Lagging current can be formally defined as “an alternating current that reaches its maximum value up to 90° behind the voltage that produces it”.This can also be stated as the voltage and current being out of phase. In an inductive circuit, current will be at its maximum phase shift and lagging the voltage.
Leading current can be formally defined as “an alternating current that reaches its maximum value up to 90° ahead of the voltage that produces it”. They are both out of phase from each other. In a purely capacitive circuit, current will be at its maximum phase shift and leading the voltage.