Pennsylvania Judgment Interest 2026: How the 6% Rate Works

6%: The Lowest Post-Judgment Rate in the United States

Pennsylvania occupies a unique position in American judgment-interest law. While Maryland charges 10%, Illinois 9%, and California 10% on many money judgments, Pennsylvania's contract-action post-judgment rate has remained fixed at 6% per year under 42 Pa.C.S. § 8101 — tied to the lawful rate of interest set in 41 Pa.C.S. § 202. Among the states that publish a single fixed statutory percentage for ordinary civil money judgments, Pennsylvania's 6% is the lowest in the country, sharing that floor with Virginia under Va. Code Ann. § 6.2-302.

The statutory chain is straightforward. Section 8101 of the Pennsylvania Judiciary Code provides that interest on judgments for the payment of money shall be at the lawful rate of interest, which § 202 of the Loan Interest and Protection Law defines as 6% per year. That 6% figure is not indexed to inflation, the Federal Reserve's policy rate, Treasury yields, or any other market instrument. A judgment entered in Philadelphia, Pittsburgh, or any Pennsylvania county in 2026 accrues at the same percentage as one entered decades ago.

What "lowest fixed rate" means for creditors and debtors: — Credit card judgment holders earn $6,000 per year on every $100,000 of unpaid principal — not $8,000 (North Carolina), $9,000 (Illinois or New York), or $10,000 (Maryland or California) — Commercial creditors with breach-of-contract judgments face a predictable, modest accrual schedule that does not spike when prime rises — Debtors who delay payment on contract judgments pay less in statutory interest than they would in almost any neighboring state — The tradeoff for creditors is certainty without inflation protection — 6% in 2026 buys less real return than 6% did when the colonial legislature first fixed the rate

Critical comparison on $100,000 for one year (simple interest, planning rates): — Pennsylvania contract rate: 6% (42 Pa.C.S. § 8101) → $6,000 per year — Virginia: 6% → $6,000 per year — Ohio: 7% (ORC § 1343.03 contexts) → $7,000 per year — North Carolina: 8% (N.C. Gen. Stat. § 24-1) → $8,000 per year — South Carolina: 8.75% (S.C. Code Ann. § 34-31-20(B)) → $8,750 per year — Illinois: 9% → $9,000 per year — Maryland: 10% (Md. Code Ann., Cts. & Jud. Proc. § 11-107) → $10,000 per year — California: 10% → $10,000 per year

Gap Pennsylvania vs Maryland on $100,000: $4,000 per year — over five years of non-payment, that gap is $20,000 in simple interest alone.

Gap Pennsylvania vs Ohio on $100,000: $1,000 per year — Pennsylvania's contract rate trails even modest fixed-rate neighbors.

The tort exception changes the picture entirely. Personal injury, wrongful death, and other tort actions that qualify for delay damages under Pa.R.C.P. 238 do not use the 6% contract rate. They use prime plus 1% — 8.50% in 2026 when the Wall Street Journal prime on January 1 is 7.50%. On $100,000 for one year, that tort rate produces $8,500 — $2,500 more than the contract rate on the same principal. Pennsylvania is therefore not uniformly "the lowest" — it is the lowest for contract actions, with a separate, higher tort lane.

Why the distinction matters for multi-claim litigation: A dispute that produces both contract and tort judgments — or that is misclassified in a payoff letter — can produce dramatically different interest totals. A creditor who applies Maryland's 10% to a Pennsylvania contract judgment overstates accrual by 4 percentage points annually. A tort plaintiff who applies 6% to a qualifying delay-damages award understates accrual by 2.5 percentage points in 2026.

Pennsylvania's 6% rate applies automatically under § 8101. Unlike some jurisdictions where a party must move for post-judgment interest or include a specific prayer in the complaint, the statutory rate attaches to qualifying money judgments by operation of law. The creditor does not need to file a separate interest application to start the clock on contract judgments — though tort delay damages under Rule 238 require compliance with that rule's procedural framework, including the mandatory offer-of-settlement mechanism in many cases.

Simple interest, not compound: Pennsylvania post-judgment interest under § 8101 is simple interest on the unpaid principal. Each period's accrual is calculated on the judgment balance, not on prior interest already accumulated. A $100,000 contract judgment unpaid for five years produces $30,000 in interest ($6,000 × 5), not a compounded figure that would exceed that amount.

