The Internal Revenue Service said Tuesday that interest rates will remain the same for the calendar quarter beginning Oct. 1.
For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily.
Other rates are:
- 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, the agency said.
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," according to the announcement.
"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 IRS noted.
The interest rates announced Tuesday are computed from the federal short-term rate determined during July 2025.
Revenue Ruling 2025-18 PDF announcing the rates of interest will appear in Internal Revenue Bulletin 2025-37, dated Sept. 8.
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