Quarterly rates, 2017 through the fourth quarter of 2026
Each rate was checked against the IRS news release for the quarter (or the revenue ruling in the Internal Revenue Bulletin) and the IRS quarterly interest rates page. The underpayment rate is the same for individuals and corporations. The most recent announcement is IR-2026-98 (August 21, 2026): rates “will remain the same for the calendar quarter beginning Oct. 1, 2026,” at 7% for individual underpayments and overpayments. Rates for the first quarter of 2027 had not been announced as of October 25, 2026; the IRS announced the first quarter 2026 rates on November 13, 2025 (IR-2025-112).
| Quarter | Underpayment / individual overpayment | Corporate overpayment | Corporate overpayment over $10,000 | Large corporate underpayment | Federal short-term rate | Source |
|---|---|---|---|---|---|---|
| 2026 Q4 (Oct to Dec) | 7% | 6% | 4.5% | 9% | 4% | IRB 2026-36; IR-2026-98, Aug. 21, 2026 |
| 2026 Q3 (Jul to Sep) | 7% | 6% | 4.5% | 9% | 4% | IRB 2026-22 |
| 2026 Q2 (Apr to Jun) | 6% | 5% | 3.5% | 8% | 3% | IRB 2026-8 |
| 2026 Q1 (Jan to Mar) | 7% | 6% | 4.5% | 9% | 4% | IRB 2025-48; IR-2025-112, Nov. 13, 2025 |
| 2025 Q4 (Oct to Dec) | 7% | 6% | 4.5% | 9% | 4% | IRB 2025-37; IR-2025-87, Aug. 25, 2025 |
| 2025 Q3 (Jul to Sep) | 7% | 6% | 4.5% | 9% | 4% | IRB 2025-23; IR-2025-59, May 12, 2025 |
| 2025 Q2 (Apr to Jun) | 7% | 6% | 4.5% | 9% | 4% | IRB 2025-13; IR-2025-29, March 6, 2025 |
| 2025 Q1 (Jan to Mar) | 7% | 6% | 4.5% | 9% | 4% | IRB 2024-49; IR-2024-290, Nov. 18, 2024 |
| 2024 Q4 (Oct to Dec) | 8% | 7% | 5.5% | 10% | 5% | IRB 2024-37; IR-2024-220, Aug. 21, 2024 |
| 2024 Q3 (Jul to Sep) | 8% | 7% | 5.5% | 10% | 5% | IRB 2024-24; IR-2024-138, May 9, 2024 |
| 2024 Q2 (Apr to Jun) | 8% | 7% | 5.5% | 10% | 5% | IRB 2024-10; IR-2024-47, Feb. 21, 2024 |
| 2024 Q1 (Jan to Mar) | 8% | 7% | 5.5% | 10% | 5% | IRB 2023-49; IR-2023-219, Nov. 17, 2023 |
| 2023 Q4 (Oct to Dec) | 8% | 7% | 5.5% | 10% | 5% | IRB 2023-37 |
| 2023 Q3 (Jul to Sep) | 7% | 6% | 4.5% | 9% | 4% | IRB 2023-23; IR-2023-104, May 22, 2023 |
| 2023 Q2 (Apr to Jun) | 7% | 6% | 4.5% | 9% | 4% | IRB 2023-09; IR-2023-24, Feb. 13, 2023 |
| 2023 Q1 (Jan to Mar) | 7% | 6% | 4.5% | 9% | 4% | IRB 2022-51; IR-2022-206, November 29, 2022 |
| 2022 Q4 (Oct to Dec) | 6% | 5% | 3.5% | 8% | 3% | IRB 2022-35 |
| 2022 Q3 (Jul to Sep) | 5% | 4% | 2.5% | 7% | 2% | IRB 2022-23; IR-2022-107, May 20, 2022 |
| 2022 Q2 (Apr to Jun) | 4% | 3% | 1.5% | 6% | 1% | IRB 2022-10; IR-2022-42, February 23, 2022 |
| 2022 Q1 (Jan to Mar) | 3% | 2% | 0.5% | 5% | 0% | IRB 2021-50; IR-2021-234, November 23, 2021 |
| 2021 Q4 (Oct to Dec) | 3% | 2% | 0.5% | 5% | 0% | IRB 2021-37 |
| 2021 Q3 (Jul to Sep) | 3% | 2% | 0.5% | 5% | 0% | IRB 2021-25; IR-2021-120, May 27, 2021 |
| 2021 Q2 (Apr to Jun) | 3% | 2% | 0.5% | 5% | 0% | IRB 2021-12; IR-2021-50, March 2, 2021 |
| 2021 Q1 (Jan to Mar) | 3% | 2% | 0.5% | 5% | 0% | IRB 2020-52; IR-2020-270, December 3, 2020 |
| 2020 Q4 (Oct to Dec) | 3% | 2% | 0.5% | 5% | 0% | IRB 2020-39; IR-2020-202, September 3, 2020 |
| 2020 Q3 (Jul to Sep) | 3% | 2% | 0.5% | 5% | 0% | IRB 2020-26; IR-2020-113, June 4, 2020 |
| 2020 Q2 (Apr to Jun) | 5% | 4% | 2.5% | 7% | 2% | IRB 2020-12; IR-2020-46, February 28, 2020 |
| 2020 Q1 (Jan to Mar) | 5% | 4% | 2.5% | 7% | 2% | IRB 2019-52; IR-2019-201, December 6, 2019 |
| 2019 Q4 (Oct to Dec) | 5% | 4% | 2.5% | 7% | 2% | IRB 2019-38; IR-2019-146, August 28, 2019 |
| 2019 Q3 (Jul to Sep) | 5% | 4% | 2.5% | 7% | 2% | IRB 2019-26; IR-2019-103, June 5, 2019 |