Federal judgments in Pennsylvania: Money judgments entered in the United States District Court for the Eastern District of Pennsylvania, the Middle District, or the Western District follow 28 U.S.C. § 1961 — not 42 Pa.C.S. § 8101. Federal post-judgment interest tracks a Treasury-based formula that often sits below 6% in low-rate environments. A case in federal court uses the federal rate unless a specific rule or contract provides otherwise — not the Pennsylvania state statutory 6%.

Official orientation: — 42 Pa.C.S. § 8101 (interest on judgments for payment of money) — 41 Pa.C.S. § 202 (lawful rate of interest at 6% per year) — Pennsylvania General Assembly: https://www.palegis.us — Unified Judicial System of Pennsylvania: https://www.pacourts.us

TheLegalCalc Pennsylvania calculator: /judgment-interest-calculator/pennsylvania

The Calculation: Simple Interest Under 42 Pa.C.S. § 8101

Pennsylvania contract-action post-judgment interest under 42 Pa.C.S. § 8101 is modeled as simple interest on the unpaid principal at 6% per year — the lawful rate defined in 41 Pa.C.S. § 202. It does not compound annually in the ordinary teaching model. Interest accrues only on the principal amount of the judgment, not on accumulated interest from prior periods.

Formula: Interest = Principal × 0.06 × Years Or: Interest = Principal × 0.06 × (Days ÷ 365)

Daily rate on any principal: Daily = Principal × 0.06 ÷ 365

Examples:

A) $50,000 × 6% × 2 years: Annual interest = $3,000 per year Total two-year interest = $6,000 Total with principal: $56,000

B) $100,000 × 6% × 365 days (one year): Annual interest = $6,000 Daily interest ≈ $16.44

C) $25,000 × 6% × 365 days (one year): Annual interest = $1,500 Daily interest ≈ $4.11

D) $100,000 × 6% × 3 years = $18,000 interest Total with principal: $118,000

E) $200,000 × 6% × 5 years = $60,000 interest Total with principal: $260,000

F) $100,000 for 180 days: $100,000 × 0.06 × (180 ÷ 365) ≈ $2,958.90

What simple interest means in practice: Year 2 interest is calculated on unpaid principal, not on Year 1 interest already accrued. If $6,000 of interest accrued in Year 1 on a still-unpaid $100,000 judgment, Year 2 still uses the $100,000 principal base for the statutory simple-interest model (absent a different court order or contract rate).

Partial payments: Credits reduce principal. Recalculate remaining interest after each payment. Document dates carefully — on $100,000, each day is about $16.44 at 6%. On $25,000, each day is about $4.11. Even modest delays add measurable cost on large balances, though Pennsylvania's rate is lower than most neighbors.

Partial payment walkthrough — $100,000 judgment, $25,000 payment after one year: Year 1: $100,000 × 0.06 = $6,000 accrued After payment applied to principal: remaining base $75,000 Year 2: $75,000 × 0.06 = $4,500 accrued Total interest over two years: $10,500 (not $12,000 — the partial payment reduced the base)

Contrast with compounding: If a tool silently compounds 6% for three years on $100,000, it will overstate Pennsylvania's simple-interest statutory model. Always confirm the calculator uses simple interest on principal only.

Contract-rate substitution: If the underlying agreement specified a rate higher than 6% and that rate controls the judgment under Pennsylvania law, replace 0.06 with the contract rate in every formula above. A promissory note at 9% produces $9,000 per year on $100,000 — 50% more than the statutory default.

Relationship to 41 Pa.C.S. § 202: Section 8101 does not invent a new rate — it points to the "lawful rate of interest" elsewhere in Pennsylvania law. Section 202 sets that lawful rate at 6% per year for most contexts. The two sections work together: § 202 defines the number, § 8101 applies it to judgments for the payment of money.

Pre-judgment interest on contract claims: Contract actions may also carry pre-judgment interest at the contract rate or the lawful rate, depending on the agreement and the claim. That pre-judgment phase is analytically separate from post-judgment accrual under § 8101, which begins at judgment entry. Do not conflate a contractual pre-judgment rate with the § 8101 post-judgment rate — they may stack sequentially but require separate date ranges and rate confirmations.

