California prejudgment interest rate
United States California prejudgment interest — 7% for tort/non-contract, 10% for contract (both simple).
→ All California judgment & prejudgment interest rates
Fixed by statute 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 a dual fixed rate: 7% per year for tort and other non-contract claims, including personal injury (Cal. Const. art. XV §1), and 10% for breach of a contract that stipulates no rate (Cal. Civ. Code §3289(b)) — both simple. Prejudgment interest is NOT automatic on all claims.
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 (sec. 3287(a)): from the day the right to recover vested / damages became certain (e.g., date of loss or breach). For contract default 10% (sec. 3289(b)): from the date of breach. For discretionary unliquidated contract interest (sec.
Simple or compound
Simple. California prejudgment interest is computed as simple interest; compounding is not authorized absent a contract term providing for it.
How the rate is set
Fixed statutory/constitutional percentages, not a published index. Contract w/o stipulated rate (post-1/1/1986): 10%/yr simple (Civ. Code 3289(b)). Other liquidated claims / discretionary tort: 7%/yr simple (Cal. Const. art. XV sec. 1).
→ 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.