Illinois Judgment Interest 2026: 9% Post-Judgment and 6% Pre-Judgment

Two Rates, Two Timelines: Illinois Judgment Interest in 2026

Most U.S. states give creditors a single post-judgment interest concept: once the court enters a money judgment, interest runs until the judgment is paid. Illinois has that — and more. Under 735 ILCS 5/2-1303, Illinois law addresses both post-judgment interest (after judgment) and, for personal injury and wrongful death actions, pre-judgment interest (from filing to judgment). The rates, start dates, and exceptions are different. Treating them as one number is the most common calculation error in Illinois civil practice.

Post-judgment interest answers: "How much does the judgment grow after the court rules?" The default answer is 9% per year on the unsatisfied balance, with lower rates for consumer-debt judgments and judgments against certain government entities.

Pre-judgment interest answers: "How much interest attaches to compensatory damages for the time the lawsuit was pending?" For covered personal injury and wrongful death cases, the answer is 6% per year from the filing date (subject to a five-year cap and settlement-offer setoffs), added when judgment is entered.

Why even lawyers mix them up: The statute sits in one section, uses overlapping percentages (6% appears in both the government post-judgment rate and the PI pre-judgment rate), and interacts with settlement offers in ways that do not exist for ordinary commercial judgments. A commercial collection attorney who always uses 9% from judgment date will understate a four-year PI case by six figures. A PI attorney who applies 6% from the accident date (instead of the filing date) will overstate or understate depending on the gap between injury and suit.

The 2026 practical rule: Identify the claim type first (PI/wrongful death vs commercial vs consumer vs government debtor), then identify the timeline (pre-judgment, post-judgment, or both). Only then pick the rate. TheLegalCalc Illinois Judgment Interest Calculator at /judgment-interest-calculator/illinois is built around that sequencing.

Post-Judgment Interest: 9% Standard Rate Under 735 ILCS 5/2-1303

Section 2-1303(a) provides that judgments recovered in any court draw interest at 9% per annum from the date of the judgment until satisfied — except where the statute specifies a different rate. That 9% figure is the Illinois default for ordinary money judgments: commercial disputes, many contract claims, and other civil judgments that are not carved out.

When it starts: Post-judgment interest runs from the date of the judgment. When judgment is entered upon an award, report, or verdict, interest at the applicable rate is computed from the time the award/verdict was made or rendered to the time judgment is entered, and included in the judgment. After entry, interest continues on the unsatisfied portion as it exists from time to time.

Simple interest, not compound: Illinois post-judgment interest is computed on the unpaid judgment principal (the unsatisfied portion), not as compound interest on prior interest accruals. Partial payments reduce the balance on which future interest runs. The statute expressly says interest is charged only on the unsatisfied portion of the judgment as it exists from time to time.

How to stop accrual — tender of payment: The judgment debtor may stop further accrual by tendering payment of the judgment, costs, and interest accrued to the date of tender — even if the debtor is pursuing an appeal or other steps to reverse, vacate, or modify the judgment. A partial tender that omits accrued interest typically will not stop the clock. Creditors and debtors should document tender dates carefully; a one-week delay on a large judgment is real money.

Lower post-judgment rates that override 9%: — 6% per year when the judgment debtor is a unit of local government, school district, community college district, or other governmental entity — 5% per year for consumer debt judgments of $25,000 or less (see the consumer-debt section below)

If you always paste "9%" into a payoff spreadsheet, you will overcharge consumer debtors and government debtors — and those errors are material. On a $25,000 consumer judgment, 9% is $2,250/year while 5% is $1,250/year — a $1,000 annual mistake.

Pre-Judgment Interest: The 6% Rate That Starts at Filing

Public Act 102-0006 (Senate Bill 72), effective July 1, 2021, amended 735 ILCS 5/2-1303 to authorize pre-judgment interest in personal injury and wrongful death actions. The First District Appellate Court later addressed constitutional challenges in Cotton v. Coccaro (2023), and the framework remains the operative Illinois rule in 2026.

