South Dakota prejudgment interest rate
United States South Dakota prejudgment interest — a formula rate, reset periodically.
→ All South Dakota judgment & prejudgment interest rates
Statutory formula / table Formula rate
2026 South Dakota prejudgment interest at a glance
- Current rate
- 10% per year
- Effective date
- July 9, 2026
- Controlling authority
- SDCL 21-1-13.1
- Rate basis
- Statutory formula / table
- Source checked
- July 9, 2026
- Recorded history
- 1 data point
South Dakota prejudgment interest is currently 10% per year — a statutory formula rate under SDCL 21-1-13.1 that resets periodically. Broad availability but with sharp claim-type carve-outs.
When South Dakota prejudgment interest applies
Broad availability but with sharp claim-type carve-outs. Any person entitled to recover damages (principal action, counterclaim, cross-claim, or third-party claim) is entitled to prejudgment interest. IMPORTANT: South Dakota does NOT limit prejudgment interest to liquidated or readily ascertainable sums — after the 1990 amendment, SDCL 21-1-13.1 allows prejudgment interest on unliquidated damages as well, with the accrual mechanism (verdict-specified date) handling uncertain loss dates.
When it starts accruing
Interest accrues from the day the loss or damage occurred, except during any period the debtor is prevented by law, or by act of the creditor, from paying the debt.
Simple or compound
Simple. The statute (SDCL 21-1-13.1 / 54-3-16) does not authorize compounding, and South Dakota courts apply simple interest for prejudgment interest.
How the rate is set
Fixed statutory value. Default = Category B rate under SDCL 54-3-16 = 10% per year. Exception: contract claims take the contract's stated rate if the contract provides one (otherwise 10%).
→ Compare with the South Dakota post-judgment interest rate (interest after judgment)
Prejudgment interest under SDCL 21-1-13.1 — 10% (simple interest). This is PREjudgment interest (accruing before entry of judgment) and is separate from South Dakota’s post-judgment rate; availability is limited by claim type (see the page). Current formula value as of 2026-07-09; verify at sdlegislature.gov. Not legal advice.
Current recorded observation
| Effective date | Rate | Basis |
|---|---|---|
| July 9, 2026 | 10% | Statute |
Source & provenance
Observation recorded July 9, 2026 (00:00 UTC) from the cited source (South Dakota — sdlegislature.gov):
https://sdlegislature.gov/Statutes/21-1-13.1
Cite this page
StatuteRates. “South Dakota Prejudgment Interest Rate.” StatuteRates.com. Accessed today. https://statuterates.com/rates/south-dakota-prejudgment-rate/ Rate recorded under SDCL 21-1-13.1, effective July 9, 2026.