Why Pennsylvania's simplicity is valuable for contract judgments: Unlike Georgia, you never need to look up the Federal Reserve prime rate for the judgment date on a contract claim. Unlike Michigan, you never need to check a twice-yearly certified rate. Unlike tort cases under Rule 238, you never need the Wall Street Journal prime on January 1. The annual percentage is always 6% for the statutory contract default — one number, one formula, every year.

Daily burn reference at 6%: — $25,000 → $4.11/day ($1,500/year) — $50,000 → $8.22/day ($3,000/year) — $100,000 → $16.44/day ($6,000/year) — $200,000 → $32.88/day ($12,000/year)

These figures assume a 365-day year. Some court accounting systems use 360-day conventions for specific instruments — verify against the judgment and local practice before treating a daily figure as authoritative for a court payoff.

Tort Actions: Delay Damages Under Pa.R.C.P. 238 (8.50% in 2026)

Pennsylvania's contract-action rate of 6% under 42 Pa.C.S. § 8101 does not govern every money judgment. Tort litigation — personal injury, wrongful death, medical malpractice, and other non-contract claims — operates under a separate and higher framework: delay damages under Pennsylvania Rule of Civil Procedure 238.

Rule 238 provides that in actions seeking monetary relief for bodily injury, death, or property damage, the court may award delay damages for the period beginning 30 days after the date of a qualifying settlement offer (or analogous trigger under the rule) through the date of judgment or settlement. The rate of delay damages is not 6%. It equals the prime rate published in the Wall Street Journal on January 1 of the year in which the damages period begins, plus 1%.

For 2026, the calculation is: Wall Street Journal prime on January 1, 2026: 7.50% Plus 1% under Rule 238: 8.50% Delay damages rate for 2026: 8.50% per year

That 8.50% rate is more than 40% higher than the standard 6% contract rate. On identical principal, tort delay damages produce substantially greater accrual than contract post-judgment interest under § 8101.

Worked example — $100,000 tort delay-damages base at 8.50% for three years: Interest = $100,000 × 0.085 × 3 = $25,500 Total with principal: $125,500

Compare to the same $100,000 at 6% for three years under § 8101: Interest = $18,000 Difference: $7,500 over three years — entirely driven by the rate lane, not the principal.

Daily burn at 8.50% on $100,000: $100,000 × 0.085 ÷ 365 ≈ $23.29 per day Compare to $16.44 per day at 6% — an extra $6.85 per day on every $100,000 of qualifying tort damages.

How Rule 238 differs from § 8101 structurally: — § 8101: Applies to judgments for the payment of money at the 6% lawful rate; straightforward post-judgment accrual from judgment entry on contract actions — Rule 238: Applies to tort actions seeking bodily injury, death, or property damage damages; uses a variable prime-plus-1% rate reset each January 1; tied to the settlement-offer and delay-damages procedural framework, not a simple post-judgment clock on all tort judgments

The prime-plus-1% formula means the tort rate changes year to year. If prime on January 1, 2027 is different from 7.50%, the 2027 delay-damages rate will differ from 8.50%. Contract judgments remain at 6% regardless of what prime does. Tort practitioners must look up the applicable January 1 prime for each damages year in multi-year cases.

Rule 238's policy purpose: Delay damages compensate tort plaintiffs for the time value of money during periods when defendants delay resolution after a qualifying settlement offer. The higher prime-based rate reflects a legislative and rulemaking judgment that tort delay warrants a market-linked return, unlike the centuries-old 6% contract rate frozen in § 202.

Procedural requirements matter: Rule 238 is not automatic post-judgment interest on every tort verdict. It requires compliance with the rule's offer-of-settlement mechanism, timing rules, and claim-type limitations. Not every tort judgment includes delay damages. Read the judgment and the docket before assuming 8.50% applies to the entire award.

Interaction with § 8101: When a tort judgment does not include delay damages — or when delay damages cover only a specific period — post-judgment interest on the judgment balance may still accrue under § 8101 at 6% from judgment entry on amounts not governed by Rule 238. Mixed cases require careful allocation between the 6% lane and the 8.50% delay-damages lane.

