💰 Judgment Interest Rates by State

Post-judgment interest is one of the most powerful but often overlooked and underutilized tools in a judgment creditor’s collection arsenal. From the very moment a court enters judgment in your favor, interest begins accruing on the full judgment amount automatically and continuously—you don’t need to file anything additional, request it from the court, or take any special legal action. It’s mandated by state law and runs continuously until the judgment is paid in full. Every single day the debtor delays payment, they owe you more money. 📈

This has profound and far-reaching implications for your overall collection strategy. A debtor who thinks they can outwait you by hiding assets and stalling collection is actually making their situation worse every day. A $50,000 judgment in a state with a 10% annual interest rate grows by approximately $13.70 per day, $417 per month, and $5,000 per year. After five years of delay, the debtor owes $75,000. After ten years, they owe $100,000. After twenty years—through judgment renewals—the balance can reach $150,000 or more. Time is on your side.

Post-judgment interest also creates powerful settlement leverage that can dramatically improve your collection outcomes. A debtor who might stubbornly fight paying a $50,000 judgment is often much more motivated to come to the negotiating table when they realize the actual amount currently owed—including accumulated interest—is $72,000 and growing by $13.70 every single day. Offering to accept the original $50,000 and waive the $22,000 in accumulated interest becomes a legitimate, substantial “discount” that motivates the debtor to pay now rather than face an ever-growing obligation that will never go away as long as you keep the judgment renewed. This dynamic works increasingly in your favor with each passing year.

The following table provides a general reference for post-judgment interest rates across all 50 states and the District of Columbia. Important: Rates change, some states use variable rates tied to federal benchmarks, and specific case types may have different rates. Always verify the current rate with your state’s statutes or a local attorney before calculating amounts for enforcement purposes. This table reflects commonly cited statutory rates and is intended as a helpful general reference guide for judgment creditors: 🗺️

State	Rate	Type
Alabama	7.5%	Fixed statutory
Alaska	3.75% above 12th District rate	Variable
Arizona	10%	Fixed statutory
Arkansas	10%	Fixed statutory
California	10%	Fixed statutory
Colorado	8%	Fixed statutory
Connecticut	10%	Fixed statutory
Delaware	Fed discount + 5%	Variable
District of Columbia	IRS underpayment rate	Variable
Florida	Prime + varies	Variable (set annually)
Georgia	7%	Fixed statutory
Hawaii	10%	Fixed statutory
Idaho	T-bill + 5%	Variable
Illinois	9%	Fixed statutory
Indiana	8%	Fixed statutory
Iowa	Fed rate + varies	Variable (set annually)
Kansas	Fed discount + varies	Variable
Kentucky	6%	Fixed statutory
Louisiana	Judicial interest rate	Variable (set annually)
Maine	T-bill + varies	Variable
Maryland	6%	Fixed statutory
Massachusetts	12%	Fixed statutory
Michigan	T-bill + 1%	Variable (set Jan 1)
Minnesota	4%	Fixed statutory
Mississippi	8%	Per annum
Missouri	9%	Fixed statutory
Montana	10%	Fixed statutory
Nebraska	T-bill + 2%	Variable
Nevada	Prime at judgment	Variable
New Hampshire	2% over prime	Variable
New Jersey	Court rule rate	Variable (set annually)
New Mexico	8.75%	Fixed statutory
New York	9%	Fixed statutory
North Carolina	8%	Fixed statutory
North Dakota	6%	Fixed statutory
Ohio	Fed short-term + 3%	Variable
Oklahoma	T-bill + 4%	Variable
Oregon	9%	Fixed statutory
Pennsylvania	6%	Fixed statutory
Rhode Island	12%	Fixed statutory
South Carolina	8.75%	Fixed statutory
South Dakota	10%	Fixed statutory
Tennessee	Formula-based	Variable (set annually)
Texas	5% or prime + varies	Depends on case type
Utah	Fed post-judgment rate	Variable
Vermont	12%	Fixed statutory
Virginia	6%	Fixed statutory
Washington	12%	Fixed statutory
West Virginia	7%	Fixed statutory
Wisconsin	1% + T-bill	Variable
Wyoming	7%	Fixed statutory

🔥 High-Rate States (10-12%)

States like Massachusetts, Rhode Island, Vermont, and Washington lead the nation at 12%, while Arizona, Arkansas, California, Connecticut, Hawaii, Montana, and South Dakota impose 10%. These rates create substantial judgment growth that fundamentally changes the collection dynamic. A $100,000 judgment in a 12% state grows by $12,000 per year—that’s $1,000 per month, $32.88 per day. After just five years, the debtor owes $160,000. After ten years, $220,000. The compounding pressure on the debtor becomes enormous, and these states offer the strongest settlement leverage because the cost of delay is so high. If you have a judgment from a high-rate state and the debtor has moved elsewhere, carefully consider whether domesticating your judgment preserves the original high rate or subjects it to the new state’s potentially lower rate.

