📊 Judgment Interest Rates by State: Complete 2026 Reference Guide
Post-Judgment Interest Rates for All 50 States — How Interest Accrues on Your Judgment and Why It Matters for Collection
💰 Your Judgment Grows Every Day It Goes Unpaid
Every day a judgment debtor fails to pay, your judgment balance increases through post-judgment interest. This is not a penalty you request or a fee you negotiate — it is automatic, mandated by state law, and accrues from the date the judgment is entered until the date it is fully satisfied. In many states, post-judgment interest rates are surprisingly high, and over the life of a judgment that may last 10 to 20+ years, interest can add thousands or even tens of thousands of dollars to the original judgment amount. Understanding your state’s post-judgment interest rate is essential for calculating what the debtor actually owes, negotiating settlements, and making informed decisions about when and how aggressively to pursue collection.
Automatic Accrual
Interest starts the day judgment is entered — no action required from you
2% to 18%
Post-judgment interest rates vary dramatically by state
Years of Growth
Over a 10-year judgment, interest can exceed the original principal
Legally Enforceable
Interest is collectible through all the same enforcement methods as the principal
📋 What This Guide Covers
- 📌 How Post-Judgment Interest Works
- 📌 Post-Judgment Interest Rates — All 50 States + DC
- 📌 Types of Interest Rate Structures
- 📌 How to Calculate Post-Judgment Interest
- 📌 Pre-Judgment vs. Post-Judgment Interest
- 📌 Federal Judgment Interest Rate
- 📌 Interest in Settlement Negotiations
- 📌 Interest When Domesticating Judgments
- 📌 Real-World Interest Calculations
- 📌 Frequently Asked Questions
⚙️ How Post-Judgment Interest Works
When a court enters a judgment in your favor, the judgment amount becomes a legal debt owed to you by the judgment debtor. State law provides that this debt accrues interest from the date of judgment entry — compensating you for the delay in receiving the money you are owed. Post-judgment interest serves two important purposes: it compensates the creditor for the time value of money (you should have been paid when the judgment was entered), and it incentivizes the debtor to pay promptly (every day of delay costs them more money).
📋 Key Principles of Post-Judgment Interest
- 📅 Start date: Interest begins accruing on the date the judgment is entered by the court. In some states, pre-judgment interest may also apply, which calculates interest from an earlier date (such as when the debt was first due or when the lawsuit was filed).
- 📈 Simple vs. compound: Most states calculate post-judgment interest as simple interest (interest on the original principal only), not compound interest (interest on interest). This is a significant distinction for long-term calculations.
- 💲 Rate source: The interest rate is set by state statute. Some states use a fixed rate written into the law. Others use a variable rate tied to the federal discount rate, treasury bill rate, or prime rate — meaning the rate changes periodically.
- 🔄 Partial payments: When the debtor makes partial payments (through garnishment, levy, or voluntary payment), the payment is typically applied first to accrued interest and then to the principal balance. This means the principal may not decrease as quickly as the debtor expects.
- ⚖️ Collectible through enforcement: Accrued interest is collectible through all the same enforcement tools as the original judgment — wage garnishment, bank levies, property liens, and debtor examinations.
