Interest on Child Support Arrears in Michigan: Rate, Simple vs. Compound and When It Applies
Michigan child support interest does not exist: a support order does not accrue interest. If the court finds nonpayment willful, it may order a non-compounding surcharge of 1% plus the 5-year Treasury note average, assessed each January 1 and July 1.
Does Michigan charge interest on child support arrears?
No. The statute says a support order shall not accrue interest (MCL 552.603(11)). That is unusual: most states charge interest on missed support. In Michigan the tool is a surcharge, and only a court can order it.
What is the Michigan surcharge?
If the court determines the payer failed to pay support and the failure was willful, it may order that on January 1 and July 1 a surcharge be added to support that is past due as of those dates. The annual rate is 1% plus the average interest rate paid at auctions of 5-year Treasury notes during the 6 months before July 1 and January 1, as certified by the state treasurer; the surcharge does not compound; and the amount due is reduced by one month’s support before it is assessed (552.603a(1)).
How much could a surcharge be?
The state treasurer certifies the rate each cycle, so we cannot state it. As an illustration only, at a 5% annual rate (not a statement of the current rate) with no payments:
| Scenario at 5%, no payments | Surcharge | Total owed |
|---|---|---|
| 12 unpaid installments of $500 | $200.00 | $6,200.00 |
| 24 unpaid installments of $500 | $700.00 | $12,700.00 |
| 36 unpaid installments of $500 | $1,500.00 | $19,500.00 |
Enter the rate the treasurer certified into the Michigan arrears calculator for your own case.
When is no surcharge assessed?
Not for a semiannual cycle in which the friend of the court is collecting current support and the payer paid 90% or more of that cycle’s obligation (from July 1, 2005), not for any period when no support order existed that is later ordered retroactively, and not if the court waived or abated it (552.603a(3)). It applies until the court abates it.
How is the surcharge collected?
Like support, by any means authorized by the act, the friend of the court act or other law, and paid through the state disbursement unit (552.603a(4)). Judgments for money in general carry the interest in MCL 600.6013, but a support order itself does not accrue interest.
Who can ask the court for the surcharge?
The statute lets the court order it when it determines nonpayment was willful, so it is raised in an enforcement proceeding by the recipient or the friend of the court (552.603a(1)). Be ready to explain missed payments with documents.
Does the surcharge replace contempt or other remedies?
No. Other enforcement remedies stay available (552.603(5)), and the surcharge is only an addition to past-due support after a willfulness finding. Expect the court to ask why payments were missed.
Does the surcharge apply to the first month?
The amount due is reduced by one month’s support before the surcharge is assessed (552.603a(1)), so a single current month never earns it. That is why the calculator subtracts one month at each assessment.
Where do you get the official figure?
From the friend of the court in your county, which keeps the payment record. See whether arrears expire or can be forgiven and file to modify if your circumstances changed.
Frequently asked questions
Does Michigan charge interest on child support?
No. A support order shall not accrue interest.
When can a Michigan court order a child support surcharge?
After finding the failure to pay support was willful.
Is the Michigan surcharge compounded?
No. The amount of the surcharge does not compound.
How often is the Michigan surcharge assessed?
On January 1 and July 1 each year, on past-due amounts less one month of support.
Can the Michigan surcharge be waived?
Yes. The court can waive or abate it, and it is not assessed in a cycle where the payer paid 90% or more.
Official sources
- MCL 552.603: judgment; no interest
- MCL 552.603a: surcharge for willful failure
- MCL 552.511: enforcement triggers
- MCL 552.512: credit reporting
- MCL 552.628: license suspension
- MCL 552.629: suspension hearing
- MCL 552.624: tax refund offset
- MCL 552.631: contempt
- 15 U.S.C. 1673: restriction on garnishment
- 42 U.S.C. 652(k): denial of passports
- MCL 600.6013: interest on money judgments
A local family law attorney can review your situation — many offer a free consultation.
This is general information, not legal advice. It is based on the cited Michigan statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Michigan attorney.