📈 Mid-Range States (6-9%)

The majority of states fall in the 6-9% range, including major populations like New York and Illinois (9%), Colorado, Indiana, Mississippi, and North Carolina (8%), Georgia, West Virginia, and Wyoming (7%), and Kentucky, Maryland, North Dakota, Pennsylvania, and Virginia (6%). These rates still produce meaningful growth over time. A $50,000 judgment at 8% adds $4,000 per year—$333 per month. After ten years, you’re owed $90,000. After twenty years through renewals, $130,000. The growth isn’t as dramatic as 12% states, but it’s still a powerful motivator for debtors to settle and a significant source of additional recovery for creditors.

📉 Variable-Rate States

Many states tie their post-judgment interest rate to a federal benchmark—typically the Treasury bill rate, the federal funds rate, or the prime rate—plus a fixed percentage. This means the rate fluctuates with the economy. During periods of high federal interest rates, these variable rates can be quite favorable for creditors, sometimes exceeding the fixed rates in other states. During low-rate periods, they can be significantly lower. If your judgment is in a variable-rate state, check the current rate annually and factor the current rate into your collection strategy and settlement calculations. States with variable rates include Florida, Michigan, Ohio, Idaho, Iowa, Kansas, Nebraska, Nevada, Oklahoma, and several others.

💡 Rate Comparison: Real Dollar Impact

To illustrate how dramatically rates affect your judgment value over time, consider the same $60,000 judgment in three different rate environments over a 10-year collection period:

• 📈 At 12% (Washington): $60,000 + $72,000 interest = $132,000 — judgment more than doubles
• 📊 At 8% (North Carolina): $60,000 + $48,000 interest = $108,000 — 80% growth
• 📉 At 4% (Minnesota): $60,000 + $24,000 interest = $84,000 — 40% growth

The difference between 4% and 12% over ten years on a $60,000 judgment is $48,000—nearly the original judgment amount. This shows why knowing your rate and factoring it into every collection decision is essential. Even at the lower rates, the growth is substantial and represents real money that the debtor owes you and that you should be collecting.

📊 Simple Interest Calculation (Most States)

Most states use simple interest, meaning interest accrues only on the original judgment amount—not on previously accrued interest. The formula is straightforward:

Daily interest = Judgment amount × Annual rate ÷ 365

Total interest = Daily interest × Number of days since judgment

For example, on a $75,000 judgment in California (10% annual rate):

• 💰 Daily interest: $75,000 × 0.10 ÷ 365 = $20.55 per day
• 📅 After 1 year: $75,000 + $7,500 = $82,500
• 📅 After 5 years: $75,000 + $37,500 = $112,500
• 📅 After 10 years: $75,000 + $75,000 = $150,000

That original $75,000 judgment doubles in just 10 years at California’s 10% rate. In Massachusetts, Rhode Island, Vermont, and Washington—all at 12%—it doubles even faster, in just over 8 years.

📋 Accounting for Partial Payments

When the debtor makes partial payments through levies, wage garnishment, or voluntary payments, you must recalculate. In most states, partial payments are applied first to accrued interest, then to principal. This means early partial payments may not reduce the principal at all if significant interest has accumulated. Maintain a detailed ledger showing every payment, how much was applied to interest versus principal, and the remaining balance after each payment. This ledger becomes essential when filing judgment renewals and calculating the current balance for enforcement actions.

Understanding how to leverage post-judgment interest as a strategic tool can significantly and meaningfully improve your overall collection outcomes and give you advantages that most creditors fail to use effectively: 🎯