📋 Post-Judgment Interest Rates — All 50 States + DC
| 🏛️ State | 📊 Post-Judgment Rate | 📝 Rate Type |
|---|---|---|
| Alabama | 7.5% | Fixed by statute |
| Alaska | 3.75% (or contract rate) | Variable — set annually |
| Arizona | Prime rate + 1% | Variable — follows prime rate |
| Arkansas | 10% (or contract rate, whichever applies) | Fixed by statute |
| California | 10% | Fixed by statute |
| Colorado | 8% (or statutory rate based on Treasury) | Statutory rate; may vary by judgment type |
| Connecticut | 10% | Fixed by statute |
| Delaware | 5% above Federal Reserve discount rate | Variable |
| District of Columbia | IRS underpayment rate | Variable — updated quarterly |
| Florida | Set annually by CFO — varies yearly | Variable — published each January |
| Georgia | Prime rate + 3% (or 7%, whichever is greater) | Variable with floor |
| Hawaii | 10% | Fixed by statute |
| Idaho | T-bill rate + 5% | Variable |
| Illinois | 9% | Fixed by statute |
| Indiana | 8% | Fixed by statute |
| Iowa | Published annually by state treasurer | Variable |
| Kansas | Published annually — varies | Variable |
| Kentucky | 12% (or contract rate) | Fixed by statute |
| Louisiana | Judicial interest rate (varies by year) | Variable |
| Maine | Published annually by state treasurer | Variable |
| Maryland | 10% | Fixed by statute |
| Massachusetts | 12% | Fixed by statute |
| Michigan | Treasury rate + 1% (published Jan 1 each year) | Variable |
| Minnesota | Published annually by state — secondary market yield + 2% | Variable |
| Mississippi | 8% (or contract rate) | Fixed by statute |
| Missouri | 9% | Fixed by statute |
| Montana | 10% | Fixed by statute |
| Nebraska | Published annually by state treasurer | Variable |
| Nevada | Prime rate + 2% (adjusted biennially) | Variable |
| New Hampshire | Published by court — varies | Variable |
| New Jersey | Published annually by court — varies | Variable |
| New Mexico | 8.75% | Fixed by statute |
| New York | 9% | Fixed by statute |
| North Carolina | 8% | Fixed by statute |
| North Dakota | 12% | Fixed by statute |
| Ohio | Published annually — varies by year of judgment | Variable |
| Oklahoma | Published annually by court administrator | Variable |
| Oregon | 9% (general; contract rate may apply) | Fixed by statute |
| Pennsylvania | 6% (prime + 2% in some courts/cases) | Varies by court/case type |
| Rhode Island | 12% | Fixed by statute |
| South Carolina | Published annually by comptroller | Variable |
| South Dakota | Published annually — category A rate | Variable |
| Tennessee | Published annually by court — varies | Variable |
| Texas | 5% or prime rate, whichever is greater | Variable with floor |
| Utah | Published annually — federal post-judgment rate + 2% | Variable |
| Vermont | 12% | Fixed by statute |
| Virginia | 6% | Fixed by statute |
| Washington | 12% (or 2% above T-bill rate for certain judgments) | Fixed/Variable depending on case type |
| West Virginia | 7% | Fixed by statute |
| Wisconsin | Published annually by court — varies | Variable |
| Wyoming | 7% (or 10% depending on judgment type) | Fixed by statute |
📊 Types of Interest Rate Structures
Understanding how your state sets its post-judgment interest rate helps you predict how much your judgment will grow over time and plan your collection strategy accordingly.
Fixed Rate States
The interest rate is written into the state statute and does not change regardless of market conditions. Examples: California (10%), New York (9%), Illinois (9%), Massachusetts (12%). These rates provide certainty — you know exactly how much interest accrues each year. Fixed rates above market rates (like 10-12%) can make a judgment an excellent “investment” that grows faster than many traditional investments.
Variable Rate States
The interest rate adjusts periodically based on a benchmark — typically the federal discount rate, treasury bill rate, or prime rate. Examples: Arizona (prime + 1%), Florida (set annually by CFO), Michigan (treasury + 1%). When market rates are low, your judgment grows slowly; when rates rise, growth accelerates. Variable rate states require periodic recalculation.
Hybrid Rate States
Some states use a variable rate with a floor or ceiling. Example: Georgia (prime + 3% or 7%, whichever is greater), Texas (5% or prime, whichever is greater). The floor guarantees a minimum return even when market rates are very low. These structures protect creditors from ultra-low interest environments.
Contract Rate States
Several states allow the contract rate to apply as the post-judgment interest rate if the debt arose from a written contract that specified an interest rate. If your promissory note, loan agreement, or contract specified 18% interest, the post-judgment rate may be 18% rather than the default statutory rate. Check your contract and your state’s rules.
🔢 How to Calculate Post-Judgment Interest
Calculating the total amount owed on your judgment — principal plus accrued interest — is essential for settlement negotiations, satisfaction of judgment filings, and enforcement actions. Here is how to calculate simple interest on a judgment.
