Alabama prejudgment interest rate
United States Alabama’s 6% legal-rate reference for qualifying prejudgment claims.
→ All Alabama judgment & prejudgment interest rates
Fixed by statute
2026 Alabama prejudgment interest at a glance
- Current rate
- 6% per year
- Effective date
- July 9, 2026
- Controlling authority
- Ala. Code § 8-8-1
- Rate basis
- Fixed by statute
- Source checked
- July 9, 2026
- Recorded history
- 1 data point
Ala. Code §8-8-1 supplies a 6% legal-rate reference when no written contract rate controls, but it does not itself make every prejudgment claim eligible. Section 8-8-8 supports interest on qualifying contract obligations from the time payment or performance was due. Other claim types require their own entitlement, rate, and accrual authority.
When Alabama prejudgment interest applies
For a qualifying contract claim, §8-8-8 provides the clearest statutory entitlement when the amount and due date can be determined under the agreement. Section 8-8-1 supplies the legal rate when no written rate governs. This page does not extend that contract rule to tort, equitable, or other claims without separate controlling authority.
When it starts accruing
For a qualifying contract claim, Ala. Code § 8-8-8 starts interest when the money or other thing should have been paid, or when the contracted act should have been performed. Other claim types require their own authority and accrual analysis; this page does not infer one universal start date.
Simple or compound
The cited statutes establish the annual rate reference but do not establish one universal compounding rule for every prejudgment claim. Confirm the controlling contract, judgment, and case law before calculating.
→ Compare with the Alabama post-judgment interest rate (interest after judgment)
Prejudgment interest under Ala. Code § 8-8-1 — 6% (simple interest). This is PREjudgment interest (accruing before entry of judgment) and is separate from Alabama’s post-judgment rate; availability is limited by claim type (see the page). Verify against the statute text. Not legal advice.
Current recorded observation
| Effective date | Rate | Basis |
|---|---|---|
| July 9, 2026 | 6% | Statute |
Source & provenance
Observation recorded July 9, 2026 (00:00 UTC) from the cited source (Alabama — alison.legislature.state.al.us):
https://alison.legislature.state.al.us/code-of-alabama?section=8-8-1
Cite this page
StatuteRates. “Alabama Prejudgment Interest Rate.” StatuteRates.com. Accessed today. https://statuterates.com/rates/alabama-prejudgment-rate/ Rate recorded under Ala. Code § 8-8-1, effective July 9, 2026.