• 💰 Settlement negotiations: Accrued interest is your most powerful negotiating tool, and most debtors drastically underestimate how much they actually owe. A debtor who owes $40,000 in principal plus $18,000 in interest ($58,000 total) may jump at the chance to settle for $45,000—you recover $5,000 more than the original judgment, and the debtor saves $13,000 off the full balance. Both sides come out ahead. But this only works if you communicate the full balance including interest. Show the debtor a written calculation with the daily accrual rate. The longer the debtor waits to settle, the higher the total climbs—and the more desperate they become to negotiate before the number grows even further.
• 📈 Growing leverage over time: In high-rate states (10-12%), your judgment grows rapidly and substantially. This creates increasing financial pressure on the debtor with each passing year that they fail to pay. A debtor who thought they could outwait a $30,000 judgment is suddenly facing $60,000 after just 10 years—and that number continues climbing every single day. Combined with judgment liens that prevent property sales and refinancing without satisfying your claim first, the growing balance becomes literally impossible for the debtor to ignore.
• 📋 Full interest in all enforcement documents: When you levy a bank account or garnish wages, always include the full amount with accumulated interest in your writ of execution. Include a per-diem (daily) interest figure so the sheriff or marshal can calculate the exact amount on the date of execution. Many creditors make the costly mistake of only claiming the original judgment amount, effectively forfeiting thousands of dollars in accrued interest that they are legally entitled to collect.
• 🏠 Lien payoff leverage: When the debtor sells or refinances property encumbered by your judgment lien, the payoff amount must include all accumulated interest through the closing date. Title companies and escrow agents will pay the full lien amount including every dollar of interest from closing proceeds before the debtor receives anything. This is one of the most reliable and automatic collection mechanisms because it happens through the normal real estate closing process without requiring any additional enforcement action from you beyond the original lien recording.
• 📅 Renewal calculations that capture full value: When renewing your judgment, always include all accumulated interest in the renewed judgment amount. This ensures future enforcement actions are based on the full current balance rather than just the original judgment amount, and it establishes the higher base on which future interest accrues during the next renewal period.
• ⚖️ Estate claims with full interest: When filing a creditor’s claim against a deceased debtor’s estate, include the complete accumulated interest. The estate owes the full balance including all post-judgment interest through the date of final payment. Don’t shortchange yourself by filing a claim for only the original judgment amount—the interest may represent 50% or more of the total owed depending on how many years have elapsed.
• 🔍 Investigate and enforce when opportunities arise: Run asset searches every 6-12 months and at every renewal period. When you identify new assets—a home purchase, new employment, business formation, inheritance—act immediately with levies, garnishments, and liens. If the debtor is hiding assets, a professional investigation can uncover what they’re concealing. The growing interest balance makes every enforcement action more valuable with each passing year.
• 📱 Social media monitoring for timing: Use social media investigation to identify when the debtor’s lifestyle suggests improving finances. Expensive vacations, new vehicles, home renovations, and business announcements all signal that enforcement may now be productive—and your judgment plus years of accumulated interest represents a substantial claim against the debtor’s newly visible wealth.

📋 Interest During Appeals

In most states, post-judgment interest continues accruing during appeals unless the debtor posts a supersedeas bond or the appellate court specifically stays the judgment. This is important because debtors sometimes appeal specifically to delay payment—but the delay only increases what they owe. If the debtor appeals and loses, they owe the original judgment plus all interest that accumulated during the appeal period, which can add substantially to the total. This makes appeals a costly gamble for debtors and actually works in your favor as the creditor.

🏦 Interest and Bankruptcy

When a debtor files for bankruptcy, post-judgment interest generally stops accruing as of the bankruptcy filing date for unsecured claims. However, if your claim is secured (for example, by a judgment lien on property with sufficient equity), interest may continue to accrue on the secured portion. The rules are complex and depend on whether it’s a Chapter 7 or Chapter 13 bankruptcy, whether the debtor’s assets provide sufficient security, and whether the debt is nondischargeable. Consult with a bankruptcy attorney for specific guidance on how bankruptcy affects your interest accrual.

🌎 Multi-State Judgments

If you’ve domesticated your judgment in another state, a critical question arises: which state’s interest rate applies? Generally, the interest rate of the state where the original judgment was entered applies, even after domestication. However, some states apply their own rate to domesticated judgments. If your original judgment was entered in a high-rate state like California (10%), you generally want to preserve that rate. If your original judgment is from a low-rate state and you’ve domesticated in a high-rate state, check whether the higher rate applies. The difference between a 4% rate and a 12% rate over 10 years is enormous—on a $50,000 judgment, it’s the difference between $20,000 and $60,000 in accumulated interest.

💼 Pre-Judgment vs Post-Judgment Interest

Pre-judgment interest runs from the date the cause of action arose (or the date of breach or injury) to the date of judgment entry, while post-judgment interest runs from the date of judgment entry to the date of full payment. The rates may differ significantly—some states have different statutory rates for pre-judgment and post-judgment interest, and pre-judgment interest may not be available at all in certain types of cases. Your judgment document should specify both the principal amount and any pre-judgment interest that was awarded separately. Post-judgment interest then accrues on the total judgment amount, which includes any awarded pre-judgment interest. This means interest is effectively accruing on the pre-judgment interest component, even in simple interest states—because the pre-judgment interest becomes part of the base judgment amount on which post-judgment simple interest is calculated.