Who is covered: Plaintiffs seeking compensatory damages in personal injury and wrongful death cases. Pre-judgment interest does not apply to every civil case in Illinois — commercial contract cases, for example, do not automatically receive this 6% filing-to-judgment interest under the SB 72 framework.

Rate and base: 6% per annum on the compensatory damages that become part of the judgment, excluding punitive damages, sanctions, statutory attorney's fees, and statutory costs as described in the statute.

Start date — the critical differential: Interest accrues from the date the action is filed, not from the date of the verdict or the date of the injury (with transitional rules for injuries that occurred before the effective date). This is the detail defendants undervalue. In a case filed in 2022 and tried in 2026, pre-judgment interest can run for roughly four years before post-judgment interest even begins.

Five-year cap: Notwithstanding other provisions, pre-judgment interest accrues for no longer than five years. A case that languishes longer than five years does not earn a sixth year of pre-judgment interest under the cap.

Settlement-offer setoff: If the defendant made a written settlement offer within 12 months after the later of the effective date of the amendatory act or the filing of the action, and the plaintiff did not accept within 90 days (or rejected it), the interest calculation can be limited to 6% on the difference between the judgment (minus excluded items) and the highest qualifying written offer. If the judgment is equal to or less than that highest offer, no pre-judgment interest is added. Withdrawal of an offer by the defendant is not treated as a plaintiff rejection. This structure rewards early, serious defense offers and punishes plaintiffs who reject reasonable early numbers and then win only a little more at trial.

Government defendants: The statute provides that the State, units of local government, school districts, community college districts, and other governmental entities are not liable for pre-judgment interest in actions brought directly or vicariously against them by the injured party. That is a major exception in public-entity tort cases.

Constitutionality: Cotton v. Coccaro (1st Dist. Appellate Court, 2023) is the leading appellate discussion affirming the statute's framework against constitutional attack. Trial and settlement strategy in Illinois PI cases should assume the statute is enforceable unless and until a higher court says otherwise.

Calculating Illinois Judgment Interest: Step-by-Step

Post-judgment formula (simple interest): Interest = Principal × Annual Rate × (Days ÷ 365)

Daily rate at 9%: Principal × 0.09 ÷ 365

Example A — $100,000 ordinary judgment at 9%: Annual interest = $100,000 × 0.09 = $9,000 Daily interest = $100,000 × 0.09 ÷ 365 ≈ $24.66/day One full year unpaid = $9,000 interest

Example B — $200,000 commercial judgment at 9%: Annual interest = $18,000 Daily interest ≈ $49.32 After two years unpaid (simple): $36,000 total interest, judgment payoff ≈ $236,000 before costs

Pre-judgment formula (PI / wrongful death): Pre-judgment interest ≈ Compensatory damages × 6% × Years from filing to judgment (Subject to the five-year cap and settlement-offer adjustments)

Example C — $500,000 compensatory damages, four years of litigation: Pre-judgment interest = $500,000 × 0.06 × 4 = $120,000 Judgment amount with pre-judgment interest ≈ $620,000 (before costs/fees issues) After judgment entry, post-judgment interest then runs on the judgment at the applicable post-judgment rate until paid

Mixed timeline (the full Illinois picture): Year 0: Lawsuit filed Years 0–4: 6% pre-judgment interest accrues on compensatory damages (if PI/WD and no disqualifying settlement-offer outcome) Year 4: Judgment entered for $500,000 + $120,000 pre-judgment interest = $620,000 (illustrative) Years 4+: 9% post-judgment interest (if ordinary private defendant) accrues on the unsatisfied judgment balance

Consumer-debt contrast — confirm the $25,000 threshold in § 2-1303(b): consumer debt judgments of $25,000 or less draw 5%. On a $50,000 consumer-style balance that does not qualify for the 5% cap (judgment above $25,000), 9% generally applies: At 5% on a qualifying $25,000 consumer judgment: $1,250/year At 9% on $25,000: $2,250/year Difference: $1,000/year — a frequent creditor overcharge when staff default to 9% for every file

Illustrative $50,000 commercial (9%) vs mistaken labeling: At 9%: $4,500/year Mislabeling a qualifying small consumer judgment at 9% instead of 5% creates a material overcharge every year the judgment sits unpaid.