Multi-year tort modeling example — $200,000 delay-damages base, 8.50% for two years: Year 1: $200,000 × 0.085 = $17,000 Year 2: $200,000 × 0.085 = $17,000 Total interest: $34,000 At 6% instead: $24,000 — a $10,000 understatement if the wrong rate is applied

Prime rate sourcing: Use the Wall Street Journal prime rate as published on January 1 of the applicable year. Do not use a mid-year prime change, a regional bank's prime, or the Federal Reserve's discount rate. Rule 238 specifies the WSJ prime — that publication is the authoritative source for the base rate before adding 1%.

Appeals and Rule 238 awards: Delay damages awards may be challenged on appeal like other damages components. Until a court modifies or vacates a delay-damages award, model accrual at the Rule 238 rate for the covered period and § 8101 at 6% for post-judgment interest on the unsatisfied balance as applicable.

Practical checklist for tort interest: 1) Confirm the claim is a tort action qualifying under Rule 238 2) Determine whether delay damages were awarded and for what period 3) Look up WSJ prime on January 1 for each year in the damages period 4) Add 1% to get the delay-damages rate (8.50% for 2026) 5) Apply simple interest on the qualifying damages base 6) Separately model § 8101 post-judgment interest at 6% on any remaining judgment balance not covered by delay damages 7) Verify with counsel before treating any figure as a court payoff amount

Step-by-Step: Calculating PA Judgment Interest

Use this sequence for every Pennsylvania money-judgment interest estimate. The first decision is rate lane: contract (6% under § 8101) or tort delay damages (prime + 1% under Rule 238).

Step 1 — Classify the judgment: — Contract action (credit card, invoice, loan, lease, commercial agreement): 6% under 42 Pa.C.S. § 8101 / 41 Pa.C.S. § 202 — Tort action with qualifying delay damages under Pa.R.C.P. 238: WSJ prime on January 1 plus 1% (8.50% in 2026) — Mixed or unclear: read the judgment, complaint, and docket; do not guess

Step 2 — Confirm the judgment entry date (for § 8101 post-judgment accrual): Post-judgment interest on contract judgments generally starts at judgment entry. Tort delay damages under Rule 238 use a different timeline tied to the settlement-offer framework — confirm the applicable start date for each component.

Step 3 — Determine the rate: — Contract default: 6% — Contract with higher written rate: use the contract rate (see contract-rate section) — Tort delay damages in 2026: 8.50% (7.50% prime + 1%) — Tort delay damages in other years: look up that year's January 1 WSJ prime and add 1%

Step 4 — Confirm unpaid principal after credits, partial payments, and court-ordered adjustments.

Step 5 — Count days from the applicable start date to the proposed payoff date.

Step 6 — Apply the simple-interest formula: Interest = Principal × Rate × (Days ÷ 365)

Step 7 — Add interest to principal for a total payoff estimate (plus any separately ordered costs or fees).

Step 8 — Run the same inputs in /judgment-interest-calculator/pennsylvania as a check.

Worked walkthrough A — Contract judgment, $50,000 unpaid for two years at 6%: $50,000 × 0.06 × 2 = $6,000 interest Daily burn ≈ $8.22 Payoff estimate before extra costs: $56,000

Worked walkthrough B — Contract judgment, $100,000 unpaid for one year at 6%: Interest = $6,000 Daily burn ≈ $16.44 A 30-day payoff delay costs about $493

Worked walkthrough C — Contract judgment, $25,000 unpaid for one year at 6%: Interest = $1,500 Daily burn ≈ $4.11

Worked walkthrough D — Tort delay damages, $100,000 at 8.50% for three years: $100,000 × 0.085 × 3 = $25,500 interest Payoff estimate before extra costs: $125,500

Worked walkthrough E — Tort delay damages, $100,000 at 8.50% for 90 days: $100,000 × 0.085 × (90 ÷ 365) ≈ $2,095.89

Worked walkthrough F — Partial payment on contract judgment: $100,000 judgment, unpaid one year ($6,000 interest accrued), then $40,000 payment reducing principal to $60,000 Second year on $60,000: $60,000 × 0.06 = $3,600 Total interest over two years: $9,600 (not $12,000)

Contract-rate walkthrough — $100,000 at 9% contract rate for two years: $100,000 × 0.09 × 2 = $18,000 interest Compare to statutory 6%: $12,000 Difference: $6,000 over two years — the cost of applying the wrong rate lane

