Texas prejudgment interest rate
United States Texas prejudgment interest — the same rate as its post-judgment interest.
→ All Texas judgment & prejudgment interest rates
Formula value Same rate as post-judgment
2026 Texas prejudgment interest at a glance
- Current rate
- 6.75% per year
- Effective date
- August 1, 2026
- Controlling authority
- Tex. Fin. Code §§304.101–304.107
- Rate basis
- Formula value
- Source checked
- August 9, 2026
- Recorded history
- 2 data points
Texas applies the same rate to prejudgment interest as to post-judgment interest — currently 6.75% per year under Tex. Fin. Code Sec. 304.102. STATUTORY prejudgment interest (Tex. Fin. Code Subch. B) applies ONLY to wrongful death, personal injury, and property damage cases (Sec. 304.102).
When Texas prejudgment interest applies
STATUTORY prejudgment interest under Tex. Fin. Code Subchapter B applies only to wrongful-death, personal-injury, and property-damage cases (§§304.101–304.102). It may not be assessed on future damages (§304.1045). Qualifying written settlement offers can pause or reduce the amount on which interest accrues (§§304.105–304.107). Condemnation cases use a separate branch (§304.201), and other claims can depend on common law.
When it starts accruing
Sec. 304.104: accrues beginning on the EARLIER of (a) the 180th day after the date the defendant receives written notice of a claim, or (b) the date suit is filed; and ends on the day preceding the date judgment is rendered. Common-law claims use the same accrual rule per Kenneco.
Simple or compound
Simple. Sec. 304.104 expressly states prejudgment interest is computed as simple interest and does not compound. (Note: postjudgment interest under Sec. 304.006 compounds annually, but prejudgment interest is simple.).
How the rate is set
Prime rate (per Fed Board of Governors) with a 5% minimum and 15% maximum; published monthly by the Texas OCCC. Rate is fixed as of the date of judgment. Current = 6.75% (effective August 1, 2026).
→ Compare with the Texas post-judgment interest rate (interest after judgment)
For a judgment rendered during 2026-08, Texas Finance Code §304.103 uses the OCCC postjudgment rate (6.75%) for qualifying statutory prejudgment interest. Sections 304.101–304.107 limit scope, set simple interest and the accrual window, and adjust for qualifying settlement offers; future damages are excluded. Verify applicability; not legal advice.
Effective-date history
| Effective date | Rate | Basis |
|---|---|---|
| August 1, 2026 | 6.75% | Formula |
| July 1, 2026 | 6.75% | Formula |
Source & provenance
Observation recorded August 9, 2026 (02:48 UTC) from the cited source (Texas Legislature and Office of Consumer Credit Commissioner (official)):
https://occc.texas.gov/publications/interest-rates/
Cite this page
StatuteRates. “Texas Prejudgment Interest Rate.” StatuteRates.com. Accessed today. https://statuterates.com/rates/texas-prejudgment-rate/ Rate recorded under Tex. Fin. Code §§304.101–304.107, effective August 1, 2026.