# Post-judgment interest in Texas

Source: https://www.jhenrylaw.com/mechanism/post-judgment-interest-texas/
Author: John P. Henry, John Henry & Associates, PLLC
Reviewed: 2026-08-02

**Tex. Fin. Code §§ 304.002, 304.003, 304.005, 304.006**

## What interest rate does a Texas judgment earn, and how does it accrue?

A judgment on a contract that sets an interest rate earns the lesser of that rate or 18 percent a year. Other money judgments earn the rate the Consumer Credit Commissioner publishes for the month the judgment is signed, which tracks the prime rate but is never less than 5 or more than 15 percent. Interest runs from the date of judgment until it is paid, compounded annually.

> A money judgment of a court of this state on a contract that provides for interest or time price differential earns postjudgment interest at a rate equal to the lesser of the rate specified in the contract, which may be a variable rate, or 18 percent a year.

— Tex. Fin. Code § 304.002

## When it applies

Every money judgment, and every payoff figure. The rate should be stated in the judgment itself, and the creditor's demand, the abstract and any settlement should all carry the same number.

## How it is proved up

1. Put the post-judgment interest rate in the proposed judgment, with the statute that supplies it.
2. Check the contract for an interest provision; if there is one, the rate is the lesser of it or 18 percent.
3. For other judgments, use the rate published for the month the judgment is signed, within the 5 to 15 percent range.
4. Compute interest from the date of judgment, compounding annually, and credit payments when received.
5. Give the debtor a written payoff with the daily rate, so a payment does not stop a dollar short.

## What defeats it

- A judgment that omits the rate, which invites a dispute at payoff.
- Using a contract rate above 18 percent for post-judgment interest.
- Compounding more often than annually.

## Where I have used it

Judgments paid with post-judgment interest, including Murphy v. Liberty Hill Construction, paid in full with interest after a receiver was appointed.

## Questions

**What is the post-judgment interest rate in Texas?**

For a judgment on a contract that provides for interest, the lesser of the contract rate or 18 percent a year. For other judgments, the prime rate as published on the date of computation, with a floor of 5 percent and a ceiling of 15 percent.

**When does post-judgment interest start in Texas?**

On the date the judgment is rendered, and it runs until the judgment is satisfied.

**Is Texas post-judgment interest simple or compound?**

Compounded annually.


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