## Texas interest rules

This source-backed guide covers US-TX interest authority (Tex. Fin. Code § 304.003; Tex. Fin. Code § 302.002; Texas OCCC Current Rates). It certifies only the quoted source-backed rules below; related interest categories remain outside this page unless they are expressly listed in the receipt.

## Tex. Fin. Code § 304.003; Tex. Fin. Code § 302.002; Texas OCCC Current Rates

US-TX interest controlling authority under Tex. Fin. Code § 304.003; Tex. Fin. Code § 302.002; Texas OCCC Current Rates.

> **304.003.** Sec. 304.003. JUDGMENT INTEREST RATE: INTEREST RATE OR TIME PRICE DIFFERENTIAL NOT IN CONTRACT. (a) A money judgment of a court of this state to which Section 304.002 does not apply, including court costs awarded in the judgment and prejudgment interest, if any, earns postjudgment interest at the rate determined under this section.

## Use the calculator

DocketMath's interest calculator can model interest scenarios once you identify the controlling jurisdiction, amount, rate type, and accrual date. Use the source panel for the verified source-backed rule.

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## Sources

- [304.003 — Tex. Fin. Code § 304.003; Tex. Fin. Code § 302.002; Texas OCCC Current Rates](https://tcss.legis.texas.gov/resources/FI/htm/FI.304.htm#304.003)

All sources are official primary law published by `tcss.legis.texas.gov`.

**Corroboration method:** government_primary_source_direct_fetch.


Local rule variations that can change interest results in Texas.

How interest rules vary in Texas

Receipt-backed Texas interest surface. The current receipt certifies judgment interest, postjudgment accrual and compounding, specified prejudgment-interest rules, the May 2026 OCCC postjudgment rate, and the no-agreed-rate legal-interest rule only.

(a) A money judgment of a court of this state to which Section 304.002 does not apply, including court costs awarded in the judgment and prejudgment interest, if any, earns postjudgment interest at the rate determined under this section. (b) On the 15th day of each month, the consumer credit commissioner shall determine the postjudgment interest rate to be applied to a money judgment rendered during the succeeding calendar month. (c) The postjudgment interest rate is: (1) the prime rate as published by the Board of Governors of the Federal Reserve System on the date of computation; (2) five percent a year if the prime rate as published by the Board of Governors of the Federal Reserve System described by Subdivision (1) is less than five percent; or (3) 15 percent a year if the prime rate as published by the Board of Governors of the Federal Reserve System described by Subdivision (1) is more than 15 percent.

Sec. 304.005. ACCRUAL OF JUDGMENT INTEREST. (a) Except as provided by Subsection (b), postjudgment interest on a money judgment of a court in this state accrues during the period beginning on the date the judgment is rendered and ending on the date the judgment is satisfied. (b) If a case is appealed and a motion for extension of time to file a brief is granted for a party who was a claimant at trial, interest does not accrue for the period of extension. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999. Sec. 304.006. COMPOUNDING OF JUDGMENT INTEREST. Postjudgment interest on a judgment of a court in this state compounds annually. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.

Sec. 304.103. PREJUDGMENT INTEREST RATE FOR WRONGFUL DEATH, PERSONAL INJURY, OR PROPERTY DAMAGE CASE. The prejudgment interest rate is equal to the postjudgment interest rate applicable at the time of judgment. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999. Sec. 304.104. ACCRUAL OF PREJUDGMENT INTEREST. Except as provided by Section 304.105 or 304.108, prejudgment interest accrues on the amount of a judgment during the period beginning on the earlier of the 180th day after the date the defendant receives written notice of a claim or the date the suit is filed and ending on the day preceding the date judgment is rendered. Prejudgment interest is computed as simple interest and does not compound. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.

On loans subject to 12 U.S.C. Sections 1735f-7 and 1735f-7a, as amended, any late charges assessed are interest that is included in computing the amount or rate of interest on the loan and, therefore, covered by the federal preemption of state interest rate limitations.

If a creditor has not agreed with an obligor to charge the obligor any interest, the creditor may charge and receive from the obligor legal interest at the rate of six percent a year on the principal amount of the credit extended beginning on the 30th day after the date on which the amount is due. If an obligor has agreed to pay to a creditor any compensation that constitutes interest, the obligor is considered to have agreed on the rate produced by the amount of that interest, regardless of whether that rate is stated in the agreement.

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: (1) the rate specified in the contract, which may be a variable rate; or (2) 18 percent a year.

For Texas interest pages, use Finance Code section 304.003 and the OCCC current-rate publication for postjudgment rate, sections 304.005 and 304.006 for postjudgment accrual and compounding, sections 304.103 and 304.104 for prejudgment interest in wrongful-death, personal-injury, and property-damage cases, and section 302.002 for legal interest when no rate is agreed.

interest in US-TX is governed by Tex. Fin. Code § 304.003; Tex. Fin. Code § 302.002; Texas OCCC Current Rates.

How interest rules vary in Texas

Current verified answer

Authority and key facts

Texas interest rules

Tex. Fin. Code § 304.003; Tex. Fin. Code § 302.002; Texas OCCC Current Rates

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