📊 Simple Interest Formula
📐 Interest = Principal × Rate × Time
Principal = the original judgment amount
Rate = the annual post-judgment interest rate (as a decimal — so 10% = 0.10)
Time = the number of years (or fraction of years) since judgment entry
Example: $25,000 judgment in California (10% rate), 3 years unpaid:
Interest = $25,000 × 0.10 × 3 = $7,500 in accrued interest
Total owed: $25,000 + $7,500 = $32,500
📊 Interest Accumulation Examples
| 💲 Judgment Amount | 📊 Rate | 📅 5 Years Interest | 📅 10 Years Interest | 📅 15 Years Interest |
|---|---|---|---|---|
| $5,000 | 6% | $1,500 | $3,000 | $4,500 |
| $5,000 | 10% | $2,500 | $5,000 | $7,500 |
| $10,000 | 6% | $3,000 | $6,000 | $9,000 |
| $10,000 | 10% | $5,000 | $10,000 | $15,000 |
| $25,000 | 6% | $7,500 | $15,000 | $22,500 |
| $25,000 | 10% | $12,500 | $25,000 | $37,500 |
| $50,000 | 6% | $15,000 | $30,000 | $45,000 |
| $50,000 | 10% | $25,000 | $50,000 | $75,000 |
| $100,000 | 6% | $30,000 | $60,000 | $90,000 |
| $100,000 | 10% | $50,000 | $100,000 | $150,000 |
⚖️ Pre-Judgment vs. Post-Judgment Interest
Pre-judgment interest and post-judgment interest are different concepts that apply at different stages of the legal process.
| Factor | 📅 Pre-Judgment Interest | 📅 Post-Judgment Interest |
|---|---|---|
| When it starts | From when the debt was due, or when the lawsuit was filed (varies by state) | From the date the court enters the judgment |
| When it ends | On the date the judgment is entered | When the judgment is fully satisfied (paid) |
| Availability | Not automatic in all states — may need to be requested; varies by claim type | Automatic in all states — accrues by operation of law |
| Rate | May differ from post-judgment rate; sometimes the contract rate applies | Set by state statute (fixed or variable) |
| Purpose | Compensates for delay from when money was owed to when judgment is entered | Compensates for delay from judgment entry to payment |
If your state allows pre-judgment interest and you did not request it when filing your lawsuit, you may have left money on the table. For future cases, always check whether pre-judgment interest is available and include the request in your complaint or statement of claim.
🏛️ Federal Judgment Interest Rate
Judgments entered in federal court accrue interest at the federal post-judgment interest rate, which is set by the U.S. Courts based on the weekly average 1-year constant maturity Treasury yield as of the date the judgment is entered. This rate is typically lower than many state statutory rates. The federal rate is published weekly by the Administrative Office of the U.S. Courts. Because the federal rate is tied to Treasury yields, it fluctuates with market conditions — ranging from well under 1% during periods of very low interest rates to 5% or more when Treasury yields are elevated.
If you have a choice between filing in state or federal court and the judgment amount will be the same, consider the difference in interest rates. A state court judgment in a state with a 10% or 12% fixed rate will accrue interest significantly faster than a federal court judgment at the lower Treasury-based rate.
💰 Interest in Settlement Negotiations
Accrued interest is one of the most powerful tools in settlement negotiations. Many debtors do not realize how much interest has accumulated on their judgment — and the shock of learning the total amount owed often motivates them to settle quickly.
🎯 Using Interest as Leverage
- Present the full calculation: Show the debtor exactly how much they owe including accrued interest. A debtor who thinks they owe $10,000 may be shocked to learn the actual obligation is $16,000 after six years at 10% interest.
- Demonstrate future growth: Show the debtor what the balance will be in 1, 3, and 5 years if they do not settle now. The number keeps growing, and every year of delay makes the eventual payment larger.
- Offer a strategic discount: You can offer to waive some or all accrued interest in exchange for prompt payment. “The judgment plus interest totals $32,500. If you pay $27,000 within 30 days, I will accept that as satisfaction in full.” This gives the debtor a concrete incentive to pay now while still yielding more than the original judgment amount.
- Compare to enforcement costs: If the debtor forces you to collect through garnishment and levies, they will pay the full amount plus interest plus your enforcement costs. Settlement is almost always cheaper for the debtor than forced collection.
📄 When Contract Rates Override Statutory Rates
Several states allow the interest rate specified in the underlying contract to serve as the post-judgment interest rate — potentially yielding a much higher rate than the default statutory rate. This is an important consideration that many creditors overlook.
📋 How Contract Rate Override Works
If your judgment arises from a written contract — such as a promissory note, loan agreement, credit card agreement, commercial lease, or service contract — and that contract specifies an interest rate for unpaid balances, many states will apply that contractual rate as the post-judgment interest rate. For example, a promissory note at 18% annual interest in a state with a 6% statutory post-judgment rate could mean the difference between $3,000 and $9,000 in annual interest on a $50,000 judgment.
