Quarterly Interest Rates

IRS sets and publishes current and prior years interest rates quarterly for individuals and businesses to calculate interest on underpayment and overpayment balances.

To get the latest information on interest rates sent to your email, subscribe to the IRS Newswire with e-News Subscriptions.

On This Page

Current Year 2022 Quarterly Interest Rates

2022 Interest Rates by Category

Interest Categories 4th Quarter
(Oct-Dec)
3rd Quarter
(Jul–Sep)
2nd Quarter
(Apr–Jun)
1st Quarter
(Jan–Mar)
Non-Corporate overpayment (for example, individual) 6% 5% 4%​ 3%​
​Corporate Overpayment 5% 4% 3% 2%
Underpayment (Corporate and Non-Corporate) 6% 5% 4%​ 3%​
​GATT (part of a corporate overpayment exceeding $10,000) 3.5% 2.5% 1.5% 0.5%
​​Large Corporate Underpayment (LCU) 8% 7% 6% 5%
​​Internal Revenue Code (IRC) 6603 Deposit (Federal Short-Term Rate) 3% 2% 1% 0%

Source

Prior Years Quarterly Interest Rates

Interest Categories 4th Quarter
(Oct–Dec)
3rd Quarter
(Jul–Sep)
2nd Quarter
(Apr–Jun)
1st Quarter
(Jan–Mar)
​​Non-Corporate Overpayment (for example Individual) ​3% ​3% ​3% 3%​
​Corporate Overpayment ​2% ​2% ​2% 2%
Underpayment (Corporate and Non-Corporate) ​3% 3% 3% 3%​
​GATT (part of a corporate overpayment  exceeding $10,000) ​0.5% ​0.5% ​0.5% 0.5%
​​Large Corporate Underpayment (LCU) ​5% ​5% ​5% 5%
​​IRC 6603 Deposit (Federal Short-Term Rate) ​0% ​0% ​0% 0%

Source

Interest Categories 4th Quarter
(Oct–Dec)
3rd Quarter
(Jul–Sep)
2nd Quarter
(Apr–Jun)
1st Quarter
(Jan–Mar)
​​Non-Corporate Overpayment (for example, Individual) 3%​ 3%​ 5%​ 5%​
​Corporate Overpayment 2% 2% 4% 4%
Underpayment (Corporate and Non-Corporate) 3%​ 3%​ 5%​ 5%​
​GATT (part of a corporate overpayment exceeding $10,000) 0.5% 0.5% 2.5% 2.5%
​​Large Corporate Underpayment (LCU) 5% 5% 7% 7%
​​IRC 6603 Deposit (Federal Short-Term Rate) 0% 0% 2% 2%

Source

Interest Categories 4th Quarter
(Oct–Dec)
3rd Quarter
(Jul–Sep)
2nd Quarter
(Apr–Jun)
1st Quarter
(Jan–Mar)
Non-Corporate Overpayment (for example, Individual) ​5% ​5% ​6% ​6%
​Corporate Overpayment 4% 4% ​5% ​5%
Underpayment (Corporate and Non-Corporate) ​5% ​5% ​6% ​6%
​GATT (part of a corporate overpayment exceeding $10,000) 2.5% 2.5% 3.5% 3.5%
​​Large Corporate Underpayment (LCU) 7% 7% 8% 8%
​​IRC 6603 Deposit (Federal Short-Term Rate) 2% 2% 3% 3%

Source

Interest Categories 4th Quarter
(Oct–Dec)
3rd Quarter
(Jul–Sep)
2nd Quarter
(Apr–Jun)
1st Quarter
(Jan–Mar)
Non-Corporate Overpayment (for example, Individual) 5% ​5% ​4% ​5%
​Corporate Overpayment ​4% ​4% 3% ​4%
Underpayment (Corporate and Non-Corporate) ​5% ​5% ​4% ​5%
​GATT (portion of a corporate overpayment exceeding $10,000) ​2.5% ​2.5% ​2.5% 1.5%
​​Large Corporate Underpayment (LCU) ​7% ​7% ​7% 6%
​​IRC 6603 Deposit (Federal Short-Term Rate) ​2% ​2% ​2% ​1%

Source

Interest Categories 4th Quarter
(Oct–Dec)
3rd Quarter
(Jul–Sep)
2nd Quarter
(Apr–Jun)
1st Quarter
(Jan–Mar)
​​Non-Corporate Overpayment (for example, Individual) 4% 4% 4% 4%
​Corporate Overpayment 3% 3% 3% 3%
Underpayment (Corporate and Non-Corporate) 4% 4% 4% 4%
​GATT (part of a corporate overpayment exceeding $10,000) 1.5% 1.5% 1.5% 1.5%
​​Large Corporate Underpayment (LCU) 6% 6% 6% 6%
​​IRC 6603 Deposit (Federal Short-Term Rate) 1% 1% 1% 1%

Source

How We Calculate Interest Rates

Interest will accrue on any unpaid tax, penalties and interest until the balance is paid in full. The interest rates we charge and pay on overpayments and underpayments are compounded daily. This means the interest is assessed on the previous day’s balance plus the interest. For details, see Interest.

We use the federal short-term rate based on daily compounding interest to calculate the interest we charge and pay. Changes to the rate don't affect the interest rate charged for prior quarters or years.

Interest Rate Categories and Formulas

Different interest rates apply to underpayments and overpayments, depending on whether you're an individual or a corporation. Use these tables to find the formula to calculate the rate for your type of interest.

Table 1: Tax Underpayments Interest Formulas

Type of Interest Applies To Formula
Standard Corporate and Non-Corporate underpayments Federal short-term rate plus 3 percentage points
Large Corporate Underpayment Underpayments of tax exceeding $100,000 by C-corporations Federal short-term rate plus 5 percentage points

Table 2: Tax Overpayment Interest Formulas

Type of Interest Applies To Formula
Standard Non-Corporate Overpayments Federal short-term rate plus 3 percentage points
Corporate Corporate overpayments Federal short-term rate plus 2 percentage points
Large Corporate Overpayment Corporate overpayments exceeding $10,000 Federal short-term rate plus 0.5 of a percentage point

Laws and Regulations

Related Topics