Rates For The Quarter Beginning Oct. 1 Remain Unchanged
(UCBJ) – The Internal Revenue Service announced interest rates will remain unchanged for the fourth quarter of 2026, beginning Oct. 1. For individuals, the rate for tax overpayments and underpayments will remain at 7% per year, compounded daily.
The rates for the fourth quarter are:
- 7% for individual overpayments
- 6% for corporate overpayments
- 4.5% for the portion of a corporate overpayment exceeding $10,000
- 7% for underpayments
- 9% for large corporate underpayments
Under the Internal Revenue Code, the IRS determines interest rates on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
Generally, for corporations, 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 exceeding $10,000 for a taxable period is the federal short-term rate plus one-half of a percentage point.
The interest rates announced by the IRS were calculated using the federal short-term rate determined during July 2026.
The rates are outlined in Revenue Ruling 2026-15 and are scheduled to appear in Internal Revenue Bulletin 2026-36 on Aug. 31.
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