Common errors to avoid: — Applying 6% to tort delay damages (understates by 2.5 percentage points in 2026) — Applying 8.50% to contract judgments (overstates by 2.5 percentage points in 2026) — Using mid-year prime instead of January 1 WSJ prime for Rule 238 — Compounding interest when § 8101 calls for simple interest — Ignoring partial payments when projecting total payoff — Importing Maryland's 10% or New York's 9% into a Pennsylvania file

Document every input: judgment date, principal, rate lane (6% contract vs 8.50% tort vs contract rate), day count, and payment credits. Pennsylvania's fixed 6% contract rate makes the arithmetic easy, but wrong classification or wrong start dates still produce bad payoff estimates.

Contract Rate: When the Parties Agreed to a Different Rate

The 6% rate under 42 Pa.C.S. § 8101 and 41 Pa.C.S. § 202 is the default for contract-action judgments — not necessarily the ceiling. When the underlying written agreement specified a lawful interest rate, that contract rate may control post-judgment accrual instead of the statutory 6%.

Pennsylvania's Loan Interest and Protection Law governs what rates parties may agree to. Section 202 sets the general lawful rate at 6%, but commercial and consumer contracts frequently specify rates above or below that floor, subject to usury limits and other protections elsewhere in Title 41. A judgment entered on a promissory note charging 9% per year may carry 9% through the post-judgment period if the contract rate survives into the judgment.

What contract rate control means in practice: — A loan agreement charging 8% continues at 8% on the judgment balance — A commercial invoice with a 1.5%-per-month default rate (18% annualized) may carry that rate if enforceable and lawful — A credit card agreement with a stated APR above 6% may apply that APR to the judgment principal — A contract silent on interest defaults to the 6% lawful rate under § 8101

What it does not mean: — Every contract automatically overrides 6%. The judgment must arise from a contract that specified an interest rate, and that rate must be lawful and enforceable under Pennsylvania law. — A contract rate below 6% does not force the creditor up to 6% — the agreed lower rate governs if valid. — Tort delay damages under Rule 238 are not replaced by a contract rate — Rule 238 governs tort claims regardless of any incidental contract language in unrelated agreements.

Modeling discipline: 1) Read the judgment for any rate stated on its face. 2) Read the underlying written instrument if the claim is contractual. 3) Determine whether § 8101's 6% default controls or whether the contract rate applies. 4) Only then run the simple-interest formula.

Modeling error example — contract at 9%, mistakenly applied statutory 6%: On $100,000 for one year, the understatement is $3,000 ($9,000 vs $6,000). On $100,000 for three years, the understatement is $9,000 ($27,000 vs $18,000).

Reverse error — applying 9% when no contract rate controls: On $100,000 for one year, the overstatement is $3,000.

Common contract scenarios in Pennsylvania collections: — Bank loans and lines of credit with stated annual percentage rates — Commercial leases with default interest clauses — Promissory notes between private parties — Vendor and supplier agreements with late-payment interest terms — Credit card agreements governed by choice-of-law and federal disclosure rules

Usury and enforceability limits: Pennsylvania law caps certain interest rates depending on the transaction type, lender category, and amount. A contract rate that exceeds applicable usury limits may be unenforceable in whole or in part. Before applying a double-digit contract rate to a judgment, confirm the rate was lawful when the contract was made and remains enforceable in the judgment context.

Practice sequence for contract judgments: 1) Locate the written agreement that gave rise to the claim. 2) Find the interest rate clause — including any default or post-maturity rate. 3) Compare the contract rate to 6%. 4) If the contract rate differs and is enforceable, use the contract rate for post-judgment interest calculations. 5) If no contract rate applies or the contract is silent, use the statutory 6% default under § 8101.

Relationship to 41 Pa.C.S. § 202: The lawful rate of 6% in § 202 is the baseline for judgments without a superseding contract rate. Section 8101 incorporates that baseline by reference. Contract rates that parties lawfully agreed to operate alongside — not within — the § 202 default.

Pre-judgment contract interest: Many Pennsylvania contract claims also seek pre-judgment interest at the contract rate from the date of breach or invoice due date. That pre-judgment phase is separate from post-judgment accrual under § 8101. Model each period with its own start date and confirm the rate for each phase.

