Prejudgment Interest Rules in Ohio
At a glance
| Governing law | R.C. 1343.03(A) covers money due; (C) governs tort prejudgment interest; R.C. 2743.18(A) covers judgments against the state |
|---|---|
| Interest rate | R.C. 5703.47 rate: July federal short-term rate, rounded, plus 3 points; 7% in 2026. A written contract may set a different rate (R.C. 1343.03(A)) |
| When interest starts running | Money due: when due and payable. Tort: after a favorable settlement-effort finding, from claim accrual for admitted liability or deliberate harm; otherwise the earlier of qualifying written notice or the pleading date (R.C. 1343.03(A), (C)(1)) |
| Contract vs. tort claims | Money due under a contract or similar obligation earns interest under (A); tort prejudgment interest requires the postdecision settlement-effort finding under (C) |
| Mandatory or discretionary | Creditor is entitled to interest when money is due under (A); tort interest follows if the court makes the required good faith findings under (C)(1) |
| Simple or compound | R.C. 1343.03 and 5703.47 specify annual rates but do not expressly address compounding |
| Claims against the government | State Court of Claims judgments: prejudgment interest for the same period and rate as between private parties; the court may deny periods of claimant-caused undue delay (R.C. 2743.18(A)) |
| Other exceptions | No tort prejudgment interest on future damages; other-law periods, state Court of Claims actions, and workers' compensation actions are excluded from (C) (R.C. 1343.03(C)(2), (D)) |
Requirements one by one
When interest starts running
Under R.C. § 1343.03(C)(1)(c), an ordinary tort case uses the longer period ending at judgment. That means an eligible written notice given before the pleading can start the clock earlier. The notice route counts only when the claimant reasonably investigated liability insurance and gave near-simultaneous written notice, in person or by certified mail, to the defendant and any identified insurer. If those conditions are unmet, the pleading date supplies the start.
Claims against the government
R.C. 2743.18(A) allows the Court of Claims to deny interest for a period of undue delay caused by the claimant between filing and judgment. The rest of the period uses the rate and timing allowed between private parties.
What trips people up
A tort verdict alone does not trigger prejudgment interest. R.C. 1343.03(C)(1) requires a party's motion and a hearing after the verdict or decision, with findings on both parties' settlement efforts. Future damages found by the fact finder are excluded under R.C. 1343.03(C)(2).
Common questions
What is the 2026 statutory rate? The Ohio Tax Commissioner's 2026 rate table lists 7% for the rate computed under R.C. 5703.47(B). A written contract may provide a different rate under R.C. 1343.03(A).
Does the statute require compound interest? R.C. 1343.03 and R.C. 5703.47 state annual rates but do not say that prejudgment interest compounds. The contract or another governing rule may matter.
Statutes and sources
- R.C. 1343.03(A), (C), (D), current text, accessed 2026-10-06: https://codes.ohio.gov/ohio-revised-code/section-1343.03
- R.C. 5703.47(A), (B), rate formula, accessed 2026-10-06: https://codes.ohio.gov/ohio-revised-code/section-5703.47
- R.C. 2743.18(A), state defendant rule, accessed 2026-10-06: https://codes.ohio.gov/ohio-revised-code/section-2743.18
- Ohio Tax Commissioner, 2026 certified interest rates, accessed 2026-10-06: https://tax.ohio.gov/home/annual-certified-interest-rates
- OH HB 257, introduced bill and current status, checked 2026-10-06: https://www.legislature.ohio.gov/legislation/136/hb257
Source links
Every statute quoted above, linked, with the date we checked it.
What does Ohio law mean for your facts?
You just read the general rule. Ask your own question and see which parts of current Ohio law apply to your situation, with citations you can check.
Opens in Ezel Pro.
- Starts from the statutes this survey is built on
- Cites every source it relies on, so you can verify it
- Chat, drafting and research in one workspace