U.S. · IRS interest rates
IRS interest rate by quarter.
The IRS underpayment rate for the fourth quarter of 2026 is 7%. Pick any date to see its quarter, or scroll to the full table back to 2017.
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The current rate and how it is set
For the quarter beginning October 1, 2026, the IRS underpayment rate is 7% a year, the same as the previous quarter. The IRS announced it on August 21, 2026 in Rev. Rul. 2026-15, published in Internal Revenue Bulletin 2026-36. For individuals the overpayment rate (the rate the IRS pays you on a refund held too long) is also 7%. For corporations the overpayment rate is 6%, the portion of a corporate overpayment above $10,000 earns 4.5%, and large corporate underpayments are charged 9%. The IRS notice also says an IRC section 6603 deposit earns 4%.
The rate is formula-driven. Section 6621 sets the underpayment rate at the federal short-term rate plus 3 percentage points, rounded to the nearest whole percent. The IRS takes the short-term rate for the first month of each calendar quarter and applies it to the next quarter. For Q4 2026 the short-term rate, based on July 2026, was 4%, so 4% plus 3 points gives 7%.
Quarter-by-quarter table (2017 to 2026)
Rates are percent per year, compounded daily. The underpayment rate is the same for corporations and individuals; the individual overpayment rate has matched it since 2017. Source: IRS quarterly interest rates page, retrieved 2026-10.
| Quarter | Months | Underpayment | Individual overpayment | Corporate overpayment | Large corporate underpayment |
|---|---|---|---|---|---|
| 2026 Q4 | Oct to Dec | 7% | 7% | 6% | 9% |
| 2026 Q3 | Jul to Sep | 7% | 7% | 6% | 9% |
| 2026 Q2 | Apr to Jun | 6% | 6% | 5% | 8% |
| 2026 Q1 | Jan to Mar | 7% | 7% | 6% | 9% |
| 2025 Q4 | Oct to Dec | 7% | 7% | 6% | 9% |
| 2025 Q3 | Jul to Sep | 7% | 7% | 6% | 9% |
| 2025 Q2 | Apr to Jun | 7% | 7% | 6% | 9% |
| 2025 Q1 | Jan to Mar | 7% | 7% | 6% | 9% |
| 2024 Q4 | Oct to Dec | 8% | 8% | 7% | 10% |
| 2024 Q3 | Jul to Sep | 8% | 8% | 7% | 10% |
| 2024 Q2 | Apr to Jun | 8% | 8% | 7% | 10% |
| 2024 Q1 | Jan to Mar | 8% | 8% | 7% | 10% |
| 2023 Q4 | Oct to Dec | 8% | 8% | 7% | 10% |
| 2023 Q3 | Jul to Sep | 7% | 7% | 6% | 9% |
| 2023 Q2 | Apr to Jun | 7% | 7% | 6% | 9% |
| 2023 Q1 | Jan to Mar | 7% | 7% | 6% | 9% |
| 2022 Q4 | Oct to Dec | 6% | 6% | 5% | 8% |
| 2022 Q3 | Jul to Sep | 5% | 5% | 4% | 7% |
| 2022 Q2 | Apr to Jun | 4% | 4% | 3% | 6% |
| 2022 Q1 | Jan to Mar | 3% | 3% | 2% | 5% |
| 2021 Q4 | Oct to Dec | 3% | 3% | 2% | 5% |
| 2021 Q3 | Jul to Sep | 3% | 3% | 2% | 5% |
| 2021 Q2 | Apr to Jun | 3% | 3% | 2% | 5% |
| 2021 Q1 | Jan to Mar | 3% | 3% | 2% | 5% |
| 2020 Q4 | Oct to Dec | 3% | 3% | 2% | 5% |
| 2020 Q3 | Jul to Sep | 3% | 3% | 2% | 5% |
| 2020 Q2 | Apr to Jun | 5% | 5% | 4% | 7% |
| 2020 Q1 | Jan to Mar | 5% | 5% | 4% | 7% |
| 2019 Q4 | Oct to Dec | 5% | 5% | 4% | 7% |
| 2019 Q3 | Jul to Sep | 5% | 5% | 4% | 7% |
| 2019 Q2 | Apr to Jun | 6% | 6% | 5% | 8% |
| 2019 Q1 | Jan to Mar | 6% | 6% | 5% | 8% |
| 2018 Q4 | Oct to Dec | 5% | 5% | 4% | 7% |
| 2018 Q3 | Jul to Sep | 5% | 5% | 4% | 7% |
| 2018 Q2 | Apr to Jun | 5% | 5% | 4% | 7% |
| 2018 Q1 | Jan to Mar | 4% | 4% | 3% | 6% |
| 2017 Q4 | Oct to Dec | 4% | 4% | 3% | 6% |
| 2017 Q3 | Jul to Sep | 4% | 4% | 3% | 6% |
| 2017 Q2 | Apr to Jun | 4% | 4% | 3% | 6% |
| 2017 Q1 | Jan to Mar | 4% | 4% | 3% | 6% |
Using the lookup
Enter a date and the tool returns the rate for that day's quarter. Add an unpaid amount and an end date, and it also computes interest for the stretch, using the rate in force on each day, compounded daily. For example, $5,000 unpaid from May 10 to November 10, 2026 crosses three quarters: the 6% rate for the rest of Q2, then 7% in Q3 and 7% in Q4. The estimated interest is $172.20, for a balance of $5,172.20. The amount is a hypothetical, and the real IRS account may differ by a few dollars because its software, not this page, produces your official figure.
