Tennessee’s post-judgment interest rate is now 10.5%.
Tennessee law changed several years ago to provide that a new post-judgment interest rate is computed every six months. Tenn. Code Ann. § 47-14-121. The rate is two percent below the formula rate published by the Tennessee Department of Financial Institutions and is officially published on the website of the Tennessee Administrative Office of the Courts.
A 2022 decision of the Tennessee Court of Appeals cleared up controversy about whether the interest rate changed every six months or whether the interest rate in effect at the time the judgment was entered remained in effect until the judgment was paid in full. The Court said:
We hold that Tennessee Code Annotated § 47-14-121 (a) requires a trial court to calculate post-judgment interest using only the statutory interest rate in effect when the judgment is entered. The applicable post-judgment interest rate does not fluctuate when applied to a particular judgment; instead, it remains the same for the entire period of time following entry of the judgment awarding damages until the judgment amount is paid.
Coffey v. Coffey, No. E2021-00433-COA-R3-CV, 2022 WL 1085039, at *4 (Tenn. Ct. App. April 11, 2022).
The new rate is effective January 1, 2024.