How to Calculate Post-Judgment Interest in Texas: A Practical Guide to OCCC Rates and Rate Changes

Understanding Texas Post-Judgment Interest

Texas post-judgment interest is not fixed. It moves with the federal prime rate, subject to a statutory floor and ceiling, and the Texas Office of Consumer Credit Commissioner publishes a prospective rate for each calendar month. If you're calculating interest on a multi-year judgment using a single "current" rate, you're almost certainly wrong.

The Statutory Basis

Texas Finance Code §304.003 sets post-judgment interest at the prime rate, with a minimum of 5% and a maximum of 15% per annum. The OCCC tracks prime monthly and publishes rates for each calendar month in advance—the rate is determined on the 15th of each month and applies to all judgments rendered during the following calendar month. Once a judgment is entered at a particular rate, that rate remains fixed for that judgment; it does not fluctuate if prime moves later.

Interest on post-judgment amounts compounds annually under the statute. The day-count convention is actual days over 365.

(In contrast, pre-judgment interest under Texas law is simple interest only and does not compound.)

Why This Distinction Matters

Take a $250,000 judgment entered in January 2019, paid in full in January 2026. The rate was fixed at judgment entry (let's say 5.50% based on the OCCC rate published in mid-December 2018 for January 2019 judgments). That 5.50% rate applies for the entire life of the judgment—it does not change when prime dropped in March 2020, or when prime rose sharply through 2022–2023, or when it subsequently fell again.

This is a crucial difference from some other states (like Florida) where post-judgment interest can adjust annually or semi-annually. In Texas, once your judgment rate is set, it stays set.

However, if a case is reversed on appeal and a new judgment is entered at a later date, the new judgment will use the OCCC rate applicable at the time of the new judgment entry—which could be very different from the original rate.

On a $250,000 judgment over seven years at a fixed 5.50%, total interest is approximately $96,250.

If you had incorrectly applied today's lower rate (around 6.75%) across the entire period, you would have understated interest. Conversely, if you had applied the higher rates from 2022–2023, you would have overstated it.

Common Errors

The mistakes we see most often:

• Using the current prime rate directly. The OCCC's published rate is different; use their official table, not a financial news feed.
• Forgetting the 5% floor. Even when prime dipped below 5% in 2020, Texas judgments still accrued at 5%.
• Applying a single "average" rate. This is tempting but wrong. You must apply the fixed rate that was in effect at judgment entry for the entire post-judgment period.
• Compounding monthly instead of annually. The statute is clear: interest compounds once per year, not twelve times.
• Applying a 30/360 day-count convention. Texas uses actual days over 365.

How to Calculate Correctly

1. Determine the OCCC rate that was in effect on the date judgment was entered. Consult the OCCC historical rate table.
2. That rate applies for the entire post-judgment period (unless the judgment is reversed and re-entered).
3. Calculate daily interest: (rate ÷ 365) × principal × days in that period.
4. At each annual anniversary of the judgment, add accrued interest to principal (compounding).
5. Repeat until the judgment is satisfied.

On a judgment from January 2019 to January 2026, you would compound interest once (at January 2020), again at January 2021, and so on through January 2026. Each time you compound, the interest from the past year is added to the principal, and the following year's interest accrues on the larger amount.

For Texas Practitioners

If you're handling judgment enforcement or large commercial litigation in state court, this is worth getting right. The OCCC publishes historical rates on their website. The statute specifies the method. The only question is whether you have the patience—or the automation—to apply both correctly.

On a $500,000 judgment over five years, the difference between a rough guess and a properly calculated fixed rate at judgment can be substantial. Courts expect precision. Provide it.

Sources

• Texas Finance Code Chapter 304
• Texas Office of Consumer Credit Commissioner (OCCC) — Interest Rates and Historical Summaries
• Weston Legal — Post Judgment Interest in Texas