The Pennsylvania post-judgment interest rate is 6% per year, calculated as simple interest on the unpaid balance of a court judgment. That rate has been fixed by statute for centuries and applies to most civil judgments unless the parties’ contract sets a different rate. It runs every day from the moment the judgment is entered until the losing party pays in full, and on a large award it adds up faster than most people expect.
Where the 6% Rate Comes From
Two statutes work together. Under 42 Pa.C.S. § 8101, a judgment for a specific sum of money bears interest at the “lawful rate” from the date of the verdict or award, or from the judgment date if there was no underlying verdict or award.1Pennsylvania General Assembly. Pennsylvania Consolidated Statutes Title 42 Chapter 81 Section 8101 – Interest on Judgments Under 41 Pa.C.S. § 202, that “lawful rate” is 6% per year. Any reference in Pennsylvania law or a document to the “legal rate of interest,” or any obligation to pay money “with interest” without specifying a rate, means 6%.2New York Codes, Rules and Regulations. 41 Pa.C.S. 202 – Legal Rate of Interest
The 6% figure applies broadly to tort cases, general contract disputes, and any other money judgment where the parties had no prior agreement about interest. It does not track the market. Whether Treasury yields sit at 1% or 8%, the Pennsylvania rate stays at 6%.
When Interest Starts and When It Stops
Interest begins accruing on the date the jury returns its verdict or an arbitration panel issues its award. If the judgment wasn’t based on a verdict or award, the clock runs from the date the court enters the judgment itself. That distinction can matter in a jury trial, where the verdict date often comes days or weeks before the formal judgment entry, so interest starts earlier than many litigants realize.
Interest stops only when the judgment is fully satisfied, meaning the entire principal plus all accrued interest has been paid. Partial payments reduce the principal and therefore reduce the daily interest going forward, but they don’t pause the clock on the remaining balance.
Appeals Don’t Stop the Clock
Filing an appeal does not freeze post-judgment interest. The 6% keeps running while the case sits in the appellate court. A losing party can post a supersedeas bond to halt enforcement of the judgment during the appeal, but the bond is sized to cover the interest expected to accumulate while the appeal is pending. If the judgment is affirmed, the winning party collects the full amount plus every dollar of interest that built up during the appeal. If the judgment is reversed or reduced, the interest calculation adjusts accordingly.
Bankruptcy
When a judgment debtor files for bankruptcy, the federal automatic stay immediately halts collection efforts, including enforcement of pre-bankruptcy judgments.3Office of the Law Revision Counsel. 11 U.S. Code 362 – Automatic Stay Whether interest continues to accrue during the bankruptcy depends on the debtor’s solvency. For unsecured judgment creditors, post-petition interest generally stops accruing as a practical matter, because it is not recoverable from the estate unless the debtor is solvent enough to pay all claims in full. The stay lifts when the bankruptcy case closes, the debt is discharged, or the court grants relief from the stay.
How to Calculate What Is Owed
Pennsylvania uses simple interest on post-judgment obligations. Interest is calculated only on the original principal of the judgment. Previously accrued but unpaid interest does not get added to the principal to create a larger base for future calculations. No compounding.
The daily calculation is straightforward. Take the judgment amount, multiply by 0.06, and divide by 365. That gives you the daily interest. On a $100,000 judgment:
- Annual interest: $100,000 × 0.06 = $6,000
- Daily interest: $6,000 ÷ 365 = $16.44
- One year unpaid: $6,000 added to the balance
- Three years unpaid: $18,000 in interest alone
That daily amount stays constant as long as the principal is unchanged. Partial payments reduce the principal, which in turn reduces the daily interest going forward. Both sides can calculate exactly what is owed on any given day without needing an accountant.
When a Contract Sets a Different Rate
The 6% statutory rate is a default, not a ceiling. When a lawsuit arises from a contract that specifies its own interest rate, that contractual rate can carry through into the post-judgment period. Promissory notes, loan agreements, and commercial leases commonly include interest provisions that exceed 6%.
For the contractual rate to survive judgment, the agreement needs to state clearly that interest at the specified rate continues after judgment or default. Courts look for unambiguous language. If the contract is silent on what happens after judgment, or if it simply references the “lawful rate,” the court will default to 6%. The contractual rate must also fall within legal limits; Pennsylvania’s usury protections cap residential mortgage rates and certain consumer transactions.4Pennsylvania General Assembly. Loan Interest and Protection Law (Usury Law)
Delay Damages Are a Separate Thing
Pennsylvania has a different mechanism that covers the period before judgment, and people often confuse the two. Under Pa. R.C.P. 238, a plaintiff who wins a bodily injury, death, or property damage case can ask the court to add “damages for delay” to the compensatory award. These damages cover the time between one year after the defendant was first served with the lawsuit and the date of the verdict or award.5Pennsylvania Code and Bulletin. 231 Pa. Code Rule 238 – Damages for Delay in an Action for Bodily Injury, Death or Property Damage
The delay damages rate is not a flat percentage. It equals the prime rate published in the first edition of the Wall Street Journal for each calendar year, plus one percent, and is not compounded. For 2025, the prime rate was 7.5%, making the delay damages rate 8.5%. Once delay damages are calculated, they become part of the judgment itself, and the standard 6% post-judgment interest then applies to the entire judgment amount, including the delay damages that were folded in.
The practical effect: in a personal injury case, a plaintiff earns the prime-plus-one rate while the case is being litigated and then 6% after judgment is entered. Two different rates covering two different time periods, and they never overlap.
Federal Court Judgments in Pennsylvania Use a Different Rate
If your case is in a federal district court sitting in Pennsylvania rather than a state court, the 6% rule does not apply. Federal post-judgment interest is governed by 28 U.S.C. § 1961, which ties the rate to the weekly average one-year constant maturity Treasury yield published by the Federal Reserve for the calendar week before the judgment date.6Office of the Law Revision Counsel. 28 U.S. Code 1961 – Interest That rate fluctuates. In early 2026, it has hovered between roughly 3.43% and 3.53%.7United States District Court Eastern District of Pennsylvania. Post-Judgment Interest Rate
Two other differences matter. Federal post-judgment interest is compounded annually, unlike Pennsylvania’s simple interest rule. And the rate is locked in on the date the judgment is entered, so it does not change even if Treasury yields shift later. In early 2026, the federal rate is roughly half the state rate, which makes the state court rate more favorable for judgment creditors.
Tax Treatment
Post-judgment interest received as part of a judgment payment is taxable as ordinary income at the federal level, regardless of whether the underlying judgment itself is taxable. The IRS treats interest received in connection with a judgment the same way it treats any other interest income: it goes on line 2b of your Form 1040.8Internal Revenue Service. Publication 4345 – Settlements, Taxability This catches some plaintiffs off guard in personal injury cases, where the compensatory damages themselves may be excluded from income but the interest on those damages is fully taxable.
If the interest component of your payment is $600 or more, the party paying the judgment is generally required to issue a Form 1099-INT reporting the interest.9Internal Revenue Service. Instructions for Forms 1099-INT and 1099-OID Even without a 1099, the interest is reportable. On a large judgment that takes years to collect, the interest portion alone can create a significant tax bill in the year you finally get paid.