| 2019 Q2 (Apr to Jun) | 6% | 5% | 3.5% | 8% | 3% | IRB 2019-11; IR-2019-21, February 25, 2019 |
| 2019 Q1 (Jan to Mar) | 6% | 5% | 3.5% | 8% | 3% | IRB 2018-51; IR-2018-244, December 6, 2018 |
| 2018 Q4 (Oct to Dec) | 5% | 4% | 2.5% | 7% | 2% | IRB 2018-39; IR-2018-181, Sept. 7, 2018 |
| 2018 Q3 (Jul to Sep) | 5% | 4% | 2.5% | 7% | 2% | IRB 2018-26 |
| 2018 Q2 (Apr to Jun) | 5% | 4% | 2.5% | 7% | 2% | IRB 2018-13; IR-2018-43, March 7, 2018 |
| 2018 Q1 (Jan to Mar) | 4% | 3% | 1.5% | 6% | 1% | IRB 2017-52; IR-2017-200, Dec. 5, 2017 |
| 2017 Q4 (Oct to Dec) | 4% | 3% | 1.5% | 6% | 1% | IRB 2017-39 |
| 2017 Q3 (Jul to Sep) | 4% | 3% | 1.5% | 6% | 1% | IRB 2017-26; IR-2017-104, June 9, 2017 |
| 2017 Q2 (Apr to Jun) | 4% | 3% | 1.5% | 6% | 1% | IRB 2017-12; IR-2017-53, March 7, 2017 |
| 2017 Q1 (Jan to Mar) | 4% | 3% | 1.5% | 6% | 1% | IRB 2016-51; IR-2016-159, Dec. 5, 2016 |
How the rates are set
IRC 6621 ties every rate to the federal short-term rate, determined for the first month of each calendar quarter and applied in the next quarter, “rounded to the nearest full percent” (IRC 6621(b)). Underpayments bear the short-term rate plus 3 percentage points (IRC 6621(a)(2)). Overpayments earn the short-term rate plus 3 points, or plus 2 points for a corporation, and plus 0.5 point on the part of a corporate overpayment above $10,000 for a taxable period (IRC 6621(a)(1)). A large corporate underpayment, over $100,000 for a C corporation, bears the short-term rate plus 5 points for periods after the applicable date, the 30th day after the first letter of proposed deficiency allowing Appeals review or the notice of deficiency (IRC 6621(c)).
Interest is “compounded daily” under IRC 6622, and the IRS page adds that “Changes to the rate don't affect the interest rate charged for prior quarters or years.” The calculator above applies each quarter's rate to the days in that quarter and compounds daily, dividing the annual rate by 365 or 366 days; it matched the interest factors in the IRS's worked examples in IRM 20.2.14 to nine decimal places. Interest on tax runs from the due date (IRC 6601(a)).
For a full computation with penalties, use the penalty and interest calculator. Interest can be abated only in limited cases, such as IRS ministerial or managerial delay or when the underlying tax or penalty is reduced; see interest abatement.
Questions practitioners ask
What is the IRS interest rate for the fourth quarter of 2026?
7% a year for individual underpayments and overpayments, 6% for corporate overpayments, 4.5% for the part of a corporate overpayment over $10,000, and 9% for large corporate underpayments, compounded daily (IR-2026-98, Rev. Rul. 2026-15).
When will the first quarter 2027 rates be announced?
They had not been announced as of October 25, 2026. For comparison, the IRS announced the first quarter 2026 rates on November 13, 2025 (IR-2025-112) and the fourth quarter 2026 rates on August 21, 2026 (IR-2026-98). Until the 2027 rates are released, the calculator holds the fourth quarter 2026 rate for later dates and flags it.
How is a corporate overpayment over $10,000 treated?
The part of a corporate overpayment above $10,000 for a taxable period earns the federal short-term rate plus 0.5 percentage point instead of plus 2 points (IRC 6621(a)(1)): 4.5% for the fourth quarter of 2026, against 6% on the first $10,000.
Which rate applies to the estimated tax penalty?
The underpayment rate. IRC 6654(a)(1) and 6655(a)(1) use the IRC 6621 underpayment rate for the estimated tax additions, as each quarterly revenue ruling restates, but the penalty is not compounded daily (IRC 6622(b)).