Use the calculator: /judgment-interest-calculator/illinois Enter principal, dates, and the correct rate category. For PI cases, model filing date to judgment date at 6%, then judgment date forward at the correct post-judgment rate. For payoff letters, calculate through the tender date, not an approximate month-end.

Consumer Debt: The 5% Exception

Not every Illinois judgment earns 9%. Subsection (b) of 735 ILCS 5/2-1303 lowers the post-judgment rate to 5% per annum for consumer debt judgments of $25,000 or less.

Statutory definition (paraphrased from the Act): "Consumer debt" means money or property due or alleged to be due from a natural person because of a transaction in which property, services, or money was acquired primarily for personal, family, or household purposes. A "consumer debt judgment" is a judgment against one or more natural persons arising out of consumer debt. It does not include compensation for bodily injury or death, nor certain other excluded categories described in the statute.

Why the lower rate exists: The General Assembly reduced the rate (effective for covered judgments in the 2020 amendments, P.A. 101-168) to limit how fast small household debts balloon after judgment. Credit-card balances, medical consumer debts, and similar household obligations were accruing at the same 9% rate as large commercial judgments — a policy the legislature chose to change for smaller consumer judgments.

Credit card judgment vs commercial judgment: — $18,000 credit-card judgment (consumer debt ≤ $25,000): 5%/year → $900/year — $18,000 unpaid invoice between two businesses: typically 9%/year → $1,620/year Same dollars of principal; very different interest engines

Common error: Collection firms and creditors sometimes apply 9% to every Illinois judgment file. On a portfolio of small consumer judgments, that error inflates demand letters, payoff quotes, and garnishment affidavits. Debtors and defense counsel should verify whether the judgment is a consumer debt judgment of $25,000 or less before accepting a 9% payoff figure.

Interaction with pre-judgment interest: The SB 72 pre-judgment interest regime is about personal injury and wrongful death compensatory damages — not about stacking 6% pre-judgment onto ordinary consumer credit-card cases. Keep the tracks separate.

Government Judgments: 6% Rate

When the judgment debtor is a unit of local government (as defined in the Illinois Constitution), a school district, a community college district, or any other governmental entity, post-judgment interest is 6% per year — not 9%. This appears in the same sentence of § 2-1303(a) that sets the 9% default, as an express alternative rate.

When it applies: Lawsuits resulting in money judgments against municipalities, counties, school districts, park districts, community colleges, and similar governmental entities. Confirm entity status carefully; quasi-governmental bodies can be disputed.

Why it differs from the standard rate: Public entities pay judgments from public funds. The legislature chose a lower accrual rate for those debtors. Separately, as noted above, governmental entities are generally not liable for SB 72 pre-judgment interest in PI/wrongful death actions brought against them.

Practical calculation: $500,000 judgment against a private defendant at 9%: $45,000/year ($123.29/day) $500,000 judgment against a local government at 6%: $30,000/year ($82.19/day) Annual difference: $15,000

Settlement and budgeting: School districts and municipalities evaluating verdict exposure must use 6% for post-judgment accrual and, in PI/WD cases against them, generally exclude pre-judgment interest. Plaintiffs' counsel evaluating the same case against a private defendant must use 9% post-judgment and may have years of 6% pre-judgment on the private side. Same injury, different interest stack, depending on who is on the caption.

Using Interest as Settlement Leverage

Interest is not an accounting afterthought in Illinois — it is settlement leverage, especially in personal injury and wrongful death cases after SB 72.

How pre-judgment interest increases case value: Every year a covered PI case remains pending can add 6% of compensatory damages to the plaintiff's judgment number. On a $500,000 damages case pending four years, that is $120,000 — before post-judgment interest starts. Defendants who evaluate settlement solely against "verdict value" without the interest overlay systematically underprice early settlement and overpay by delay.

When defendants should settle early: The settlement-offer safe harbor in § 2-1303 is designed for this. A written offer made within the statutory window can cap or eliminate pre-judgment interest if the eventual judgment does not beat the offer. Waiting until the eve of trial to make the first serious offer can mean years of open 6% accrual with no setoff protection.

