11/17/2025

For Q1 2026, Interest Rates Will Remain the Same

Additional information will be released Nov. 24

The Internal Revenue Service (IRS) recently announced interest rates will remain the same for the calendar quarter beginning Jan. 1, 2026.

For individuals, the rate for overpayments and underpayments will be 7 percent per year, compounded daily.

The rates are as follows:

• 7 percent for overpayments (payments made in excess of the amount owed), 6 percent for corporations
• 4.5 percent for the portion of a corporate overpayment exceeding $10,000
• 7 percent for underpayments (taxes owed but not fully paid), and
• 9 percent for large corporate underpayments

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rates are 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. 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 interest rates announced on Nov. 13, 2025, are computed from the federal short-term rate determined during October 2025.

Revenue Ruling 2025-22 announcing the rates of interest will appear in Internal Revenue Bulletin 2025-48, dated Nov. 24, 2025.