Settlement planning: When negotiating before judgment, model both the contract rate (if applicable) and the 6% statutory fallback. A defendant who assumes Pennsylvania's "low" 6% rate may face a higher contract rate if the agreement specified one — a common surprise in commercial collections where default rates of 12% or more appear in fine print.

For the common case — an ordinary civil money judgment without a superseding contractual rate — use 6%. That is the rate this guide and the Pennsylvania calculator are built to explain for the default contract lane. Tort cases use Rule 238. Contract cases with higher rates use the contract rate. Everything else uses 6% simple interest from judgment entry.

Pennsylvania vs Neighboring States: NJ, MD, NY, OH, VA

Pennsylvania sits in a corridor where post-judgment interest rates vary widely. Geography does not determine the rate — the state whose law governs the judgment does. But creditors and debtors in the Philadelphia, Pittsburgh, and border regions frequently compare Pennsylvania's 6% to neighboring jurisdictions.

New Jersey — variable rate tied to Treasury returns: New Jersey post-judgment interest under N.J.S.A. 2A:15-97.1 follows a variable formula based on the average rate of return on State Treasury investments — not a fixed percentage. The rate changes over time and typically sits in a moderate range. New Jersey's approach differs fundamentally from Pennsylvania's fixed 6%: practitioners must look up the current NJ rate rather than applying a single statutory number. On planning comparisons, NJ often falls between Pennsylvania's 6% and New York's 9%, but the exact figure requires checking the current Treasury-based rate.

New York — 9% fixed: Under N.Y. CPLR § 5004, post-judgment interest on many money judgments is 9% per year. On $100,000 for one year: $9,000 — $3,000 more than Pennsylvania's $6,000. New York's rate exceeds Pennsylvania's by 50% on the same principal. Cross-border businesses with operations in both states should model each judgment under its own statute.

Maryland — 10% fixed: Under Md. Code Ann., Cts. & Jud. Proc. § 11-107(a), Maryland post-judgment interest is 10% per year on general money judgments (6% for residential rent judgments under subsection (b)). On $100,000: $10,000 per year — $4,000 more than Pennsylvania. Maryland is among the highest fixed-rate states in the mid-Atlantic.

Ohio — 7% on many judgments: Under ORC § 1343.03 and related provisions, Ohio's post-judgment interest rate on many commercial and contract judgments is 7% per year. On $100,000: $7,000 — $1,000 more than Pennsylvania. Ohio's rate is modestly higher but still well below Maryland or New York.

Virginia — 6% fixed (tied with Pennsylvania): Under Va. Code Ann. § 6.2-302, Virginia post-judgment interest is 6% per year — the same as Pennsylvania's contract rate. On $100,000: $6,000 per year. Virginia and Pennsylvania share the lowest fixed statutory post-judgment rate among states with a single fixed percentage, though Virginia also authorizes pre-judgment interest at 6% under § 8.01-382 in certain cases.

Regional and national snapshot on $100,000 for one year (simple interest): — Maryland 10%: $10,000 — California 10%: $10,000 — Illinois 9%: $9,000 — New York 9%: $9,000 — Pennsylvania tort (Rule 238, 2026): 8.50% → $8,500 — South Carolina 8.75%: $8,750 — North Carolina 8%: $8,000 — Ohio 7%: $7,000 — Pennsylvania contract / Virginia 6%: $6,000

Five-year cost of delay on $100,000 (contract judgments, simple interest): — Maryland: $50,000 interest — New York: $45,000 interest — Pennsylvania: $30,000 interest — Virginia: $30,000 interest Gap MD vs PA: $20,000 over five years

Pennsylvania's tort rate narrows some gaps: At 8.50% under Rule 238, $100,000 accrues $8,500 per year — closer to North Carolina's $8,000 than to Maryland's $10,000, but still above the 6% contract baseline.

