Attention taxpayers…interest rates are increasing as of October 1, 2022. We dive into the new rates here.

What are the new rates?

  • 6% for overpayments (5% for corporations)
  • 3.5% or the portion of a corporate overpayment exceeding $10,000
  • 6% for underpayments
  • 8% for large corporate underpayments

What are overpayments?

These are payments made in excess of the amount owed.

What are underpayments?

These are taxes owed that are not fully paid.

What are the overpayment and underpayment rates?

For corporations, the underpayment rate is generally the federal short-term rate plus 3 percentage points. The overpayment rate for corps is the federal short-term rate plus 2 percentage points.

For large corporations, the underpayment rate is the federal short-term rate plus 5 percentage points. For the portion of a corporate overpayment exceeding $10,000, the rate is the federal short-term rate plus ½ of a percentage point.

The overpayment and underpayment rates for taxpayers other than corporations is the federal short-term rate plus 3 percentage points.

Questions? We can help.