The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning January 1, 2023. The IRS adjusts rates quarterly, and as of the second quarter of 2026, the rate is 6%. If you owe tax to the IRS, interest is accruing daily – reach out for help with tax debt now.
Here is a complete list of the new IRS interest rates:
For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily, up from 6% for the quarter that began on October 1.
- 7% for overpayments (payments made in excess of the amount owed), 6% for corporations.
- 4.5% for the portion of a corporate overpayment exceeding $10,000.
- 7% for underpayments. (taxes owed but not fully paid)
- 9% for large corporate underpayments.
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate determined during October 2022. For more details you can view the revenue ruling docoument Revenue Ruling 2022-23 PDF.
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