📊 States That Generally Allow Contract Rate Override
States that commonly allow the contract rate to apply as the post-judgment rate (subject to usury limitations and specific case law) include but are not limited to Arkansas, Kentucky, Mississippi, Oregon, and Alaska. However, the rules are nuanced — some states allow it only for certain types of contracts, only up to the usury ceiling, or only if the contract specifically states the rate continues post-judgment. Always verify the specific rule in your state with an attorney or by reviewing the state statute.
💰 How Partial Payments Affect Interest Calculations
When a debtor makes partial payments — through garnishment, levy, voluntary payment, or settlement — the payments must be applied in a specific order. Most states follow the common law rule: payments are applied first to accrued interest, then to the principal balance.
📊 Partial Payment Example
💲 $20,000 Judgment at 10% — With Partial Payments
Year 1: Interest accrued = $2,000. Debtor pays $3,000 via garnishment.
→ $2,000 applied to interest (fully satisfied). $1,000 applied to principal.
→ Remaining principal: $19,000
Year 2: Interest accrued on $19,000 = $1,900. Debtor pays $3,000 via garnishment.
→ $1,900 applied to interest. $1,100 applied to principal.
→ Remaining principal: $17,900
Year 3: Interest accrued on $17,900 = $1,790. Debtor pays $3,000.
→ $1,790 applied to interest. $1,210 applied to principal.
→ Remaining principal: $16,690
After 3 years and $9,000 in payments, the debtor has reduced the principal by only $3,310 — because $5,690 went to interest. This demonstrates why interest makes settlement negotiation so powerful: the debtor is running on a treadmill where a significant portion of every payment goes to interest rather than reducing the principal.
📋 Record-Keeping Requirements
Maintaining accurate records of all payments, their dates, and how they were applied (to interest vs. principal) is essential. You need these records for settlement negotiations (showing the debtor exactly what they still owe), satisfaction of judgment filings (when the judgment is finally paid in full), enforcement actions (courts may require an accounting of the current balance), and tax purposes (interest income may be taxable to the creditor in certain circumstances). If you are collecting through garnishment or bank levies, keep detailed records of each payment received, the date received, accrued interest as of that date, and the updated principal balance.
🎯 Practical Tips for Maximizing Interest Recovery
- 📋 File judgment liens immediately: Even before active collection, file judgment liens in every relevant county. Your lien secures the full amount — principal plus all future accrued interest — and prevents the debtor from selling property without paying the total.
- 📅 Set renewal reminders: Judgments expire — typically in 5 to 20 years depending on the state. Set calendar reminders at least 6 months before expiration. Renewing your judgment preserves not only the principal but also all accumulated interest, which may exceed the original judgment amount.
- 💰 Use interest in demand letters: When sending demand letters, always state the full amount including accrued interest. Many debtors only think about the original judgment amount and are surprised — and motivated — by the total with interest included.
- 📊 Calculate interest before every enforcement action: When filing garnishment, levy, or other enforcement paperwork, include the current total with interest. Courts and sheriffs need accurate figures to collect the correct amount.
- 🔄 Do not accept less without knowing the full total: Before accepting any settlement offer, calculate the full judgment balance including all accrued interest. A debtor offering to “pay the judgment” may mean they will pay the original principal — not the principal plus years of accrued interest.
🌎 Interest When Domesticating Judgments Across State Lines
When you domesticate a judgment in another state, the question of which state’s interest rate applies can be complex. Generally, the interest rate from the original judgment state follows the judgment — because the judgment is a fixed obligation created by that state’s court. However, some states apply their own post-judgment interest rate to domesticated judgments. This is an area where state laws differ, and consulting with an attorney in the domesticating state is advisable for large judgments where the interest rate differential could be significant.
For example, if you domesticate a New York judgment (9% rate) in Virginia (6% rate), whether the judgment continues accruing at 9% or switches to 6% depends on Virginia’s specific rules regarding domesticated judgment interest. See our interstate debt collection guide for more details.
📋 Real-World Interest Calculations
💰 Scenario 1: Small Claims Judgment — California
You won a $7,500 small claims judgment in California. The debtor has not paid for 4 years.
Calculation: California rate = 10%. Interest = $7,500 × 0.10 × 4 = $3,000. Total owed: $10,500. Your original $7,500 judgment is now worth $10,500 — a 40% increase simply through the passage of time. If you file a judgment lien and the debtor eventually tries to sell property, the title company will not close without paying the full $10,500 (plus any additional interest that accrues before sale).