🏠 Interest on Judgment Liens

When your judgment lien is recorded on real property, the lien amount grows automatically with accruing post-judgment interest. When the property is sold or refinanced, the title company must pay off the full lien balance including all accumulated interest before the debtor receives any proceeds. This is one of the most reliable collection mechanisms available because it happens automatically at closing—you don’t need to take any enforcement action beyond recording the lien and providing a current payoff statement when requested. Always include a per-diem (daily interest) amount in your payoff demand so the title company can calculate the exact amount owed on the closing date.

👥 Interest When Multiple Debtors Are Liable

When your judgment is against multiple debtors jointly and severally, interest accrues on the full judgment amount against each debtor independently. Partial payments by one debtor reduce the total owed by all debtors (since the judgment is for a single amount), but if one debtor pays their “share” and you haven’t been fully satisfied, the remaining debtors owe the full remaining balance plus accumulated interest. Continue pursuing all debtors through asset searches and enforcement actions until the judgment is fully satisfied, including all interest.

Here’s how to ensure you capture every dollar of interest you’re entitled to and use it strategically to maximize total recovery: 🏆

• 📋 Track interest daily. Maintain a running calculation of your judgment balance including accrued interest. Update it before every enforcement action, settlement discussion, or court filing. Use the correct rate and calculation method for your state to ensure accuracy. A spreadsheet or simple calculator that tracks the judgment date, original amount, applicable rate, payments received, and current balance makes this process straightforward and creates a documentation record you can present to the court when needed.
• 💰 Include interest in every enforcement action. When filing writs of execution, levies, and garnishments, always state the current total amount owed including accumulated interest. Many creditors unknowingly lose thousands of dollars by only claiming the original judgment amount in their enforcement paperwork because they don’t realize interest is a separate collectible component or they simply forget to calculate and include it. Don’t make this mistake—every dollar of interest is legally yours.
• 📅 Include interest in renewals. When renewing your judgment, file the renewal with the full current balance including all accumulated interest through the renewal date. This ensures the renewed judgment reflects what the debtor actually owes and establishes the correct, higher baseline for future interest accrual during the next renewal period.
• 🏠 Communicate payoff amounts with interest. When a title company, escrow agent, or the debtor’s attorney contacts you about a lien payoff, provide the full amount including interest calculated through the expected closing or payment date. Include a per-diem (daily interest rate) so the title company can adjust the payoff amount if the closing date changes, ensuring you receive every dollar owed regardless of scheduling changes.
• 📊 Use interest to motivate settlement. Show the debtor a written interest calculation demonstrating exactly how much they owe today compared to what they’ll owe next year, five years from now, and ten years from now. Prepare a simple chart showing the judgment balance growing over time. The visual impact of seeing the debt increase relentlessly, day after day, can be a powerful motivator for debtors to settle sooner rather than later. Many debtors simply don’t realize how fast interest accumulates until they see it spelled out in dollar terms.
• 🔍 Investigate even “stale” judgments. If you have an old judgment you haven’t actively pursued in years, calculate the current balance with interest—you may be surprised and pleased to discover how much it’s worth now. A $30,000 judgment that’s been sitting for 8 years in a 10% state is now worth $54,000. Order a fresh asset search to see if the debtor’s financial situation has improved in the intervening years, and restart collection efforts with renewed vigor. A judgment you mentally wrote off years ago may now represent a very significant and collectible amount, especially with accumulated interest.
• ⚖️ Don’t accept reduced settlements without considering interest. When a debtor offers to settle for less than the original judgment amount, remember that they actually owe the judgment plus all accumulated interest. A debtor offering $45,000 on a $50,000 judgment sounds like a reasonable 90% recovery—until you realize the actual balance with five years of 10% interest is $75,000, making the offer only 60% of what’s owed. Always negotiate from the full current balance, not the original judgment amount.

Whether you’re handling collection through DIY methods or our professional judgment recovery services, never leave interest money on the table. It’s yours by law, it accrues automatically every single day without any action on your part, and over the years it can represent a significant portion of your total recovery—sometimes equal to or even exceeding the original judgment amount. Combined with timely renewals, regular asset searches, and persistent enforcement, post-judgment interest transforms the passage of time from your enemy into your most powerful ally in the judgment collection process.

