IRS Interest Rate History Table
| Quarter | Individual rate | Corporate overpayment |
|---|---|---|
| 2026 Q4 | 7% | 6% |
| 2026 Q3 | 7% | 6% |
| 2026 Q2 | 6% | 5% |
| 2026 Q1 | 7% | 6% |
| 2025 Q4 | 7% | 6% |
| 2025 Q3 | 7% | 6% |
| 2025 Q2 | 7% | 6% |
| 2025 Q1 | 7% | 6% |
| 2024 Q4 | 8% | 7% |
| 2024 Q3 | 8% | 7% |
| 2024 Q2 | 8% | 7% |
| 2024 Q1 | 8% | 7% |
| 2023 Q4 | 8% | 7% |
| 2023 Q3 | 7% | 6% |
| 2023 Q2 | 7% | 6% |
| 2023 Q1 | 7% | 6% |
| 2022 Q4 | 6% | 5% |
| 2022 Q3 | 5% | 4% |
| 2022 Q2 | 4% | 3% |
| 2022 Q1 | 3% | 2% |
| 2021 Q4 | 3% | 2% |
| 2021 Q3 | 3% | 2% |
| 2021 Q2 | 3% | 2% |
| 2021 Q1 | 3% | 2% |
| 2020 Q4 | 3% | 2% |
| 2020 Q3 | 3% | 2% |
| 2020 Q2 | 5% | 4% |
| 2020 Q1 | 5% | 4% |
| 2019 Q4 | 5% | 4% |
| 2019 Q3 | 5% | 4% |
| 2019 Q2 | 6% | 5% |
| 2019 Q1 | 6% | 5% |
| 2018 Q4 | 5% | 4% |
| 2018 Q3 | 5% | 4% |
| 2018 Q2 | 5% | 4% |
| 2018 Q1 | 4% | 3% |
| 2017 Q4 | 4% | 3% |
| 2017 Q3 | 4% | 3% |
| 2017 Q2 | 4% | 3% |
| 2017 Q1 | 4% | 3% |
The IRS charges interest on unpaid taxes and pays it on late refunds at the same quarterly rate, set from the federal short-term rate and compounding daily. That rate sat at 3% through 2021, climbed every quarter of 2022 to reach 8% by late 2023, held through 2024, and stands at 7% for the fourth quarter of 2026. Pick any year above for its four quarterly rates.
Because the rate is symmetric for individuals, the table doubles as a refund-rate history: a 2021-era refund carried 3% interest while a 2024 one earned 8% - and the IRS owes that interest automatically once a refund runs past 45 days.
How to use
- Pick a year to see that year’s four quarterly rates; the chips jump to the flat years, the 2022 staircase, and the current quarter.
- Read the corporate column for business contexts: corporate overpayments earn one point less than individuals, and large corporate underpayments run two points above.
- Interest compounds daily, so a full year at a 7% quarterly rate costs slightly more than 7%.
Frequently asked questions
Why did IRS interest rates triple between 2021 and 2023?
The individual rate is the federal short-term rate plus 3 percentage points, and that base exploded as the Federal Reserve hiked: 0% deposit quarters in 2021 became 5% by late 2022. The IRS resets every calendar quarter, so the 2022 column shows the staircase - 3%, 4%, 5%, 6% - followed by 7% and then 8% in late 2023.
Does the IRS pay the same rate on refunds it owes me as it charges on taxes I owe?
Yes for individuals: overpayment and underpayment rates have been identical in every quarter shown since 2017. Corporations earn one point less on overpayments, and the portion of a corporate overpayment above $10,000 earns only the GATT rate - far less again.
What interest does the IRS pay on a late refund?
By law the IRS owes interest on refunds paid more than 45 days after the return’s due date, at the quarterly rate compounded daily. At the Q4 2026 rate of 7%, a $5,000 refund 90 days late carries about $86 of interest; in 2021 the same delay cost the IRS just $37 at 3%.
What are the GATT and IRC 6603 rows on the IRS page?
GATT is the reduced rate on the part of a corporate overpayment exceeding $10,000. An IRC 6603 deposit is money a taxpayer parks with the IRS to stop underpayment interest from accruing; it earns only the federal short-term rate - 4% for Q4 2026 against 7% for regular underpayments.