Why neighbors matter for Pennsylvania practitioners: — Philadelphia-area creditors collecting on Pennsylvania judgments earn less interest than if the same judgment were governed by New Jersey, New York, or Maryland law — Pittsburgh-area commercial disputes near the Ohio border face a 1-percentage-point rate gap (7% vs 6%) on contract judgments — Tort plaintiffs in Pennsylvania may recover at 8.50% under Rule 238 — higher than Virginia's 6% but lower than New York's 9% post-judgment rate on non-tort judgments — Multi-state litigation requires separate calculations for each forum's judgments — never import one state's rate into another state's file

Forum shopping and choice of law: The rate comparison above assumes a Pennsylvania-governed Pennsylvania judgment entered in Pennsylvania state court. Contract choice-of-law clauses, federal diversity cases, and foreign judgments domesticated in Pennsylvania raise separate conflict-of-laws questions. Consult Pennsylvania counsel when a foreign judgment is being enforced in Pennsylvania or when a Pennsylvania judgment is being enforced elsewhere.

Federal judgments: Cases in the United States District Court for the Eastern District of Pennsylvania (Philadelphia), the Middle District (Harrisburg, Scranton), or the Western District (Pittsburgh) follow 28 U.S.C. § 1961 — not 42 Pa.C.S. § 8101. Do not apply Pennsylvania's 6% to a federal-court judgment without confirming the applicable federal rate.

Use /judgment-interest-calculator/pennsylvania for Pennsylvania-specific estimates; compare manually or with other state calculators for neighbor jurisdictions.

Why Pennsylvania's Rate Has Stayed at 6% for Centuries

Pennsylvania's 6% post-judgment interest rate is not a modern legislative oversight — it is the product of one of the oldest continuous interest-rate traditions in American law. The rate traces directly to Pennsylvania's colonial-era interest statute, An Act for the Better Security of Loans, enacted November 27, 1700, which established 6% as the lawful rate of interest in the Province of Pennsylvania.

That 1700 act predates the United States Constitution by nearly a century. When Pennsylvania codified its interest laws in the modern Loan Interest and Protection Law at 41 Pa.C.S. § 202 and linked judgment interest to that lawful rate in 42 Pa.C.S. § 8101, the legislature preserved the 6% figure rather than updating it to reflect twentieth- or twenty-first-century economic conditions.

Historical continuity: — November 27, 1700: Colonial act sets 6% as the lawful interest rate — Nineteenth- and twentieth-century recodifications retain the 6% figure — 41 Pa.C.S. § 202 (Loan Interest and Protection Law): lawful rate remains 6% per year — 42 Pa.C.S. § 8101 (Judiciary Code): judgments for payment of money carry interest at that lawful rate

While other states raised their judgment interest rates — North Carolina went from 6% to 8% in 1980, Maryland settled at 10%, Illinois at 9% — Pennsylvania never followed. The General Assembly has had centuries of opportunities to amend § 202 or § 8101 and has left the number unchanged.

Scholarly commentary on Pennsylvania's fixed rate includes analysis in the Duquesne Law Review. In a 1985 article, Frank Giunta examined Pennsylvania's interest-rate framework and the tension between the statutory 6% rate and modern economic realities. Giunta's work remains a reference point for understanding why Pennsylvania's rate persists: the combination of historical inertia, lobbying dynamics between creditor and debtor interests, and the separate tort delay-damages mechanism under Rule 238 that gives personal injury plaintiffs a market-linked rate without raising the contract baseline.

Why legislatures change rates — and why Pennsylvania has not: — Creditor pressure: Higher rates compensate for inflation and collection delay — Debtor pressure: Lower rates prevent judgments from ballooning beyond the underlying debt — Economic indexing: Variable-rate formulas eliminate the need for legislative updates — Pennsylvania's compromise: Keep contract judgments at the colonial 6% rate; give tort plaintiffs a higher prime-based rate through Rule 238 (8.50% in 2026)

The Rule 238 split explains part of the political economy. Personal injury lawyers and insurers negotiate over delay damages at prime plus 1% — a rate that adjusts with the market. Commercial creditors on contract judgments remain at 6%. Each constituency has a different rate lane, reducing pressure to raise the contract default.

Inflation impact on real returns: At 6%, a judgment creditor's real return depends on inflation. When inflation exceeds 6%, the creditor loses purchasing power on unpaid judgments. When inflation is below 6%, the creditor gains real value. Pennsylvania chose nominal certainty over inflation protection for contract judgments — the same tradeoff Virginia made at the same rate.

Comparison to states that updated: North Carolina's 1980 increase from 6% to 8% reflected a legislative judgment that the old rate no longer compensated creditors adequately. Maryland's 10% reflects an aggressive pro-creditor posture. Pennsylvania's unchanged 6% reflects a debtor-friendly contract default unmatched anywhere else except Virginia's identical fixed rate.