Even experienced creditors and attorneys make mistakes when calculating post-judgment interest. These errors can cost you thousands of dollars in uncollected interest or, conversely, lead to challenges from the debtor. Avoid these common pitfalls: 🚫

• 📅 Wrong start date: Interest runs from the date the judgment is entered, not the date the complaint was filed, the date the debtor was served, or the date the verdict was returned. Verify the exact judgment entry date on the court records and use that as your start date for all calculations.
• 📊 Wrong rate: Using a rate from the wrong state (if the judgment was domesticated), using a pre-judgment rate instead of the post-judgment rate, or using an outdated variable rate. Variable-rate states require checking the current rate periodically because it changes with federal benchmarks. Always verify the correct rate applies to your specific judgment type and time period.
• 🧮 Compound vs simple confusion: Most states use simple interest, but some creditors incorrectly calculate compound interest (interest on interest), overstating the amount owed. Conversely, in the few states that do allow compound interest, using simple interest shortchanges yourself. Know which method your state requires and calculate accordingly.
• 💰 Ignoring partial payment allocation: When partial payments are received, most states require payment to be applied first to accrued interest, then to principal. If you apply the payment directly to principal, you understate the remaining interest owed. Maintain a detailed payment allocation ledger showing exactly how each payment is applied.
• 📋 Forgetting to include pre-judgment interest in the base: If the court awarded pre-judgment interest as part of the judgment, that amount is included in the judgment total on which post-judgment interest accrues. Failing to include it in your base calculation means undercharging interest on a portion of what you’re owed.
• 🏛️ Not updating for rate changes: In variable-rate states, the rate may change annually or quarterly. If you calculate 10 years of interest using only the rate from year one, you may significantly over or understate the total. Track rate changes over time and calculate interest for each period at the applicable rate.
• 📄 Not documenting your calculations: Courts and debtors may challenge your interest claims. Maintain clear, documented calculations showing the judgment amount, applicable rate, start date, any partial payments with dates and allocation between interest and principal, and the current total balance. A well-organized ledger withstands challenges and demonstrates the accuracy of your claims.

📋 Scenario 1: The Patient Creditor Wins Big

A contractor obtains a $45,000 judgment in Oregon (9% rate) against a homeowner who refuses to pay for completed renovations. The homeowner has a fully mortgaged home and modest income, making immediate collection difficult. The contractor records a judgment lien on the home, starts a modest wage garnishment that collects $200 per month, and waits. Over 7 years, the garnishment collects $16,800. Meanwhile, interest has added approximately $28,350 to the balance ($45,000 × 9% × 7 years). Net balance after payments: $45,000 + $28,350 – $16,800 = $56,550. When the homeowner goes to sell the house (which has appreciated significantly), the title company contacts the contractor for a lien payoff. The contractor provides the full balance of $56,550. The homeowner is shocked but has no choice—the lien must be paid from sale proceeds. Total recovery: $73,350 ($16,800 from garnishment + $56,550 from lien payoff) on a $45,000 judgment. The additional $28,350 came entirely from post-judgment interest.

📋 Scenario 2: Interest as Settlement Leverage

An attorney obtains a $120,000 judgment in Massachusetts (12% rate) against a business entity. The business immediately transfers most assets and claims it can’t pay. The attorney orders an asset search, identifies hidden assets, and files a fraudulent transfer action. During the three years of litigation over the fraudulent transfer, interest continues accruing at 12%: $120,000 × 12% × 3 years = $43,200 in interest. The total owed is now $163,200. Facing both the fraudulent transfer lawsuit and a growing judgment balance, the business owner finally offers to settle. The attorney accepts $140,000—$20,000 more than the original judgment amount—because the accumulated interest gave her the leverage to demand more. Without interest, the settlement likely would have been $100,000 or less.

📋 Scenario 3: The Cost of Debtor Delay

A landlord obtains a $25,000 judgment in California (10% rate) against a former tenant for property damage and unpaid rent. The tenant is young, has few assets, and the landlord considers writing off the debt. Instead, the landlord spends $50 to record a judgment lien in the county and sets a reminder to renew the judgment in 10 years. At the 10-year mark, the tenant—now 35—has built a career, married, and purchased a home in the same county. The judgment lien attached automatically when the tenant bought the home. The landlord renews the judgment for $50,000 ($25,000 original + $25,000 accumulated interest) and initiates collection. The tenant, now unable to sell or refinance without paying the lien, negotiates a settlement of $42,000. The landlord’s total investment: approximately $200 in filing and renewal fees. Return: $42,000. The debtor’s cost of delaying for 10 years: paying $17,000 more than the original judgment. This is why renewal and patience are essential tools for every judgment creditor.