+		}
+		if _, err = c.Subscribe("bar", func(msg *nats.Msg) {}); err != nil {
+			t.Fatalf("expected error got: %v", err)
+		}
+		<-errChan
+		c.Close()
+	})
+	t.Run("payload", func(t *testing.T) {
+		creds := createUserWithLimit(t, kp, doNotExpire, func(j *jwt.Limits) { j.Payload = 5 })
+		defer os.Remove(creds)
+		c := natsConnect(t, sA.ClientURL(), nats.UserCredentials(creds),
+			nats.DisconnectErrHandler(func(conn *nats.Conn, err error) {
+				if e := conn.LastError(); e != nil && strings.Contains(e.Error(), "Maximum Payload Violation") {
+					errChan <- struct{}{}
+				}
+			}),
+		)
+		if err := c.Publish("foo", []byte("world")); err != nil {
+			t.Fatalf("couldn't publish: %v", err)
+		}
+		if err := c.Publish("foo", []byte("worldX")); err != nil {
+			t.Fatalf("couldn't publish: %v", err)
+		}
+		<-errChan
+		c.Close()
+	})
+}