IRS Announces 7 Percent Interest Rate For Overpayments And Underpayments

IRS Announces 7 Percent Interest Rate for Overpayments and Underpayments

The Internal Revenue Service (IRS) has announced interest rates for tax underpayments and overpayments for the fourth quarter of 2026, maintaining them at 7 percent for individual taxpayers. When a taxpayer does not pay their taxes, penalties, and other charges on time, the IRS charges underpayment interest. Conversely, if a taxpayer were to pay more taxes than what is actually owed, the agency pays interest on the overpayment. Interest rates o…

Interest rates remain the same for the fourth quarter of 2026

The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Oct. 1, 2026. For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily. Here is a complete list of the new rates: Under the Internal Revenue Code, the rate of interest is...