California prejudgment interest rate
United States California prejudgment interest depends on certainty, claim type, and the governing obligation.
→ All California judgment & prejudgment interest rates
Fixed by statute
2026 California prejudgment interest at a glance
- Current rate
- 7% / 10% per year
- Effective date
- July 9, 2026
- Controlling authority
- Cal. Const. art. XV §1 (7% tort/general); Cal. Civ. Code §3289(b) (10% contract)
- Rate basis
- Fixed by statute
- Source checked
- July 9, 2026
- Recorded history
- 1 data point
California prejudgment interest is not one universal tort-versus-contract rate. Civil Code §3287 addresses certainty, vesting, and discretionary contract awards; §3288 permits a discretionary award in specified noncontract cases; and §3289(b) supplies 10% after breach for a contract with no stipulated legal rate. The constitutional 7% legal rate can be relevant to another qualifying branch, but eligibility and calculation must be established first.
When California prejudgment interest applies
Prejudgment interest is NOT automatic on all claims. MANDATORY (as of right) only where damages are "certain, or capable of being made certain by calculation" and the right vested on a particular day — i.e., liquidated/readily ascertainable claims (Civ. Code sec. 3287(a)). UNLIQUIDATED tort claims: interest is BARRED as of right; it is DISCRETIONARY with the jury, and only in actions for breach of a non-contract obligation or cases of oppression, fraud, or malice (Civ. Code sec. 3288).
When it starts accruing
For mandatory liquidated claims under Civil Code §3287(a), interest starts on the day the right to recover vested and the damages were certain or calculable. For a qualifying contract with no stipulated legal rate, §3289(b) applies 10% after breach. For an unliquidated contract claim, §3287(b) lets the court choose a date before judgment, but never earlier than the filing date.
Simple or compound
The cited provisions do not establish one universal compounding rule for every contract, tort, discretionary, and constitutional-rate branch. Confirm the governing obligation and award.
How the rate is set
Section 3289(b) supplies 10% after breach for a qualifying contract with no stipulated legal rate. Do not treat the constitutional 7% reference as an automatic rate for every tort or other noncontract claim.
→ Compare with the California post-judgment interest rate (interest after judgment)
California has a DUAL prejudgment rate, both simple: 7% for tort and other non-contract claims (including personal injury) — the constitutional default legal rate (Cal. Const. art. XV §1; discretionary tort interest under Civ. Code §3288 also runs at this 7%); and 10% for breach of a contract that stipulates no rate (Civ. Code §3289(b)). Entitlement to interest on liquidated/certain damages is Civ. Code §3287. Verified against the statutes 2026-07-11. Not legal advice.
Current recorded observation
| Effective date | Rate | Basis |
|---|---|---|
| July 9, 2026 | 7% / 10% | Statute |
Source & provenance
Observation recorded July 9, 2026 (00:00 UTC) from the cited source (California — leginfo.legislature.ca.gov):
https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=3289.&lawCode=CIV
Cite this page
StatuteRates. “California Prejudgment Interest Rate.” StatuteRates.com. Accessed today. https://statuterates.com/rates/california-prejudgment-rate/ Rate recorded under Cal. Const. art. XV §1 (7% tort/general); Cal. Civ. Code §3289(b) (10% contract), effective July 9, 2026.