Minnesota Prejudgment Interest Rate
United States Minnesota prejudgment interest — a formula rate, reset each year.
Set by statute Formula rate
Minnesota prejudgment interest is currently 4% per year — a statutory formula rate under Minn. Stat. § 549.09, subd. 1(b) that resets each year. Preverdict interest is allowed broadly on "pecuniary damages" — it is NOT limited to liquidated or contract claims and DOES apply to tort/personal-injury claims (for past pecuniary…
When Minnesota prejudgment interest applies
Preverdict interest is allowed broadly on "pecuniary damages" — it is NOT limited to liquidated or contract claims and DOES apply to tort/personal-injury claims (for past pecuniary damages), even when damages were unliquidated/not readily ascertainable (Minnesota abolished the old ascertainability limit in 1984).
When it starts accruing
(a) commencement of the action, (b) a demand for arbitration, or (c) the time of a written notice of claim — whichever occurs first. To use the written-notice-of-claim date, the notice must contain sufficient information/demand AND the action must be commenced within two years of that written notice; otherwise…
Simple or compound
Simple. Subd. 1(c)(1) expressly specifies "simple interest per annum.".
How the rate is set
Two tiers. (1) Judgments/awards not over $50,000: rate = max(one-year constant maturity Treasury yield rounded to nearest 1%, 4%). Set annually by the State Court Administrator by Dec. 20 (official annual notice at https://www.revisor.mn.gov/court_rules/rule/msinte/).
→ Compare with the Minnesota post-judgment interest rate (interest after judgment)
Prejudgment interest under Minn. Stat. § 549.09, subd. 1(b) — 4% (simple interest). This is PREjudgment interest (accruing before entry of judgment) and is separate from Minnesota’s post-judgment rate; availability is limited by claim type (see the page). Current formula value as of 2026-07-09; verify at revisor.mn.gov. Not legal advice.
Effective-date history
| Effective date | Rate | Basis |
|---|---|---|
| July 9, 2026 | 4% | Statute |
Source & provenance
Latest value retrieved July 10, 2026 (02:55 UTC) from the official source:
https://www.revisor.mn.gov/statutes/cite/549.09