Plaintiff strategy: Do not ignore the filing-date clock. Filing sooner (when ethically and factually ready) can increase the pre-judgment interest window relative to a delayed filing — subject to the five-year cap and statute-of-limitations constraints. Also evaluate defense offers against the interest-adjusted expected judgment, not against raw compensatory damages alone.

Post-judgment leverage: After judgment, 9% (or 5%/6% if applicable) continues every day. On a $200,000 judgment, about $49/day is a concrete collection pressure tool. Creditors should state daily dollars in demand letters. Debtors should calculate the cost of a 90-day negotiation delay before assuming "we'll deal with it next quarter."

Example recap for negotiators: PI case, $500,000 compensatory, 4 years filing-to-judgment → ~$120,000 pre-judgment interest Then unpaid for 1 year after judgment at 9% on $620,000 → ~$55,800 additional Delay is expensive on both sides of the "v."

Stopping Interest: Tender of Payment

Illinois law gives judgment debtors a clear way to stop post-judgment interest from continuing to run: tender the full judgment, costs, and interest accrued to the date of tender. Section 2-1303 expressly preserves that tender right even while an appeal or other challenge to the judgment is pending.

What the tender must include: — The judgment principal (or the unsatisfied portion) — Costs as part of the judgment — Interest accrued to the tender date at the correct statutory rate

What usually does not stop interest: — Tendering principal only while omitting accrued interest — Offering a partial payment "toward" the judgment without a full tender — Informal promises to pay next month — Filing an appeal without a tender (appeal alone does not freeze interest)

Effect on collection: A valid tender stops further interest accrual from the tender date even if the creditor refuses to accept payment while fighting about something else — the statute is designed to prevent a creditor from both refusing tender and demanding endless interest. Document the tender with dated proof (cashier's check delivery, wire confirmation, escrow correspondence). If you are the creditor and believe a tender is incomplete, specify in writing exactly which components are missing.

Interaction with pre-judgment interest: Pre-judgment interest is generally calculated through judgment and included in the judgment amount. After judgment, the fight shifts to post-judgment accrual and tender. Do not confuse a pre-judgment settlement offer (which can limit pre-judgment interest under SB 72) with a post-judgment tender (which stops post-judgment accrual under § 2-1303(a)).

Appeals: Debtors sometimes skip tender because they hope to win on appeal. That can be rational if the judgment is likely to be reversed entirely — but if the judgment is likely to be affirmed, unpaid interest at 9% for two years of appellate delay on a large judgment can dwarf appeal costs. Run the daily rate before you decide.

Calculator, Statute Text, and Illinois Resources

Illinois judgment interest rewards precision. The wrong rate category or the wrong start date is not a rounding error — it is often thousands of dollars per year.

Do this next: 1) Identify whether your number is pre-judgment, post-judgment, or both. 2) Identify the rate category: 9% standard, 6% government post-judgment, 5% consumer debt (≤ $25,000), or 6% PI/WD pre-judgment. 3) Identify the correct start date: filing date for covered pre-judgment interest; judgment date for post-judgment interest. 4) Run the dates through the free Illinois Judgment Interest Calculator: /judgment-interest-calculator/illinois 5) For payoff or settlement, calculate through a specific tender/payment date.

Official and reference links: — Illinois General Assembly statute text for 735 ILCS 5/2-1303: https://www.ilga.gov (search 735 ILCS 5/2-1303) — Illinois Legal Aid: https://www.illinoislegalaid.org — TheLegalCalc Illinois calculator: /judgment-interest-calculator/illinois

Primary authorities discussed in this guide: — 735 ILCS 5/2-1303 (interest on judgment) — Public Act 102-0006 / SB 72 (pre-judgment interest, eff. July 1, 2021) — Public Act 101-168 (consumer debt rate amendments) — Cotton v. Coccaro (1st Dist. Appellate Court, 2023) on the pre-judgment interest framework

This guide is for planning and education. Confirm the statutory text and your judgment documents before relying on any payoff figure in litigation or collection.