Will Pennsylvania raise the rate? Predicting legislative action is speculative. Bills to amend judgment interest rates surface periodically in Harrisburg but face opposition from commercial debtors, residential borrowers, and industries that favor predictable low rates. Unless and until the General Assembly amends 41 Pa.C.S. § 202 or 42 Pa.C.S. § 8101, 6% remains the contract default — as it has since 1700.

Practical takeaway for 2026 planning: Do not assume Pennsylvania will "catch up" to neighboring rates in your payoff models. Use 6% for contract judgments, 8.50% for qualifying tort delay damages, and verify the current statutory text at https://www.palegis.us before treating any rate change as effective.

Pennsylvania Courts and the Calculator

Pennsylvania judgment interest law splits cleanly into two lanes: contract actions at 6% simple interest under 42 Pa.C.S. § 8101 and 41 Pa.C.S. § 202, and tort delay damages at Wall Street Journal prime on January 1 plus 1% under Pa.R.C.P. 238 (8.50% in 2026 when prime is 7.50%).

Primary authorities: — 42 Pa.C.S. § 8101 (interest on judgments for the payment of money at the lawful rate) — 41 Pa.C.S. § 202 (lawful rate of interest at 6% per year) — Colonial Act of November 27, 1700 (historical origin of the 6% rate) — Pa.R.C.P. 238 (delay damages in tort actions at prime + 1%) — Loan Interest and Protection Law, Title 41 Pa.C.S. (usury and contract rate framework)

Official legislative source: https://www.palegis.us — search the Pennsylvania Consolidated Statutes for 42 Pa.C.S. § 8101, 41 Pa.C.S. § 202, and the current text of Pa.R.C.P. 238

Official court resources: https://www.pacourts.us — Unified Judicial System of Pennsylvania, including: — Supreme, Superior, and Commonwealth Courts — Courts of Common Pleas in all 67 counties — Philadelphia Municipal Court and Pittsburgh Municipal Court — Self-help materials, court rules, and docket search tools for verifying judgment entry dates and amounts

Scholarly reference: Frank Giunta, commentary on Pennsylvania interest-rate law, Duquesne Law Review (1985) — useful background on why the 6% rate persists

Free planning calculator: /judgment-interest-calculator/pennsylvania

How to use this page with the calculator: 1) Classify the judgment: contract (6%) or tort delay damages (8.50% in 2026) 2) Confirm judgment entry date and unpaid principal 3) Determine rate lane: statutory 6% default, contract rate if higher, or Rule 238 prime + 1% 4) Apply simple interest — no compounding for § 8101 contract judgments 5) For tort cases, confirm delay damages were awarded and identify the applicable period 6) Estimate payoff — then verify against the judgment, docket, and counsel

Quick reference examples for the calculator: — $50,000 contract × 6% × 2 years: $6,000 interest — $100,000 contract × 6% × 1 year: $6,000 interest, ~$16.44/day — $25,000 contract × 6% × 1 year: $1,500 interest, ~$4.11/day — $100,000 tort × 8.50% × 3 years: $25,500 interest

Three numbers every Pennsylvania practitioner should remember: — 6%: contract post-judgment rate under § 8101 / § 202 — lowest fixed U.S. rate — 8.50%: tort delay damages in 2026 under Rule 238 (7.50% WSJ prime + 1%) — 1700: year of the colonial act that first fixed 6% as Pennsylvania's lawful interest rate

Comparison anchor on $100,000 annual contract accrual: Pennsylvania $6,000 | Virginia $6,000 | Ohio $7,000 | North Carolina $8,000 | Illinois $9,000 | Maryland $10,000

Pennsylvania's judicial system spans trial courts in every county, two intermediate appellate courts, and the Supreme Court. Judgment interest rules apply broadly to civil money judgments, but always confirm your specific court order, claim type, and rate lane before relying on a planning estimate.

If you only remember one sentence: Pennsylvania contract judgments accrue at 6% simple interest from judgment entry — the lowest fixed statutory rate in the country — while tort delay damages under Rule 238 run at prime plus 1% (8.50% in 2026). Use the calculator to model your dates and principal, then verify the rate lane before treating any figure as a payoff amount.