The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Oct. 1, 2025.
For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily. Here is a complete list of the rates:
- 7% for overpayments (payments made in excess of the amount owed), 6% for corporations.
- 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.
A good idea to pay taxes in on time.