Reading the table: three patterns
- The 2022 to 2024 climb. The underpayment rate rose from 3% in the first quarter of 2022 to 8% by the end of 2023 and stayed at 8% through 2024.
- The 2025 reset. The rate fell to 7% in Q1 2025 and held there for the whole year.
- The one-quarter dip. In Q2 2026 the rate was 6%, then back to 7% on July 1. This one-quarter dip is why sources quoting 2026 disagree.
Quarters before 2017 are not in this table or the lookup; check the IRS quarterly interest rates page for earlier years.
Edge cases
- The rate that applies is the one for the quarter in which interest accrues, not the one on the day you were assessed.
- Large corporate underpayments (over $100,000, after a notice period) have a higher rate; the table shows it but the lookup tool reports it only for reference.
- Estimated-tax underpayments use the same quarterly underpayment rate to compute the section 6654 penalty. That calculation also needs the due dates and is not done here.
- The lookup does not know future quarters. For dates after December 2026 it carries the last published rate and flags it as assumed.
Who this is for, and what it does not cover
It is for taxpayers, bookkeepers and students who need the rate for a specific period, or a quick interest figure on a balance. It does not compute penalties (use the IRS penalty and interest calculator) and it does not read your IRS account.
FAQ
What is the IRS interest rate for 2026 Q4?
The IRS underpayment rate for October 1 to December 31, 2026 is 7% (Rev. Rul. 2026-15). The individual overpayment rate is also 7%, the corporate overpayment rate is 6%, and the large corporate underpayment rate is 9%.
How does the IRS set its interest rate?
Under section 6621, the underpayment rate is the federal short-term rate plus 3 percentage points, rounded to the nearest whole percent. The IRS sets it for each calendar quarter based on the short-term rate for the first month of the preceding quarter.
Is the IRS interest rate 6% or 7% in 2026?
Both appear in 2026. The rate was 7% in Q1, 6% in Q2, 7% in Q3 and 7% in Q4. Use the rate for the quarter your balance was open.
How often does the IRS interest rate change?
Every quarter. The IRS announces the next quarter's rate in a revenue ruling before the quarter starts (August 21 for Q4 2026), and it can stay the same, as it did from Q3 to Q4 2026.
Is IRS interest compounded?
Yes. Interest on underpayments is compounded daily under section 6622, and this page's interest figures use each day's quarterly rate.
Does the IRS pay interest on refunds?
Yes. For individuals the overpayment rate equals the underpayment rate, 7% in Q4 2026. Rules for when refund interest starts are in the IRS refund interest guidance, which this page does not model.
Where can I find the official IRS interest rate?
On the IRS quarterly interest rates page and in the revenue ruling for each quarter in the Internal Revenue Bulletin. This page's table is copied from the IRS page and was retrieved in October 2026.
Sources
Retrieved 2026-10. Each link was opened and checked against the claim next to it.
- IRS: Quarterly interest rates: the underpayment, overpayment, corporate and large-corporate rates for every quarter in the table.
- Internal Revenue Bulletin 2026-36: Rev. Rul. 2026-15 sets 7% for the quarter beginning October 1, 2026.
- Internal Revenue Bulletin 2026-8: Rev. Rul. 2026-5 sets 6% for the quarter beginning April 1, 2026.
- IRS news release: Interest rates remain the same for Q4 2026: announcement of the Q4 2026 rates.
- 26 U.S.C. 6621: the short-term rate plus 3 points formula and quarterly setting.
- 26 U.S.C. 6622: daily compounding.
Not tax advice
This page is general information, not tax, legal or financial advice. Tax rules, penalties and rates change, and your facts may differ. Confirm anything that matters with the IRS, a CPA or an enrolled agent before you act. Everything runs in your browser; nothing you enter is sent anywhere.