💰 Scenario 2: Business Debt — Massachusetts
Your company has a $50,000 judgment against a former client in Massachusetts. It has been 7 years since entry.
Calculation: Massachusetts rate = 12%. Interest = $50,000 × 0.12 × 7 = $42,000. Total owed: $92,000. The debtor now owes nearly double the original judgment. Even if you settle for 60% of the total ($55,200), you have recovered more than the original judgment amount — plus a meaningful return for your patience.
💰 Scenario 3: Personal Injury — Virginia
You have a $100,000 personal injury judgment in Virginia. The debtor claimed to be judgment proof initially, but it has been 10 years and they now own a house.
Calculation: Virginia rate = 6%. Interest = $100,000 × 0.06 × 10 = $60,000. Total owed: $160,000. Your judgment lien (which you wisely filed years ago) encumbers the property for $160,000. The debtor cannot sell or refinance without satisfying the full amount.
❓ Frequently Asked Questions
🤔 Does interest accrue automatically or do I have to request it?
Post-judgment interest accrues automatically by operation of state law. You do not need to request it, file a motion, or take any action. From the moment the judgment is entered, interest begins accumulating at the statutory rate. When you enforce the judgment, you calculate and include accrued interest in the total amount demanded.
🤔 Can the debtor challenge the interest amount?
The debtor cannot challenge the statutory interest rate — it is set by law. However, they can challenge your calculation if they believe it contains mathematical errors or fails to account for partial payments already made. This is why keeping meticulous records of partial payments and their application (to interest first, then principal) is important.
🤔 Is post-judgment interest simple or compound?
In the vast majority of states, post-judgment interest is simple interest — calculated only on the original judgment principal, not on accumulated interest. A few states may allow compound interest in specific circumstances (such as when a contract provides for it), but simple interest is the standard default. Simple interest is easier to calculate and results in lower total accumulation than compound interest would.
🤔 What happens to interest if the debtor files bankruptcy?
When a debtor files for bankruptcy, the automatic stay stops interest from accruing on most unsecured claims from the date of the bankruptcy filing. If the debt is discharged in bankruptcy, both the principal and accrued interest are eliminated. However, if the debt is non-dischargeable (due to fraud, willful injury, etc.), interest continues to be owed. For secured claims (those backed by a lien on property), interest may continue to accrue depending on the value of the collateral.
🤔 Can I charge interest on court costs and attorney fees included in the judgment?
Yes — in most states, post-judgment interest accrues on the entire judgment amount, which includes any court costs, attorney fees, and other amounts the court awarded as part of the judgment. The interest rate applies to the total judgment figure, not just the underlying debt amount.
🤔 Do I need to track accrued interest for settlement purposes?
Absolutely. Knowing the exact amount of accrued interest gives you leverage in negotiations and ensures you do not inadvertently accept less than you are owed. Calculate the total (principal + interest) before any settlement discussion, and use the growing balance as motivation for the debtor to settle sooner rather than later.
🤔 What if the debtor pays the original judgment amount but refuses to pay interest?
You are not required to accept the original principal amount as full satisfaction. Interest is legally owed — it is part of the judgment obligation by operation of law. If the debtor pays only the original principal, you can refuse to file a satisfaction of judgment and continue enforcing for the remaining interest balance. However, in practice, this can be a negotiation point — you might agree to accept the principal plus a portion of accrued interest in exchange for a prompt lump sum payment, especially if full enforcement would be time-consuming or expensive.
🤔 Does interest accrue during bankruptcy?
For most unsecured claims, interest stops accruing from the date of the bankruptcy filing under the bankruptcy code. If the debt is eventually discharged, the interest question becomes moot. However, for non-dischargeable debts that survive bankruptcy (fraud, willful injury, DUI injuries, etc.), the treatment of interest during the bankruptcy period varies — in some cases interest may resume accruing after the bankruptcy concludes. For secured claims where the collateral exceeds the claim amount, interest may continue accruing even during bankruptcy. See our bankruptcy collection guide for details.
🤔 Can I charge interest on a judgment from small claims court?
Yes. Small claims court judgments accrue post-judgment interest at the same statutory rate as any other civil judgment in the state. There is no distinction in interest rate based on the court level that issued the judgment. A $5,000 small claims judgment in California accrues interest at 10% per year — exactly the same rate as a $5,000,000 judgment from superior court.
💰 Your Judgment Is Growing — Make Sure You Can Collect It
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