Tennessee prejudgment interest rate
United States Tennessee prejudgment interest is discretionary, capped at 10%.
→ All Tennessee judgment & prejudgment interest rates
Fixed by statute Discretionary
2026 Tennessee prejudgment interest at a glance
- Current rate
- up to 10% per year
- Effective date
- July 9, 2026
- Controlling authority
- Tenn. Code Ann. § 47-14-123
- Rate basis
- Fixed by statute
- Source checked
- July 9, 2026
- Recorded history
- 1 data point
Tenn. Code §47-14-123 permits a court or jury to award prejudgment interest in accordance with equitable principles at a rate not exceeding 10% per year. Ten percent is a ceiling, not an automatic default. Entitlement, the chosen rate, and the start date remain discretionary and claim-specific.
When Tennessee prejudgment interest applies
Discretionary, not mandatory — awarded "in accordance with the principles of equity." NOT limited to contract claims: available for both contract and tort/other actions, but the key equitable factors are (1) whether the amount of the obligation is CERTAIN or ascertainable (existence and amount reasonably ascertainable by accepted standards of valuation), and (2) whether the defendant was reasonably able to know the amount owed. Uncertain/unliquidated or highly disputed damages weigh against an award.
When it starts accruing
Discretionary as to accrual date; typically runs from the date the underlying obligation/claim became due and the amount was ascertainable (e.g., date of breach or date the debt was owed) up to the date of judgment. The court sets the accrual start based on equity; the statute does not fix a rigid accrual date.
Simple or compound
The cited statute sets a ceiling but not one universal calculation method. Confirm the court’s award, selected rate, period, and governing Tennessee authority before calculating.
→ Compare with the Tennessee post-judgment interest rate (interest after judgment)
Tenn. Code Ann. § 47-14-123 permits a judge or jury to award prejudgment interest as an element of damages at a rate not exceeding 10% per year. The award and rate are discretionary; 10% is a ceiling, not an automatic default. Confirm the current statute and controlling case law. Not legal advice.
Current recorded observation
| Effective date | Rate | Basis |
|---|---|---|
| July 9, 2026 | up to 10% | Statute |
Source & provenance
Observation recorded July 9, 2026 (00:00 UTC) from the cited source (Tennessee Courts (official judicial source)):
https://www.tncourts.gov/courts/court-appeals/opinions/2018/12/28/larry-e-parrish-p-c-v-nancy-j-strong
Cite this page
StatuteRates. “Tennessee Prejudgment Interest Rate.” StatuteRates.com. Accessed today. https://statuterates.com/rates/tennessee-prejudgment-rate/ Rate recorded under Tenn. Code Ann. § 47-14-123, effective July 9, 2026.